Case Study: a large retail service provider achieves $2.5M annual profit lift with Agilence

Increasing Retail Profits With Rewards Optimization

a large retailer service provider, a specialty department store brand with about 800 U.S. locations, needed to understand how overlapping rewards and promotions were affecting profitability. Its POS system was applying total-order rewards discounts after other discounts, which reduced margins and made it hard to tell whether fixing the issue would be worth the effort.

Using Agilence to query transactional data, the retailer identified transactions with both discount types, compared discount outcomes, and calculated the opportunity value of changing the order of application. The analysis showed that applying the % coupon before the $ coupon added $405K back to the bottom line in just two months, or nearly $2.5M annually, and the results helped drive support across teams and 153 new LP projects.