What is Banding and why would I use it?
In simple terms, Bands are an RFM segmentation of your guests in your loyalty program. RFM stands for "Recency", "Frequency", and "Monetary". This means that accounts are being segmented based on how often they visit, how frequently they visit, and how much they spend when they visit. We call each of these segments a Band.
Am I Eligible for Banding?
To be eligible for banding:
You must have the Paytronix Loyalty product.
You must have Loyalty transaction data at least 180 days ago (6 months of loyalty transaction data)
What are the different types of Bands?
Bands will cover the entire spectrum of your loyalty base. From your regulars whose name is known by all the staff to the guests who stop by once every couple years as they are in town visiting.
Platinum – A target of 91st-100th percentile of customers based on Spend and Visits. This will vary in reality.
Gold - 76-90%
Silver - 51-75%
Bronze - 0-50%
Fresh – Enrolled in quarter getting processed (usually the most recent full quarter)
Lapsed – Was enrolled for full quarter getting processed, but didn’t spend or visit. This is also the band for accounts with no activity in quarter getting processed and with no activity in previous quarter.
Gone — No activity 2 quarters before the quarter getting processed. This remains the account band for cases of no activity going as far back as 4 quarters before the quarter getting processed. Quarters only count if the account was enrolled for the full quarter.
Really Gone – No activity 5 quarters before the quarter getting processed or earlier. Only counts if the account was enrolled for the full quarter.
How and When your Bands are Calculated:
Banding is calculated on a quarterly basis. The schedule for when new Bands are available is: January 1st, April 1st, July 1st, and October 1st. At the start of each quarter, our Banding tool will look back at the previous quarter and calculate which band each account belongs to based on their visit and spend activity during that time period. The quarter being "processed" is the previous three months from the start of the new quarter. For example, for new Bands that are available on April 1st, we look at an account's activity during January, February, and March.
If you have Strategy & Analytics, you can work with them to change the dates when your Bands are calculated.
Where can I see my Bands?
You can view your Bands by navigating to the Analytics tool and viewing the Banding Overview dashboard under Loyalty. Here you will find a breakdown of all of your Bands, specific to your guests. You'll be able to view statics around average visits and spend for each Band, percentage breakdown of how many guests are present in each band, and how guests move between Bands.
Curious about previous period Bands? You have the ability to change which band you are viewing at the top of the dashboard to look back at previous periods.
Where can I use my Bands?
You can use Bands in the Account Filters tool you are already familiar with. For more on Account Filters, see What are Account Filters?. The Bands live under the "Insights" condition family. By dragging over the sub-conditions you'll be able to select the different bands we mentioned earlier for each quarter. You can then use this filer anywhere that Account Filters are used, primarily the Campaign Center and the Report Center.