Background
iGotFiX (IGF) are a national player in the highly competitive market of mobile phone repair and recycling of electronic componentry.
The company has a network of repair shops across the UK who partner them to provide local repair and recycling services. In summary, IGF has become a one-stop-shop for the smart devices repair and recycling in the industry, partnering with more than 50% of the companies in the UK.
Problem
The company were typically involved in marketing to end users using Google SEO, Pay Per Click and other social media channels. IGF’s market has a very low conversion rate from enquiry to customer, making every client acquisition cost high, especially as there is limited scope for repeat business.
Combined IGF found that the cost of using these marketing channels was outweighing the low margin profit makes in this industry. They had to find an alternative as the IGF was running the risk of closure despite the high level of turnover.
Solution
Based on our research and competitor analysis, we created a solution which gave IGF a constantly replenishing customer base in excess of 2 million customers. The cost of which upfront was nominal.
This was based on a new mutually beneficial partnership with repair shops which gave individual partners significant competitive advantage in the market place whilst simultaneously allowing them through a referral agreement to diversify and to sell new products and services.
It also allowed IGF to increase the buying and selling the higher margin business of buying and selling components.
Outcome
IGF reduced online marketing budget to almost zero, whilst at the same time rapidly building a client base at nearly no cost. In addition, optimising the management and delivery in conjunction with partners which dramatically increased customer satisfaction.
The bottom line is that IGF have significantly improved profitability and partnership relationship. Thus, increasing shareholder value and generating profits to reinvest in the company’s expansion plans.
Furthermore, they are now attracting further repair shop businesses who are keen to join their partnership programme.