According to a recent report 93.5% Internet users have made online purchases in 2020, and the number is exponentially increasing as customers are finding it more convenient to shop online. With the ecosystem changing, the D2C brands and e-commerce companies require the right set of data to know what their customers want and to offer them the right products in order to motivate them to stay loyal with the brand.
The customer trends and preferences underwent a sea change during the pandemic, post which the customers have evolved drastically. Even the loyal customers are shifting their brand preferences, in case their demands are not met by their favourite brands. To get close to the customer and understand their needs better, the D2C space is leveraging data analytics in the system by using it in multiple ways like inventory management, customer service etc.
To know more about this, we spoke to Ayushi Gudwani, Founder and CEO, FableStreet.
Founded in 2016, the brand is born out of a lot of research that helped the team build an algorithm for tailor-fit clothes, to solve commonplace size issues. The brand is known for bringing comfort to the women’s wardrobe through breathable attires.
Understanding customers through data analytics
A research by Mckinsey Analytics mentioned that the businesses that’re leveraging behavioural data from customers are outperforming their competition by 85% in sales growth and 25% in gross margin. In the current scenario, Data is turning out to be revenue, if a company can understand data and put it to action, it can easily generate huge sales. When asked how FableStreet is fulfilling customer’s demand through data, Ayushi Gudwani told us that they believe that the ‘Customer is the King’, and also added the ways through which they’re driving the customer journey.
- Understand customer’s needs- We do a lot of deep structure surveys, interviews, social listening and act accordingly.
- Heavily data-backed: Customers are not directly putting the information, but running on the systems that are heavily data-backed which helps us to understand which product demand is more in the market.
Gudwani also mentioned the approaches that they’re following from an organizational point of view, and added “We have a deep data analytics platform that has a set of team members which are trained on data analytics and undergo massive data mining and analytics to understand what is selling on the platform. Other than this, we are building a team that can understand the customers through social media platforms, social listening. In this way, every team member is turning out to be a revenue person or a product development person.”
She also added that, “We’re also putting attention on the customer centricity, as it is one of the important innovations as the customers are evolving significantly over time, and with that the product requirement is required to change over time.”
Standing firm in the face of challenges
The D2C ecosystem is evolving, but has its own set of challenges with respect to inventory management, efficient order processing, timely dispatches and last-mile delivery. When asked how the brand is overcoming these challenges, Gudwani highlighted, “Logistics is not a problem, as the external players are involved in that. All we do is to work with third party providers that deliveries are made on time. Fulfillment is an interesting challenge that can ensure the demand supply matching. If a demand is increasing in the market, the timely supply is the need of the hour otherwise we will lose out the sales. One of our biggest innovations lies in the supply chain side, where we can manufacture the inventory in seven days, and can build up new styles in less than 7 days which means that we can easily stock up our supply and fulfill the heavy demand management easily. This is the core we have built as opposed to the traditional world manufacturing that would take 2-3 months, which we can do in just 7 days.”
She signed off by adding “We have a strong inherent edge on the competition as we can launch the design in seven days and a strong inventory buildup that enables us to launch a product, gather feedback and build new inventory in just two weeks time frame. This is one the biggest competitive advantage that enables us to stay close with their customers.”