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Allo Bank · Incentive design · 2024

Cut a retention program’s cost, kept its customers

A discount program was leaking spend in two directions at once — to people gaming it, and to people who needed no incentive at all.

Context

The program was designed to hold customers who might otherwise leave. In practice it was paying two groups it never intended to: abusers who had worked out the mechanics, and loyal customers who were going to stay regardless.

Both leaks look identical in the aggregate. Redemption is up, cost is up, and retention is stable — so the program appears to be working exactly as designed.

My role

Defined the segmentation, quantified each leak, and specified the redesign with the campaign team.

Method

Behavioural segmentation to separate the two leaks from genuine retention response, then redraw eligibility so the rewards followed the behaviour that actually needed rewarding.

Retention was treated as a constraint, not a target. The question was not how much cost could be removed, but how much could be removed before retention moved — a different and much more answerable question.

Outcome

Rp XX billion per month in cost reduction, with retention held.

Commercial figures are masked as XX. Methods and relative changes are as they happened. · All projects

Next Sunset the loyalty point program Points were not making customers loyal. Most churned at redemption.