Chennai: Increasing the number of loyal customers is the way forward for e-commerce companies to lower cash burn. Online grocery chains have already converted one-third of their user base into subscribers.
Online grocery verticals have taken the lead in terms of monetizing their convenience seeking consumers, by converting 30-40 per cent of the consumer base as their subscribers. Subscription increases the stickiness of the customer and frequency of his purchase as he enjoys exclusive privileges, finds RedSeer Consulting.
These privileges include price savings via cashbacks and price discounts, along with free/priority delivery. Both BigBasket and Grofers offer free shipping, monthly cashbacks, priority slots and extra offers and benefits for their subscribers. Grofers' Smart Bachat Club subscription is available at Rs 49 for one month, Rs 249 for six months and Rs 449 for 12 months. BigBasket subscription for 6 months is available for Rs 299.
The programme has started showing results as the 30 to 40 per cent of these subscribers account for 60 per cent of the sales.
"The growing maturity of internet users has led to a significant increase in the share of users who transact frequently on online platforms,” said Mrigank Gutgutia, Head, Consumer Internet, RedSeer.
In the broader consumer internet space, online streaming platforms have been working on full or partial subscription models.
