Product Understanding

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Meesho Overview:

Meesho operates as a dynamic e-commerce marketplace targeting Tier-2 and Tier-3 consumers in India. The platform functions as a 2-sided marketplace connecting sellers, particularly long tail and unbranded product sellers, with buyers in smaller cities and rural areas. Meesho's philosophy prioritises affordability over convenience, catering to the price sensitivity of its user base.

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• 58.41% of the users on Meesho are male and the rest to 41.59% are female.
• More than half of the entrepreneurs using Meesho are women and the app reached nine million female retailers in 2021.

Key Features:

1. Two-sided Marketplace: Meesho facilitates transactions between sellers offering unbranded products and buyers primarily from Tier-2 and Tier-3 cities.
2. Logistics: The platform utilizes third-party logistics services for order fulfillment, ensuring efficient delivery despite operating in geographically dispersed areas.
3. Affordability Focus: Meesho's core philosophy emphasizes offering competitive prices, aligning with the budget-conscious nature of its customer base.
4. Product Selection: By featuring long tail sellers specializing in unbranded items, Meesho enhances product variety while keeping costs competitive, thereby appealing to its target market's preferences.
5. Market Positioning: Positioned as a cost-effective alternative in ecommerce, Meesho stands out by providing access to a wide array of products that are affordable and cater specifically to the needs and budgets of customers in smaller cities and rural areas.

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Core Value Prop

• Affordability and Competitive Pricing: Meesho prioritizes offering products at competitive prices, catering specifically to the price sensitivity of customers in Tier-2 and Tier-3 cities. This value proposition aligns with its core philosophy of "Price over convenience," making it a preferred choice for budget-conscious consumers seeking value for money.
• Wide Selection of Unbranded Products: Meesho specializes in connecting buyers with long tail sellers who offer a diverse range of unbranded products. This extensive selection not only broadens the choice available to customers but also helps in maintaining lower costs of selection on the platform. This value proposition appeals to customers looking for unique and affordable products that may not be widely available through traditional e-commerce channels.

Meesho's Top 2 Ideal Customer Profiles

ICP 1: Savvy Sanjana - The Budget-Conscious Trendsetter

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Demographics:

• Age: 25-35 years old
• Gender: Female
• Location: Tier-2 city (e.g., Jaipur, Lucknow, Indore)
• Occupation: Working professional or homemaker
• Income: ₹20,000 - ₹40,000 per month
• Education: Graduate

Psychographics:

• Aspires to follow latest fashion trends but is price-sensitive
• Active on social media, especially Instagram and WhatsApp
• Values recommendations from friends and family
• Seeks to maximize value in every purchase
• Enjoys the thrill of finding good deals

Shopping Behavior:

• Primarily shops for women's ethnic wear and western clothing
• Makes 2-3 purchases per month on e-commerce platforms
• Often browses during lunch breaks or late evenings
• Compares prices across multiple platforms before buying
• Prefers Cash on Delivery (CoD) option

Pain Points:

• Limited access to trendy, affordable fashion in local markets
• Concerns about product quality when buying from unknown brands
• Hesitant to use online payment methods due to security concerns
• Frustrated with long delivery times from major e-commerce players

How Meesho Serves Sanjana:

• Easy to navigate shopping app
• Offers a wide range of affordable, trendy fashion options
• Provides a familiar social shopping experience through WhatsApp
• Offers CoD option and transparent pricing
• Showcases user-generated content and reviews for trust-building

ICP 2: Resourceful Rajesh - The Aspiring Reseller

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Demographics:

• Age: 30-45 years old
• Gender: Male
• Location: Tier-3 town (e.g., Bhilai, Aligarh, Tiruppur)
• Occupation: Small business owner or part-time worker
• Income: ₹15,000 - ₹30,000 per month
• Education: High school or undergraduate

Psychographics:

• Entrepreneurial mindset, always looking for additional income sources
• Well-connected in the local community
• Comfortable with technology but not highly tech-savvy
• Values flexible work hours and the ability to work from home
• Eager to learn new skills and grow a business

Shopping Behavior:

• Primarily interested in bulk-buying opportunities
• Focuses on products with high local demand (e.g., home decor, kitchenware)
• Spends significant time comparing wholesale prices
• Prefers platforms with easy order management and tracking
• Uses both desktop and mobile app for browsing and ordering

Pain Points:

• Limited access to wholesale markets in nearby cities
• Struggles with inventory management and upfront investment
• Concerns about product returns and customer service
• Needs support in marketing and growing customer base

How Meesho Serves Rajesh:

• Provides a user-friendly reseller platform with no upfront investment
• Offers a wide range of products at wholesale prices
• Handles logistics, allowing Rajesh to focus on sales
• Provides marketing tools and trainings to help grow his business
• Offers a commission structure that incentivizes increased sales

Considering Meesho's increased focus on ICP1, we'll now dive into the engagement and retention strategy tailored for this segment.

Defining Active Users and Customer Segmentation

Core Action of the Product

Primary Action - The core action for Meesho would be completing a purchase through the app. This involves browsing products, adding items to the cart, and successfully checking out.

Secondary Actions performed by active users-

• Product Exploration: Active users regularly browse Meesho’s wide array of products, spanning categories like clothing, homeware, and accessories. Their exploration signifies ongoing interest and sets the stage for future purchases.
• Cart Interaction: Users frequently add items to their carts, indicating purchase intent and specific product interest. Monitoring these interactions helps gauge user preferences and readiness to buy.
• Wishlist Participation: Engaged users utilize wishlists to bookmark items of interest, signaling future purchase considerations. Converting wish-listed items into actual purchases reflects a deliberate buying decision over time.
• Active Reviewing: Members contribute feedback and reviews post-purchase, sharing insights on product quality and satisfaction. These reviews enhance credibility and influence purchasing decisions for other users.
• Following Meesho’s Content: Users engage with Meesho’s content and campaigns, staying informed about new products, promotions, and brand initiatives. Participation in these activities strengthens their connection with the platform.

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Natural Frequency

Given the focus on affordability and the target market, the natural frequency for Meesho users might be once every 1-2 months. This allows for regular engagement while aligning with the budget-conscious nature of the target audience.

Customer Segmentation

RFM Analysis

Engagement Strategy for Meesho

​1. Segmentation and Focus:

• Breadth: Expand product categories to meet diverse needs of homemakers, focusing on affordability and quality.
• Depth: Personalize product recommendations to enhance relevance and encourage repeat purchases.

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2. North Star Metric:

• Customer Acquisition and Repeat Purchases: Attract new customers and ensure they become repeat buyers through personalized engagement and trust-building initiatives.

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3. Engagement Strategy:

​Product Hook 1: Discover Meesho Mall - Affordable Brands, Elevated Choice

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Goal: Introduce Meesho Mall to customers, emphasizing branded products at affordable prices to drive engagement and repeat purchases.

Problem Statement: Customers in Tier 2 and Tier 3 cities seek trustworthy branded products but often face affordability challenges or limited availability.

Solution:

• Meesho Mall Introduction: Launch Meesho Mall as a curated section featuring well-known brands offering quality products at competitive prices.
• Brand Showcase: Highlight popular brands across categories like fashion, beauty, electronics, and home essentials within Meesho Mall. Emphasize the affordability aspect compared to traditional retail prices.
• Exclusive Launch Offers: Introduce special launch offers, discounts, or bundled deals on products within Meesho Mall to attract early adopters and encourage first-time purchases.
• Personalized Recommendations: Utilize customer data and preferences to recommend products from Meesho Mall, ensuring relevance and enhancing discovery.

Success Metrics:

• Conversion Rate: Measure the percentage of users exploring and purchasing from Meesho Mall.
• Average Order Value (AOV): Track AOV of orders including Meesho Mall products to assess customer spend.
• Customer Satisfaction: Gather feedback and reviews from customers to gauge satisfaction with branded products and pricing.

​Campaign for Product Hook 1:

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Product Hook 2: Explore Meesho's Affordable Universe

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Goal: Encourage homemakers to explore diverse product categories and enhance their shopping experience.

Problem Statement: Many first-time online shoppers in smaller cities lack trust and familiarity with e-commerce platforms.

Solution:

• Personalized Recommendations: Utilize browsing and purchase history to suggest new product categories aligned with homemakers’ interests and needs.
• Interactive Engagement: Incorporate interactive quizzes or polls within the app to facilitate product discovery and increase engagement.
• Discounts and Offers: Introduce exclusive discounts or first-order incentives tailored to attract and retain first-time buyers. For example, "Get 30% off your first purchase of kitchen essentials!"
• Community Engagement: Leverage Meesho’s social commerce model by encouraging interactions with trusted resellers (friends or family), thereby enhancing trust and credibility.

Success Metrics:

• Increase in Average Order Value (AOV): By encouraging exploration across multiple categories.
• Repeat Purchase Rate: Measure the percentage of first-time buyers who make subsequent purchases within a defined period.
• Customer Satisfaction: Track positive feedback and reduced support queries through improved delivery and customer service.

Campaign for Product Hook 2:

Product Hook 3: Experience Live Shopping on Meesho​

Goal: Introduce and promote the live shopping feature on Meesho to enhance customer engagement and drive immediate sales.

Problem Statement: Customers in Tier 2 and Tier 3 cities seek more interactive and real-time shopping experiences, enhancing trust and engagement.

Solution:

• Live Shopping Introduction: Launch live shopping as a new feature on Meesho, allowing customers to participate in real-time shopping events.
• Product Showcase: Showcase popular and trending products during live sessions across categories like fashion, beauty, electronics, and home essentials.
• Real-time Discounts and Offers: Offer exclusive discounts and special offers exclusively during live shopping events to incentivize immediate purchases.
• Interactive Engagement: Enable live interaction through Q&A sessions, polls, and product demonstrations to engage customers actively.

Success Metrics:

• Attendance and Participation: Measure the number of users attending live sessions and their interaction levels (comments, likes, shares).
• Conversion Rate: Track the percentage of users making purchases during or immediately after live sessions.

Campaign for Product Hook 3:

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Product Hook 4: ₹99 Best Selling Sales Campaign

Goal: Introduce a special sales campaign featuring best-selling products priced at ₹99 to drive engagement and increase purchase frequency among casual users.

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Problem Statement: Casual users often hesitate to make frequent purchases due to perceived high costs or lack of compelling offers.

Solution:

1. Special Sales Campaign: Launch a dedicated section on Meesho featuring a curated selection of best-selling products across various categories priced at ₹99.
2. Highlight Value Proposition: Emphasize the unbeatable value of purchasing high-quality products at a significantly discounted price point of ₹99.
3. Limited-Time Offers: Introduce time-bound offers and limited quantities to create urgency and encourage immediate purchase decisions.
4. User Engagement: Leverage push notifications, app banners, and social media to promote the campaign and create buzz among existing and potential customers.

Success Metrics:

• Conversion Rate: Measure the percentage of users exploring the ₹99 campaign and completing purchases.
• Average Order Value (AOV): Track the average order value including ₹99 campaign purchases to assess customer spend.
• Campaign Reach: Monitor the reach and engagement metrics of campaign-related communications (notifications, emails, social media posts).

Campaign for Product Hook 4:

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Product Hook 5: Cash on Delivery and Price Unbundling Pitch

Goal: Promote Cash on Delivery (COD) and highlight price unbundling benefits to increase trust and convenience for Tier 2+ customers.

Problem Statement: Customers in Tier 2+ cities prefer COD for security reasons and are sensitive to hidden costs or bundled pricing.

Solution:

1. Cash on Delivery Option: Reinforce Meesho’s commitment to customer convenience by prominently promoting COD as a payment option at checkout.
2. Price Unbundling Strategy: Clearly communicate product prices, including any additional costs (e.g., shipping, taxes), upfront to build transparency and trust.
3. Educational Campaign: Launch an educational campaign explaining the benefits of COD and price unbundling, addressing common customer concerns.
4. Customer Support Enhancement: Improve response times and resolution rates for COD-related queries and issues to enhance customer satisfaction.

Success Metrics:

• COD Adoption Rate: Measure the percentage of orders placed using COD versus other payment methods.
• Customer Satisfaction: Gather feedback on the COD experience and price transparency to gauge customer perception and satisfaction levels.
• Reduction in Support Queries: Track the decrease in support queries related to payment issues post-implementation of COD and price unbundling strategies.

Campaign for Product Hook 5:​

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Which ICPs drive the best retention?​

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Meesho User Churn Analysis: Key Factors and Indicators

Primary Churn Drivers (Voluntary)

1. Trust Deficit in Affordability Promise

• Users skeptical of our "lowest price guarantee" due to:
• • Inconsistent pricing across similar products
  • Perception of hidden costs in final checkout
• Authenticity concerns with unbranded or local brand products

2. First-Time User Experience Gaps

• Delivery delays beyond 7-10 days for tier-2/3 cities
• Product quality not meeting expectations set by images
• Sizing issues, especially in clothing and footwear categories

3. Limited Product Range in Key Categories

• Insufficient options in fast-moving categories like ethnic wear and home decor
• Lack of trendy, social media-inspired products appealing to younger demographics

4. Reseller Program Challenges

• Resellers facing difficulties in order management and customer support
• Inadequate commission structure compared to offline alternatives

Operational Friction Points (Involuntary)

1. Cash on Delivery (CoD) Complications

• High CoD failure rates in certain pin codes
• User confusion about CoD charges and refund processes

2. App Performance in Low-end Devices

• Frequent crashes on popular budget smartphone models
• High data usage affecting users with limited internet plans

3. Language Barriers

• Insufficient local language support for tier-3 city users
• Confusion in product descriptions due to translation inaccuracies

Engagement Decline Indicators (Negative Action)

1. Social Media Disengagement:

• Unfollowing Meesho's social media accounts.
• Reduced interactions (likes, shares, comments) on social media posts.
• Communication Opt-Out: Users unsubscribe from:
  • Newsletters, promotional emails, or WhatsApp communications.
  • Opting out of notifications impacting re-engagement opportunities.

2. Purchase Behavior Changes:

Observable shifts in buying patterns, including:

• Decrease in frequency of purchases.
• Lower average order value indicating reduced interest or satisfaction.

3. Negative Reviews and Feedback:

• Posting negative reviews on Meesho's app or website.
• Negative comments on social media platforms impacting brand perception.

4. App Store Feedback:

Poor ratings and negative reviews on app stores:

• Reflecting dissatisfaction with app functionality or overall experience.

5. Inactivity Post-Purchase:

No app or website activity for over 2 months after a purchase:

• Indicates disengagement and potential loss of interest in Meesho.

6. Seasonal Churn Spikes

• Sharp drop in engagement post-festive season sales
• Failure to re-engage users during non-peak shopping periods

Critical Retention Metrics to Monitor

1. D1 to D7 Retention Rate for New Users
2. Average Order Frequency (monthly) for users from tier-2/3 cities
3. Reseller Acquisition to Active Conversion Rate
4. Category Diversification Index per User
5. Net Promoter Score (NPS) trends by user cohort and geography

By addressing these churn factors and closely monitoring these metrics, we can develop targeted retention strategies that align with our unique value proposition and user base in tier-2/3 Indian cities.

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Weekly Retention Plot

** Based on e-commerce trend data available over internet

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Monthly Retention Plot

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Comprehensive Retention Strategy

1. Trust and Speed Campaign: "Vishwaas ke Saath, Tezi se Delivery🚚"

Goal

To build trust, enhance customer satisfaction, and increase retention by focusing on faster delivery, reliable support, and transparent pricing.

Key Components

1.1 Speedy Delivery Assurance

• Implement "Delivery Promise" feature showing estimated delivery dates on product pages
• Offer "Priority Delivery" option for a small fee, guaranteeing delivery within 2-3 days
• Highlight typical delivery times and efforts to expedite shipping

1.2 Enhanced Support Channels

• Introduce 24/7 AI chatbot for instant responses to common queries
• Implement "Call Back" feature for customers to schedule support calls at their convenience
• Ensure faster response times and satisfactory resolution of customer issues

1.3 Unboxing Experience Assurance

• Create "Unboxing Guarantee" offering instant refund or replacement for damaged or misrepresented products
• Include personalized "Thank You" note in each package with product care instructions
• Showcase Meesho's packaging quality and efforts to ensure product integrity

1.4 Cash on Delivery (CoD) Transparency

• Introduce "CoD Assurance" program for customers to verify delivery person's identity through the app
• Offer small discount (e.g., 2%) for prepaid orders to encourage digital payments
• Clarify CoD process and highlight secure payment options and buyer protection policies

1.5 Price Unbundling Promotion

• Create short video explainers showing how Meesho's pricing compares to traditional retail
• Implement "Price Match Guarantee" for identical products found cheaper elsewhere
• Educate customers on Meesho's wholesale pricing model directly from suppliers

1.6 Loyalty Program

• Introduce tiered loyalty program with increasing benefits for frequent shoppers

1.7 Social Proof

• Showcase real customer reviews and photos prominently on product pages

1.8 Personalization

• Use AI to personalize shopping experience based on browsing and purchase history

Benefits

• Improved customer trust through clear communication and reliable service
• Enhanced customer experience with faster delivery and efficient support
• Increased attractiveness to budget-conscious shoppers through transparent, affordable pricing

Key Metrics

• Delivery Speed Improvement: Measure reduction in delivery times
• Support Response Time: Track average time to resolve customer queries
• Customer Satisfaction Index: Gauge satisfaction levels through feedback and reviews
• Repeat Purchase Rate: Monitor increase in repeat customer transactions

Target Segment

New Customers and First-Time Buyers seeking trustworthy online shopping experiences

Campaign Pitch

Meesho pe shopping karo, bina kisi tension ke! 🚚 Fast delivery, secure payments, aur 24/7 hassle-free support. Meesho ka fark ab experience karo! ✨

Offer

Transparent CoD process, secure payments, and "Unboxing Guarantee"

Frequency/Timing

Ongoing communication through app notifications, SMS, and email updates

2. Re-Engagement Campaign: "Apna Perfect Fashion 👚 Fit Dhundho aur Jeeto!"

Goal

To re-engage users with decreased purchase frequency by understanding their fashion preferences and providing personalized recommendations.

Key Components

2.1 Interactive Style Quiz

• Create visually engaging quiz with outfit combinations to choose from
• Offer small reward (e.g., extra 5% off) for completing the quiz, regardless of purchase

2.2 AI-Powered Personalization

• Generate "Style Boards" based on quiz results, showcasing complete outfits
• Implement "Virtual Try-On" feature using AR technology for select products
• Provide tailored product recommendations aligning with user's fashion taste

2.3 Exclusive Tiered Offer

• Offer percentage discount (e.g., 15% off) with minimum purchase value to increase AOV
• Extend offer validity to 7 days with limited stock notifications for urgency

2.4 Multi-Channel Engagement

• Utilize WhatsApp, Instagram, SMS, and in-app notifications for campaign outreach
• Create TikTok challenge related to the style quiz to increase viral reach

2.5 Meesho Fashion Community

• Develop platform for users to share looks and get styling advice
• Encourage user-generated content and foster sense of belonging

2.6 Gamification

• Introduce points system for various actions (purchases, reviews, referrals)
• Allow points redemption for discounts or exclusive products

2.7 Seasonal Alignment

• Align re-engagement campaigns with seasonal trends or festivals for increased relevance

Benefits

• Personalized recommendations based on individual preferences
• Increased engagement through interactive features and community
• Higher conversion rates with tailored offers and gamification

Key Metrics

• Quiz Completion Rate: Measure engagement with style quiz
• Coupon Redemption Rate: Track utilization of discount codes
• Order Frequency Increase: Monitor purchase behavior post-campaign
• Average Order Value (AOV): Measure increase in order values
• User-Generated Content: Track volume and engagement of community posts

Target Segment

Casual Users and Core Users active for over 2 months

Campaign Pitch

Apna Perfect Fashion Fit Dhundho aur Jeeto! 🛍️✨

1. Fun style quiz khelein
2. Personalized AI Style Board paayein
3. 15% off on 500+ purchase
4. Virtual Try-On karein Bonus: Quiz complete karne par extra 5% off! Jaldi karein, limited stock hai! #MeeshoStyleChallenge"

Offer

15% discount on purchases over Rs. 500, additional 5% off for completing style quiz

Frequency/Timing

Bi-weekly through push notifications, monthly through emails, aligned with seasonal trends

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By implementing this comprehensive retention strategy, Meesho can create a more engaging, personalized, and rewarding experience for users. The focus on trust-building, speed, personalization, and community engagement should help in converting casual users to core users and retaining them for longer periods, ultimately driving growth and increasing customer lifetime value.

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