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March 31, 2016updated 04 Sep 2016 11:07pm

IBM to transform customer experience of Aeroflot’s 40m passengers in analytics deal

News: IBM Analytics help Aeroflot increase share in domestic and international markets.

By CBR Staff Writer

IBM has signed an analytics technology agreement with Russian airline Aeroflot.

Under the deal, IBM analytics will assist Aeroflot to transform the customer experience of 40 million passengers in order to increase passenger numbers and brand loyalty.

Aeroflot will utilise advanced analytics technologies of IBM to gather insight from structured and unstructured data from across the company’s properties including travel booking website, social networks, IT and accounting systems.

Aeroflot intends to enhance customer service and undertake additional targeted marketing campaigns using the data to understand customer choices and buying behaviors.

The buying behavior of the airline’s customers will be analysed using data mining, machine learning and predictive modelling technologies.

Aeroflot will create customer profiles and calculate customer lifetime value using more than 300 data points such as last purchase, purchase history, the number of purchased tickets, destination types and price sensitivity.

The airline selected IBM’s analytics technologies including BigInsights and SPSS as a result of a market analysis. IBM’s business partner Technoserv Consulting is the system integrator for the agreement.

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Aeroflot marketing director Mikhail Fandeyev said: "The deployment of analytics technologies will be of great benefit to our customers while searching for and selecting the best offers.

"Personalisation and targeted marketing tools will allow us to proactively attract new customers while successfully developing relationships with our existing base."

IBM Eastern Europe/Asia head of transport industry solutions Eugene Ostrovsky said: "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."

Aeroflot is one of the largest airline groups in Europe. Last year, Aeroflot carried 26.1 million passengers.

Most of the European airlines are turning to technology firms to improve customer services.

European airline carrier KLM Royal Dutch Airlines recently awarded a IT services contract to Unisys’ Netherlands subsidiary.

Under the terms of the five-year contract, Unisys will deliver service desk and onsite services for the airline’s key locations at Schiphol airport and Amstelveen.

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