Customers Expectations & Managing Impatience

The Ola App says your driver will arrive in 3 mins. It’s already 4.26 mins and you are irked.

The Swiggy App says your food is on the way and shall reach at say, 8.05 pm. It’s already 8.08pm and you are calling the driver frantically to figure out where your food is.

You spent one hour taking trials of 17 dresses and finally picked up 3 at the Department store in the fanciest Mall in town and have been impatiently waiting at the billing queue for over 10 mins. During a “sale” season, the wait time trebles and a few customers are already dropping their shopping bags.

Are you still staring at the guy getting his hair-cut for the past 20 mins and wondering why would the stylist take so much time to complete the "job"?

Sounds familiar? Well, you are not alone. An article in Nautilus has an easy explanation: “Slow things drive us crazy because the fast pace of society has warped our sense of timing.” Does it mean humans first experienced impatience when life became fast-paced sometime in the 19th century? No, nature gave us impatience as a useful instinct. In fact, animals also show impatience. “It’s an internal timer that tells us when we have waited too long for something,” says the article. A webpage took 4 seconds to load in 2006, 2 seconds four years back and 0.25 seconds today. We are still impatient until it loads. How true!

The iconic Sambhar at Ratna Café, a popular restaurant in Chennai which is over 6 decades’ old takes a few hours to be prepared every morning to get that consistency and a lasting taste. The iconic Lassi from Punjab is stirred for hours together while the Tanjore Spice powders and Chettinad Pickles take days to be prepared. Although I am a pure vegetarian when it comes to food, I have heard how it takes 10-12 hours to prepare the Hyderabadi Haleem dish. Remember, an egg has to spend 270 days inside a womb to be given birth as a human baby. Good things take time. Great things take eternity.

So why do humans get upset upon small delays? Why do we forget that unforeseen and unnatural delays are normal? And even if someone is actually late, why fuss so much? If the delivery boy turns up later than proposed, what would actually happen if the customer waits a few more minutes? If the Cashier at the till is slow in his/her work (probably a beginner), why cannot we wait a few more minutes and encourage them, rather than chide & complain?

I am not a psychologist, so I wouldn’t be able to answer many of those questions. But I can probably say how Retailers and Customers are handling this or perhaps supposed to. With so much of tech taking over our PoS billing solutions, why wouldn’t Department stores and Hypermarkets invest on small benches for customers to sit near the check-out areas, quite similar to Hotels? Even the smallest Lodge in town has a seating area near the Cashier while Star hotels have experience centers such as an Aquarium. This, in my opinion is the most important reason why Customers shrug the Trolley and prefer the Mobile Apps for shopping. It’s the impatience of standing in Q that drives customers to choose one over the other. While it is clichéd to say Men are bored at Department stores while their wives or girlfriends are shopping, I am yet to see (In India) a store which has a seating area or Foosball tables for men to hang around, let around a café or a bar. I don’t know of a shopping centre which has an affordable play area or Crèches, save for the one off “Fun City” outlets which end up being more expensive to hang around for an hour or so than actually shopping & dining together. 

In services businesses like a Salon or a Restaurant, chances are lower to replace the physical presence. While the Food hailing Apps can deliver even the most exquisite delicacy in town all the way to your private dining area at home, the “Dining Experience” is something that cannot be replaced. However, Restaurants take way longer time to prepare, serve the food and send the bill than it is supposed to, thus making Customers lose their cool and get impatient while leaving, although after a sumptuous and a happy meal. Sadly, most Restaurant owners and Customers fail to understand the difference between a find-dine and casual dine restaurant, forget what is a Quick Service Restaurant. 

Ultimately, impatience begins when expectations are mismanaged. So, Hello Retailers – set your business expectations right to your patrons – like a simple placard on the dining table (or even on the Menu card itself) which states the estimated time for serving the food; or like at Airports, where you estimate the waiting time for Security Check or walking time to reach the Boarding Gate.

Setting the right expectations can turn the experience to be much better. In Retail or in our personal lives. Isn't it?

SS EOSS 2018 is a full house

After a long time, I went shopping. Once again, of course during EOSS popularly known as End of Season Sale which usually occurs twice a year after each season is over (SS – Spring Summer & AW - Autumn Winter). I recall, during my days at Benetton in 2004, there were not more than 3-4 weeks of EOSS, which would begin right after Valentine’s Day (late-Feb) & just before Ganesh Chathurthi (July). There would be a frenzy among Customers to get the best merchandise at lower prices during this time and the EOSS was a great crowd puller. A number of first time customers would turn up at the stores, those who’ve otherwise not been the Brand’s patrons earlier. They would engage with the Brand, the Staff, take Trials and purchase. If they liked what they wore, they would come back and buy again, even at full prices. Therefore, EOSS was a great tool to induce first time buyers (of a Brand).

Things started changing slowly, especially between 2006-2012 during the Retail explosion pan-India with over 300 Malls opening simultaneously across the country. What was supposed to work “for” the Retailers and Brands worked “against” them. Let me give a perspective;

Let’s say, Brand A had 3 -5 stores per Metro (around 2006) and a small presence in 1-2 Department stores. Circa 2012, the same Brand had a dozen or more stores plus larger counters at various Department stores in the city. Add to this, so many International, Domestic & Regional Brands started exploding the retail scenario in the country with total shopping space quadrupling every two years. 

All of a sudden, customers had too much choice, and at better price points. If a (Male) Customer had 4 brands to choose for Formalwear earlier, there were atleast 20+ brands in the same space now. Similarly, for casualwear & sportswear while new categories like fitness & lounge wear were created.

Meanwhile, the Bansals were building E-Commerce websites which offered clothes and accessories at half the price (like books!) and they called it disruption. It was indeed, that Customers could shop from their desks or sofas – just that a few Brand Managers got it all wrong. While pushing unsold merchandise to e-commerce (at discounts), thanks to a general slowdown in Retail Sales, even fresh Merchandise were being sold at lower prices than at stores. Mall Owners were gasping, feeling high and dry with footfalls barely hitting the precincts during the weekdays and largely window shopping over the weekends. Everyone was talking E-Commerce. So many Brands built their own websites while most of them who wanted an online presence aligned with E-commerce Marketplaces like Myntra & Jabong, as well as horizontal players like Flipkart & Amazon. 

As an ecosystem, we (Retailers) pampered Customers to shop online, return if they didn’t like what they bought, get a 100% refund if they deemed fit and encouraged them with a variety of discounts. This became a daily habit and more Brand Managers were getting intrigued with this incredible opportunity. All along, many Retailers missed meeting Customer Expectations at the Retail Outlets. Customer Engagement was negligible, Customer Service levels were dropping and the Staff were getting impatient not being able to earn more, thanks to a fall in their Incentives which was directly linked to lower Sales, thanks to fewer footfalls. The cookie crumbled. Many Brands shrunk their operations, some exited less important markets and a few downed their shutters. 

It’s been reasonably slow the last 4 seasons for most Retailers. However, I saw something incredible last weekend at one of India’s largest Department Stores. Customers were patiently waiting in a long queue to bill their products which took an average 20 mins during peak hours. Add to this, they have already spent quite some time trying out their outfits at the mobile trial rooms set-up. I was convinced, Customers haven’t shunned Offline Retail. They will come back to the stores when they see “value” for what they buy coupled with fantastic / personalised service. Ofcourse they are here for discounts right now, but then, the same discount is available on their Mobile Apps. So why did they come? Think.

GST at Cinema Theatres

GST is the most searched term, perhaps in the past 30 days or so. India transitioned to GST on the midnight of 1^st July 2017 with a special session of the Parliament, which was attended by the Prime Minister and his Cabinet including members of the Opposition. Much has been spoken about GST so I am not going to delve in any further. But I am presenting my views on how GST in Tamil Film Industry is affecting the trade.

In Tamil Nadu, there was no VAT on cinema tickets prior to GST. However, there was an Entertainment Tax @ 30% on the ticket prices. The DMK Government, when they claimed power in 2001 provided a reprieve to the Tamil cinema Industry for the said Entertainment Tax if the film had a title in Tamil and was provided a U Certificate among a few other clauses. That’s when Sun Pictures was floated (a division of Sun Media Network which runs Sun Tv & 45+ channels in four regional languages). The reprieve was used by most Producers with fancy Tamil titles including the all time highest grosser of Superstar Rajnikanth whose film directed by Shankar was titled “Enthiran” meaning Robot in Tamil.

The ticket prices in Tamil Nadu have been capped at Rs. 120 for Multiplex screens and Rs. 100 for standalone Theatres. The 120-cap was inclusive of 30% ET, which means the actual earning to the Theatre Operator was only Rs. 84. However, due to the largesse by the successive Governments, the theatres were able to earn extra – the ET collection was not passed on to the Customers, rather pocketed in to their kitties – obviously because the Producers knew they could hard bargain with the Exhibitors for a higher Minimum Guarantee & higher Revenue Share as well. This vicious cycle has been going on for a while with 9 out of 10 cinemagoers unaware of the same.

On June 30^th 2017, the TN Government passed a mandate where the local body tax was applicable at 30%, which was over and above the GST. Cinema Exhibitors got in to a huddle on the 1^st of July and decided to protest the TN Government’s decision and shut down the screens for four days from 3^rd – 6^th July 2017 incurring a loss of over Rs. 400 crores to the Industry. TN Government decided to put the levy on hold and allowed the Theatres to operate as per old norms.

Now here is the catch; GST had just replaced the Entertainment Tax and was 2% lower. Which means, the ticket prices should have gone down or remained as they were. But the smart industry guys have played their cards well by adding 28% GST on to the Maximum Ticket Price of Rs. 120 which is against the spirit of GST implementation. Interestingly, neither the Central nor State Government have taken cognizance of this issue and cinema goers have been forced to shell out more from their pockets. With the already sky-high costs of Pepsi, Coke, Popcorn and other Food & Beverages inside the theatres, regular visitors have been dissuaded leading to a 30% drop in tickets sold. If this trend continues, more footfalls will reduce and would have a deep impact on the film exhibition industry. A few star-studded movies are in the pipeline, which will decide if this move by Cinemas to pass on the GST to customers will have a significant impact. With burgeoning OTT Apps & ever increasing movies screened illegally on websites, the fate of the film industry is facing a Damocles Sword.

K for Kleptomaniacs

People who steal at retail stores are otherwise known as Kleptomaniacs. Store Pilferage, as it is also known accounts for about 10% loss on Turnover each year across Organized Retail in India. Worldwide, the numbers vary but is perhaps the highest only in India. From shaving razors to condoms to shoe laces to mobile phones, people steal anything and everything from retail store shelves. For Retailers who make a paltry margin on Sales, they lose their whatever little profits they make because of such losses. It is estimated that in 6 out of 10 such cases, the store employees are involved in store thefts.

Kleptomania is a disorder among several people in the world. It is the urge to steal a product especially from a Retail store. There are various reasons why people do so. Here are some key points;

Ego Trip: Customers steal at Retail Stores mostly to satisfy their Ego trips. They may even steal items that are not required for them or someone they may know.

Bet with Friends: This happens most often, especially among the younger lot when they place bets among friends to bring a prized catch from a Retail store.

Need Vs. Want: Many times, the person who is stealing may have a genuine need for such a product and may not have the means to acquire them lawfully.

Compulsive Urge” At times, for kleptomaniacs, it’s just about stealing something from somewhere which may have less or no value at all.

So what should Retailers do about it?

Worldwide, Retailers are fighting a losing battle against Kleptomaniacs. For each case that gets caught, there are liberals and human rights activists who fight for the Kleptomaniac’s justice. Things are worse for juvenile offenders. In most cases, the Retailers simply ask the person who steal to just pay the amount of the products and leave the place. A few of them take law unto their own hands and provide third-degree treatment by getting physical and abusing them. In a few more cases, the local police is called and the person is handed over. Sadly, there is no specific law in India against kleptomaniacs. This keeps the Retailers worried all the time about what action must be taken against them.

Quick Fixes;

CCTv: Retailers may install CCTv cameras across the store. However, this is just a deterrant. A mere signage that the store has CCTv cameras or even dummy cameras usually deter potential customers who want to steal to recede.

Watchful Eyes: The store staff must be watchful all the time and keep looking for those who may have come to steal the products

Strict Policy: A display of the policy against Kleptomaniacs may again deter them to avoid stealing, such as causing public embarrassment through photos.

Inventory Management

For any retailer, Inventory Management is about maintaining the right level of stocks at the right place at the right time. If this is achieved, then the Sales can increase by atleast 30-50%. Sadly, it isn’t so easy. The “Fill Rates” as they are called refers to the amount of stock level that’s maintained at the Retail stores. It varies according to formats, location, pricing strategy, etc. In Grocery Retail, a fill rate of 80% is considered to be healthy while in fashion, it is ideal to have 90% and above. It may not even be relevant in Gold Jewelry while in Consumer Durables, it is normally about the breadth of brands and models one carries.

I set-out earlier this week to buy some general merchandise for our new office. As always, I prepared a list and walked in to one of the oldest Grocery stores in the neighborhood. The first thing I asked – a dustbin, wasn’t available. Really? And then I asked for another thing, which wasn’t available. And then another thing and the same answer. This sends a very negative imagery about the store to the potential customer. In Retail, it is estimated that over 70% of customers always purchase more items than they had originally come to buy provided a wider range of items are available and also the Retailer maintains a level of excitement at the store. In just a few minutes, I knew how the store was being managed since products of the same category were kept for display in two locations inside the store! Really felt bad for the store and the Retailer Brand that there is scant focus on merchandising & visual merchandising. But the god thing was I also picked up something which caught my attention at the cash till, which I had not written in my list. Smart placement, I would say.

Soon, I reached out to another store closeby for purchasing the rest of the items – now this is the last thing that a customer wants to do – store hopping for essentials. And trust me, while e-commerce has chipped in to some extent in offering a wider range, even they haven’t been able to crack the Hyperlocal delivery where such products are delivered in the fastest instance. At this store, I picked up the stuff I was looking for, thankfully got what I wanted and bingo! Picked up a few more things which I hadn’t planned to purchase. Again, because it was displayed near the Cash tills.

Inventory Management at a Retail Store has been automated for well over 2 decades now, from running simple software solutions to implementing complicated ERP solutions from top IT Companies. Sadly, even then, the fill rates in India in the Grocery store business continues to be less than 60%, sending Customer Experience to very low levels. I would also say, Indian Customers have been very nice to Retailers by being lenient loyal to such retail stores, shopping frequently at the same store even though the Retailer provides a poor experience. When I try to analyze, it’s partly tech-related but more importantly, the attitude of the front-end staff make all the difference. If only they displayed the products that have arrived from the Warehouse and also send out feedback of what’s not available! Wishful thinking.

I reiterate that Retailers can improve not only their Sales but also their margins by managing Inventory better. But it is a discipline to be followed daily.

180 Days as an Entrepreneur

 

I started my entrepreneurial journey exactly six months back from today, on 1st Aug. 2014. The journey has been nothing less than a roller coaster ride. I have always wanted to have a company for myself, but for that to happen in 2014 was based on various conditions at workplace and home. The last six months have been super exciting – everyday has been a revelation. I set foot by creating a retail business for myself, Smiling Baby which is a baby care venture that focuses on a wide range for products aimed at newborn children upto six years of age and catering to the aspirational middle class to shop in an affordable, comfortable and convenient environment. Confluence Retail Private Limited was established on an auspicious occasion – Teacher’s Day, which fell on 5th Sep. 2014. It was a great way of me dedicating my efforts to my teachers and Gurus, my mentors and well wishes and to everyone who have taught me a lesson or two in my personal, professional and public life.

We inaugurated the (physical) retail store on Friday, 26th Sep. 2014 and the venture is seeing good traction. We are currently taking the next big leap of taking the business to the web, but it wouldn’t be yet another E-Commerce store selling diapers and creams at deep discounts but something more engaging and interesting.

Here are some lessons that I learned as an Entrepreneur which I would like to share;

• Time Management – From waking up in the morning to hitting the sack late in the night, time is at our own disposal. What we do with it completely depends on what outcome we expect out of it.
• Results are directly linked to the efforts we put in. Well, its the same while we work somewhere else, but most probably we are working in large or small teams. But as an Entrepreneur, we are working for ourselves and most often alone, or in a short team.
• Blame ourselves when things go wrong; probably try to put the pieces together and find out what went wrong, where and why. No Blame Game – no one to pass on the buck - to juniors, seniors or peers.
• Money Management is key – as important as managing time. While most Entrepreneurs start off with a buffer of savings, what we fail to remember is to keep maintaining or building the buffer from time to time to help you stay longer in the game.
• Trusting those around – this has been a great challenge for me. While we work for large organizations, we believe people will do their job. But when you are on your own, it requires a lot more monitoring and follow-ups.
• Getting compliments from your first time and repeat customers – gives us a high but also makes us to be more and more modest.

Some of the pain points compared to a professional life;

• After being in the Corporate world for a decade and a half, we expect a certain level of professionalism at work, which doesn’t happen in most cases.
• People walk in at their will at your office and expect you to value their time, leaving behind what we have been working upon.
• There is no respect for appointments – in most cases, we are taken for granted since we don’t carry a business card of a popular company!
• Money is always scarce, especially if we are used to a certain lifestyle.
• Friends and Family look up to us differently – as though we are wasting time without pursuing a full time job.

Overall, its been one exciting journey, a very long in terms of knowledge yet a short one in time. I have learned a lot more things in the last six months than in the past six years or so, probably. Setting up your own company, especially in the Retail world which has its own complications from Finance to Supply Chain, Marketing to Operations.

The journey has just begun and I have Miles to Go before I sleep…

Online Dining

I have enjoyed my pizzas better at the restaurant that at home, all along. It is more to do with the fun of dining – you plan a trip to the pizzeria, a walk or a short drive usually, or even at a Mall after finishing retail therapy. I fondly remember the bottomless Coke and unlimited Pizzas at Pizza Corner in Chennai in the late 90s during my most cherished college days with my gang of friends. Have ever since been a fan of pizzas and the love has only been growing. Frankly, I like pizzas from different places, be it Dominos or Pizza Hut, California Pizza Kitchen or standalone indie restaurants. One of my most favourite of course has been from “Italia”, the fine dine restaurant at The Park, Bangalore. For me, Pizza is an all time snack. I am usually game for a pizza at any time of the day (or evening) although I avoid a heavy dinner of pizzas. In fact, the love of pizza is more because of the yummy accompaniments, the cheese garlic bread and an array of toppings, especially the gherkins and olives. Am not a big fan of coloured flavoured colas and would rather prefer a strong coffee if not a lemon ice tea to drown the heavy food.

What I like best is food to be served hot and fresh from the kitchen. Haven’t been a big fan of home delivery or takeaways since I feel that the freshness is somehow lost, especially the international fare such as pastas, pizzas etc. although Indian food is still doable – we have an option to reheat the curries and biryanis at home once again which can’t be done with pizzas and pastas. Have avoided ordering pizzas at home for a long time now since I have had not-so-great experiences in the past, but that was probably because I used to live in Bangalore where the ambient temperature outside is not conducive to serve hot food by road.

This Football season, I decided to order pizzas at home. No, I don’t follow the game but why not enjoy the delicious offers provided by F&B Retailers! So, first it was Dominos followed by Pizza Hut. On the first occasion, the pizza arrived pretty late, almost 45 minutes since I ordered. I was very disappointed with all the promises made by the company on various media, but gave a benefit of doubt to the delivery boy – he must have had a lot of orders to fulfil and mine was probably the last one. So, I didn’t make an issue about it and just left it there. Yes, I would give them a try once again in future and I hope they live up to expectations.

On the next occasion, the pizzas were served hot and were in a consumable condition even after 20-30 minutes of being delivered at home. What was surprising was it was a Sunday and was the day of the “Final” match between the two teams. And yet, the pizzas were sent on time, well ahead of the promised time. They have a future customer for sure!

In both occasions, I used the mobile applications of both these companies. The UI for Dominos is a bit confusing while the one for Pizza Hut seemed much better. In fact, I had to switch over to the website while ordering for Dominos since that seemed to be a better option. The UI is perhaps not designed by retail experts and with consumer feedback, it lacks the sensibilities that customers look for, especially people of the older age and for women, both of these segments may not be very mobile savvy. Also, one of my friends quipped on his Facebook post recently how the delivery boys call a number of times to take directions. The Pizza companies can take a cue from Uber, the taxi service guys who have a GPS enabled map on their cell phones that help the drivers reach their destination without even calling once.

Mobile App Zomato also integrates Home Delivery along with providing reviews about restaurants and they are growing rapidly not just in India, but also internationally. Overall, I guess online dining, or rather online ordering is a great way to reach out to customers. It is also non-intrusive in a way. There is no need to call a number and go through the menu being repeated often – the menu is just there on the mobile app or on the website and helps users to choose what they want quickly and easily. Once customers are used to it, they would rather prefer this option instead of calling on the phone, whenever they desire to order food home. So, go ahead and try ordering on your phone next time. And yes, do take a minute to share your feedback. Happy Dining…