I recently attended a TIE-SIG event on Supply Chain challenges for E commerce in India. After a brisk discussion on the different inventory models that companies were experimenting with, the panelists veered into "customer experience" and stated this was the number 1 thing that companies need to focus on in order to keep customers happy. Well, that's a no-brainer, I thought. While mature and cash-rich startups seem quite happy doling out the goodies (COD, free shipping, no-questions-asked free returns and exchanges..the list goes on) in the hope of keeping customers coming back, the jury is out whether e-commerce companies are looked at more favorably when compared to their brick and mortar and traditional peers and competitors. And more importantly, this definitely has not helped these fledgling startups to anywhere close to profitability. In fact, one exec, who apparently works for one of those cash-rich startups, went on to declare that they are "not worried about costs at all" and all that mattered to them, at this juncture, was whether they gained satisfied customers or not. The statement made one of the just-out-of-college-disheveled-hair-startup-guy in the audience, just shudder in his sandblasted-jeans.
I couldn't help going back to a recent personal experience on an apparel e commerce website, which shall remain unnamed to protect the innocent. Anyway, I was looking to buy a casual shirt for a wedding and after browsing thru a few sites, I decided to buy one from this particular site. The UI was nice, navigating was simple, I chose the size that I normally buy (and I normally buy from a well known Indian brand), hopped over to payments, whipped out my credit card, used my Secure-3D password (I wonder why its called a 3D password?) and was even surprised by an additional 5% discount I was offered as a reward for using my CC. I was done. Cool! So far so good until the eagerly awaited package arrived at my doorstep. I tried the shirt on and found that fit was not right even though the shirt size was my normal size. No problem - I just called them to exchange the shirt for a different size. No questions asked. A courier guy came once to take the shirt back and another one showed up a couple of days later with the new shirt and while all this was happening, the wedding had taken place and the couple had taken off on their honeymoon. While I would still say that my overall customer experience was allright, the fact that I did not get the right shirt in time, was a big disappointment. And in this specific instance, the website could have completely avoided the situation by simply educating me on picking the right size according to their fit/style, which differs from the well known national brand. But companies that really understand their consumers buying behavior and requirements, handle this aspect of customer experience well. Take for example, a leading provider of maternity apparel and accessories which provides a detailed information to prospective buyers to ensure they are buying the right size and fit. They even do a follow-up call to the customer to make sure the order is "in order"! And they are one of the few sites that do not offer COD. But the results are not surprising. Highly satisfied customers, negligible returns, profitable company.
Given that Indians are the most abusive customers in the world - hey, DKTM. just look at this survey
Customer experience is not just about having a snazzy website or offering COD or honoring exchanges. Its also about ensuring the consumer precisely get what they are looking for in the first place. Its about making the purchase decision easier for the customer. Its ultimately about providing a differentiated customer experience without breaking the bank, which is easier said than done. Who said running a business is easy?
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