Differentiating at the right journey touchpoints is the key to value creation
Pre - purchase
Purchase
Post - purchase
Global brands have better performance vs Indian brands during pre - purchase; Need for improvement across product comparison
Q1 - Did the store/ website make it easy for me to assess the product and make the decision?
Voice of Customer insights
Low stock availability at the store was cited as a factor influencing customer decision at the pre-purchase stage –
“I went to nearby shop and I saw there was brand A, Since brand B was not available, I purchased brand A, despite being a regular customer of brand B”
“ I generally purchase ACs from two specific Japanese brands. However, when I went to the store, a two-tom AC was not available in my preferred brand. Hence, I had to go with brand X, one which I had not considered originally”
Customers also cited that reviews were crucial in assessing the purchase
“If a brand I like is launching a new product, I'll definitely purchase it. However, the product should have great customer reviews online”
Better service at store and managing transparency on price, can significantly improve customer conversions
Q2 - Was my POS (point-of-sale) experience good/ bad vs expected?
Voice of Customer insights
Accuracy of product suggestions can significantly impact customer experience during purchase
- “I didn't like the service at the store. Their intention was only to sell the product. Ma'am, this model is good. You can take this. But they were not giving the solution I needed. So, I didn't like that.”
Customers compare price across platforms and want money saver offerings and special discounts
- “In showroom, they said there is no offer on the product. The same product, was there on e-commerce with offer. So Rs.38,000 washing machine in store was Rs.33,000 on marketplaces.”
- “Also, at the store, they did not have any offers on my preferred credit card. So, that was the reason behind my decision to not make the purchase. They must at least provide offers on 2-3 cards, which are commonly owned by people”
Customer interaction with the brand is low beyond warranty extension and product exchange during post-purchase
Q3 - Did the product delivery and usage, meet the committed expectations?
Voice of Customer insights
At a segment level, the ease of product exchange is a friction area for the customers.
Brands which provide great deals and special discounts especially for loyal and regular customers have received a better rating.
A notable variance in customer ratings was observed regarding the ease of warranty extension. The initial step—warranty registration—is currently manual and heavily reliant on customer effort. By automating this process and utilizing previously shared customer information for timely reminders, brands can streamline warranty extensions and significantly enhance the overall experience.
Striking the right balance between delighting the customer and the cost of servicing them is key to maximising value
Performance of the segment on the prioritised experience attributes
Consumers are increasingly opting for opting for feature rich products –
- Instilling brand trust and offering high-quality products are the key attributes brands are performing well on.
- Products that offer multiple functions are gaining popularity
- Artificial intelligence and smart connectivity are playing a bigger role in consumer decision-making, as it is easier to maintain or reach out for customer support on those products
Despite the trend towards premiumisation, affordability remains important –
- Many consumers are willing to try new products if they are budget-friendly and offer good value
Customer retention is low for large appliances, with 43 percent switchers seeking newer aspects and better deals
Customer segmentation based on Satisfaction and Loyalty
(percentage share of respondents)
Customer retention is dependent on their satisfaction with the brand and their tendency to explore alternatives. ‘Ambassador’ are highly satisfied customers who will keep contributing to the brand’s success. ‘Switchers’ on the other hand, are always seeking better options. ‘Critics’ as the third segment, actively convey negative feedback about the brand, if not satisfied. Finally, ‘Dependents’ are customers who remain loyal despite low satisfaction due to lack of alternatives in the market.
Customer loyalty driven by high product quality and exceptional customer support
- A substantial 55 percent of the customer base serves as brand ambassadors, consistently choosing their preferred brand based on the reliability and performance of the products and efficient and helpful customer service
Potential for brand switching due to unmet expectations
- If the product does not live up to these expectations, nine percent consumers may seek alternatives.
- Timely and hassle-free delivery is crucial. Any delays, damages, or inconvenience during the delivery process can lead to customer dissatisfaction and potential brand switching.
The ability of the segment to perform on CX requirements is 79/100, with a need for improvement on the ‘Personalisation’ pillar
Performance across the KPMG Six pillars of Customer Experience
(Weightage of the pillars to the overall experience requirements)
‘Expectation’ (22 percent) and ‘Empathy’ (18 percent) are the key pillars of experience while making a purchase decision
Within expectation, the top two attributes driving decisions are –
- Promised value for the money paid
- Appliance quality with a wide range of features.
Within Empathy, the top two attributes driving decisions are
- Service by staff across all channels
- Store experience.
On average, brands are fulfilling 79 percent on the experience requirements. The most underperforming pillar being ‘Personalisation’
- Brands must provide an omnichannel browsing experience and product customisations.
The segment is driving profitability from its loyal customers, with high willingness to pay for product quality and trusted brand name
Top experience attributes influencing the customer’s willing to pay
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Consistent delivery of high-quality products with a range of engaging offerings
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Ease of use, quality, and responsiveness of customer service
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Helping, respectful and empathetic service from staff across online/ offline channels
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High brand credibility driven in part by positive communication from social circles
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Simplicity of the buying process, including a smooth, fast, and secure checkout
An individual’s willingness to pay a premium is driven by immediate needs. As the today’s customer evolves, the focal aspects of premiumisation has shifted from functionality to experience. This aspect may translate as seamless ownership, omnichannel browsing or even exclusivity in customer support.
32 percent consumers are more willing to pay a premium for high-quality appliances due to the assurance of durability, performance, and long-term value.
31 percent customers will pay more for easy to use customer support and satisfactory resolution
27 percent of the customers can be influenced to pay a premium on –
- Trusted brand names offers assurance of quality, reliability, and after-sales service.
- Customers are willing to pay more for a seamless checkout process because it saves them time, reduces stress, and ensures a smooth and hassle-free purchase experience.
