Blue Yonder teams up with dunnhumby to boost personalised customer loyalty

Blue Yonder: personalised loyalty project

Blue Yonder: personalised loyalty project

Predictive analytics firm, Blue Yonder, has teamed up with Tesco-owned data analyst, dunnhumby, to personalise the shopping experience of individual customers by predicting 10 products they are likely to buy on their next shopping trip.

As a twist, the challenge also aimed to predict items bought infrequently such as washing powder or table condiments from a dunnhumby client’s wide range of food and non-food items. 

To do this, all  the products bought in a six-week period prior to the shopping trip were removed from the list of eligible items for an individual customer’s purchasing forecast.

Blue Yonder’s Predictive Analytics Suite was trained to extract the individual shopping behaviour and preference from a three-year shopping history of about 100,000 loyal customers. The information was based on loyalty data.

According to Blue Yonder, personalising a customer‘s shopping trip to increase loyalty and overall basket spend has now become a key objective for most grocery retailers.

As a result, the information about which 10 items customers are likely to buy on their next shopping trip is a highly valuable insight for retailers, the company said. 

Promotions and individual campaigns can then be more effective, said Blue Yonder. Since a customer receiving a promotion will potentially only look at a few recommendations on the screen of a mobile device, exact targeting increases the likelihood of meeting the customer’s expectation, it said.

Max Jolly, global head of digital at dunnhumby, said: “We at dunnhumby want to continually explore new data and methods of understanding what matters to customers so we can help our clients do a better job for them. Both teams worked together very well to make this challenging preliminary project a success; this successful co-operation will hopefully form the basis of a fruitful relationship between dunnhumby and Blue Yonder going forward.”