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Tatiana Stepanova
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March 15, 2022

INSIGHTS ARTICLE: Perekrestok X5 Group - Digital Transformation

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Digital Transformation

The process of digital transformation is one of the major trends that have been clearly seen over the past few years. Digitalization allows businesses to optimize their business processes, by increasing company productivity and improving customer interactions.
 
The retail sector is actively using digital processes in its activities, as they directly impact the quality of work with customers and business performance indicators in general. Perekrestok has great opportunities to analyze Big Data based on sales data, checks and loyalty cards. The retail chain actively uses tools provided by partner agencies (for example, econometrics and all metrics of digital campaigns).
 
In digital media channels, we track the full and most detailed customer trace from interaction with our advertising placements (OLV, banners, promoposts, articles, native placements, etc.) to the final application / mobile application installation / code activation / receipt registration. In addition to standard measurement tools (Google codes and Yandex pixels), we have created a unique approach for the market: X5 ID, which helps to recognize an already existing client and offer the most relevant offer for them.
 
Thus, the introduction of a digital approach in the formation of target audiences made it possible to increase responses to offers by 1.5 to 2 times and increase revenue from an offer per 1 client by 30%. Since the launch of the mobile application, every 4th user has already taken advantage of the individual offers available to them. And the integration of the loyalty program with the CVM tool made it possible to reduce customer attrition, develop partner projects and attract additional retail sales volume.
 
In addition, in order not only to understand, but to anticipate the desires of each client, Perekrestok was one of the first Russian retailers to involve customers in the process of transforming the retail chain. It was and remains important for the company to hear all the people, both those who buy and those who sell. Therefore, studies were carried out not only at the level of clients, but also employees, call centers, and HR departments. A CRM prototype was developed, projects were formed from an internal client, an employee, and an external one, a buyer. We have developed from scratch multi-channel digital services for collecting and analyzing feedback from buyers and employees. By analyzing the data of the hotline, chat and CRM, it was possible to continuously monitor the level of loyalty and increase it.
 
Speaking about employees, it should be noted that the NPS indicator directly affects their motivation, so Perekrestok employees are interested in feedback and the level of NPS. In this regard, service marathons were introduced into regular management, which help supermarket employees to better understand the specifics of interaction with customers. As a result, employees can give feedback, which prevents them from providing customers with a high level of service, and for support services to make a number of specific changes that improve processes/atmosphere for employees. By the way, employees of stores where the NPS indicator increases receive a bonus. During the year, the project covered 990 Perekrestok supermarkets throughout Russia, and 80% of the stores received a premium for service. At the end of each marathon, an increase of 15-20 NPS points was recorded in the most active supermarkets, and in the most involved stores NPS reached a level of 90-100%. 

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