Want to Understand the Consumer Behavior? Capgemini Invent in India Explains Here
The basic of growing a business is “understanding the needs and requirements of the customer”, upon which different strategies are built and changes are incorporated into the business.
Capgemini recently launched a report of Capgemini titled “Retailers must ‘go the extra mile’ to overcome inefficient and unprofitable delivery models".
In a recent interaction with Franchise India, Aashish Chandorkar, Head of Capgemini Invent in India shares the ways how business can work on building a relationship with the customer based on the report.
Here are the excerpts from the interaction:
Understanding Consumer Behaviour
Aashish explains in the following points, how consumer behavior can influence the way of doing business:
o Organizations that provide a superior last-mile experience which customers desire, will definitely gain a competitive edge over their peers.
o Today, consumers want faster and more frequent deliveries. We found that 40% of consumers now rank delivery services as a “must-have” feature for food and grocery purchases.
o Expectations are also increasing, with consumers gravitating towards faster delivery options. 55% of consumers said that they will switch to a competitor if that competitor offers a faster service.
o Delivery is also seen as key to addressing a range of customer pain points. 63% of consumers order online because they find retail stores as crowded as public transport is during rush hour. Apart from this, 76% of consumers order groceries online as it allows them to choose products at their own leisure.
o We also found that 59% of consumers purchase items online when they need them or on demand rather than waiting until the weekend to purchase in the store which is a fundamental shift in decades-old purchase behavior.
Factors that add on to the growth of the business
He adds, “Taking efforts to provide a great last-mile delivery service that delights consumers will go a long way towards attracting and retaining customers. 38% of executives mentioned the top complaint they receive from consumers in India is the late arrival of delivery.
A detailed analysis of consumers satisfied with last-mile delivery services reveals a range of benefits:
- Increased loyalty when faster delivery options are made available
- Greater willingness to pay for the faster speed of delivery
- Higher monthly spend
- More frequent purchases.”
How is India following the global trends in terms of doing business?
Aashish describes this as:
“In India, Dark stores are the most preferred location for leveraging multiple fulfillment locations for last-mile delivery, (others being a retail storefront, store backroom, and warehouses). Dark stores are retail outposts with a store-like layout intended only to fulfill online orders. They are located close to urban areas with good connectivity to ensure fast delivery. We found that in India:
o 33% of executives prefer dark stores to fulfill two-hour deliveries, 31% of executives prefer retail storefronts vis-à-vis just 7% prefer warehouses.
o 35% of executives prefer dark stores for same-day deliveries, 27% prefer retail storefronts, and 22% prefer warehouses.
o The global figures for delivery preference from dark stores for two-hour delivery are 20% and same-day delivery is 24%.
o We also found a higher preference for using store backroom for delivery in India compared to other countries globally.
o For two-hour delivery, 29% of executives in India prefer retail store backrooms compared to 12% globally.
o However, for same-day delivery the preference to deliver from store backroom in India is low, 16% compared to 43% globally.
