CX – the only tool to retain customers

It’s all about how customers are treated – the eternal philosophy of modern retailing. 

During the recent shopping spree ahead of Deepavali 2024, I witnessed this first hand and could only comfort myself that more than the 4 Ps of Marketing (or 5, or 6 as the list gets elongated from time to time), it is the Customer Experience offered at the retail store that can entice shoppers to spend more. And later, speak about the positive experience to others and further drive themselves as well as more people to the brand / store.

Actually, we had four such instances over the last fortnight – one where we felt a bit cheated by the brand due to the overtures of the staff who were thinking they were doing good to the brand by saving the discounts we deserved. And another, where the staff overwhelmed us with known and unknown promotions that led us to buy more.

Let me start with the positive one first.

My wife and I decided to spend a couple of hours together (no, not the typical husband-wife “me time” without the kids tagging along), rather to explore the Phoenix Mall to see what could suit our needs and budget. Frankly, we went without an agenda (a rarity for your’s truly).

We started exploring at the Fab-India store which was for a change, absolutely empty (it was 11.30am). I tried a kurta first and the girl staff was keen to showcase more designs to me. Within the next few minutes, I had picked up a handful of clothing, once again a rare thing for me, as I prefer to buy clothes from across various brands.

Then, we visited a few other stores until my wife suggested we enter and explore “Avantra” by Reliance Retail. It was my first to the brand store and I was mighty impressed with their assortment. Not that I am a regular buying stuff for my wife, but with a little knowledge of how sarees are displayed and sold, I was quite surprised that the brand had gotten everything right. 

Almost.

The lady staff was quite enthusiastic to showcase the collection to my wife and to her surprise, the product and pricing was just apt. Add to that, a dash of friendly support by the store staff that we ended up buying a lot more from the store, way above our budget. We still decided to bill what we had picked up, to ensure the staff who served us were happy. And the staff offered us a surprise by giving us Gold coins weighing 0.25 gms - 3 units for our shopping! Whoa. 

Passing by aisles of the mall, I quickly entered the “Home Centre” store to pick up a few coffee mugs to sip my filter coffee on Deepavali day. Now, this is the kind of store where customers “indulge” in shopping therapy, especially picking up a number of discretionary items, buoyed by impulse and a push by the staff. 

Alas, we were not so lucky to be prodded by any such staff. Honestly, we found none until we reached the Cashier, who was busy explaining the “Exchange Policy” to another shopper who had come to replace a few things he had picked up earlier.

The most disappointing experience was when we landed up at a women’s fashion apparel store 2 weeks back, (I choose not to mention the name and admonish them here) where my daughter discovered a fabulous collection that suited her needs. She had almost given up on her Deepavali shopping not being able to find what she wanted, having explored over half a dozen small boutique stores as well as 3 department stores earlier in the day at another mall.

What makes a dad happy is when the kid is happy. And happy I was, to pay for more than what we had planned to buy. At the time of billing, I got a message from the brand on my Whatsapp that we are entitled to Rs. 500 off on our next purchase. So, we decided to hold one dress to be billed the next day, as our total bill was a healthy 5-digit figure already. However, the staff wasn’t too happy that we were trying to save some money. She sulked when I informed her that we would bill the item the next day. 

When my wife went the next day to bill the product, the same staff displayed a fuss, that a discount code was required to ensure she was able to deduct it from the bill. Just that we had not received any such code from the Brand. After all, the code gets generated only when they trigger it, which she clearly did not. 

We were anyway going to buy the dress, so my wife decided to proceed without the much desired discount. She did make a mention to the staff, that her husband was part of the retail industry for decades, right after which the staff decided to trigger the code. 

Bingo! I received the code on my Whatsapp and I passed it on immediately to my wife, and then to the staff. Billing was over, product picked up. But my wife wasn’t appreciative of the entire experience.

As the store was just 2 kms from our home, we had discussed the previous day that we shall come here more often, as my kid liked their collection. But the bitter experience made us think twice, if this is where we would spend our hard earned dime.

Through the retail network, I tried to reach out to the brand owner, a second-generation entrepreneur from the city. The gentleman was rather unapologetic to my wife when he called her. Instead of saying “sorry” for the poor experience, he insisted that the brand will reimburse another Rs. 500 to our account which we can reimburse during our next buy.

Sorry, but we were not harping for the discount for which we escalated the matter to the owner. The young man, with limited experience in retail, perhaps, wasn’t able to understand our dismay and rather focussed on the monies. We earn, spend, loose sometimes and the cycle is repeated. But the way the entrepreneur justified the entire episode on a professional Whatsapp group in front of 200 others, was rather in poor taste. His explanation as well did not include the word “sorry”.

This is what happens when business owners presume that Pricing (and Discounts) are the only reason consumers attach themselves with brands. Not sure, whether he understood the magnitude of the issue on hand, but I did. And I decided, that I will ensure such a poor customer experience is never accorded to anyone in such cases where I am involved.

The bitter experience however did not deter our Deepavali celebrations. We had a great time as well as enjoyed when the kid wore the dress from that particular store, as much as we did, when family members wore clothing from Fab-India and Avantra.

Here’s to more celebrations and much better Customer Experiences.

People, passion and processes

In a recent post on the social media platform X (formerly Twitter), a user from Bangalore posted her recent experience of being a female delivery partner for a day. She chose to work in the “gig economy” at one of India’s top 3 Q-commerce delivery apps, Blinkit.

She narrated the learnings of her day at this part time role in a long thread which gained a lot of attention from many users, including from Blinkit Founder Albinder Dhindsa.

She conceded why she did this trial, that it was just out of curiosity how Blinkit (and other Q-Commerce companies) could deliver orders within just 10 mins.

She highlighted abysmal working conditions at the dark store - a mini warehouse with just a fan, from where delivery partners pick up the stuff, technical flaws, and a few potential improvements in commercial queries such as insurance payouts, how to earn payments, etc.

I initially felt that this was a great PR exercise led by the brand in a surrogate manner for hiring new staff, however when I saw that she had mentioned poor working conditions, I realised that wasn’t the case. The user, who goes by the name Sneha had mentioned that the working conditions were quite poor, without a proper seating place or access to drinking water for the delivery staff.

She also narrated her ordeals getting stuck in the notorious traffic that the Garden city is known for or having to ride through narrow roads and that she apologised to customers for her delayed deliveries.

Sajal Gupta, CTO of Blinkit replied to her a day later that a few enhancements were done in the app, as well as improved working conditions at the dark stores such as putting up seating.

I was curious to note why would a young lady wish to go-the mile to understand a delivery process. When I looked up on Linkedin, I learned that her company is a SaaS platform in warehouse management operations. 

Hopstack, Austin, Texas based company has offices in the US as well as in Bangalore, serving over 25 clients with over 12 mn orders. The company’s key goals include precision in fulfilment coupled with realtime insights and seamless integration.

Now, why I am writing about this episode?

Because I would like to stand up and salute the passion that Ms. Sneha carried in her work. 

While it was her inquisitiveness on how delivery partners operate in a market like India, it was also a very fulfilling exercise to the lady on the professional front, as she could learn first hand what are the pain points that Q-commerce giants in India are currently facing and the associated pangs at the warehouse / dark stores.

Though there are just three top (surviving) players today in the Q-commerce market, such as Swiggy’s Instamart, Zomato’s Blinkit and Zepto, all serving around USD 1 Bn worth of deliveries annually, the space is hotting up with several others pivoting in this format. 

Flipkart has recently launched “Minutes” service, and market is abuzz that Ola (Cabs) is coming back to the delivery business.

Nothing better than to learn first hand at the job role. This professional took that effort, much to the chagrin of her mother as she narrated in another tweet.

Over the years, I have seen so many disinterested staff members who do not move from their coveted seats at workplace and wish to see the world from the little lenses of their eyes. 

First hand knowledge – and it is different across industries – is so vital for professional growth.

Ask any CEO who is leading a large FMCG company today anywhere in the world and these women and gentlemen would have walked the streets, travelled in despatch vehicles and stood beside the shopkeepers to understand how people shop during their formative years.

In my own experience when I used to work for Foodworld Supermarkets around the turn of the millennium, I would stand and observe how home makers, housewives kids and men would shop at India’s first organised grocery retail chain. This was my daily routine from 6pm – 9pm.

When I set-up and ran India’s first airport retail business at Bangalore International Airport in 2008, it was a delight to watch how air passengers would shop, across various categories. There are nights when I have turned up around midnight to witness the shopping patterns of international passengers who were departing from, or arriving in to India.  

However, I have also had the misfortune of working with several co-workers ranging from those with 20+ years’ experience, all the way to freshers and new comers, who prefer the digital route for learning ground realities. 

The result, is that many of them end up suggesting incorrect decisions to the Management, which lead to their, as well as the company’s downfall. 

Ms. Sneha, took the plunge to experiment a gig job, largely known to be a male bastion, all for the love of learning more about the industry she works for. Kudos to her again, her passion and perseverance for taking this initiative.

The joys of festival shopping

Come festivals and its shopping time. Families flock together to shop, dine and celebrate the festive times with their extended social circles. While the big ticket shopping such as electric appliances, consumer durables, clothing, fashion, jewellery, automobiles and upholstery for are common, what is intriguing is the endless small-ticket shopping that happens on-and-off during these periods.

Navarathri / Dushera / Dassera / Pujo was celebrated for the past fortnight as I pen this article.

The flavour and fervour of these celebrations is distinct in various parts of the country. In one region, it is Goddess Durga who is worshipped primarily while in some others, it is the trio of Goddesses Durga – Lakshmi – Saraswathi who are celebrated for nine days, three each. And in another part of the country, Lord Rama’s arrival to Ayodhya from Lanka after the destruction of King Ravana is celebrated. 

In a different planet altogether, scores of Indians are using the festive holidays as a noble excuse to travel to their hometowns or to vacation locations such as hill stations, spending time with their own selves, their families and friends and by boosting the local economy. 

In Tamil Nadu, especially in the city of my Madras (now known as Chennai), the festivities are largely around two areas – festivities and special pujas at temples and the revered Navarathri Kolu – the doll exhibition display at homes. The origin of this cultural aspect of displaying dolls at homes is not exactly clear from our past texts but has been a practice for long. 

What we understand from elders and those from previous generations, is that during this period, scores of dolls made of clay and painted with colourful vignettes were displayed at temples of yore, so devotees can see how the idols and forms of Gods and Goddesses are at various shrines in the Bharatha desa (desam / desh for those who prefer that way!). 

This was because mobility of people across the country was quite limited over 100-200 years ago and one would just have to imagine how idols were imagined, based on texts and hear say. 

What began as a display at temples slowly penetrated to homes, with similar displays coming up at houses. Families and households would alternate and exchange the idol displays at their homes each year and the entire celebration would be around the nine-day festival. 

Visitors would go hopping from one home to another to see the dolls’ display, sing songs on the deities, chant religious texts, exchange gifts and have a hearty laughter with their kith and kin.

The local economy, meanwhile thrived. It was the smallest of the sellers, vendors and retailers who would serve the society with their requirements and hence made handsome money during this time. Food items, especially the nine pulses are served by host families to guests.

From the neighbourhood grocer to the unorganised sellers of flowers, fruits and other household items are the biggest beneficiaries, come Navarathri, especiallin in Tamil Nadu. 

The past fortnight for us has been among the most fulfilling over the last so many years when we celebrated the 9-day festival. We had over 50 guests come home and we visited several households too. Almost every guest brought us something and we reciprocated the same during our visits too. 

For those who couldn't visit us this Navarathri, here is the link of our home Kolu. 

I was so happy spending money with local and roadside vendors buying so many things and my better half went shopping for new idols this year too, just like any other year.

Festivals are all about giving, as much about receiving good wishes from friends and family and blessings from elders and the Gods. 

However, it is also about spending money – especially in the context of Retail – to boost the local economy. We did our best and ensured the “online shopping” from Apps with discounts were as minimal as possible – an anathema that the entire offline retail industry is struggling for the past so many months, especially.  

The hype around Air India’s big buy

Much is being spoken, written and debated about the recent purchase of 470 aircrafts by Air India from Airbus and Boeing. So much so, that the US President made an official statement that this could create a million jobs for his countrymen. Many politicians thanked the Indian Prime Minister while so many questioned his role in this private affair between a buyer and a seller – why and how would the Governments on both sides have any role. Leaving all the controversies (if one exists!) aside, let us see the opportunity that we are sitting on. 

In the past 8 years or so, the present Government has reactivated over 70 airports. These are not new ones really, for they already existed. Barely. These were airstrips with an ATC Tower at best built before WW 2 by the British. The Union Government through its ambitious project to make the common man fly – Ude Desh ka Aam Nagarik (UDAN) was activated and many unused airports were operationalised. It is another thing altogether that our railway networks are choked and a small section of travellers do not mind paying a premium for air travel.

A view of the Udaipur Airport developed under UDAN

Altogether, the number of air passengers have grown from 37 mn pa in 2010 to 167 mn in 2019 (sans 4 days of the first lockdown!). The number halved for FY 2021, grew to 123 mn in 2022 and would be around 130 mn in the current FY. By 2027, we expect over 200 mn passengers to hit the sky in a year. To give it a perspective, over 2.2 mn (2 Crores) people took train journeys daily in 2019 of which an estimated 8% of them travel in airconditioned classes.

What excites me, as a (Travel) Retail Professional are the possibilities for retail at airports. To accommodate these new 470 aircrafts plus another equal number from all other incumbent airlines at the moment in India, we are expecting a blast in the skies. Don’t worry, it wouldn’t be so choked like our railway networks where one express train has to stop at times to let the other one travel. But the congestion at airports (runways) would be inevitable. 

IGI Airport, New Delhi

The new Terminal 3 built at New Delhi Airport a decade back is already choking during peak hours. Mumbai is building another new airport and the same is the case at Noida. Bangalore has commenced a new parallel runway last year and a brand new terminal T2 which will be fully activated by Q3 FY 2024. Goa has a brand new airport in the north while there is no confirmation of shutting down the existing one in the south of Panjim. 

Keeping aside the top 20 airports – 2 super metros, 4 metros and the top 16 cities in India – there would be 175+ operational Airports across the country by 2025. The bare minimum would be a daily passenger count of 1,000 pax/day while the maximum would be 30,000. The top 6 airports, by then would be handline 30,000 – 60,000 passengers per day! 

At the moment, the spend per passenger in Indian airports is abysmally low. Singapore’s Changi Airport recently announced their CY 2022 revenues from Travel Retail – USD 870 mn. That would be 38% of 2019 revenues, which means in 2019, it would have been USD 2.2 Bn pa. Dubai’s retail and F&B revenues pre-pandemic were a little over USD 2 Bn pa; Hong Kong, Paris CDG, Frankfurt and Zurich Airport, each had Travel Retail Revenues between USD 600 mn to USD 1 Bn pa. All this crashed due to Covid-19 but is slowly bouncing back.

New Integrated Terminal Building coming up at Chennai Airport

In India, Travel Retail has been a non-starter except at the top airports, especially those which were privatised. AAI continues to operate quite differently, in a manner that is neither exciting nor enticing for retailers to embrace the opportunity. However, change is inevitable and we see a huge improvement coming our way. By 2025, over 5 lakh people would be travelling through our Airports every day. Imagine the  potential retail opportunity that we are eyeing. And these are reasonably affluent passengers with disposable incomes. From a humble cup of tea or coffee to a beer / gourmet meal, F&B seems to be a larger pie than product retail at airports. I had written the reason for this in my previous post. 

Nevertheless, Air India’s purchase of 470 aircrafts is a boon for Indian Travel Retail. Happy to be back here in my new avatar in Travel Retail supporting the Trinity - Airports, Retail / F&B companies and the Consumers.