Segmentation strategies through advanced analytics: Bluestem Case Study

Document created by Makenna.Brei on Dec 1, 2016Last modified by Makenna.Brei on Apr 27, 2017
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Bluestem adds millions in revenue with segmentation strategies through advanced analytics.

 

Client

Bluestem Brands, Inc., one of the largest direct marketers in the US.

 

Challenge

Increase revenue within existing customer base without increasing risk.

 

Solution

The team used the predictive analytic functionality in FICO® Analytic Modeler Decision Tree Professional to re-segment customers and develop new credit line strategies to increase sales.

 

Results

FICO Analytic Modeler Decision Tree Professional allowed Bluestem to re-segment its customer database and extend additional credit to a set of customers previously identified as high-risk. With the predictive power of advanced analytics, Bluestem targeted a set of receptive, responsible customers who bought more when offered higher credit lines, and generated nearly $12 million in incremental sales. Bluestem applied the methodology more extensively the following year, and generated $13.5 million in additional sales.

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