Introduction
“The Marketplace”, established in 2017, embarked on a mission to redefine the ecommerce experience by seamlessly integrating its dealer and customer franchise. “The Marketplace” was launched with a dual vision to establish a new distribution channel for “Leading Financial Institution” Sellers and create India's premier hyperlocal marketplace offering products on a no-cost EMI basis. The initial focus was to leverage Financial Institution's extensive dealer network, ensuring swift product delivery from 2 hrs to within two days. Transactions were limited to “Leading Financial Institution” EMI Card holders during the initial phase.
Business Challenge
“The Marketplace” grappled with building credibility in a competitive ecommerce landscape. A substantial proportion of customers were visiting the platform who did not hold “Leading Financial Institution” EMI Cards (New customers), hindering their ability to transact. The approval rate for “Financial Institution” EMI Card loans was declining for existing customers, resulting in an overall reduction in conversion rates. Customers were browsing products on “The Marketplace” but making purchases offline, posing a challenge in tracking and retaining online leads. In the initial years, data analysis on Google Analytics revealed a higher number of drop-offs attributed to a lengthy transaction journey.
Solution
Every individual challenge was approached with a specific solution. The overall approach was a mix of marketing and service initiatives that could improve the business metrics.
Starting with the implementation of targeted marketing campaigns, the first three years were dedicated to increasing traffic. The brand’ credibility was enhanced by leveraging Financial Institution's digital assets for merchandising and investing in paid marketing and SEO to establish a robust online presence. “The Marketplace” strategically leveraged its existing dealer network to start another business vertical. This move not only expanded its offerings but also created a new business line for its dealers, fostering a symbiotic relationship. Showcasing its trusted network of offline dealers and services fostered the trust among potential customers.
For new customers who did not hold EMI cards by Leading Financial Institutions, a credit line was introduced to ensure no hindrance in transactions. This was done through a seamless digital loan booking journey, integrating multiple parties of “Leading Financial Institution” and Digilocker. Any customers facing failed transactions were redirected to alternative payment modes like UPI, credit cards, debit cards, etc. thereby, improving overall conversion rates. To streamline the customer journey to a 2-click process, an Instabuy page was introduced to increase conversion rate. “The Marketplace” was also integrated seamlessly with Financial Institution's app to improve user retention.
The gap between online browsing and offline purchases was bridged by introducing the Store Pickup option, creating an omnichannel buying experience thereby creating an attribution model for offline purchases.
Impact
Strategic initiatives for “The Marketplace” have yielded impressive results, establishing it as India's largest hyperlocal marketplace. Integration of Instabuy resulted in a significant 25% increase in the conversion rate. Customers using “The Marketplace” within the app experienced a remarkable 30% higher retention rate, showcasing the platform's value and user retention. Also, ~ 20% of offline purchases via “Leading Financial Institution” EMI Card are attributed to “The Marketplace”.
Commencing with traditional digital and consumer durables categories, “The Marketplace” has since expanded its offerings to encompass more than 70 diverse categories. Anticipating diverse consumer needs, “The Marketplace” has launched separate marketplaces for 2-wheelers, new car finance and is set to launch the same for tractors and used cars in the coming months.
Over the years, “The Marketplace” has consistently generated substantial cross-sell revenue. The platform's ability to drive cross-sell transactions in the form of Personal Loans, Credit Cards, EMI Card etc. reflects its effectiveness in offering a diverse range of products and financial services to meet varied consumer needs.
The transformative journey of “The Marketplace” exemplifies the successful integration of ecommerce and financial services, demonstrating the power of innovation and adaptability in meeting the evolving needs of consumers. The strategic alignment with Financial Institution, the ingenious use of the dealer network, and the dynamic solutions to customer challenges have positioned “The Marketplace” as a pioneer in the intersection of digital and financial services.
