What’s happening at Croma
Croma has grown customers and revenue
#KYBM tickets KYBM ticket size
16.5%↑
11.3%↑
4.4%↑
2.2%↑
2015 2016 2017 2015 2016 2017
#KYBM Tickets > 10K & Ticket size – 15,16,17. (Jan-Dec data)
Growing faster than the market
Market vs Croma: festive
CATEGORY CONTRIBUTION TO OVERALL VOLUMES
festive’17 festive’16 Market Growth over Last
Nov’17 Share By year
Televisions 7% 8%
13% 12% Volume Croma Market
Smartphones 80% 77% Televisions 5% 16% -14%
55% 55%
Smartphones 2% 9% 8%
Laptops 3% 3%
13% 12%
Laptops 11% 17% 6%
1% 1% Market
Microwaves 4% Microwaves 13% 1% -7%
5%
Croma
4% 5% Refrigerators 3% -16% -17%
Refrigerators 5% 6%
Washing
4% -3% -4%
Washing Machines 5% 5% Machines
7% 8%
Air
8% 11% 7%
1% 1% Conditioners
Air Conditioners 3% 3%
OVERALL 8% 4%
Source: GfK Retail Audit
Del/Mum/Blore
By recruiting new customers, bringing back
old ones and accelerating repeats
NEW REPEAT WINBACK
#Tickets #Tickets #Tickets
21%↑
19%↑ 14%↑
FY 17 FY 18 FY 17 FY 18 FY 17 FY 18
Revenue Revenue Revenue
19%↑ 39%↑
11%↑
FY 17 FY 18 FY 17 FY 18 FY 17 FY 18
While reducing spends on advertising...
Croma advertising spends puts it at #3 or #4 in every market among offline retailers
AD SPENDS
Market Delhi Mumbai Pune Bangalore Hyderabad
Croma rank 4 5 4 5 3
As % of top
31% 20% 23% 17% 5%
spender
While online marketplaces are drowning out ALL offline retailers
OND 2017 spends (in Cr)
Rs. 300
Rs. 254
Rs. 250
Rs. 200
Rs. 150
Rs. 100
Rs. 55
Rs. 50 Rs. 34
Rs. 6
Rs. -
Amazon Flipkart PayTM Croma
What has changed?
Shift to BRIGHTER EVERYDAY
Why did we move to BED?
► Croma so far was positioned on the promise of – “We help you buy”. This operated
in the transactional space hence the need to move to a more emotional, life
space
► We wanted to shift our brand essence and promise to Croma being an ‘enabler’.
This is because the customer who walks into the store is well aware of his choices
and comes only after doing a thorough research
► The new promise: To access their desired lifestyle by providing great range of
electronics, showcasing life changing possibilities of latest technologies at the
same time making it affordable
► The greater meaning of the proposition is that “We don’t help you buy, we
construct your desired future” i.e. “Brighter Every Day”
1. Participation in digital “window shopping”
Web banner
FB posts
Digital Influence
47%
38% 40% 39%
37% 36% 36% 36% 35% 36% 36% 36%
32%
Aware and visited
Dec'16 Jan'17 Feb'17 Mar'17 Apr'17 May'17 Jun'17 July'17 Aug'17 Sept'17 Oct'17 Nov'17 Dec'17
2. Promote Croma.com as the landing for advertising
Role of Croma.com content in the final purchase decision
49% 46%
45%
41% 40% 40% 39% 40% 41%
37% 37% 35%
33%
23%
Dec'15 Dec'16 Jan'17 Feb'17 Mar'17 Apr'17 May'17 Jun'17 July'17 Aug'17 Sept'17 Oct'17 Nov'17 Dec'17
3. Croma as India’s first Electronics Omni-channel Retail
Customer Promise – We Help You Buy
► Integrated Shopping Experience – Online + Offline
► Expertise in Electronics – Knowledgeable & Helpful Staff
► Trusted Retailer from the house of TATA
► Service Level assurance
Croma Key Advantages
vs. other retailers vs. marketplaces
store inventory visible online Drive traffic to store Faster delivery
All store’s inventory visible in One store for the whole of India Warm body selling for every item
every store
In 2006, In 2013, In 2017,
Croma stores are the preferred 50% of our customers didn’t 85% of our customers also
destination for people looking even visit a second store for a check out the products online
for the latest in technology purchase before purchasing from Croma
4. Investing in our stores as their own best advertising
May’15 May’16 May’17
Its laid out in a way which makes shopping easier than other stores 23 37 45
Appeals to me more than other retailers 27 36 43
5. Showcasing the latest & best – as dictated by the
customers’ demand
100%
Perception about range among Croma Buyers 3782
80% Active SKUs 3587 3744 3722 4,000
2924 2814 2903 2844 2911
60% 2584 2708
2339 2354
40% 49% 49% 2,000
45% 45% 45% 42%
39% 37% 40%
35% 33%
20% 30%
25%
0% 0
Dec'16 Jan'17 Feb'17 Mar'17 Apr'17 May'17 Jun'17 Jul'17 Aug'17 Sep'17 Oct'17 Nov'17 Dec'17
6. Empowering the staff to close the sale – “Main
hoon na”
May'15 May'16 May'17
Provides you with 24 39 45
easy to understand
information
Has knowledgeable 24 32 45
staff
Relationship : Guru 8 15 15
An introduction to digital first loyalty
program
BACKGROUND
3 years ago, after evaluating various partners, Croma decided it
will not invest in a Loyalty program
BACKGROUND
Why?
► Low-margin, high ticket size business with limited value attached to shopping bag
Providing for loyalty points affects competitiveness of pricing
► Even the most regular buyer has around 3 category purchases a year
Perceived worth of loyalty points is low compared to a discount today
► With average ticket sizes above 10K
impact of redeemed points on the purchase decision is limited
Background
Business Priorities however were the ones classically addressed
through a loyalty programme
► To accelerate repeats
► To secure a larger share of the wallet from established customers
Is there a way around?
De-constructing the components of a loyalty program
► Ensure contactability of customers
– convert a transaction into a channel of conversation
► Drive engagement
– getting customers to converse through the channel of conversation created
► Demonstrating value in the Engagement
– ensuring the customer feels treated “special” – deals / offers / services not
available to general customers
► Securing a larger share of the customers’ wallet
– earning “a first right of refusal” on the customer’s business
Croma had all the ingredients of a loyalty program in
place – sans the liability of points
► Ensure contactability of customers
– As a delivery and service business, most customers happy to leave behind email /
mobile number
► Drive engagement
– Service and even suggested sale communication engine already running
► Demonstrating value in the Engagement
– Reasonable response rates to the suggested sale communications
► Securing a larger share of the customers’ wallet
– Repeat customer business accounted for 46% of total sales
Opportunity therefore to scale up…
Road-map to a scaled up loyalty program
Parameters to scale it up
Securing a
Demonstrating
Driving larger share of
Engagement value in
contactability the Customers’
engagement
wallet
Scaling up the existing program
Demonstrating
Driving Securing a
Engagement value in
contactability larger base
engagement
21% growth in customer contactability
1.2X growth in email open rates
11% growth in repeat customer visits
24% repeat customers come back to us within 3 months
customer contactability
77%
85%
total base contactable base
FYFY
1516 FYFY
1718 contactability
Scaling up the existing program
Demonstrating
Driving Securing a
Engagement value in
contactability larger base
engagement
Engaged customer Customer views
Growth: Growth: 68%
33%
FY 16 FY 18 FY 16 FY 18
Loyalty program driving strong results
Demonstrating
Driving Securing a
Engagement value in
contactability larger base
engagement
Duration between 2 visits Frequency of visits (#cust)
Campaign Response Revenue
(#cust)
86% 4,000
13% 10% 9% 8% 7% 4% 8% 9%
3,500
3,000
Growth: 210%
2,500
2,000
21% 1,500
31% 1,000
500
0
0-3 months 6-9 months >12 months 1 2 3 4 5 6
FYFY15
16 FYFY17
18 growth FY 15
FY 16 FY18
FY 17
Email click through rates doubled within the time period (3% to 6%)
22% growth in repeat customer revenue
12% growth in repeat customer ATS
Scaling up the existing program
Demonstrating
Driving Securing a
Engagement value in
contactability larger base
engagement
#customers Revenue
FY15
FY 16 FY17
FY 18 growth FY15
FY 16 FY17
FY 18 growth
43% 54%
33% 54%
Engaged Rest Engaged Rest
Thank you
