Wednesday 7 September 2016

Flipkart’s focus on NPS pays off; customer service ranking improves

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After ditching GMV, Flipkart has been using Net Promoter Score (NPS) to tide over ecommerce slowdown and increase its sales. And it seems to have worked as the Indian etailer’s customer service ranking has moved up in the last six months.
As per research and advisory firm RedSeer’s E-tailing Leadership Index (ELI) report, Flipkart’s ELI score is 95, highest among major ecommerce players in India.   

Flipkart marginally ahead of rival Amazon

RedSeer released its first ELI report in July this year that evaluated ecommerce companies’ performances for the January-March quarter.  In that quarter, Flipkart scored 91 and Amazon 87.
The fresh scores were derived after evaluating performances for the May-July quarter. While Flipkart’s score went up by four points to reach 95, Amazon’s score remained unchanged at 87.
Snapdeal, Paytm and Shopclues’ scores improved considerably too compared to last time. Snapdeal’s score went up from 60 to 66, Paytm from 43 to 65 and Shopclues from 27 to 59. As we can see, Paytm and Shopclues are inching closer to Snapdeal.
The following things worked for each of the online marketplaces:
  • Flipkart – highest brand recall and improvement in app experience
  • Amazon – leader in overall customer NPS
  • Snapdeal – scored high in delivery speed and ease of return
  • Paytm – great pricing and discounts
  • Shopclues – leader in tier 2 and 3 cities
The 3 judging parameters were the same: trust in brand, best value proposition and overall shopping experience. Although, the one difference is that this time the performances were measured based completely on customer perception of the brand. This contributed largely to the improved ranking of some ecommerce players.

Inventory model, key to Flipkart’s success?

Increasing net promoter score is one of the main targets assigned to Flipkart team by their CEO Binny Bansal and Business Head Kalyan Krishnamurthy. And one of the strategies implemented by the company to achieve the same is shifting to inventory-based model from a pure marketplace business model.
The firm’s intention is to gain complete control over its product listings in terms of product quality, product assortment, pricing, inventory, delivery and returns.
When devaluations and fund crunch refuse to leave the Indian etailer’s side, the company is relying on customer loyalty to stay relevant and ahead in ecommerce race. The etailer launched its loyalty service Flipkart Assured last month, just a month after Amazon Prime debuted in India.
The next Etailing Leadership Index score will be released after the festive season sales. It will be interesting to see the changes the great Indian festivals will bring to ecommerce leaders’ score.

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