MALINA program increases customer loyalty with Oracle Exadata running Oracle Siebel CRM


Moscow – Loyalty Partners Vostok, the managing company for the MALINA customer loyalty program, Jet Infosystems and ORACLE CIS report an innovative platform based on an optimized Oracle Exadata database machine running Oracle Siebel CRM and designed to improve MALINA. Early results of this comprehensive project indicate that payment with points has become 10 times faster, and analytical reporting systems have become 7 times more efficient.

MALINA, the largest multicorporate customer loyalty program in Russia, covers over 20 leading national brands. Its managing company depends heavily on information technology. The program accepts and processes over 700,000 transactions in more than 900 points of sale operated by its partners. MALINA currently has over 5 million members and stores information on about 2 billion transactions in its database. Annual sales covered by the program in 2011 exceeded 1.5 billion dollars.

As its membership and number of transactions grew steadily, MALINA needed a more efficient IT infrastructure and a new approach to cardholder loyalty management. The inadequate performance of traditional database systems, slow data transmission over SAN and the lack of data storage space were all contributing to a slowing down of data processing. At the same time, the managing company was striving for online integration with MALINA partners and increased member loyalty. To meet these challenges the company chose an optimized version of Oracle Exadata Database Machine with the latest version of Oracle Siebel Loyalty Management.

Aleksandr Priezzhev, executive director, Loyalty Partners Vostok: “Several hundred thousand people join MALINA’s millions of members every year to get bonus points from over 20 leading retailer brands. Customer loyalty depends on whether we meet our members’ high expectations. The Oracle system was found to be the most appropriate solution for our current and future purposes. Acting in synergy, the innovative Oracle Exadata Database Machine and Oracle Siebel CRM will promote customer loyalty."

Oracle Siebel Loyalty Management vastly improves MALINA’s capacity. This superior platform already supports 90% of the business processes required by the client. Cardholders will be able to enjoy excellent communication opportunities, an improved points accrual mechanism, access to event-based promotions, interaction with social networks and so on.

Jet Infosystems, an Oracle Platinum Partner with expertise in Oracle Exadata Database Machine and Oracle Siebel CRM deployment, started the project in the spring of 2011.

“Our company always welcomes customers who wish to tap our expertise in the best innovative technologies and solutions. The Oracle-based upgrade of the MALINA customer loyalty program was a major challenge for our experts, who enjoyed close cooperation with their counterparts from MALINA and Loyalty Partners Vostok,” notes Andrey Samoilov, director of the corporate clients department at Jet Infosystems.

Early results of this project indicate that payment with points has become 10 times faster, and analytical reporting systems have become 7 times more efficient.

Prior to data migration to Oracle Exadata, database software was updated to Oracle Database 11g R2. The amount of migrated data was 5.4 terabytes; the total number of transactions covered by MALINA was over 2 billion. During data migration, MALINA online services using the current database were not interrupted for more than a few hours. After thorough tests, the new database platform went into full operation.

“We believe in the value-added approach to innovations in business," comments Hanspeter Kipfer, VP of Engineered Systems at Oracle EMEA. "This project demonstrates the advantages provided by customized Oracle platforms to consumer market companies and millions of their clients. The MALINA program’s choice of Oracle was only natural for an innovative and forward-looking company always offering the highest level of service.”

About the client

Loyalty Partners Vostok, the company that manages the Malina program, was incorporated in April 2005 to design, launch and further develop the program in Moscow, St. Petersburg and other Russian cities. It was founded by VimpelCom, 36.6 Drugstore Network, TNK BP, Rosinter Restaurants and SM4P.