Magnit has launched the introduction of individual promotional offers for customers

2021: Launch of individual promotional proposals

PJSC Magnit on December 14, 2021 announced the start of the introduction of individual promotional offers for buyers. Using detailed algorithms using artificial intelligence, Magnit will work with thousands of audience microsegments and provide them with the most relevant actions in different communication channels. Customer Value Management (CVM) is scheduled for 2022.

With the launch of these tools, CVM Magnit completely transforms the mechanics of forming personal promotional proposals and will switch from manual control of segment promotional campaigns to an automated system. As of December 2021. The company is updating business processes for a full launch in 2022. The project is being implemented in conjunction with the Boston Consulting Group (BCG), which has expertise and extensive experience with global retailers in this direction.

Hyperpersonalized promotional offerings will be created based on the Magnit loyalty program data array. At the end of the 3rd quarter of 2021, it had almost 55 million loyalty card holders, the share of purchases using cards exceeds 65% in sales.

As of December 2021, single offers are formed for a segment covering from 100,000 buyers, while downloading, creating messages and analytics occur largely manually. The system will automatically determine audience segments based on hundreds of parameters for the entire period of interaction with the client, automatically create offers for a variety of groups, up to the individual client, and conduct a daily performance assessment. Dynamic segmentation allows you to create quotations for each campaign. Self-learning algorithms at the right time will select optimal mechanics for customers (the most relevant products, discounts, coupons, bonuses) in various communication channels, including a mobile application, push notifications, SMS mailing and others.

To start CVM in "Magnet" three product teams are created from data analysts and Big Data, marketers, experts of commercial function. The work is based on the principles of agile: flexible methods of interaction, which allow you to quickly correct processes. The company plans to actively cooperate with suppliers to create personalized offers, jointly support their promos and increase sales of goods.

{{quote 'author = said Lyudmila Podyapolskaya, Director of Customer Value Management and Customer Experience at Magnit Retail Chain. |

This is a fundamentally different model of working with our customers - with a focus on the most effective and adapted offers for each client in the right channels at the right time. Thanks to international developments, BCG with the launch of Magnit algorithms will be one of the first in, Russia retailers which will be able to operate in thousands of unique promotional campaigns daily. - IT CVM systems will be are integrated with existing tools, and all transformation will take place in the Company's circuit, which will minimize costs and accelerate the launch of a new approach, }}

{{quote 'author = noted Nikolai Yakovlev, Managing Director and Partner, Head of BCG Expert Practice on Consumer Products retail Russia and in and CIS. |

Personalization ceases to be just a fashion trend and is increasingly becoming a tool for creating competitive quality, especially in retail. In recent years, many companies have been trying to work with personalized offers in one form or another. However, our experience with leading global retailers shows that the greatest success is achieved by those who do this using advanced analytical methods based on artificial intelligence. In this case, the efficiency of personalized offers can more than double the return on mass promos,}}