An individual鈥檚 willingness to pay a premium is driven by immediate needs. As today鈥檚 customer evolves, the focal aspects of premiumisation have shifted from functionality to experience. These aspects may translate as personalised convenience, omnichannel browsing or even exclusivity in customer support.
Point-of-sale experience is considered as most impactful by 55 per cent of customers in defining the overall experience
Pre - purchase
During purchase
Post - purchase
Creating an intuitive layout and product display is key for brands to gain customer appreciation and set themselves apart
Q1 鈥� Was it easy to locate and evaluate the product in store to make a purchase decision?
Voice of customer insights
听
Customers seek intuitive store layouts that enable them to browse offerings at their convenience听鈥撎�
- "Most of the stores I go to are just mountains of boards and plaques blasting information on offers and discounts鈥�
- 鈥淪ometimes I just want to explore the store and look at the offerings. Products should be easy to find and well organised.鈥�
Customers expect all the stock to be available at the store听鈥�
- 鈥淚 usually research for electronics online and then visit the store. If the product availability at the store was not called as in-stock/ out of stock, it would be frustrating, as I would have made a whole trip specifically to evaluate it.鈥澨�
The segment's potential to differentiate, despite average performance, lies in offering flexible delivery options and transparent pricing
Q2 鈥� Did the purchase experience meet my expectations?
Voice of customer insights
听
A high variance in customer ratings was observed on flexible delivery options. Brands need to explore innovative solutions to stand out
- The "Buy Online, Pick Up In-Store" (BOPIS) model is gaining popularity. Customers appreciate the convenience of shopping online and then quickly picking up their purchases at a nearby store
- Offering a variety of payment methods, including digital wallets, buy now pay later options, and financing, is essential to cater to diverse customer preferences.
Another area for differentiation is transparent pricing
- Customers are willing to pay more for feature-rich, high-quality products; however, they expect consistency in pricing across all channels.
Brands need more consistent and effective strategies for loyalty programs and personalised promotions
Q3 鈥� Did the product delivery and usage, meet the committed expectations?
Voice of customer insights
听
Loyalty programs make the customers feel special and strengthen their bond with the brand
- Create tiered membership levels (e.g., Silver, Gold) with increasing benefits to encourage repeat purchases
- Offer special rewards or discounts on customers' birthdays and anniversaries to make them feel valued
- Offer unique experiences as rewards, such as factory tours, meet-and-greet events with product designers, or workshops.
Personalised promotions increase purchases by making the听 customers feel that the offers are tailored just for them
- Integrate personalised promotions with your loyalty program to offer additional benefits to loyal customers
- Usage of AI and ML to predict customer preferences, offering personalised promotions even before the customers realise that they need them
- Involve customers in product development through beta testing programs or innovation labs for feedback.
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
Brands are continuously integrating the latest technology into their products, meeting the customers鈥� growing expectation of up-to-date tech
- Brands are actively integrating 5G-compatible features to improve device performance and connectivity
- Expanding smart home ecosystems with interconnected devices enhances user convenience and functionality
- AI is being used to offer personalized product recommendations and experiences, improving customer satisfaction
- More and more devices are incorporating voice assistants to enhance user interaction and accessibility
- Brands are utilizing AR for interactive product demos and user guides to improve customer engagement and understanding.
Brands are embracing sustainable practices and health-focused innovations to cater to wellness-conscious customers
- Advanced wearable devices are being developed for health monitoring, enhancing personal wellness tracking
- Brands are increasing their focus on eco-friendly materials and sustainable manufacturing processes to reduce environmental impact.
Low performance of segment across prioritised experience attributes can be mapped to low customer retention with 51 per cent switchers
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. 鈥楢mbassadors鈥� are highly satisfied customers who will keep contributing to the brand鈥檚 success. 鈥楽witchers鈥�, on the other hand, are always seeking better options. 鈥楥ritics鈥� as the third segment actively convey negative feedback about the brand, if not satisfied. Finally, 鈥楧ependents鈥� are customers who remain loyal despite low satisfaction due to a lack of alternatives in the market.
The segment is witnessing 51 per cent switchers, accompanied by a significant dissatisfaction across key parameters -
- A complex or time-consuming return/refund process can frustrate customers and drive them to seek brands with simpler policies
- Receiving defective or malfunctioning products can erode trust and push customers to more reliable brands
- Lack of transparency in product information or company practices can lead to mistrust and prompt customers to switch to more transparent brands.
However, 46 per cent are still strong advocators of the brand due to their performance on preferred attributes -
- Prompt and helpful customer support makes customers feel valued and confident in the brand
- Reliable and timely delivery enhances customer satisfaction and trust in the brand
- Delivering consistently high-quality products builds trust and encourages repeat purchases
鈥楨xpectation鈥櫶� and 鈥楻esolution鈥� pillars听 have the highest weightage in defining customer experience
Performance across the 乐鱼（Leyu）体育官网 in India's six pillars of customer experience听
(Weightage of the pillars to the overall experience requirements)
Expectation鈥� (21 per cent) and 鈥楻esolution鈥� (20 per cent) are the key pillars of customer experience while making a purchase decision at any electronic store
Electronic brands can meet customer expectations by -
- Providing seamless store experience and a conducive environment to shop
- Regularly updating inventory with new releases and best-sellers keeps customers engaged
- Providing competitive pricing and attractive promotions, such as discounts, bundle deals, and loyalty rewards
- Utilising data analytics and AI to provide personalised product recommendations based on customer purchase history
Electronic brands can ensure 鈥楻esolution鈥� in their operations by -
- Providing real-time updates to customers about the status of their issues, ensuring transparency and reducing anxiety
- Training support agents to listen empathetically and understand customer concerns fully before offering solutions
- Empowering customers with tools and resources to troubleshoot and resolve minor issues on their own
Customers prioritise the 鈥楨xpectation鈥� pillar; however, their willingness to pay a premium cuts across all the pillars of customer experience
Top experience attributes influencing the customer鈥檚 willingness to pay
- 29 per cent of customers are more likely to pay a premium for a brand that they trust
- 28 per cent of the customers feel that paying a premium is justifiable if they have access to knowledgeable and responsive support teams who can assist with product inquiries, troubleshooting, and resolving issues
- 22 per cent of the customers would pay more for a user-friendly website, smooth checkout process, and efficient payment methods
- 21 per cent of the customers are willing to pay a premium for the assurance that their purchases will be delivered promptly and safely without any issues
- 21 per cent of the customers would pay more with brands offering the latest and most advanced electronics and providing value-added services like extended warranties and maintenance plans.
Our customer experience (CX) insights across sectors
Key Contacts
Dr. Puneet Mansukhani
Partner TE-Retail I Sector Head Retail I Head Global Retail - Digital and Technology Transformation
乐鱼（Leyu）体育官网 in India
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