Attendees will learn how a well-known national retailer, CVS/Caremark, has had great success utilizing their point-of-sale channel to deliver relevant offers to their customers, driving substantial incremental sales results. They will hear how CVS/Caremark has improved the ROI of their ExtraCare loyalty program by using offer optimization. Based on a series of predictive models and optimization analytics, this program integrates and leverages millions of customer data points including past promotions and offers from multiple channels, purchase transaction history, and demographics to maximize ROI. While this case illustrates how CVS/Caremark addressed the fundamental business challenge of crafting and delivering discount offers that will drive incremental sales while also meeting margin / profitability goals, it explains how it has evolved and been refined for even greater ROI. This success is attributed to a behind-the-scenes analytic engine that drives differentiated offers to customer across segments, given certain cost restraints, to achieve specified business goals. The engine provides the optimal discount level and offer timing for each cohort of customers. Using this approach, CVS/Caremark is able to improve marketing efficiency and marketing effectiveness while continuing to provide value to their customer base. As a result of using offer optimization, program ROI has doubled for the ExtraCare program that has already generated hundreds of millions of dollars annually in incremental sales/sales lift.