Subject: Consumer Behaviour
Submitted to: Prof. Neha Gupta
Submitted by: Ami Vora
Roll No: 58
Class: PGDM - Communications
FLIPKART is an Indian e-commerce company founded by Sachin Bansal and Binny Bansal in 2007, both alumni of the Indian Institute of Technology Delhi. Initially funded by the Bansals themselves with Rs.400,000, Flipkart has since then raised funding from venture capital funds Accel India in 2009 and Tiger Global (US$10 million in 2010 and US$20 million in June 2011). Today, as per Alexa traffic rankings, Flipkart is among the top 20 Indian Web sites and has been credited with being India's largest online bookseller with over 11 million titles on offer. The cash-on-delivery model adopted by Flipkart has proven to be of great significance since the credit card and net banking penetration is very low in India. Even its 30 days replacement offer is something which acts as its USP.
FACTORS THAT LEAD TO THE SUCCESS OF FLIPKART
* Customer Service: Provide good customer support with quick turn around time for client queries. Provide replacement of product in case a customer receives a defective product. * User Interface: Easy to use, easy to browse through the products, add products to wishlist or to a cart, get product reviews and opinions, pre-order products, make payments using different methods. * Cash/Card On Delivery: Demonstrated more confidence in buying products. Flipkart sells 20 products/min and have with more than 60% of the Flipkart's customers use Cash on Delivery and card on delivery methods. This is because of two reasons, one is many people do not know how to make payments online. And secondly people do not have immense trust in e-commerce in India. * Customer Retention: Has around 15 lakh individual customers and more than 70% customers are repeat customers i.e. they shop various times each year. The company targets to have a customer base of 1 crore by 2015. * Local Presence: Tie ups with local vendors and courier firms (thereby reducing transportation and storage costs. Owns warehouse in major cities.
For ensuring success, securing trust in your company is essential. Trust is as important to a potential customer’s purchasing decision as the products you offer him. And an essential element of building that trust, with both customers and partners, is the assurance that your e-commerce operation meets the demanding security standards required of organizations handling sensitive financial information.
Building a consumer Trust for Flipkart can take place in the following facets: * Setting up a Storefront which generates a sense of dependency among the consumer * Build a commerce friendly Web Host
* Securing Information Using SSL
* Processing Transactions
* On time Delivery
* Quality of the products
* Efficient staff
* Return Policy
Following are the various measures taken my Flipkart to build and ensure consumer trust.
1. Merchandise site safety and security
A safe and secure Web site is the most crucial element to building online trust. Flipkart convey that customers can trust them with their personal information and their purchases. Promote the basic security of your site and reinforce that message with a buying process that emphasizes safety and ease. Flipkart has a “Worry Free Shopping” environment. It clearly states shipping, return and privacy policies as well as security and product guarantees. Customers are most sensitive to trust and security issues as they move down the path to purchase.
2. A professional site speaks volumes’
Flipkart has invested wisely in professionalism of their site. This includes : user-friendly design and content updates that are accurate and regular, paying attention to load time, avoiding site down time at all costs, updating content often, avoiding typos and broken links.
3. Showcase the...