Better Offers Through Predictive Analysis

Sam's Club, a division of Wal-Mart Stores, is achieving higher than expected results from its transformational eValues program enabled by FICO(R) Retail Action Manager as its core predictive technology platform.

With this deployment of FICO Retail Action Manager, a marketing decision application using a combination of predictive analytics, rules, and optimization technology, Sam's Club is the first retailer to automate the combination of these technologies to target highly-customized offers to its members.

“Our strategy for success is based on employing member insights to make the best choices for our members, and with FICO predictive analytics and optimization, we can take into account a member's preferences, purchase history, and in-club product availability to maximize offer relevancy and profitability through our eValues program,” said Linda Vytlacil, vice president for Member Insights at Sam's Club.

“Not only are traditional paper coupons wasteful, they require consumers to do all the work of evaluating their usefulness, clipping and bringing them into the club, and presenting them at the point of sale,” said Cindy Davis, executive vice president for Marketing, Membership and eCommerce at Sam's Club.

“By contrast, the Sam's Club eValues program presents Sam's Club Plus(R) members with offers on products they love and on items they may be interested in trying. The eValues offers are loaded electronically onto their membership cards. Members can view their offers any time at and via in-club kiosks, and the offer is applied automatically at check-out. To date, the results have included a higher than expected response from members.”

“Many retailers accept one to two-percent coupon conversion rates as a fact of life,” said Jane Johnson, vice president at FICO. “Sam's Club is much more visionary. In a business where member loyalty is of paramount importance, Sam's Club is committed to continual innovation in order to improve the relevancy and strength of its member relationships. The implementation of FICO Retail Action Manager is an important milestone in the achievement of its vision.”

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