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Retail Chain | Credit Card Company |
Telecom
Retail Chain:
The Challenge:
One of Israel's biggest retail chains, which sends 7 coupons a month to all
members of its loyalty club, seeks to increase sales using a targeted coupon
campaign.
The Solution:
Sagarmatha's PPB system analyzed the loyalty club's
database (compiled mainly from POS data), and produced an optimized set of 7
personalized coupons for each customer (from 100 potential options). The
target function, as defined by the retailer, was to maximize sales. The
system checks performance on a monthly basis and dynamically improves
performance.
The Result after 2 Months:
Sales increased by 6.5% and the use of coupons tripled (more than 9%) when
compared with the control group. More than 60% of loyalty club members who
visited the chain store used at least one coupon.
The Result after 12 months:
Sales increased by 17%. Every second customer who visited the chain store
used at least one coupon. The number of loyal customers to the chain doubled.
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