Tech Interview
Paxel adds Talon.One to its martech stack to personalize promotions
Industry
On demand
Location
Indonesia
Year Founded
2017
Products Used
Coupons
Discounts
Ledgers
Paxel is a tech-driven delivery company committed to solving last-mile challenges in Indonesia. Headquartered in Jakarta, the company has secured more than $49M in funding since its establishment in 2017.
Serving over 2.4 million users, Paxel provides various delivery services like same-day delivery, PaxelBox, and instant multidrop. Customers can also order local Indonesian cuisine through its online shopping platform, Paxel Market.
Paxel is working with Talon.One to enhance personalized promotions. Talon.One’s APAC Sales Director Laurent Billieres recently spoke with Paxel’s Product Marketing Manager, Muhammad Fikry Izza Almirzaqy, to learn more about their marketing stack and why they selected Talon.One to power their promotions.
Could you tell us a bit about your business?
We have two business units at Paxel: Paxel Delivery and Paxel Market. Paxel Delivery specializes in digital-based delivery and logistics services, ensuring the smooth transportation of goods from one location to another. Our expertise lies in delivering a wide range of items, with a strong focus on food delivery and cold chain operational support.
Our second business unit, Paxel Market, focuses on selling unique local cuisine from different cities across Indonesia. Through Paxel Market, we connect food vendors with consumers in different cities, leveraging our reliable delivery system for efficient and quality-preserving food distribution.
What challenges or problems made you consider a Promotion Engine?
In Indonesia, customers consider promotions a crucial factor when selecting a brand. Yet, at Paxel, we didn’t have a flexible and scalable internal promotion engine. We weren’t able to create diverse promotional scenarios and this affected our budget-to-impact ratio - we were stuck running overly-generic promotions.
As part of Paxel's strategy to attract and retain users, especially through discount programs, we recognized the need to enhance our promotion capabilities to better serve customers and achieve our growth objectives.
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What channels are you leveraging for growth and retention at the moment?
To increase user transactions, we run discount campaigns, promoting them on social media, in articles, or through InApp channels like push notifications, pop-up banners, and inbox messages. Referral and sign-up bonus is an add-on program we also currently have. To personalize our messaging, we use a webhook and notification custom effects to inform users when they achieve a milestone or do certain actions such as completing a mission, signing up, getting a new voucher, etc.
How important is it for you to be able to iterate and run tests on promotions?
They are critical aspects of our business strategy at Paxel. The ability to iterate allows us to fine-tune our promotional activities, ensuring that we optimize their impact. Running tests on promotions enables us to gather valuable data about customer behavior, preferences, and responses to different offers. This data-driven approach empowers us to make informed decisions and tailor our promotions to better meet customer needs and expectations. It helps us stay innovative, adaptable, and customer-centric while maximizing the impact of our promotions to drive growth for both Paxel Delivery and Paxel Market.
Can you tell us a bit about your marketing technology stack? How do they fit together?
Our marketing technology stack at Paxel comprises a combination of in-house features and Talon.One’s integration. We've integrated these components to create a cohesive system that optimizes our marketing efforts.
For instance, our mission program design includes logic for tracking user progress and determining mission completion. We leverage Talon.One to target eligible users, triggering reward voucher distribution when users successfully complete missions.
Paxel uses a progress tracker in its mission program to motivate users to increase their shipments and earn vouchers as rewards.
Image source
Talon.One plays an important role in our engagement strategy. Alongside our internal messaging system, we use Talon's capabilities to precisely determine the timing and recipients of notifications or messages related to promotions. This covers scenarios such as when a user wins a mission or when they receive new vouchers.
The flexible integration between Talon.One as a Promotion Engine and other tools and parties allows us to reach our promotion goals more efficiently.
Looking ahead, we’d like to work with Talon.One to also revamp our referral program. The primary focus here is to safeguard against fraud and abuse. Blending internal resources and Talon.One's functionalities allows us to deliver targeted and engaging experiences to our users while streamlining operations and minimizing potential risks.
How do you balance building your own tools vs. integrating API-based solutions into your martech stack?
Each month, we set benchmarks for giving discounts to users while factoring in the costs of using various marketing solutions like Talon.One, our CRM, and attribution tools. When it comes to building our own tools in-house, we carefully consider the effort required - developing tools as sophisticated as Talon.One, for example, isn't straightforward.
Is it possible to build our own system? It could be. Nevertheless, the ease of integration and how well Talon.One fits our evolving marketing needs are significant advantages. This approach makes more sense than trying to build our own promotion engine system.
How important is support from your SaaS providers?
Effective support ensures we can unlock the full potential of the tools and services we subscribe to. It allows us to troubleshoot issues, resolve challenges, and gain a deeper understanding of the platforms' capabilities. This is particularly vital when we encounter technical hiccups or when we're exploring new features or strategies within the software.
Furthermore, strong support shows our SaaS provider is committed to our success. It creates a sense of partnership, where they're invested in helping us achieve our goals.
What's your biggest challenge at the moment?
We need to do more research to understand the pain points and preferences of Paxel’s users, including their behaviors toward certain promotions. We also need to investigate how promotions can establish a lasting bond between Paxel and customers, even when not offered regularly.
Is there any strategic project you're looking forward to?
Our major goal is to establish an automated and centralized loyalty program for both Paxel Delivery and Paxel Market customers throughout the year. By setting up this program, we intend to streamline operations and optimize resource allocation while offering valuable, regular incentives to our customers.
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