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, omnichannel browsing or even exclusivity in customer support.
Differentiating at the right journey touchpoints is the key to value creation
Pre - purchase
During purchase
Post - purchase
The segment shows strong performance with potential for brand differentiation through omnichannel search design and stock visibility
Q1 – Did the store/website make it easy for me to find, assess the product, and decide on the purchase?
Voice of customer insights
Customers value an extensive product range for its variety and for enhancing their shopping experience –
- “For my last purchase, I tried a new shop. There were a lot of different designs in that store. So, I bought it from there”
- “Small shops usually have more traditional collections and lower making prices. But bigger shops have a variety of collections, including traditional and new designs. These are the differences I noticed when comparing both types of jewellery shops.”
Ease of navigating the website can enhance customer experience during the pre-purchase stage –
- "The app interface is very nice. It is very user-friendly. You first choose the type of purchase, then the metal segment. You can filter your selection by category, budget, and metal. It's very easy to access, and even an 18-year-old girl can use the app by herself.”
Financing options and authenticity checks during the purchase stage are key areas for brands to stand out
Q2 - Was my POS experience good/bad vs expected?
Voice of customer insights
Customers look for financing options and EMI during the purchase stage –
- “They have financing options, but jewellery is not usually entitled to EMI. However, they have an incentive scheme where you can gradually raise funds and then purchase. They offer flexible payment options like UPI, credit card, and debit card.”
Customers want options for alteration and customisation –
- “I wanted a chain with a pendant fixed to it. Brand A confirmed they could customise it for me, but brand B doesn't offer customisation. It makes me feel valued when a brand is willing to create a new product just for me.”
All brands performed well on returns and exchange process, with a scope to differentiate across packaging, support and personalised promotions
Q3 - Was my interaction with the brand impactful enough to make repeat purchase?
Voice of customer insights
Customers value the packaging quality and customer support during the post-purchase stage –
- “The packaging quality is perfect. They provide a cotton bag in a unique shape, a box of good quality, and secure packaging. If you want customised packaging with ribbons, additional cards, or notes, they offer that too"
- ” Customer service is important. In most shops, there are well-experienced staff who know how to deal with customers. Customer service is very satisfactory in these shops”
- “When comparing customer services, both larger and smaller shops have good customer service. In the larger shops, they have a lot of experienced staff who have worked in both smaller and larger stores. They have a lot of experience in the jewellery industry. So, customer service is very good in both types of shops.”
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
Beyond worth, customers are increasingly seeking one-of-a-kind jewellery
- Personalised jewellery carries significant emotional value mass-produced items cannot replicate, hence, a wide collection, unique pieces with the possibility of customisation is the demand of the day
- Customers expect their purchases to be worth the investment. High-quality jewellery delivers long-term value.
Brands are using technology to deliver seamless trials as well as managing transparency across the supply chain
- Exceptional service experience with online trials enabled via AR technology encourage customers to return and remain loyal to the brand
- Customers are more likely to feel confident about the authenticity and quality, offered by a trusted brand. Brands are using blockchain technology to track the quality from sourcing to delivery.
Brands should drive loyalty programs around minimalist, affordable pieces
- In an industry where purchase frequency may be lower, but ticket sizes are high, loyalty programs help maintain continuous engagement with the customers.
Brands to focus on in-store experience and product quality in order to retain customers
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.
Great in-store experience builds strong brand advocates -
- 8 per cent of the customers proactively advocate for the brand when they see glowing reviews, testimonials, and endorsements from others
- 10 per cent of the customers are more likely to become advocates when they receive personalised attention and tailored recommendations during store visits.
Customers are highly sensitive to quality-price mismatches -
- 10 per cent of the customers will lose trust in the brand if they face difficulties or dissatisfaction with the return/refund process
- 9 per cent of the customers will explore other brands if the jewellery seems overpriced for the quality offered.
‘Expectation ‘and ‘Empathy’ are the key pillars in defining customer experience with need for improvement on ‘Integrity’ and ‘Resolution’
Performance across the KPMG in India's six pillars of customer experience
(Weightage of the pillars to the overall experience requirements)
Expectation’ (24 per cent) and ‘Empathy’ (23 per cent) are the two key pillars of customer experience while making a purchase decision
Jewellery brands can meet customer ‘Expectation’ by -
- Conducting market research to understand the target audience's preferences, style, and buying behavior
- Offering personalised shopping experiences, such as customised jewellery options, engraving services, or bespoke pieces designed
- Training staff to be knowledgeable, friendly, and attentive.
Brands are failing to meet customer expectations on ‘Integrity’. Small initiatives can go a long way
- Maintaining high standards of quality and craftsmanship
- Being transparent about the sourcing and ethical practices of the jewellery
- Offering authenticity certificates and purity checks
- Advocating the skills of craftsmen
Customer’s willingness to pay a premium is high for brands instilling trust through their products as well as operations
Top experience attributes influencing the customer’s willingness to pay
Customer have high propensity to pay when shopping with a trusted brand
- When a brand is trusted, 27 per cent of the customers are confident in the authenticity, quality, and value of the jewellery, thereby impacting their propensity to pay.
Clear and honest communication about sourcing, pricing, and return policies fosters loyalty as well as willingness to pay for 27 per cent of the brands
- Unique design and seamless experiences drive willingness to pay
- 25 per cent of the customers appreciate unique, well-made pieces that reflect their style and values
- 25 per cent of the customers would pay more for a brand with impactful visibility across online and offline channels
- 25 per cent would pay more while engaging in a hassle-free shopping experience with easy trials.
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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