Top etailers focus on retaining customers with special offers

While the focus was on acquiring new customers last year, retaining loyal and existing customers seems to be the order of the day now. Bang on target, many etailers are leaving no stone unturned to ensure they are on top of customers’s minds whenever they are in the mood to shell out money.

In the battle for top spot, some of the tactics followed by top online retailers are:

• Reduced costs
  
• Loyalty programmes
• Special discounts
• Customised products
• Free delivery and same day delivery

“(This) is a reflection of how the Indian e-commerce space is maturing and the fact that consumers have started valuing these services,” said Ravi Vora, senior vice-president of marketing, Flipkart.

Flipkart

Due to be live in a few weeks, Flipkart First service (Flipkart’s recently launched paid annual subscription service) will enable subscribers to have access to a number of services like free shipping, in-a-day delivery and priority customer service.

Myntra

Myntra will give access to fashion magazines, special movie screenings and customised discounts based on subscriptions. Recognising the need for maintaining relationships, Myntra has launched its “customer wow” initiative, as per which it would take special requests from 50 customers everyday – like procuring a unique product, delivery a birthday present on the same day etc.

 Jabong

Jabong has launched a pilot project for apparel customisation and tailor-made clothing.

FabFurnish, Zivame

They provide a number of freebies to customers based on their purchases to woo and retain customers, as a result of which the customer repeat rate has risen to 50% and more.

Should an Indian Online Seller embrace the shift in focus to retain customers?

YES. Indian customers have already warmed up to online shopping and if recent reports are anything to go by, they love the pampering !

Repeat customers are most valuable as they come back to shop more irrespective of price cuts and discounts. This translates into higher margins for sellers adding to profits.