Case Study: Bluestem Brands, Inc. achieves millions in incremental sales with FICO Analytic Modeler Decision Tree Professional

Bluestem adds millions in revenue with segmentation strategies through advanced analytics

Bluestem Brands, Inc., a top direct marketer and one of the top 100 online retailers operating brands such as Fingerhut, Gettington.com and Paycheck Direct, sought to grow revenue from its existing customer base without raising credit risk. The company needed a way to identify pockets of customers who would respond to higher credit lines while avoiding increased write-offs.

Using FICO Analytic Modeler Decision Tree Professional, Bluestem re-segmented its customer database and evaluated multiple outcomes (revenue and risk) simultaneously to design targeted credit-line strategies. That approach uncovered receptive, responsible segments previously labeled high-risk, producing nearly $12 million in incremental sales from those pockets and, when rolled out more broadly the following year, an additional $13.5 million in sales—helping Bluestem exceed its forecasts and strengthen its bottom line.

Bluestem Brands, Inc

Chuck Miller

Director of Account Management