Committing to customers, committing to our staff

We believe that customers’ loyalty is key to our success. People want to visit M.video stores because they know they will get good advice about products and accessories, and can find out about new trends. Our staff will always be available to give advice or offer help about what additional items are necessary to ensure successful installation at home.

Our customer offering is supported by a 24 hour call centre. Whether a product has been bought from M.video store or not, our consultants and technicians can assist consumers with advice on topics ranging from the location and openings times of our stores to how to operate and install products.

Our customers’ loyalty program called M.video Bonus was implemented in 2009. The program was built on the basis of the innovative Oracle Siebel loyalty management CRM-solution.

In 2011 the number of the registered participants of M.video Bonus program increased by almost 1.8 million people and reached 5.6 million customers. We estimate that 20% of transactions in our network are made by M.video Bonus members while the member’s average transaction turns to be 1.5 times larger than the network’s average transaction amount.

Overall bonus awards to customers amounted to 3.7 billion rubles in 2011 which allowed us to increase sales using bonuses up to 6.1 billion rubles which comprised almost 4.5% of our revenue (with VAT).

Our employees are part of our competitive advantage. We place a premium on employee recruitment and training to build a strong, team-oriented company culture. We provide many different levels of training to ensure that sales staff are knowledgeable on our products and current trends. Our Corporate university helps us to develop our future store directors and section managers.

Average FTE employees dynamics in 2010-2011

  2010 2011 change, %
HQ 623 694 11.4%
Call Center 126 133 5.6%
E-Commerce 54 80 48%
Regional Admin (incl. Customer Service and Aspirants) 599 636 6.2%
Stores 11,150 13,125 17.7%
Total Headcount FTE 12,552 14,668 16.9%

After our people, the M.video brand is our strongest asset. That is why we do not franchise stores, but keep direct control through our employees. In this way, we can ensure that we apply universal brand standards to all our stores, wherever they are located. The M.video brand is underpinned by our corporate values; honesty, simplicity, effectiveness and teamwork. We succeed because our staff share these values and to focus 100% on our customers.

In 2011 we focused on studying the market and customers and changed marketing activities towards to satisfying customers’ needs and requirements. We developed further our communications with customers using "We do care!" motto approach.

We also motivate our management team to gain increase the Net Promoter’s Score (NPS). NPS is a system which measures the quality of the customer experience by assessing the willingness of your customers to promote the brand of Mvideo. The highest scores are given to those who promote the experience without being asked from friends and colleagues. This is the goal as word of mouth is the most effective advertising for the brand. We are proud that throughout 2011 our NPS grew from 31% to 49%. We also obtained high rating with the Customer’s Satisfaction Index (SCI) research in 2011 which reached 78%.