Differentiating at the right journey touchpoints is the key to value creation
Pre - purchase
During purchase
Post purchase
Well designed website/app interface ensures better shopping experience, while discounts drive sale
Q1 - Was I able to easily find/collect everything on my grocery list?
Voice of customer insights
Customers consider discounts and offers while making a purchase decision –
- “Brand A has many discounted items compared to other platforms. They also provide extra offers like credit card discounts. For the past 3 months, they have been giving additional 10 per cent off on my credit card”
- “I think other platforms offer some credit card discounts, but Brand B does not. There is an option to pay via credit card, but no discounts. In contrast, A and C have a variety of cards that give discounts”
- “I started ordering from Brand A. I liked their theory of giving discounted items and a coin system that could be used for the next purchase”
- “Brand D offered some grocery items and good deals like one rupee for one kg of sugar, chocolates, wafers, and other items. They also had a cheap pass for three months that provided discounts.”
Strong performance by the segment in purchase phase, potential for differentiation on subscription plan and return policies
Q2 - Did the purchase experience meet my expectations?
Voice of customer insights
Customers look for free delivery based on loyalty programs/subscription –
- “Brand A was great for deliveries without any delivery fee initially. Now I use it for last-minute deliveries and Brand B for in-house products"
- “Grocery platforms should offer memberships with unlimited deliveries and no platform/ handling fees/ surcharge fees over a reasonable order amount. This would make me buy more and feel like a premium customer”
- ”With Brand B, there are payment options. If you pay with UPI wallet, you get free delivery or no extra charges.”
High relevance of delivery timeslots observed –
- “Brand C has a wide variety of products, and you can schedule the delivery according to your time slots”
Quality resolution and response on customer feedback ensure continuous engagement with the brand
Q3 - Was the resolution up to my satisfaction?
Voice of customer insights
Ease of customer support can significantly impact customer experience during the post-purchase stage –
- "Brand D has the best customer support. In A or B, you have to wait for a person to connect via chat, explain the issue, and provide photos. With Brand D, you can request a call, and they will call you in your required language”
- “The process to complain is not difficult”
- “Online platforms deliver to your home at minimal cost, and you can return certain items.”
Relevant notifications and reminders can positively impact customer experience –
- “It brings a little bit of a smile, knowing that they send an SMS or a WhatsApp message saying, "We are happy to serve you." They keep you updated on discounts and any upcoming offers. I think that's a good thing for a brand to do.”
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
Customer want one-platform to fulfil their grocery needs
- Ensure a wide range of products is consistently available by using advanced inventory management systems that predict demand and restock efficiently
- Provide real-time updates on product availability on the platform, so customers aren't disappointed by out-of-stock items
E-grocery is a highly competitive industry hence, holding customer trust is of the essence to stand-out
- Offer guarantees on perishable items, promising freshness or money back
- Ensure refunds are processed quickly and efficiently to maintain customer trust
Customers expect similar seamlessness in returns/ refunds as they experience while purchasing
- Use customer data to offer personalised support and recommendations based on their purchase history
Low performance of the segment across prioritised experience attributes can be mapped to low customer retention
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.
Inconsistency in pricing and hidden charges deter customer stickiness
- 12 per cent of the customers will seek better value elsewhere if they feel they are consistently paying more for the same products compared to competitors
- Hidden charges or high delivery fees can make customers feel they're not getting value for money
Reliability on brand operations directly impacts customer retention
- 9 per cent of the customers will lose trust in the brand if the quality of products or services is inconsistent
- 9 per cent of the customers will lose trust in the app's reliability if the app shows items as available but are out of stock when ordered
The ‘Expectation’ pillar has the highest weightage in defining customer experience; need for improvement on ‘Resolution’ 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 influencing purchase decisions for any grocery brand, followed by ‘Integrity’ (18 per cent)
Grocery brands can meet customer expectations by –
- Partnering with trusted suppliers and maintaining strict quality control to ensure all products meet highest standards
- Implementing services such as pre-cut vegetables, ready-to-cook kits, or recipe ideas to enhance customer convenience
Brands are failing to meet customer expectations on ‘Resolution’. Small initiatives can go a long way –
- Keep customers informed about their order status, delays, or substitutions through regular updates
- Analyse feedback to identify common issues and implement improvements based on customer suggestions
- Use Customer Relationship Management (CRM) systems to track and manage customer interactions effectively
- Create a hassle-free return process with clear instructions and minimal steps
The customer’s willingness to pay more is high for quality products and convenience
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, omnichannel browsing or even exclusivity in customer support.
Brands offering quality assurance will be able to claim a premium on their offerings
- 26 per cent of the customers would pay higher prices for a superior quality of products
- 25 per cent of the customers have a higher propensity to pay a trusted vs a new brand in the market
Customer is willing to pay more for convenience and accessibility
- 22 per cent of the customers feel that with a comprehensive selection, they can find everything they need in one place, saving time and effort
- 19 per cent of the customers believe that brands serving remote areas need to ensure that they can deliver their groceries without hassle
For 20 per cent of the customers, reliable deliveries and timely refunds build customer loyalty and willingness to invest more in the brand
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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