Why Retail Customer Experience
India Growth Story
- Transition from a agrarian and industrial economy to a services economy: Over 50% of GDP today contributed by the services sector
- Initiated by the IT sector about two decades ago
- Enabled by the telecom revolution that created the infrastructure to develop the IT/ITES sectors
- Boom in IT/ITES & Telecom sectors created earning capacity in young people
- Rapid Telecom proliferation enabled the common man to participate vigourously in economic process and enhance their earning capacity
- Freeing up of bank credit through easy availability of loans in the forms of Credit cards, Home loans, Auto loans, Personal loans, fuelled consumption of Lifestyle goods
- This led to a boom in the housing ,auto, retail, aviation, travel, tourism, hospitality, insurance and healthcare industry.
The Future Trends
India’s expected growth of around 8 to 10% per annum for the next decade is driven primarily by the service sectors :
• Retail CAGR – 23-25%
• Insurance CAGR – 24.7%
• Banking CAGR – 7%
• ITES CAGR– 17%
• IT CAGR – 9%
Manufacturing lead growth will be technology driven and not employment driven owing to India’s outdated labour laws which discourages large scale employment.
Very low penetration of key lifestyle enabling services:
- Organized Retail only 5% of total Retail market,
- Banking at 35%,
- Insurance life at 12%
- Healthcare 4%,
- Telecom 45%.
- Main Growth to be witnessed primarily from the non metro/rural markets.
Characteristics of the Market Place
Huge proliferation of brands:
- 13 telecom companies
- 22 Insurance companies
- 78 Banks
- >25 large organized retail chains
Very little product features and price differentiation:
- Only advertising approach differs
- Power of choice with the consumer
- Power of information with the consumer owing to huge media proliferation.
- Lack of a physical product or just a token physical product.
For example: SIM card, Credit card, Insurance policy document etc
Availability of absolutely identical brands with competitors
i) Competing retail chains like Big Bazaar and Spencer.
- Near price and promotion parity
- Need to get the process right consistently – very practical in nature
- People perhaps the only clear and ongoing differentiator
- Advertising
- Sales Excellence
- Price
- New Product Features
- Customer Experience
What is Customer Experience?
People + Process + Products + Physical Environment
* Products, processes and environment – all driven and leveraged by people.
Learnings
- Every person can make a difference.
- It is not about a resource but about a can do mindset.
- An idea that comes from the heart and seeks to give more than it expects to receive at the onset acts as a powerful magnet and draws people to it.
- Such ideas have a payoff way beyond any commercially motivated idea.
- The willingness to serve is a far more powerful way to align people than wishing to be served.
Organization-
- You go back the second time
- You accept suggestions to buy other offerings from the organization
- You trust the organisation, its offerings and its people more.
- You thus, enhance profitability and growth of the organization
What is Retailing
Retail consists of the sale of goods or merchandise from a fixed location, such as a department store, boutique or kiosk, or by mail, in small or individual lots for direct consumption by the purchaser.
The term retailer is also applied where a service provider services the needs of a large number of individuals as in the case of banking, telecom, travel leisure & entertainment from a branded physical or virtual touch points.
Purchase
- Brand decision
- Model decision
- Trial
- Terms of purchase
- Payment options
Potential Touch Points – Web/ Store/ Pos/ Sales People/ Resellers/ Kiosks
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