A technique for customizing mailed purchase incentives for selected
consumer households, based on a detailed purchasing history of the
consumers. Purchase transactions of many consumers, generally in different
stores, are accumulated in a purchase history database over a long period
of time and then used to generate customized incentive offers for selected
consumers. For a selected product category, usually related to a
promotional theme, the purchase history database is scanned to select
consumers who have made purchases in the same product area as the selected
product category. Then each selected consumer's purchase transactions are
analyzed to determine a profile for the consumer, such as loyal to the
promoted brand, loyal to a competitive brand, or new to the selected
product category, although a purchaser of related products. The consumer
profile is then used to customize a purchase incentive package generated
for each consumer household. The package also includes other printed
materials to enhance the purchase incentives. Post-processing provides
results reports of response and redemption rates, and retention analysis
is used to track the targeted consumers' shopping behavior to assess the
long-term effects of a promotion.