Aeroflot Customer Personalization Reaches New Heights with IBM Analytics

IBM Analytics help Russia’s leading airline increase share in domestic and international markets

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Moscow, Russia, - 30 Mar 2016: Russia’s largest airline Aeroflot, has turned to IBM (NYSE:IBM) analytics technologies to transform the customer experience of 40 million passengers who fly with Aeroflot annually, helping to increase passenger numbers and brand loyalty.

Through the deal, Aeroflot will use IBM’s advanced analytics technologies to draw insight from vast amounts of structured and unstructured data from across the company’s various properties including travel booking website, social networks, IT and accounting systems amongst others.

Utilizing this data to better understand customer preferences and buying behaviors will allow Aeroflot to improve customer service and conduct more targeted marketing campaigns. For example, when promoting special offers to new destinations, Aeroflot’s business teams will be able to target travelers with the most relevant profiles and highest levels of potential interest.

“The deployment of analytics technologies will be of great benefit to our customers while searching for and selecting the best offers. Personalization and targeted marketing tools will allow us to proactively attract new customers while successfully developing relationships with our existing base", said Mikhail Fandeyev, Marketing Director, Aeroflot.

The new system will use data mining, machine learning and predictive modelling technologies to analyze the buying behavior of Aeroflot’s customers. Leveraging over 300 data points including last purchase, purchase history, the number of purchased tickets, destination types and price sensitivity, Aeroflot will be able to create unique customer profiles and more accurately calculate customer lifetime value.

“As Russia’s leading airline, Aeroflot recognized the need to personalize the entire customer experience from ticket to flight,” said Eugene Ostrovsky, Head of Transport Industry Solutions, IBM Eastern Europe / Asia. "It turned to IBM’s analytics technologies to draw meaningful insight from the floods of data produced by its business systems and online channels. As a long-term partner to Aeroflot and a world leader in analytics, we are providing some of the most advanced technologies available to help turn data into valuable insight and support Aeroflot’s continued transformation and growth.”

IBM’s analytics technologies including BigInsights and SPSS were selected by Aeroflot as a result of a thorough market analysis through which IBM’s business partner Technoserv Consulting was chosen as the system integrator for the deal

"Big data has great potential for solving large-scale problems, but not all large enterprises are able to turn this data into business value. Aeroflot was the first among Russian airlines to clearly understand the value of data within its organization and to deliver on its potential with this innovative project. We are delighted to expand our cooperation with Russia’s largest carrier, and bring to bear our deep industry expertise and IBM’s world-leading analytics technologies," said Dmitry Bulenko, Director of Business Development, Transportation Sector, Technoserv Consulting.

For more about IBM Analytics, please visit: http://www.ibm.com/analytics

About Aeroflot

Aeroflot is Russia’s flagship carrier and one of the largest airline groups in Europe. In 2015, Aeroflot carried 26.1 million passengers (39.4 million passengers as Aeroflot Group including subsidiaries), a record for any Russian airline. A proud member of the SkyTeam global airline alliance, Aeroflot and its partners serve 1,057 destinations in 179 countries worldwide.

In 2015 Aeroflot was named by SKYTRAX as the Best Airline in Eastern Europe for the fourth time and for the first time was ranked among TOP-10 airlines with Best Airline Cuisine according to Global Traveler.

Aeroflot operates one of the youngest fleets in the world, numbering 170 airliners. Aeroflot is based in Moscow, Sheremetyevo international airport.

Aeroflot is among the global leaders in aviation safety. The company’s European Community Safety Assessment of Foreign Aircraft (SAFA) Index, which is the main globally recognized safety parameter, is comparable to global peers.

The first Russian carrier to enter the IATA Operational Safety Audit (IOSA) register, renewing its registration for the sixth time in 2015, Aeroflot has successfully passed the IATA Safety Audit for Ground Operations (ISAGO) and is fully ISO 9001:2008, ISO 14001:2004 compliant.

For more information on Aeroflot, please visit: www.aeroflot.ru

About IBM Eastern Europe / Asia

IBM has been present in Russia/CIS for over 40 years. It is a leading provider of high-value solutions and services to clients in a variety of industries including government, telecommunications, healthcare, finance, retail and oil and gas. IBM has offices in a number of major cities across the Russian Federation, Ukraine, Kazakhstan and Azerbaijan as well as important facilities and resources to support its clients and partners. Moscow is home to the IBM Innovation Centre, the IBM Client Centre and the IBM Science and Technology Centre which hires some of the most talented technical specialists who work side-by-side work with IBM's global teams on the development of next generation technologies.

About Technoserv Consulting

Technoserv Consulting was founded in 2009 through the unification of Sputnik Labs and the consulting practices of Technoserv and Reksoft. It drives consulting projects focused on the optimization of the largest financial, telecommunication, transport, industrial, retail and state organisations. Technoserv Consulting has expertise in administrative consulting and in the implementation of business applications covering all functions and management levels of the modern enterprise.

For more information on Technoserv Consulting, please visit: http://www.tsconsulting.ru/

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