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Location-based Hyper-targeting for D2C brands India ๐Ÿ“Š๐Ÿ›’

Reducing Losses, Increasing Conversions

D2C Caffeine - A Pragma Original Newsletter

A regular dose of D2C-centric resources & tools for Growing Brands, Startups & Entrepreneurs.

The holiday season is like a blockbuster movie.ย 

But hereโ€™s the twist: each city is a different theatre, and people love different genres! Thatโ€™s where location-based hyper-targeting steps in, making sure your show is a hit in every town.

Especially the holiday releases, because those are the ones that bring-in the beaucoup bucks ๐Ÿ’ธ

Weโ€™ll split the benefits of location based data into 3 stages to make this simpleโ€ฆ

  1. Pre-Purchase Location Data

  2. Post-Purchase Location Data, and

  3. Post-Delivery Location Data

A. Pre-Purchase Location Data

1) Open Rate, CTR, and Other Stats for Holiday Campaigns

Example Data:

  • In Mumbai, holiday campaign open rates increased by 15%, with a click-through rate (CTR) of 8% during Diwali.

  • Chennai experienced a 12% open rate and a 10% CTR during Diwali.

Open Rate, CTR, and Other Stats for Holiday Campaigns

Insights: Higher engagement rates during holidays in Chennai; consider tailoring holiday campaigns for specific regions.

2) Product(s) Browsed - Demand and relevant Customer Info

Example Data:

  • Western clothing saw a surge in demand in Kolkata, with a 20% increase in product views, especially among users aged 18-25.

  • Electronic gadgets were popular in Mumbai, with a 15% higher engagement rate among users aged 25-35.

  • Individual product demand could be analysed and compared with other competitors as well.

Product(s) Browsed - Demand and relevant Customer Info

Insights: Tailor product recommendations based on the most browsed categories and the average age group in each region.

3) RTO History - Historic Data (from 450+ brands) of Individual Consumers to gauge risk

Accurate address verification with location data

Example Data:

  • Consumer A in Bengaluru has a 30% RTO rate over the past six months, mainly due to size-related issues.

  • Monitoring Consumer B in Chennai revealed a consistent 5% RTO rate, indicating a stable purchasing pattern.

RTO History - Historic Data (from 450+ brands)

Insights: Proactively manage customer relationships with high RTO percentages through personalised support or targeted campaigns.

4) Weather-Based Targeting:

Consider adapting your promotions based on weather conditions in different regions. For example, promote warm clothing in colder regions and summer wear in warmer areas.

B. Post-Purchase Location Data

1) Checkout Data - COD or Prepaid, Device Used, Age of Consumer etc.

Example Data:

  • In Kolkata, 40% of consumers prefer COD, especially on mobile devices, with a majority aged 35-45.

  • Prepaid transactions are dominant in Chennai, where 60% of users aged 25-30 prefer online payments.

Checkout Data

Insights: Customise payment options based on preferences in each region; consider age demographics for targeted promotions.

2) Personalisation Data - Most Used Coupons, Preferred Mode of Payment etc.

Example Data:

  • Coupon XYZ is most used in Mumbai, accounting for a 25% increase in conversions during the checkout process.

  • Users in Bengaluru frequently access the FAQ section, with 70% of them preferring detailed information before making a purchase.

Personalisation Data

Insights: Tailor personalised messages and support materials based on region-specific preferences.

3) Cross-Selling & Upselling Data - Success Percentages for Different Combinations

Example Data:

  • Combining Product A and Product B resulted in a 25% higher success rate in upselling in Chennai.

  • Cross-selling accessories with electronic gadgets showed a 30% success rate in Mumbai.

Cross-Selling & Upselling Data

Insights: Adapt cross-selling and upselling strategies based on regional preferences and success rates.

4) Inventory Management Processing

Optimise your inventory based on regional demand. Ensure that popular products in one region are readily available, and consider tailoring your product offerings to meet specific local preferences.

C. Post-Delivery Location Data

1) Delivery Experience - Percentage of On-Time Deliveries, SLA Breaches etc.

Example Data:

  • Mumbai consistently achieves a 95% on-time delivery rate, while Bengaluru experiences occasional SLA breaches due to logistics challenges.

Delivery Experience Data

Insights: Address logistics issues in Bengaluru to improve on-time delivery and reduce SLA breaches.

2) Logistic Partner Comparison - Fulfilment Rates and Pricing per location

Example Data:

  • Logistic Partner X has a 90% fulfilment rate in Chennai but is costlier compared to Partner Y, which has an 85% fulfilment rate.

  • Evaluating pricing and fulfilment rates helps optimise logistics partnerships in different regions.

Logistic Partner Comparison Data

Insights: Optimise logistic partnerships based on fulfilment rates and pricing for each region.

3) Feedback - Rating Received for Product, Service, Support etc.

Example Data:

  • Kolkata consistently rates products at 4.5 out of 5, with positive feedback on customer service.

  • Bengaluru reports a dip in ratings due to support issues, emphasising the need for improvement in post-purchase support services.

  • Calculate cumulative ratings with the help of customised algorithm.

Customer Feedback Data

Insights: Identify areas for improvement in product quality, service, and support based on region-specific feedback.

4) Returns/Exchanges/Refunds Data

Example Data:

  • Return rates for clothing items are higher in Mumbai, whereas electronics face more exchanges in Chennai.

  • Understanding return patterns assists in tailoring policies and optimising inventory.

Returns/Exchanges/Refunds Data

Insights: Streamline return and refund processes in Bengaluru to reduce processing time and improve customer satisfaction.

Thatโ€™s the end of our talk on โ€œLocation-based Hyper-targeting for Holiday Seasonโ€...

โ˜• See you on the next coffee date!

Pragma D2C Operating System

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