Differentiating at the right journey touchpoints is the key to value creation
Pre - purchase
Purchase
Post - purchase
Customers encounter challenges in evaluating categories which are technical rather than functional
Q1 - Did the store/ website make it easy for me to assess the product and make the decision?
Voice of Customer insights
Brand visibility and price range are the key customer considerations for small appliances
- “The SEO of native brands are better. I was researching different brands online to understand which one is under my budget, what are the features and functionality they offer, etc. This one brand which I was not aware of before, kept popping up in my searches”
- “When looking for options it’s all about features – whether a certain product offers more or better features. Price is also very important, in a similar price range, I would go ahead and buy the better product (feature wise)”
Three out of the six parameters, have a high variance between the ratings– website UX/UI, stock availability, and sales support at the store, specially while assessing water purifiers and invertors.
Warranties are a key POS differentiator, while online product testing remains a critical customer need
Q2 - Was my POS (point-of-sale) experience good/ bad vs expected?
Voice of Customer insights
Customer considers warranty, hidden service charges and customer reviews while making a purchase decision -
“In other brands, I have pay some or the other charges (service, warranty etc.) almost on a monthly basis. I don’t like that tactic. Service means everything and it should be all inclusive. ”
“Initially, I was confused on which one to buy but the two-year warranty was extremely crucial.”
“When I am assessing a brand, I would consider customer reviews which are negative towards the brand and not any particular product feature. In the end if the brand has a positive image in the market the service would be good.”
Appliance testing is the lowest performing parameter, specially being difficult to enable for online purchases.
Post-purchase customer engagement is low, with most brands showing uniform performance
Q3 - Did the product delivery and usage, meet the committed expectations?
Voice of Customer insights
Quality of resolution and reliable delivery with installation, supports in closing on a great purchase experience
- “I mean, the entire delivery and installation process went so smooth. They installed within 15-20 minutes, and it was good.”
- “We have been using it regularly since the purchase and so far we have not faced any issues, hence haven't availed customer support.”
Overall, the segment excels in post-sales engagement, with average ratings ranging from 4.0 to 5.0, reflecting that the product largely meets customer expectations.
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 expected experience attributes
Customers prefer compact and versatile products
- With space constraints and busy lifestyles, compact appliances that serve multiple purposes, are gaining popularity. While ‘product quality and range’ is high on priority, the segment is still low on meeting customer needs.
Increased adoption in semi-urban and rural areas
- Awareness and accessibility are boosting demand for small appliances in these regions, supported by rising incomes and lifestyle changes due to hybrid working.
- Hence, better execution on delivery, returns, customer support, and in-store support, is essential for new customer acquisition.
Customers are becoming more tech-savvy by the day
- The convenience of online shopping, coupled with detailed product reviews and competitive pricing, is driving more customers to purchase small appliances online.
- Customers are increasingly opting for IoT and AI-enabled appliances that offer energy efficiency and advanced controls.
Customer stickiness is driven by trusted and reliable operations, translating into justified price-point, prompt support and preserved brand image
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.
High-quality products and exceptional customer support is driving loyalty for 48 percent of the customers, serving as brand ambassadors
Potential for brand switching due to unmet expectations
- Failure to meet brand promise makes ten percent of customers feel their investment was wasted, prompting them to explore other brands.
- If a brand’s reliability and reputation falter due to inconsistent performance or negative experiences, eight percent of customers may lose confidence and switch to more dependable alternatives.
- Unhelpful staff or lack of product demonstrations, can frustrate eight percent of customers and lead them to seek brands with better engagement and support.
The segment is fulfilling 79/100 of the CX requirements, with a need for improvement on ‘Expectation’,’ Time and Effort’, and ‘Empathy’ pillars
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 driving purchase decision
Brands can also improve performance on 'Empathy’ pillar by a few of the following interventions –
- Simplify buying through user-friendly websites, mobile apps, and efficient in-store experiences.
- Offer appliances with pre-programmed settings and smart features (e.g., voice control, automatic adjustments) to minimise customer intervention.
- Create clear and concise user manuals, video tutorials, and maintenance tips to help customers use and care for their appliances.
Brands can also improve performance on ‘Empathy’ pillar by -
- Developing products that cater to diverse customer groups, including those with specific physical or technological needs.
- Acknowledging customer loyalty by celebrating milestones like anniversaries of purchases.
- Addressing potential issues promptly, updating customers on delays or changes.
Meeting customer expectations and saving time and effort on their part is impacting their willingness to pay
Top experience attributes influencing the customer's willingness to pay
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Promised delivery of expectations from brand and product or the price paid
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Hassle-free delivery of product along with easy tracking and timely updates
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Ease of use, quality, and responsiveness of customer service
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High brand credibility driven in part by positive communication from social circles
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Consistent delivery of high-quality products with a range of engaging offerings
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.
Seamless ownership and trust drives premiumisation for small appliances
- 23 percent customers value timely and secure delivery, ensuring their appliance arrives in perfect condition without delays or damages, which justifies paying a premium for.
- 23 percent customers are willing to invest more on the brand which consistently delivers on its promises—such as quality, durability, or energy efficiency.
- Quick and effective support for queries, repairs, or installation issues enhances convenience and satisfaction. Thereby, 18 percent customers pay more for a seamless ownership experience
- 17 percent customers are willing to pay more for a trusted brand name.
