Case Study: Major Canadian Grocery Retailer achieves 40% of grocery sales through personalized loyalty offers with FICO

Major Canadian Grocery Retailer Builds Relationship Value by Systematically Learning What’s Relevant to Individual Customers

A major Canadian grocery retailer sought to grow recurring revenue by launching a new loyalty program in a saturated market amid one of the worst years for grocery sales in decades. The challenge was to build lasting customer relationships by making offers and contacts highly relevant to individual shoppers rather than using blanket rewards.

The retailer used FICO analytics to learn customer preferences at scale, running 4,000+ time-to-event models to generate ~90 million product-propensity scores weekly and prescribing up to 20 individualized digital offers from 380 billion possible combinations for 9 million members. In year one the program attracted over 9 million members, who now account for more than 40% of grocery sales, make more trips, buy bigger baskets across more categories, and have increased the company’s share of wallet among its best customers.