X5 automated target marketing in Intersection

On November 1, 2017 announced X5 Retail Group company implementation of machine learning technology for target marketing in retail chain stores Intersection and created personal offers for all participants of the loyalty program Club of Intersection.

Using machine learning technology in the analytical module (aCRM) of the loyalty program of retail chain stores there is customer segmentation on groups to uniform signs and preparation of offers for them. A system analyzes data on the selected audience and creates models of the personified marketing campaigns taking into account several hundred behavioural and demographic factors. The analytical module considers the frequency and the amount of purchases, preferences, factors defining lifestyle, acceptable price level, favourite types of goods and preferable time of visit of supermarkets. The sensitivity of clients to specific proposals is predicted using different analytical models among which there are regressions, decision trees and neural networks. Also aCRM defines the most effective communication channels with the selected audience and independently creates texts of marketing messages.

'Retail chain stores Intersection (2017)'

Except biographical particulars, a system accumulates and considers information obtained in an analysis result of different behavioural and demographic factors in calculations. All process of data analysis and segmentation of audience is automated. The interface of an analytical system allows to plan date and time of communications, to keep the reporting under marketing actions and also to configure campaigns taking into account results of test campaigns. Marketing specialists are connected to work only for campaign goal setting at the beginning of the project and for monitoring of results of campaigns.

"Technologies for the automated intellectual analytics of Big Data open an opportunity for development of value propositions of retail chain stores. In the long term the role of intelligent systems will only grow in business therefore we pay a close attention to work with data. The project in Intersection — an example of successful use of the results of analytics received using the trained system for development of loyalty of buyers. The marketing offers created taking into account hundreds of factors increase efficiency of target marketing by 5% and reduce costs for communications for 40%". Fabricio Granja, CIO of X5 Retail Group