GoKwik Helps Mi Glow Store Open COD Serviceability
ABOUT
Reduced RTO% from ~55% to ~22%
HQ
India
INDUSTRY
Accessories
About Mi Glow Store
Mi Glow Store is a premier eCommerce brand that combines passion with fashion. Originally conceived as an innovative venture to sell glowing products centric to the taste of India’sGen Z audience, Mi Glow Store today has evolved into a distinguished eCommerce brand. It’s highly known for its commitment to high quality standards, be it in terms of design, material usage, or trendiness.
Since its inception, Mi Glow Store has expanded its product line to about 200+ SKUs including an extensive selection, ranging from stylish keychains to vibrant posters, intricately designed rakhis, distinctive dog tags, and mobile covers. At Mi Glow Store, the brand aims to deliver products that are not only chic and stylish but also of the highest calibre that set them apart in the Indian eCommerce landscape.
The Problem Statement
Over the last one year, Mi Glow Store has established itself as a well-known brand in the Indian eCommerce market. Its orders have also steadily increased. However, just like every other direct-to-consumer brand, Mi Glow Store too faced difficulty offering cash-on-delivery (COD) as a payment option to its shoppers. The scepticism comes with the resulting return-to-origins1 (RTOs) which affect a business’ bottom line and thereafter the profits.
However, this was also serving as a conversion barrier for Mi Glow Store. The brand was witnessing a high drop-off at the payments stage due to unavailability of COD as a payment method. They needed a strategic solution to tactically open COD serviceability across different shopper segments and country areas while ensuring low or controlled RTO%2 and an incremental increase in conversions.
That’s when they got introduced to GoKwik’s Smart COD Suite.
Solution: The Solution
GoKwik is a leading eCommerce enablement company that fairly understands multifaceted challenges faced by Indian eCommerce businesses and has designed a suite of intelligent solutions to tackle these issues at their core.
In response to the specific problems being faced by Mi Glow Store, GoKwik introduced its innovative Start COD module. This unique return-to-origin (RTO) solution leverages artificial intelligence and machine learning to:
- Analyse a shopper's purchasing behaviour based on over 200 parameters.
- Implement strategic interventions to:
- Identify shoppers exhibiting little or no buying intent
- Reduce impulsive purchases
- Strategically expand COD serviceability across different shopper segments
- Keep RTO in check while concurrently boosting the overall business Gross Merchandise Value (GMV) of the business
The Start COD module entailed implementation of the following strategies on Mi Glow Store's online platform.
1. Identified Indian Pin Codes With Low RTO History
GoKwik initiated a comprehensive analysis to find areas across Indian pin codes with minimal RTO occurrences. The strategic introduction of COD as a payment method in these regions aimed to build confidence while increasing business revenue.
2. Implemented COD Prompt As A Gatekeeper
In addition to extending COD serviceability to low-RTO pin codes, GoKwik implemented COD Prompt. It’s a smart intervention that prompted shoppers to reconsider their buying decision before placing a cash-led order. This measure significantly contributed to reducing impulsive purchases.
3. Introduced COD Digits Captcha & reCaptcha On High-Risk Shoppers
Recognizing the propensity of high-risk shoppers contributing to a high RTO%, GoKwik implemented COD Digits Captcha & reCaptcha. The two tactics helped prevent bots and shoppers with low buying intent from placing orders.
4. Blocking COD For Top 7% Of The Riskiest Users
Analysing the nature of shoppers who placed orders on Mi Glow Store’s site, GoKwik identified that approximately 7% of all shoppers were responsible for the brand’s high RTO rate. To mitigate losses, GoKwik implemented COD Blocking. Via this feature, it ensured that these 7% of low-intent shoppers identified were not shown cash as a payment option. This kept these high-risk shoppers at bay.
5. Addition of Risk-based Dynamic COD Fees and Prepaid Discounts
Building on the insights gained from the implemented interventions so far, GoKwik recommended the incorporation of risk-based dynamic COD fees and prepaid discounts on Mi Glow Store's checkout. This involves displaying an additional fee for cash orders and offering discounts for prepaid transactions, based on a shopper’s assessed risk level. For instance, offering a 10% discount to high-risk shoppers on UPI payments while implementing an INR 70/- fee on cash orders.
6. Expansion of COD Across More Pincodes & Refinement of COD Blocking
After studying shopper behaviour for some time, GoKwik then recommended Mi Glow Store to expand COD serviceability to additional pin codes while refining COD blocking strategies. This approach aimed to generate more orders, elevate GMV, and maintain control over RTOs.
The Result
With GoKwik’s Start COD module in place, Mi Glow Store witnessed the following results.
- RTO% reduced from ~55% to ~22% and currently sits anywhere between 25-30%
- Conversion rate percentage increased to 47%
- Prepaid conversion percentage increased from 17.80% to 40.70%
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