In 2021, Econ One was retained by a major airline in the US airline industry to accurately predict frequent flier user behavior and determine outstanding liabilities for the purposes of financial reporting.. The client operates a comprehensive loyalty program aimed at rewarding frequent flyers and incentivizing customer retention. Leveraging the client’s sandbox environment, equipped with an Oracle database, Econ One conducted detailed descriptive analyses to gain aggregated insights into the user base. The intricacies of the client’s production server setup had previously hindered their ability to obtain such insights. To address this challenge, Econ One’s analytics team performed extensive detail descriptives under the guidance of Dr. Amarita Natt (who has extensive experience in modelling redemption outcomes using sophisticated machine learning techniques and algorithms), shedding light on various aspects of customer behavior and loyalty point utilization patterns.

One of the pivotal aspects of Econ One’s approach was the development of predictive models tailored to client’s specific preferences and requirements. These models incorporated additional variables and characteristics, including geographic segmentation, to enhance the accuracy of prediction of points redeemed. The team also implemented cross-validation techniques to detect and mitigate overfitting, ensuring the robustness and generalizability of the predictive models. Through collaborative efforts and rigorous analysis, Econ One delivered actionable insights to the client. These included accurate predictions of redemptions, enabling informed decision-making in regulatory compliance and financial planning. The detailed descriptives provided the client with valuable insights into their user base, empowering them to make data-driven decisions and optimize their loyalty program strategies. Overall, Econ One’s collaboration with the client exemplifies the value of data-driven solutions in navigating complex challenges within the aviation industry, ultimately leading to improved customer loyalty and business growth.