BrazilFinance and insurance2022 – ongoingPicPay
Machine learning to target cash-back rewards
PicPay saved $10 million by using machine learning to target cash-back promotions
Problem
PicPay is a Brazilian mobile payments app. Its growth team paid cash-back rewards and wanted to stop spending on promotions that did not change customer behavior.
Approach
The growth team used machine learning on Databricks to segment customers by usage patterns and to predict how they would use reward points. The predictions guided which customers received cash-back promotions.
Results
Takeaway
Targeting rewards by predicted behavior cut waste in a large promotion budget. The company did not say how it measured the savings.
Categories
- Industry
- Finance and insurance
- Business function
- Marketing and sales
- Innovation type
- Process innovation
- AI technology
- Predictive analytics and ML
- Adoption
- Off-the-shelf tool or platform
- Evidence
- Vendor case study
Sources
Source summaries
Databricks reports that PicPay's growth team used machine learning to segment customers and predict reward-point use, which sharpened its cash-back targeting. The page gives $10 million in savings from smarter cash-back rewards. It also lists platform cost figures that this case does not use.
Full details are in the original sources.
