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The Venn Diagram of “D2C & Profits”.
Maximising brand spend, with Data
Pragma (formerly Logisy)
September 20, 2024
A regular dose of D2C-centric resources & tools for Growing Brands, Startups & Entrepreneurs.
The Venn Diagram of “D2C & Profits”.
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.
Impact of Centralised Analytics on Key Metrics
Metric | Without Central Dashboard | With Central Dashboard | % Improvement |
Platform Efficiency | Fragmented | Unified | - |
Avg. Cart Abandonment Rate | 32% | 15% | 53% |
Conversion Rate | 1.5% | 3.8% | 153% |
Annual Revenue Impact | ₹75,000/month | ₹1,05,000/month | 40% |
Customer Retention Rate | 55% | 70% | 27% |
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 our 500+ brands, 58% of NDRs stem from SLA breaches, leading to RTO costs that can eat into your profits faster than your guests devour your birthday cake.
Brands managing logistics effectively see a 20% reduction in RTO costs. Time to tighten that ship—or rather, shipping partner.
Financial Impact of SLA Monitoring on NDRs and RTOs
Carrier | Avg. SLA Breach Rate | NDR Rate | RTO Cost/1000 Orders | Monthly Cost Without Monitoring | Improvement Post-SLA Monitoring |
Delhivery | 22% | 30% | ₹60,000 | ₹72,000 | 15% decrease in NDR |
Ecom Express | 26% | 35% | ₹75,000 | ₹80,000 | 18% decrease in RTO |
Blue Dart | 20% | 25% | ₹50,000 | ₹60,000 | 12% decrease in RTO |
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?
Customer Segmentation Based on Return Behavior
Customer Category | % of Total Customers | Return Rate | Avg. Monthly Refund Costs | Potential Cost Savings with ML |
High-Risk (Abuse Score: 80-100) | 10% | 50% | ₹200,000 | ₹80,000 (40% reduction) |
Medium-Risk (Score: 50-80) | 30% | 30% | ₹60,000 | ₹12,000 (20% reduction) |
Low-Risk (Score: 0-50) | 60% | 10% | ₹20,000 | ₹2,000 (10% reduction) |
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.
Checkout Abandonment Analysis Pre- and Post-Optimization
Payment Gateway Type | Pre-Optimization Abandonment Rate | Post-Optimization Abandonment Rate | % Lift in Completed Checkouts |
Basic (Credit/Debit Only) | 33% | 20% | 39% |
Multi-Gateway (UPI, BNPL, Wallets) | - | 15% | 55% |
Optimised (One-click, Saved Cards) | - | 10% | 70% |
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!
Performance Metrics of WhatsApp Broadcasts
Broadcast Type | Avg. CTR | Avg. Conversion Rate | ROAS (Manual vs Automated) |
Generic, Non-Automated | 12% | 8% | ₹1.5 (Manual) |
Behaviour-Based, Automated | 40% | 25% | ₹3.5 (Automated) |
Event-Triggered, Personalized | 45% | 30% | ₹4.2 (Automated & Personalized) |
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!
RTO Impact of Location Data Utilisation
Metric | Without Location Data | With Location Data | % Improvement |
Avg. RTO Rate | 28% | 18% | 36% |
Delivery Success Rate | 70% | 85% | 21% |
Monthly RTO Costs (per 1000 orders) | ₹80,000 | ₹60,000 | 25% |
Customer Satisfaction (NPS) | 55 | 75 | 36% |
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!
Data from 500+ D2C brands for the Holiday Season
Benefits of Cross-Brand Data Sharing
Metric | Without Cross-Brand Data | With Cross-Brand Data | % Improvement |
Avg. Market Trend Awareness | 50% | 95% | 90% |
Product Launch Time | 12 months | 8 months | 33% |
Customer Acquisition Cost | ₹500/customer | ₹350/customer | 30% |
Conversion Rate | 3% | 5% | 67% |
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!
Operational Efficiency Metrics Pre- and Post-Automation
Operational Aspect | Pre-Automation Metrics | Post-Automation Metrics | % Improvement |
Avg. Order Processing Time | 24 hours | 18 hours | 25% |
Manual Workload Hours | 100 hours/week | 50 hours/week | 50% |
Customer Query Response Time | 6 hours | 1 hour | 83% |
Operational Cost Savings | ₹200,000/month | ₹150,000/month | 25% |
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!
Impact of Customer Feedback on Retention Metrics
Feedback Collection Method | Avg. NPS | Retention Rate | Engagement Rate | % Improvement |
Ad-Hoc Feedback Collection | 30 | 50% | 20% | - |
Automated Surveys | 60 | 70% | 50% | 100% |
Regular Feedback Reviews | 75 | 80% | 70% | 150% |
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.
Efficiency Metrics of Return Management Systems
Return Management System | Return Processing Time | Avg. Return Cost | Customer Satisfaction Score | % Improvement |
Manual Process | 7 days | ₹200/return | 60 | - |
Semi-Automated Process | 4 days | ₹150/return | 75 | 25% |
Fully Automated Process | 3 days | ₹100/return | 85 | 50% |
That’s the end of our talk on “The Venn Diagram of “D2C & Profits”.”...
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