The Venn Diagram of “D2C & Profits”.
Pragma. (formerly Logisy)
All encompassing system that enables D2C brands to perform all their operations from one single place.
Welcome to the intricate web of D2C ecommerce in India, where profits and pitfalls intersect like a badly drawn Venn diagram.?
A Venn-diagram is merely overlapping circles to show the logical relationship between two or more sets of items.. But, what are the basic common factors from pre-purchase to post-delivery that brings D2C brands their Profits?
Buckle up as we navigate through the waters of returns, analytics, and customer behaviour—armed with data from 500+ Indian D2C brands.
1. Platforms (Understanding Pain Points) Analytics
Managing multiple ecommerce platforms is like juggling flaming torches while riding a unicycle—one wrong move, and it all goes up in smoke. A staggering 64% of brands struggle with data integration, resulting in a 30% increase in operational costs. It’s a circus act where the audience is left wondering how on earth they got here.
Brands lacking unified analytics see conversion rates drop by 20%. By adopting a centralised analytics dashboard, brands have reported a 40% increase in ROAS.
2. NDRs (SLA Breaches) Carrier Partner Data
Imagine planning a party and your caterer decides to ghost you—welcome to the world of Non-Delivery Reports (NDRs). Among 500 brands, 58% of NDRs stem from SLA breaches, leading to RTO costs that can eat into your profits faster than your guests devour the cake.
Brands managing logistics effectively see a 20% reduction in RTO costs. Time to tighten that ship—or rather, shipping partner.
3. Individual Customer Score (Return Abuser) Returns/Refunds
Welcome to the return hall of fame, where the return abusers reside. Roughly 10% of the customer base accounts for 50% of returns. They’re the stars of a show no one wants to watch.
D2Cs using ML-driven analytics to identify return patterns have seen a 40% decrease in refunds for high-risk customers. Who said you can’t put a price on bad behaviour?
4. Checkout System (Abandonment Risk) Payment Gateway Optimization
You’ve done all the hard work of attracting customers, only for them to abandon their carts like a bad habit. A staggering 33% of customers leave during checkout—often due to payment issues. It’s like rolling out a red carpet, only for customers to trip over it.
Brands adding diverse payment options have decreased abandonment rates by up to 25%. Don’t let your checkout process be the reason for an empty shopping cart.
5. WhatsApp Broadcasting (TOFU Engagement) Automation
WhatsApp is like that cool friend who always shows up to the party. Brands utilising automated WhatsApp broadcasts have seen a 40% increase in CTR and a 25% boost in conversion rates. Who knew your best marketing tool was also a messaging app?
Brands using behaviour-driven messaging have reported an 18% increase in revenue. It's like giving your customers a VIP pass to personalised offers!
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6. Location Data (Limiting RTOs & Other Losses) Automation
Location data is the GPS for your logistics strategy. Brands that leverage geo-targeting see a 30% reduction in RTOs. It's like having a map to navigate the minefield of delivery failures.
Poor location targeting during checkout is responsible for 40% of delivery failures. Let’s not let your delivery go astray!
7. Cross-Brand Data (Collaborative Insights) Market Trends
Sharing is caring, especially in the world of D2C. Brands that engage in cross-brand data sharing report a 45% increase in market trend awareness. It’s like having a cheat sheet for the business exam!
Collaborating with other brands speeds up product launches by 30%. Teamwork makes the dream work!
8. Automation (Streamlining Operations) Efficiency Gains
If your operations are still manual, it’s time to upgrade from dial-up to fibre optics! Brands embracing automation report a 50% reduction in manual workload and a 20% improvement in order processing times. Who wouldn’t want to be more efficient?
Those that invested in automation tools saw a 25% increase in productivity. Talk about working smarter!
9. Customer Feedback Loop (NPS and Retention) Engagement
Collecting customer feedback is like trying to get a cat to take a bath—challenging, but oh so worth it! Brands that actively collect feedback report a 30% increase in NPS and a 20% boost in retention.
A systematic feedback loop can improve engagement rates by 25%. Let’s make sure your customers feel heard!
10. Return Management (Optimising Processes) Cost Efficiency
Navigating returns without a plan is like sailing without a compass—good luck with that! Efficient return processes can cut return-related costs by 40%. It’s all about keeping your ship steady.
Brands that implement automated return management systems can enhance customer loyalty, with 65% of customers stating they’d buy again if returns are easy.
That’s the end of our talk on “The Venn Diagram of “D2C & Profits”. ”...
? See you on the next coffee date!
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