Russia's X5 Retail Group has introduced new machine learning technology to improve targeted marketing at its Perekrestok supermarkets.
The retailer says that the new technology is used to create over 70% of personalised offers for members of the Perekrestok Club loyalty programme.
The system groups customers into segments based on common features, such as behavioural and demographic factors, and creates offers tailored to them.
It processes data on the frequency and size of purchases, customer preferences, lifestyle factors, favourite product categories, and visiting hours.
X5 says that big data can open up new development opportunities in terms of the value propositions of its retail network.
"Intelligent systems are set to become increasingly important for businesses, which is why are paying close attention to data processing," said Fabricio Granja, X5 Retail's chief information officer.
"The Perekrestok project is a successful case of using data analytics produced by a self-learning system to foster customer loyalty. Marketing offers that are created based on hundreds of factors increase the effectiveness of targeted marketing by 5% and reduce communication costs by 40%."
X5 has been trialling the system since March 2016, but is now expanding the programme to include all members of the Perekrestok Club loyalty programme.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Sarah Harford. Click subscribe to sign up to ESM: The European Supermarket Magazine.