Research On The Optimal Reward Rate Of Loyalty Program In Win-Win Goals

Reward program is an important means of developing customer relationship and improving the profit of enterprises, but the literatures about it recently is very few at home, and the existing research is mainly aimed at the retail and aviation. This study expands the range of reward program, and analyses the influence to the behavioral of the savings customers about reward program in banks. The main purpose of the research is that:through adjust one of the structure factors of the reward program-reward rate, the choice behavior of the savings customers in the bank is influenced, and both of the customer utility and bank customers'life time value will be maximized in a long time. Finally the win-win goals about both bank and customer will be arrived.According to the particularity of banking customers, the research established the state transition model, and according to the Markov-Chain transferred law, the paper discovered the change of customer behavior. The study analyses the game playing of bank and customer, and establishes the state transition model according to the state transform of customers:the decision of the enterprise affect the choice behavior of customer, in turn the choice behavior of customer make an influence on the decision of the enterprise. So the bank wants to change the decision of the customers by adjusting the reward rate, and the customers want to change the decision of the bank by alternate the remaining balance of their bank account. At last under the control of the optimization algorithm both of their profit will maximum.The research selected the transaction data of the valid customers in the bank in the number of 5000. computed the customer lifetime value and the customer expect value. In the range of one third of rate of return of the bank, we searched the appropriate combination of reward rate. The result shows that the change of the combination of reward rate haves no noteworthy influence, but the customer lifetime value is inversely proportional to the low reward rate of the combination of reward rate.The innovation of the research is to make a new definition in the state space for bank customers. Bank customers'model meets the bank's actual business needs to a higher degree. And assessed through maximum likelihood estimation method of the parameters this paper got the best combination of reward rate. This model improved the earnings, and realized the Win-win goals of the bank and the customers in limited marketing resources.