Differentiating at the right journey touchpoints is the key to value creation
Pre - purchase
During purchase
Post - purchase
The segment performs below average in the pre-purchase stage, highlighting the need for better early customer touchpoints
Q1 - Was I able to find the right medicine easily?
Voice of customer insights
A good website UI/UX can significantly enhance customer experience during pre-purchase –
- “I like the user interface for Brand A. It's easy to access, and you get whatever you want.”
- “User interface plays a role in deciding which app I use.”
Customers value the availability of medicines and easy access to product information during the pre-purchase stage –
- “Medicines should be available 24x7”
- “Availability is the top most factor that influences my purchase decision”
- “The dosage of the medicine and other information, everything is mentioned for Brand A.”
- “Because I think whatever I'm looking for, I would want it to be available. It is one thing that I'm concerned about."
During the purchase stage, the segment performs uniformly across parameters, with an opportunity to differentiate through subscription plans
Q2 - Did the purchase experience meet my expectations?
Voice of customer insights
Customers cited discounts and offers as a crucial criteria while making a purchase decision –
- “Let me be honest, I tend to compare and see if there's any discounts and what's the price. I tend to go for the brand that offers me a good deal”
- “Discounts matter to me, and so do the interface of the app/website”
- “Discounts make me feel good. As a regular purchaser and loyal customer of that application, I believe they should consider offering me some discounts. Why would I still purchase from the same application rather than move to a different one if they don’t?”
Customers value timely delivery of medicines –
- “I want timely delivery. I think quick commerce would be nicer, you know, like even ordering in the night.”
The e-pharmacy segment shows consistent performance in the post-purchase stage, but needs to improve subscription benefits and renewals
Q3 - Was the resolution up to my satisfaction?
Voice of customer insights
Quick access to customer support should be available for a seamless post-purchase experience –
- “I focus on and would prioritise the post-purchase stage. It is important in terms of access to the chat support and getting my query cleared fast"
- "I won't have a fear if I know that I might face a problem, and they have an excellent customer support. Even if I'm buying something for a large amount, I don't have to worry about it"
- “If there's any query, I should be able to reach out to them."
Improving subscription options can significantly enhance customer satisfaction and retention –
- Offer flexible subscription plans (monthly, quarterly, yearly) to cater to different customer needs and budgets
- Provide incentives for subscribing, such as free shipping, or exclusive access to new products
- Bundle subscription plans with services like telemedicine consultations, health check-ups, or wellness programs.
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
Customers are increasingly seeking customised services and personalisation from brands –
- Brands are developing private labels for OTC products and exploring direct-to-customer models to meet specific customer needs
- There is an increased focus on specialised services and medication management for chronic diseases, including regular refills and health monitoring tools.
Cutting-Edge Tech and Smart Operations are elevating efficiency and customer delight in E-Pharmacies –
- AI, machine learning, and blockchain technologies are enhancing personalised medicine recommendations, improving supply chain efficiencies, and ensuring data security
- Brands are utilising advanced logistics solutions for urban areas and leveraging local partnerships for rural areas, including cash-on-delivery options
- Telemedicine services are being integrated into the sector, allowing online doctor consultations, e-prescriptions, diagnostic partnerships, health blogs, and subscription services.
Low performance of the segment across prioritised experience attributes can be mapped to low customer retention with 63 per cent switchers
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. ‘Ambassadors’ 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.
32 per cent of the customers are satisfied with their current e-pharmacy brand due to its strong brand presence and extensive range of products
- Customers value the extensive selection of products, including prescription medications, OTC drugs, and health supplements, available in one place
- A strong brand presence and trust ensures quality, reliability, and a seamless shopping experience for customers.
63 per cent of the customers are likely to switch brands if their preferred e-pharmacy fails to demonstrate trustworthiness or lacks product availability
- Customers place a high value on the reputation and reliability of their pharmacy. If a brand fails to maintain its trustworthiness, whether through inconsistent service, quality issues, or negative publicity, customers are likely to seek alternatives
- If a pharmacy consistently lacks the necessary medicines or fails to stock a diverse range of products, customers may become frustrated.
While customer experience is largely driven by the 'Expectation' pillar, there is a need to strengthen the 'Empathy' pillar
Performance across the KPMG in India's six pillars of customer experience
(Weightage of the pillars to the overall experience requirements)
‘Expectation’ (27 per cent) is the key pillar of experience influencing purchase decision, followed by ‘Integrity’ (19 per cent)
Brands can maintain ‘Integrity’ in operations by –
- Implementing robust data governance by ensuring all data is accurate, complete, and securely managed to maintain trust and compliance
- Consistently follow industry regulations and guidelines to ensure safe and ethical operations
- Clearly communicate policies, procedures, and product information to build customer trust.
Performance on the ‘Empathy' pillar can be boosted by –
- Integrate empathetic language and responses into chatbots and automated systems to maintain a human connection
- Implement systems to automatically send refill reminders and follow-up messages
- Establish robust feedback channels and actively respond to customer input, demonstrating that their opinions are valued
- Design services that are user-friendly for all customers, including those with disabilities or limited technological skills, ensuring inclusivity.
The customer’s willingness to pay more is high for the leading pillars of experience - ‘Expectation’ and ‘Integrity’
Top experience attributes influencing the customer’s willingness to pay
An individual’s willingness to pay a premium is driven by immediate needs. As today’s customer evolves, the focal aspects of premiumisation has shifted from functionality to experience. These aspect may translate as personalised convenience, focus on digital wellbeing or even exclusivity in customer support.
Customers prioritise value and quality, seeking justified pricing and high-quality products
- 27 per cent of the customers are willing to pay more if the offerings justify the price
- 24 per cent of the customers would pay more for a wide range of high-quality products that meet their needs
Availability and trust are key parameters influencing customers to pay a premium
- 20 per cent of the customers value nationwide availability and consider it as a motivating factor to pay a premium
- 22 per cent of the customers are inclined to invest more in a trusted brand due to a sense of assurance that the products will meet their expectations.
An exceptional customer experience is crucial, with an emphasis on easy returns and a smooth point-of-sale process
- 19 per cent of the customers would pay more for a hassle-free return/refund experience
- Additionally, 19 per cent of customers value a good point-of-sale experience. Paying more becomes justifiable when transactions are smooth and efficient
Our customer experience (CX) insights across sectors
Key Contacts
Dr. Puneet Mansukhani
National Sector Head - Retail, Global Retail Head - Digital & Technology Transformation
KPMG in India
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