22% reduction in marketing costs in a retail chain
We changed the structure of media purchases and introduced a rigorous service verification system. We eliminated 1/5 of unnecessary fees without loss of advertising reach.
MarketTrend Polska was losing control over settlements with 19 external agencies. Orzeł Consulting Group conducted an audit that showed billing errors and double fees for the same services.
The challenge
A retail chain with 112 points across Poland spent PLN 4.7 million annually on marketing. In 2023 alone, these costs increased by 14.3%, even though the reach of radio and internet ads remained unchanged. Management could not determine what part of the budget went to the media and how much was hidden commissions. There was also a lack of hard evidence for the implementation of local services for which agencies issued invoices every month.
Our approach
Our team carefully analyzed 3,457 invoices from the last 18 months. We checked every provision in the contracts with media houses for tax compliance. Marketing is mathematics, so we calculated the real cost of reaching a customer in each of the 112 cities. In March 2024, we organized workshops with the finance department to tighten the flow of promotional documents.
The solution
We introduced a new marketing reporting system. Every invoice must now include a digital confirmation of the advertisement broadcast or a photo of the completed in-store campaign. We changed the cooperation model with agencies to a fixed fee without commission on spending. As a result, agencies stopped persuading the client to buy expensive and unnecessary advertising formats. Numbers don't lie, so we implemented a monthly control audit.
Results
In 6 months, we reduced real marketing expenses by 22.4%. The company maintained the same advertising reach while paying less for the same outreach channels. We recover capital that previously escaped through billing errors.
Timeline
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January 2024Analysis of 3,457 invoices and contracts with 19 advertising agencies.
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March 2024Workshops with the finance and marketing departments in Krakow.
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April 2024Implementation of a service verification system and new contracts.
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June 2024Closing of the first stage and savings report.
"Numbers don't lie. Orzeł Consulting Group showed us that every fifth zloty spent on ads went to agency margins that were not in the contract. We regained full control over the budget."