Tuesday 23 August 2016

Flipkart launches F-Assured to improve NPS score; the battle for loyalty heats up

Ecommerce leader Flipkart has launched its loyalty service ‘Flipkart Assured’ in order to improve its NPS score and compete with American ecommerce giant Amazon.
The news about the marketplace working on a new delivery scheme came out in July this year.
Under this service, products would have to go through a six-level quality check process that will cover packaging, product specifications, product ratings, and return ratio of the item. Calling it a seal of ‘quality and speed’, fast and free delivery within 2-4 days is another promise of Flipkart Assured to its customers.
“(Flipkart Assured) is a continuation of Flipkart’s commitment to customers by enabling the highest quality of shopping experience. This programme is enabled by world class algorithm developed by Flipkart’s data scientists. The algorithm blends a wide range of factors, which includes customer returns, ratings, seller cancellations and other performance related factors integral to a great experience online. This algorithm then badges a product Flipkart Assured purely based on performance. The feedback loop on top of this ensures the algorithm gets progressively better,” said Flipkart.

Different from Flipkart Advantage?

Many believe that the new service is a repackaged version of Flipkart Advantage. But the etailer want everyone to know that both the services serve different purposes.
The marketplace’s website states,
“While ‘Flipkart Advantage’ was a tag for all products from sellers who used our partner warehouse services, the ‘Flipkart Assured’ badge is given to select items basis their performance on product quality attributes and availability for faster delivery.”

Amazon Prime’s new rival – Flipkart Assured

Jeff Bezos’ Amazon launched its exclusive ‘Prime’ service in India last month, soon after Flipkart’s announcement.
The rivals are always neck-and-neck, whether it is launching seller services or ad campaigns. So it isn’t surprising that both the players launched their loyalty service around the same time too.
While Amazon Prime is a tried-and-tested successful service that made its India debut, F-Assured was designed by Flipkart keeping in line with its realigned customer- centric approach. The marketplace, which is under immense pressure to meet its targets before the Big Billion sale, hopes to increase its NPS score through this new service.  
The Indian etailer had launched a similar service ‘Flipkart First’ in May 2014. But the service failed to gain traction, in spite of the first mover advantage. This is round 2 for Flipkart. Will they beat Amazon Prime this time?

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