A 2024 Perspective on eCommerce Market, CX, and Customer Satisfaction
Dec. 30, 2023
eCommerce is not only growing but drastically growing. So, being in an eCommerce business, you must be ready for the 2024 eCommerce scenarios. That is why today you'll read about the eCommerce market of India and how CX and Customer satisfaction will be at the center of all the trends of the eCommerce industry in 2024.
What is eCommerce?
How Has eCommerce Made Space Into Everyone's Daily Life?
eCommerce as a model is sustainable from the selling part to the delivery of the product. Everything has developed a lot, and it is not stopping there. The convenience that eCommerce is providing the people of all over the world is unmatchable.
Firstly, the model offers shopping from anywhere in the world, allowing people to be able to purchase anything they want. Moreover, it also lets the consumers get access to things they need from remote locations.
Also, eCommerce has proved over the years that it can be a great way to get stuff for cheap with competitive pricing, coupon codes, discounts, and sales. Additionally, almost all the eCommerce platforms offer easy return policies, which again make consumers comfortable shopping online. These are some of the reasons why eCommerce has managed to be infused into the regular lives of people.
Market Dynamics Across Tier 1,2 and 3
Now let's look at some numbers defining the market share of the eCommerce model in tier-1, 2, and 3 cities of India.
In 2022, the tier 1 cities held 37.1% of the net share, which is a 9.3% decline from the year 2021. On the other hand, the tier 2 and 3 cities have secured 21.4% and 41.5% of the market share, respectively. Moreover, it is a 2% and 7.3% increase from the year 2021.
The tier 2 and 3 cities are contributing to 50-55% of the total revenue generated by this business model. Moreover, online orders made from these two tiers are around 63% of the complete online orders.
Not only this, but the tier 2 cities right now are closely competing with the tier 1 city group. But how? According to our study, the average spending of a person from a tier 2 city is ₹20,100 over six months. Can you guess how much the average spend of a person from a tier 1 city over the same period of time?
It is ₹21,700, that's not even ₹2000 more than tier 2. So, it is clear that tier 2 and 3 cities are evolving drastically, and there are many reasons for that. So let's look at those reasons that are supporting such massive growth of the eCommerce model in tier 2 and 3 cities.
Why Are Tier 2 and 3 Cities on a Boom in Terms of Adapting Online Shopping?
According to research by QDegrees, there are three key motivators behind such great growth. These three motivators are built around pricing, offers, and convenience. So, let's just look at these three factors closely.
Competitive pricing is the major reason, as 57% of people in tier 2 and 3 cities have agreed for this reason. There are a lot of sellers online, and you may also get an identical product at a much cheaper price from many other sellers. However, it doesn't mean that sellers are selling their products at a loss. It's basically because many costs that a seller gets when opening a shop, like a shop's rent, laborers' salaries, electricity bill, and many more, are almost eliminated in an eCommerce store.
Offers are also among the reasons why people love shopping online. 49% of people do online shopping due to amazing offers. Offers and sales by eCommerce platforms attract a lot of people as it further decreases the cost of the product, which is why sales increase when any offer is put live on eCommerce platforms.
What is India’s eCommerce Scenario in 2024?
Why is CX Important in eCommerce, and How Can You Keep a Grip on It?
What's common in the above trends is that customer satisfaction will be at the center of all these trends. So, calculating it and understanding it through data will be very important.
Picture this: You are running an e-commerce business with many products to offer your customers. Alongside this, you are also dealing with the delivery of your product, customer service, and maybe manufacturing. So, it creates a lot of processes that are important to look at in your business.
But, why? Because there are a lot of people who are leaving you, but you don't know the cause as you don't really know where the problem is lying. That is why it becomes important to know which of your product or service is causing the issue that people are moving on from you.
Now, how? Here comes the role of NPS or Net Promoter Score Surveys. Implementing the NPS survey post-service will help you know the problematic part of your business that your customers don't want to interact with.
But what about fixing the problem? If it's in the delivery of the product or service, then there is a process consulting and mystery shopping as well. While process consulting helps streamline the internal process, mystery shopping will help you know your stores better from a customer's perspective. Basically, mystery shoppers who are trained professionals go to your store and analyze everything from staff behavior to the presentation of the score.
However, you can opt for Customer Service Quality Audits if it's in your customer service. Customer service QA helps you understand your customer's pain points with your customer service by going through your customer service process and recorded data. In conclusion, you get actionable insights about your customer service process.
In conclusion, customer satisfaction will be a major trend in 2024. There will be many trends which will ultimately be about how to make customers more and more satisfied. So, you should look at the factors that contribute to customer satisfaction with the help of the above-mentioned tools and services. Otherwise, you may not be able to make a winning position in the eCommerce race of 2024.