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MusicMagpie
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=== Sell more === MMAG is platform agnostic as to whom it sells and how it sells. As already highlighted, the majority of sales go through its own sites and apps, and marketplaces (Amazon and eBay), but it is looking to expand its reach into other platforms, as evidenced by the April 2022 agreement for MMAG to sell consumer electronic products (smartphones, games consoles, tablets, wearables and MacBooks) on Back Market’s UK marketplace (end-April 2022) and US marketplace (mid-May 2022). Back Market is a Paris-based marketplace for buying and selling technology products, with six million customers and a presence in 16 countries, mainly in Europe but also in the UK and the United States. In May 2021, it raised $355m of funding followed by a further $510m in January 2022 at an implied company valuation of $5.7bn to help further its growth aspirations. As a marketplace, it operates with no inventory and does not carry out the refurbishment process as MMAG does. The company has few non-financial KPIs, which reflects the dynamics of the different product categories (mix, volume and price) and, in part, the initiatives that are expected to stimulate future demand are relatively new. From recent presentations, Edison notes MMAG has enjoyed strong growth in customer numbers, from 7.1m customer registrations at the IPO to 7.5m at end FY21, and there has been consistent growth in the proportion of repeat customers (from 27% of the total in FY16 to 50% in FY20). Historically, there has been limited cross-sell between the customers that buy and sell using MMAG, and between the different product categories, due to a lack of visibility between the different channels and categories. Exhibit 6 shows the percentage of customers buying and selling across the product categories and the overlap between them, from July 2018 to 2020. At the category level there was very limited overlap between customers that both buy and sell: 1.2% of customers that sold technology through MMAG also bought technology and just 4.1% (those highlighted in the green box below) of customers have bought and sold technology or media at least once. In aggregate, 51% of customers who sold any category through MMAG did not buy anything MMAG during the sampled time period and 45% of customers that bought did not sell a product. '''<br />Exhibit 6: Cross-sell between buy and sell, and technology and media in UK<ref>Source: musicMagpie. Note: Sample July 2018 to July 2020.</ref>''' [[File:Cross-sell between buy and sell, and technology and media in UK.jpg|600x600px]] Therefore, management believes there are significant cross-selling opportunities, while recognising that a high proportion of customers are likely to be interested in only buying or selling. As a result, MMAG has invested in technology to better exploit its knowledge of its customer base and their transaction history. In December 2020, MMAG began using Exponea, a customer data and experience platform that unifies data to create a single view of each customer’s activity. The platform then uses artificial intelligence to provide predictions and personalised product recommendations to customers to stimulate incremental demand through targeted marketing such as email campaigns and text messages. Management believes this is a significant improvement from its previous marketing, which was a standard email to all customers without any personalisation of the promotions. In addition to the above, to increase the appeal of MMAG to new and existing customers, brand new Apple products are available for sale and to rent on the UK website, enabling customers to trade in or up to the latest Apple devices. The latest iPhone 13 is available from £31.99 a month.
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