Expandeco - Professionalism, flexibility and trust
“Hungary, a virgin field” - Digital24.sk case study
The idea of expansion
The owner of the e-shop started with Slovakia, which was covered much more thoroughly than in the past. Many processes in Slovakia are similar to the Czech Republic, so he was not so afraid of it.
"Hungary, a unploughed field" - the first conference on the topic of Expansion in Slovakia
This conference, organized back then by our company Expandeco, called ShopSupport at the time, was a key moment for the expansion of the Digital24.sk e-shop. At first, the owner of the e-shop, Mr. Dužík, could not imagine that customer support for the e-shop would not be provided by his own staff. He did not believe it could work in this way. An important problem, however, was that his employees were often underworked, while the cost per employee was up to EUR 1,100 at the time.
He was mainly afraid of flexibility and affordability. Your own employee is always available and you can task him as needed. "Call the customer, deal with this claim, etc." - adds Mr. Dužík. Problems arise in the case of holiday leave, illness and the like, when the ability to be replaced is important, and in this case it was absent.
For both Hungary and Romania, the owner of the e-shop had its own employees. He found someone in Hungary, as well as someone in Romania who knew how to work on invoices. However, he also had to look for someone to translate his website and so on.
In the end, he came to an agreement with Expandeco and entrusted Hungary and Romania to it immediately. And only then did he realize how it could work. Expandeco surprised him with its flexibility. Customer service truly is available and can resolve every task, settling claims and calling customers when there is a problem with delivery. It can deal with everything customers need. There is no issue with replacing absent staff, the customer service is always there, whether it is Evka or Dorka at the Hungarian support centre.
A big plus was Expandeco's cost, which was one quarter of the cost of an employee. The owner of the e-shop paid for the emails sent and phone calls made and whatever the customer service dealt with for him, and so he did not have to solve the issue of an employee who lacks work to do for half the month. Expandeco's costs were € 580 for two countries. So 25% of the original cost.
But what he sees as a much greater benefit is that Expandeco has opened the door to Europe for him. Wherever Expandeco expands, he can expand comfortably, too. It is quite possible that if there were no service like the one Expandeco provides, he would have continued to struggle in Hungary and Romania, without expanding. It is questionable as to whether he would have dealt with these countries at all, as in addition to the cost of staff, he would only be making borderline profit in some countries, meaning that their launch would be very difficult. Now it's easy and he can go wherever Expandeco provides its services. The plans are simple, to occupy the whole European Union.
The owner of the Digital24.sk e-shop dealt with other countries entirely through Expandeco. Translations, opening bank accounts, local addresses and so on. It currently operates in the Czech Republic, Slovakia, Germany, Austria, Hungary, Romania, Bulgaria and Poland. Of these countries, only the Czech Republic and Slovakia are under his own direction. The monthly operating costs are thus at a level of one fifth of the cost of five employees, which he would also have to find, deal with their salary or other requirements, a situation which he really cannot imagine. In the near future, he is going to expand with Expandeco to Slovenia and Croatia.
He clearly recommends cooperation with Expandeco. He especially appreciates Expandeco's flexibility, its high professionalism in solving problems and in communicating with the management, whether it is the CEO Tomáš Vrtík or Account manager Marián Kysela. His business is also moving forward by the fact that everything is outsourced. Country operating costs, the storage and shipping of goods have been reduced to a minimum. He outsources everything he can because he sees it as meaningful.