Success Story: Chervonyi Market

  • Means of machine learning help “Chervonyi Market” to know its customers better.

  • About company

    “Chervonyi Market” is the Ukrainian chain of home goods stores. The company offers a wide range of goods in different categories, from toys and stationery to cosmetics and body care products.


    The management of the “Chervonyi Market” chain set a goal to increase the conversion of marketing mailings by optimizing the customer data processing from various sources. Individual approach is of great importance in modern retail. Discovering needs of each customer and providing only necessary information significantly increases loyalty. In turn, the competent introduction of advanced technologies is the key to effective work with data.

    “In the past, consumer expectations were focused on three variables: cost, choice, and convenience. Nowadays customers also want a personalized service approach — both offline and online.”

    Author's imageDmitrii SolopovBusiness Development Manager, SMART business


    The processing of large data arrays and the conduct of analytics for making decisions are perfectly handled by machine learning tools. SMART business has developed on the Microsoft Azure platform a model that takes into account both socio-demographic data of clients and data from cash receipts. The task of the algorithm was to determine the most relevant offers for a customer on the basis of data on purchases, such as regularity of the purchase of a product, price categories, location of stores etcetera.


    Analysis of customer behavior with the help of the correct mathematical model during his/her interaction with the store both online and offline provides recommendations with an accuracy of 85%. The implemented model allowed “Chervonyi Market” to set up personalized marketing campaigns and provide customers with information about needed products in right place. The company succeeded in increasing conversion, the share of marketing messages recepients which made a purchase after the receipt, compared with total number of the recepients.

    “The main indicator of a campaign effectiveness is conversions. On average, conversion can be increased from 5% to 15%, as the result of personalized marketing campaigns. According to IDC Retail Insights, 40% of retailers who will implement an artificial intelligence-based system in 2019 to create a personalized customer experience will increase conversion to 30% and their incomes by 25%.”

    Author's imageVladimir KornienkoDirector of the loyalty program, Chervonyi Market

    Personalized offers provide unique customer experience and satisfy customers’ need for personalized service. The growth of customer satisfaction suggests that such mailings are turning into a useful marketing tool, and “Chervonyi Market” is an example of the role of innovation in this process.
    The next step is optimization of the model to improve the accuracy of the results continuously.

    Additional information

    SMART business provides services on development, maintenance and training of the ERP and CRM systems, systems based on predicative analytics and artificial intelligence. For 10 years, the company has been consulting and creating proprietary solutions based on Microsoft products, including Microsoft Dynamics 365, Microsoft Office 365, Microsoft Azure, Microsoft Power BI, as well as Data and AI technologies. SMART business has guided digital transformation in companies of different sizes, across different industries and sectors in more than 60 countries worldwide.


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