Case study - retail supermarket chain

The Challenge:
A first tier US grocery chain, which distributes coupons to members of its loyalty club each week by means of an in-store kiosk, was seeking to increase sales by offering more relevant and targeted coupons to each consumer.

The Solution:
Sagarmatha's PPB solution analyzes the loyalty club's database (10mn members), and produces an optimized set of 6 personalized coupons for each customer (from 500 potential options). The target function, as defined by the retailer, was to maximize sales. The PPB monitors performance on a monthly basis and continually improves performance.


The Result:
Through personalization, the chain reached overall redemption rates of 17.5%, as compared to an industry average of less than 2% for coupons distributed in the press or on shelf. Every second customer who visited the chain store redeemed at least one coupon, with redeeming customers spending on average $14.5 per week more than the control group.

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