Pricewise

BACKGROUND

Introduce your business and what you do there.

We’re an electronics retail company with locations in the Czech Republic and Slovakia. We focus on consumer electronics, including major appliances, telecommunication, notebooks, and brown goods. Our turnover is approximately €300 million [U.S. $352 million], and we’re the primary player in Slovakia with approximately 30% market share.

I’m the sales and marketing director, and I’m responsible for product purchases, pricing, marketing communications, and customer service.

OPPORTUNITY / CHALLENGE

What challenge were you trying to address with Pricewise?

In 1999, we started one of the first loyalty clubs in Slovakia, but we needed to start marketing communications. We’re very focused on this loyalty club because 50% of our sales are made through it. We have approximately 900,000 members, which is about ⅕ of the Slovakian population.

The main purpose was to start segmentation, data analysis, and individual marketing communication based on previous purchases.

SOLUTION

What was the scope of their involvement?

We started with a clearance of our database, which has gone through different ERP systems. The goal was to prune it, find out which contacts were still active, then start basic segmentations and special marketing communications based on past purchases. We created 23–25 scenarios.

The system recognizes past purchases and needs that help us supply customers with offers based on their history. These scenarios were meant to give people an impulse to buy products more often.

I’m not sure what technologies Pricewise used on their side. We provided Excel sheets and SQL databases which they worked on where they created segments of 200–5,000 people who could be addressed with personalized offers.

Currently, we’re focusing on direct contact through email and SMS, but also starting to implement communication via social media, web layers, and other modern methods. So far, Pricewise has also helped with big data customer analytics, measuring financial impacts, day-to-day support of direct campaign creation, and technical support. Pay-per-click and other advertising efforts are performed internally.

What is the team dynamic?

Their team typically consists of 5–6 people, including the company owners who are in charge of strategic decisions. We have a data analyst working on segmentation and search patterns for our clients’ purchase histories. There is also a marketing person who creates and develops direct emails, as well as an account manager who oversees communication with my marketing team.

How did you come to work with Pricewise?

Around 2 years ago, we gave them a test on a special activity around the Samsung brand. We had very segmented and limited communication, so we decided to make a pilot with Pricewise. It was successful, and we chose them because there were few companies offering such sophisticated, complex knowledge around loyalty clubs. They were also managing 2 of the best clubs in Slovakia.

How much have you invested with them?

We spend €5,000 [U.S. $6,000] per month on their services.

What is the status of this engagement?

We started the official collaboration with Pricewise in November 2016, but the test pilot occurred in 2014–2015. We’re still working together, and are looking towards newer, better projects, including selling extended warranties through call centers and other channels.

RESULTS & FEEDBACK

What evidence can you share that demonstrates the impact of the engagement?

Our main success point has been the increase of our open rate and click-through ratio for segmented direct mails. I’m satisfied with Pricewise’s work, even though I always have bigger expectations.  Everything can’t be evaluated in terms of results, and the positive thing about their team is that they’re always thinking. They’ve been able to turn things which I hadn’t thought of around, and those results have reflected our efforts as a team.

How did Pricewise perform from a project management standpoint?

Their performance has been good, and we work with them for a minimum of 6 hours per week. My team meets with theirs once every 1–2 weeks, and as the general manager, I meet with them once per month to look at the overall issues, discuss big decisions, and solve any process troubles. Email has been our most common method of communication.

What did you find most impressive about them?

The complexity of their team is profound. They bring our ideas to reality, which is sometimes difficult for agencies. I’ve worked for this company for 20 years, so I’ve seen many teams who had good ideas, but couldn’t really execute them. Pricewise has good management, and they’re very skilled in terms of starting and executing projects. Their adaptability and flexibility are their strengths.

Are there any areas they could improve?

Everyone can improve, but I have nothing specific to mention. We have discussions so regularly that if there were anything which we weren’t satisfied with, there would be prompt improvements.

Do you have any advice for potential customers?

Future clients should be specific in terms of what is expected from Pricewise. They should make precise requests and measurements, and make sure to exhibit specific details in terms of KPIs [key performance indicators]. Their team is technically-minded, so clients need to be prepared for that.

BACKGROUND

Introduce your business and what you do there.

I’m the chief marketing officer of Medusa Group, a gastronomic group with more than 40 restaurants, clubs, and cafes in Slovakia, Czech Republic, and Vienna.

OPPORTUNITY / CHALLENGE

What challenge were you trying to address with Pricewise?

They’re our consultants and analytics support for our loyalty program, which is called Medusa Card. We started this program 5 years ago and we currently have 115,000 card holders. Pricewise is our partner in this program.

SOLUTION

What was the scope of their involvement?

Before the program existed, they helped us create the program benefits, rules, etc. Since we launched the program, they’ve helped us target and customize our 10 monthly campaigns. Each campaign and newsletter is targeted differently based on our customer preferences or history. Prior to sending out anything, we consult with Pricewise to figure out the best possible way to approach the customer, as well as what content to include. They look at the opening rates, history, and frequency of the customers in order to devise a plan.

We’re consistently working with groups that are out of the communication to see if we are having an impact or financial uplift, which is also something Pricewise is managing for us. They help manage our newsletters and added some automatization features.

Overall, Pricewise has provided a database to assist with directly targeting campaigns to customers, measuring financial impact, and analyzing customer data. They’ve also provided needed support in co-creating direct campaigns, including graphic design, coding, and technical support of chosen marketing activities.

What is the team dynamic?

I worked with Peter and Milan, who are both founding partners of the company. The rest of my team also worked with other Pricewise team members.

How did you come to work with Pricewise?

We looked around to try and find a partner to help us design and run the program. They were one of the references we received from the Czech Republic. It’s a big data system, and we don’t have an in-house team to manage the database and analytics, so we brought in Pricewise to help.

How much have you invested in them?

We’ve spent a sizeable amount with them.

What is the status of this engagement?

We began working with them in February 2012 and the relationship is ongoing.

RESULTS & FEEDBACK

What evidence can you share that demonstrates the impact of the engagement?

Our numbers are growing, including our year-to-year uplift, which is one of the most important factors. More than 1,000 unique, segmented, and personalized campaigns were executed in 2014. The campaigns have an open rate of more than 36%, which has been maintained over a long period of time.

We are able to provide highly personalized content based on favorite restaurants of customers, brands, frequency of visits, loyalty status, and more. We’ve seen a 6.7% increase in revenue during the last 3 years, and it continues to grow. We’re also now able to use reservation psychology and attractive offers for selected customers.

How did Pricewise perform from a project management standpoint?

They are extremely proactive, and they also put in the extra effort, which is what makes me feel so good about working with them. They’re really engaged in their work and are always coming up with ways to improve our program.

We mostly communicate through email, phone, and in-person meetings. Throughout the five years that we’ve worked together, the communication has been really regular.

What did you find most impressive about them?

They are really consequent. When they come up with ideas, there is a lot of research and thought behind them.   

Are there any areas they could improve?

I can’t think of anything in particular. We really like working with them.

Do you have any advice for potential customers?

My only advice is to set very clear goals so that they know what they should focus on. Before the project starts, talk to them and have several meetings, because when they really understand the company and background, the results they provide are better.