STEPS FOR IMPROVEMENT IN FUTURE FOR FLIPKART
By – Aditya Vardhan Singh Choudhary
The e-Commerce market in India has enjoyed phenomenal growth of almost 50% in the last five years. Although the trend of e-Commerce has been making rounds in India for 15 years, the appropriate ecosystem has now started to fall in place. The considerable rise in the number of internet users, growing acceptability of online payments, the more number of internet-enabled devices and favorable circumstances are the key factors driving the growth story of e-Commerce in the country. The number of users making online transactions has been on a rapid growth trajectory, and it is expected to grow from 11 million in 2011 to 38 million in 2015.
Flipkart is a leading e-Commerce company which has established itself now as the fastest growing mid-sized company. Backed by a funding of $31 million, the company is set to grow from five warehouses and 35 delivery centers to 35 warehouses and more than 60 delivery centers across the country.
But, with wide expansion in various sectors, greater range of challenges also come across. By large, major challenges that the company faces are :- 1. Customer Satisfaction.
2. Market Expansion.
3. Best Economic Use of Funds.
Keeping in mind the above challenges, few steps that can be taken by the company to improve upon its brand value in future according to me are :- Making Customer Satisfaction #1 priority
In a market where even a single customer plays an important role, it becomes very important to make sure that the customer is treated in the best possible way. But, in practicality, this is very difficult and we have experienced it ourselves. How many times has it happened that you didn’t get your order on time? I guess many!! So, here are 4 key factors that can heavily influence customer satisfaction which need to be taken care of if flipkart wants to keep ahead of its competitors. 1. Accuracy (Right Product): In accordance with Wyatt Earp's belief that “fast is fine, but accuracy is everything”, we can understand the pivotal role that receiving the right product plays in determining customer satisfaction. In a recent survey, approximately one out of every three respondents (29%) said that they would abandon shopping altogether with a retailer if they received one incorrect delivery. This equates not only to one lost customer for life, but combined with the impact of social media and word of mouth, this could seriously impact brand image and performance. Therefore, it is immeasurably important to run multiple accuracy checks, run by multiple employees to reduce the risk of errors.
2. On Time Delivery: According to a survey from Comscore, 42% of shoppers have ABANDONED an online shopping cart because of the delivery date. Communication of the expected delivery date of the order is critical to setting the correct expectation of the consumer. Conversely, 41% of shoppers RECOMMENDED a retailer when they received their product when expected which can lead to increased loyalty and new customers. Speed is crucial to ecommerce operations. The ability to turnaround orders within the same or next day is highly recommended.
3. Order Tracking: has in recent years become a necessity for online retailers with 75% of customers believing it is a service that every retailer should offer. These primarily include email notifications containing a unique tracking number as well as having the ability to check directly on the retailer's website for the tracking information whether it is pending, en route or arrived 4. Discounts and Coupons: Many consumers these days come to online shopping sites only because of vast number of discounts and coupons and this can highly influence customer loyalty. According to Comscore, 95% of respondents have recommended a retailer due to the availability of discounts and coupons. Retailers should...
Please join StudyMode to read the full document