Gap Inc. (NYSE: GPS) was founded in 1969 with a single store. Today, at more than $14.5 billion, they are one of the world's largest specialty retailers with three of the most recognized and respected brands in the apparel industry — Gap, Banana Republic and Old Navy. Gap has approximately 165,000 employees supporting more than 4,200 stores in nearly 3,100 locations in the United States, United Kingdom, Canada, France, Japan and Germany.

Situation:

• The company’s Old Navy business launched a private label card and uses direct mail to generate incremental revenue
• Needed to improve growth across customer segments

Scope:

• Conduct analysis of current segments and processes to improve response rates and revenue

Solution: 

• Developed profiles of “adult” and “family buyer” segments and developed two response propensity models
• Developed two offer response models to optimize current offer strategy and targeting