Case Study: Canadian Tire Financial Services achieves actionable customer-value segmentation and targeted profit growth with FICO Segmentation Models

Canadian Tire targets customer value to drive sustainable growth

Canadian Tire Financial Services, the financial arm of Canadian Tire Corporation, needed an actionable metric to measure customer value across its cardholder base so it could refocus marketing, product and service investment. The challenge was to identify which customers generated profits and which eroded them, and to translate that insight into a strategic, enterprise-level approach.

Partnering with FICO, they implemented enterprise segmentation using comprehensive data to create six strategically distinct, value-differentiated segments—revealing that 21% of active cardholders accounted for 100% of profits while 6% caused a -12% drag. The segmentation enabled targeted tactics (more relevant offers, prioritized servicing, adjusted compensation and collections focus), immediate campaign improvements and a credit-limit program whose recommendations aligned 86% with optimization results.

Canadian Tire Financial Services

Mark Merritt

Canadian Tire Financial Services