Case Study: Leading Retailing Company boosts loyalty program value and marketing efficiency with Equifax

How Retailers Can Use Consumer Spending Insights to Help Enhance Loyalty Programs

Equifax worked with retailers facing a common problem: loyalty programs that attract many members but don’t reliably capture the highest-spending customers. Retailers’ existing segmentation often can’t quickly identify long-term customers who spend elsewhere, pinpoint new customers with high spending potential, or flag members who no longer justify targeted marketing.

Equifax scored retailer customer files with household spending-capacity measures (e.g., Income360, DS$, DSI) to segment accounts—adding high-spending, long-term non-members, fast-tracking high-potential new customers, and downgrading low-potential members. By refocusing promotions on households with greater estimated discretionary spending, retailers improved targeting and marketing efficiency and, based on prior analyses, could increase revenue potential and marketing efficiency by as much as 25%.