Engagement & Retention project | Ajio

AJIO, a fashion and lifestyle brand, is Reliance Retail’s digital commerce initiative and is the ultimate fashion destination for styles that are handpicked, on trend and at prices that are the best you’ll find anywhere.

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Ajio.com, operated by Reliance Retail, Ltd., is an online store with nationally-focused sales. Its eCommerce net sales are generated almost entirely in India. With regards to the product range, ajio.com achieves the greatest part of its eCommerce net sales in the Fashion category. Furthermore, products from the Furniture & Homeware category are part of the offer. The online store was launched in 2016.

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Flipkart dominates with 48% market share, Meesho emerges as fastest growing e-commerce platform: Report | Company Business News (livemint.com)

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Core Value Proposition

Ajio's core value proposition is its huge inventory of high quality, latest fashion clothing and accessories with unmatched deals on top brands accessible through website and mobile apps. Its reach in Tier 2 and Tier 3 cities, where the brand availability is less, is another value the Brand is able to offer its customers.

Differentiators from the Competitors:

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• Tailored customer drive engagement
  Ajio prioritizes a seamless shopping experience by offering various customer journeys catering to individual preferences. Initiatives like Ajio Luxe and the Exclusive D2C Brand store Ajiogram cater to diverse buying and browsing behaviors, ensuring a personalized experience for each user. This approach is crucial in today's competitive e-commerce landscape, where customer experience is paramount. This data-driven approach ensures a personalized experience that resonates with a wider audience.

• Meeting evolving customer demands
  Ajio strategically adapts its offerings to cater to evolving customer demands. The platform witnessed a surge in demand for western wear, footwear (particularly sneakers), and ethnic wear during the festive season. To meet this growing demand, Ajio's curated sneaker store, Sneakerhood, expanded its selection by 200 per cent year-on-year, demonstrating the platform's agility and responsiveness to market trends.

• Fostering the D2C ecosystem
  Recognizing the potential of Direct-to-Consumer (D2C) brands, Ajio announced plans to support the growth of 100 fashion D2C startups and onboard 200 exclusive Indian fashion and lifestyle D2C brands onto its platform Ajiogram in the coming year. This strategic move not only strengthens Ajio's product portfolio but also empowers emerging brands to reach a wider audience, fostering a dynamic and competitive e-commerce landscape.
  
• Flagship events attract customers
  Ajio's success is also fueled by strategic marketing initiatives like the Big Bold Sale (BBS). During BBS, customers from over 19,000 pin codes across the country participated, showcasing the platform's extensive reach and ability to attract customers from both metros and non-metros. Notably, over 51 per cent of Ajio's orders originate from non-metro cities like Mysore, Ghaziabad, Karnal, Surat, and Bhubaneswar, indicating the growing popularity of online shopping for premium brands in smaller towns and cities.

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The customers experience the core value repeatedly by:

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• By successfully placing orders on Ajio desktop and mobile apps multiple times a week/month/quarter to meet their fashion shopping needs and experience the differentiators of the Brand.

To know the natural frequency of the product, sub products and their natural frequency, we are classifying users into casual, core and power based on the purchase frequency. The average order value is not considered

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Sub Products of Ajio

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Engagement Framework

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Depth here will be = Frequency * Time/Money

= Order Placed Per week* Time Spent on Ajio

= 1/Per week * 30 minutes

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Frequency = X number of orders in Y time

= 1 Order in 1 Week

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Who is the Active User Here

For Ajio, an active user is anyone who is signing up and completing a purchase on the website or App. User has hired Ajio for buying products. So, when the user places a successful order, s/he becomes the active user.

Now, another factor to be considered here is if the user just made a purchase and then what is the time duration for him/her to place the next order. Is it the customer used Ajio for making one purchase 1 year back and stopped. So, in this case, we need to check the time period as well in which the user makes the purchase again.

Now since fashion industry is seasonal, basis the definition of Core or Power users based on the interviews and research, a time period of 3-4 months should be considered for the active user.

The other metrics to be tracked to better understand active user base are -

• No. of users buying during the Big Billion Sale
• No. of users (session in mins) Average user session (mins) Ajio and browsing products
• Users who redeemed Ajio Gift Cards, used Ajio Coins and Wallet
• Users who save Credit Card details
• made a wishlist
• added items in the cart

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https://www.bigcommerce.com/articles/ecommerce/ecommerce-metrics/​

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Natural Frequency

The natural frequency of ordering from Ajio depends on its Casual, Core, and Power users. Now, the fashion e-commerce has a natural frequency of Weekly orders. So, it is difficult for users to buy fashion apparel more than once a week.

Customer Segmentation

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• Ajio has a user segment where the age group of the users fall in the bracket of 18-40 years
• Out of the entire user segment, 61% are male and 39% female.
• Also, 51% of the sales happen from Tier 2 and Tier 3 cities.
• Competitors are Myntra, Tata Cliq, Amazon, etc

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ICP Segmentation

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Segmentation Based on Casual/Core/Power Users

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Engagement Campaigns

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For Ajio, in order to increase the engagement, hence the Average order Value, it makes more sense to increase the Frequency and Depth. More the time spent on the platform, more is the catalog browsing, in turn increasing number of products added to wishlist and cart.

Campaigns

The campaigns here are targeted towards the user segment of casual, core and power. The campaigns can target the frequency, breadth and depth depending on how we want to increase the engagement with the active users. The campaign content is created to address the pain points of the segment and priming them to spend time on the platform to drive them toward our ideal ICP.

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SMS Notification Whatsapp Notification Whatsapp Notification

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Retention

Basis the real time data available, the monthly active user on an average for one year is 34 million for Android. Assuming 97% of users are on android, we can assume there are total of 35 million monthly active users for Ajio.

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After plotting the data points, the Retention Curve is seen flattening at D30 from the data available, with the retention rate of approximately 11.8% at D30.

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ICPs Driving the Retention

• So, the Core and Power Users drive retention here.
• The needs of Core and Power user are different in case of Ajio. Though the frequency and depth is more for the Power user, Core user has the appetite to pay. Core user is making less number of purchases but the average order value can be more. So, if we concentrate on the core user with the appetite to pay and convert them into power users, chances are very high that the retention will increase hence, increasing the revenue, which looks like a good deal.

Acquisition Channels Driving Better Retention

• Organic - Ajio sees the maximum number of users coming back organically. Posts about the sales on Youtube, Facebook, Instagram make the customers come to the app to check the deals and shop
• SMS and Whatsapp Notifications - Regular Push Notification on SMS and Whatsapp drive retention. Also, the option of shopping on Whatsapp is a great way of asking the existing customers to check the collection directly, resulting in shopping more, hence retaining more
• Social Media Ads - Facebook and Instagram ads.

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Ref: ajio.com Website Traffic, Ranking, Analytics [May 2024] | Semrush

Sub Features Driving Retention

Churn

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In case of Ajio, we are considered the Churn users to be the ones who used the product to make a purchase but have not placed any order in the last 6 months. We have considered the casual user to be the user of Ajio every quarter, so it is safe to assume that the active user who has not placed an order in the last 6 months is a churn user.

Now, the reason could be as follows, ranking in the order of importance:

Negative Actions Performed by the At Risk and Churn Users

• Muting the whatsapp/in-app notifications: Majority of the customers get to know about the sale through whatsapp notifications. If the user is not interested in using Ajio, s/he will mute the notifications
• Uninstalling the app: If the user is not making any purchase or is not interested, s/he will uninstall the app
• Negative Reviews of Ajio on the website/app: Negative reviews are a great way of knowing what the customer is feeling. In most of the cases, people had a bad experience, give a negative experience faster
• More Returns: More number of returns mean customer is not happy with the quality, fit etc of the product. The percentage of returns of a customer is a good indicator of knowing unhappy customer
• Negative experiences shared on social media: Bad experiences of customers are most likely to be shared on social media like facebook, X, google leading to negative Word of Mouth
• Customer Complaints: More the number of customer complaints over call/chat, more likely is the customer going to churn. Also, if for the same product customer is complaining multiple times, more is the hassle he is going through and more likely s/he will churn
• Power or Core user not placing orders with the same frequency as before. This is a good way to know how the existing customers are feeling. if the frequency and money spent is low, chances are the customer went to competition.
• Low NPS, CSAT score - This is a good way to analyze if the user is happy with the product and likely to retain

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These are total number of reviews of Ajio with the distribution.

Here, we can say that the 5 and 4 star reviews are given by happy users but 3 and 2 stars are given by those who are not totally unhappy but not very happy with Ajio and are highly likely to move to competition. These are the ones who need to be targeted first.

Users with a rating of 1 are the churned users who used the product, made purchase but left. So, most likely, s/he is not coming back.

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Similarly, users with a neutral sentiments are probably the casual users and can be converted to a core user.

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Resurrection Campaigns

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