# Scaling marketing for merchants with targeted and intelligent promos

[Grab](https://yomu.fyi/company/grab) · Sharon Teng · Oct 11, 2023

**Type:** Problem & solution

## Summary

Grab previously relied on globally assigned, heuristic promotional campaigns where all users could redeem offers until limits were reached. This lack of targeting and customisation failed to optimize promo spending or meet specific merchant business objectives. To solve this, the engineering team built Bullseye, an automated AI-driven promotional assignment system that customises and assigns offers to consumers. The architecture integrates an operations user interface, backend services, Amazon S3 storage, and Spark jobs executing a suite of predictive modules including eater segmentation, campaign impact simulation, and customer response modeling. Since deploying Bullseye in 2021, the system has increased food campaign sales while decreasing promo spend across food and Mart campaigns.

## Context

Globally assigned promotional campaigns lacked intelligent user targeting, customized merchant offer sets, and AI-driven optimization, making it difficult for merchants to optimize sales and promo spend at scale.

## Approach / What changed

Grab developed Bullseye, an AI-driven platform that segments eaters, generates and simulates promo variants, runs customer response models via Spark jobs, and optimizes hyper-parameters against merchant and platform business objectives.

## Takeaways

- Bullseye utilizes a Customer Response Model that compares offer characteristics like cuisine type, spiciness, and discount depth against user attributes to predict order value, redemptions, and take-up rates.
- Hyper-parameter tuning allows the assignment system to balance trade-offs between sales uplift and cost per merchant sales (cpSales) uplift constraints.
- Data stored in S3 is processed via API-triggered Chimera Spark jobs to run prediction models and output promo assignments back to the backend service.

**Tags:** [Architecture](https://yomu.fyi/topic/architecture), [Data Pipelines](https://yomu.fyi/topic/data-pipelines), [Machine Learning](https://yomu.fyi/topic/machine-learning), [Recommendation Systems](https://yomu.fyi/topic/recommendation-systems)

[Read original post](https://engineering.grab.com/scaling-marketing-for-merchants)