Case Studies | FinTech

Merchant-centric personalisation and offer generation, built on AWS

Clustering and Offer Generation

About

A FinTech business working with Cloud Combinator on AWS. The client is anonymised at their request.

Challenge

The challenge had three focus areas.

No way to segment members by propensity to shop

Merchants could not distinguish members with a high propensity to shop from those with medium or low, so campaigns could not be targeted. The system needed to sort members into clear propensity groups that merchants could act on using member IDs.

Generating personalised offers at scale

Beyond segmentation, the client wanted offers tailored to each member based on their behaviour and the merchant's own rules, generated automatically rather than crafted by hand for hundreds of merchants.

Choosing the right approach

There was a genuine question over whether Amazon Personalize or a large language model on Amazon Bedrock would segment members better for this data. Rather than guess, the client wanted both built and compared so the decision rested on evidence.

Solution

Member, demographic and merchant offer data is collected, prepared and stored in Amazon S3. From there, two segmentation pipelines run in parallel. Amazon Personalize builds a model that ranks members and applies threshold-based segmentation into high, medium and low propensity groups. In parallel, a large language model on Amazon Bedrock performs the same segmentation task, so the two approaches can be compared on the same data. Each pipeline returns member IDs grouped by propensity, ready for merchants to target.

3

Propensity segments per member: high, medium and low

$0.0031

Projected cost per personalised offer at design volume (projected)

1,000+

Merchants the system was sized to serve

By the numbers:

  • 3 - Propensity segments per member: high, medium and low
  • $0.0031 - Projected cost per personalised offer at design volume (projected)
  • 1,000+ - Merchants the system was sized to serve
Changes

Cloud Combinator delivered an end-to-end system, deployed and validated in the client's AWS environment, that segments members by propensity to shop through both Amazon Personalize and Amazon Bedrock, and generates personalised offers via Bedrock. The client came away with a working service and a like-for-like comparison of the two segmentation approaches, plus training and documentation for its team.

  • Propensity segmentation, two waysMembers grouped into high, medium and low propensity to shop using both Amazon Personalize and a Bedrock large language model, each returning member IDs by group.
  • Automated offer generationAmazon Bedrock dynamically creates personalised offers per member, combining behaviour and propensity with each merchant's rules.
  • A clear approach comparisonBuilding both pipelines on the same data gave the client an evidence-based view of which method fitted its needs.
  • Cost-efficient at scaleThe system was modelled at roughly 0.0031 US dollars per offer, sized for 1,000 merchants reaching 1,000 members each per month.
  • HandoverThe end-to-end system deployed and validated, with training sessions and documentation for the client's team to use and maintain it.

With a working personalisation system and a clear view of the best segmentation approach, the client has a foundation it planned to take into live testing and towards a production-ready service, giving its merchants a sharper way to reach the members most likely to shop.

AWS Stack

Amazon Personalize

For propensity-based member segmentation into high, medium and low groups.

Amazon Bedrock

For large language model segmentation and dynamic personalised offer generation.

Amazon S3

For storage of member, demographic and merchant offer data.

AWS Lambda

For inference orchestration and AWS Glue for data preparation.

Amazon DynamoDB

For low-latency storage supporting the personalisation pipelines.

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