Why have I chosen Myntra for my project?

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I run a D2C clothing brand, I chose Myntra for my project because of my keen interest in fashion companies and their creative methods of attracting and keeping customers.

After completing my Myntra Onboarding Assignment, I got to know about their effective techniques, which precisely matched my objectives for my D2C clothing brand, Alaya.

I want to follow Myntra's lead in the fashion e-commerce space as it offers a useful blueprint for expansion and client retention.

🌊 Let’s deep dive : MYNTRA

Myntra is everyone’s go-to place for all fashion and lifestyle needs. As India's biggest online store for fashion and lifestyle products, Myntra aims to make shopping easy, fun and hassle-free for people all over the country. Myntra offers a huge variety of brands and products.

We do not need to wait for the weekend to dress up, visit malls, carry heavy shopping bags for hours, worry about parking and the weather, stand in long billing queues because Myntra is solving it all for you.

Myntra has India’s largest catalogue of fashion and lifestyle products ranging from clothes to accessories to home furnishings.

Myntra has partnered with over 5000+ leading fashion and lifestyle brands in the country such as Nike, Adidas, Puma, Levis, Wrangler, Arrow, Jealous 21, Diesel, CAT, Harley Davidson, Ferrari, Timberland, US Polo, FabIndia, Biba, and many more, to offer a wide range in latest branded fashion and lifestyle wear.

⚖️ Competitive Comparison :

Myntra got 58.66 million visits in May 2024. 83.36% visits were made through Mobile and 16.64% visits were made through Desktop.

On myntra.com, visitors mainly come from Direct (60.2% of traffic), followed by google.com (24.64%). In most cases, after visiting myntra.com, users go to payu.in and juspay.in.

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Myntra.com’s traffic has increased by 12.0% month-on-month up to current organic search traffic. In addition, paid search traffic has increased by 114.21% up to current paid search traffic.

Myntra:

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Ajio:

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Meesho:

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Tata Cliq:

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🛹 List of Myntra competitors in May 2024:

ajio.com , with 27.72M visits, 81 authority score, 59.08% bounce rate

meesho.com , with 31.62M visits, 75 authority score, 49.24% bounce rate

tatacliq.com , with 8.83M visits, 66 authority score, 62.31% bounce rate

etsy.com , with 385.44M visits, 100 authority score, 45.18% bounce rate

nykaa.com , with 12.57M visits, 76 authority score, 61.39% bounce rate

flipkart.com , with 251.34M visits, 97 authority score, 54.32% bounce rate

hm.com , with 94.57M visits, 92 authority score, 44.54% bounce rate

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📌 Source - https://www.semrush.com/website/myntra.com/competitors/

In financial year 2023, Myntra reported an operating revenue of 43.75 billion Indian rupees. This was an increase as compared to the previous year. Myntra is the largest fashion e-commerce platform in India

📌 Source - https://www.statista.com/statistics/1350271/myntra-operating-revenue/#:~:text=In financial year 2023%2C Myntra, compared to the previous year.

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🎳 Core Value Proposition:

🏆 India’s No.1 Online Fashion Shopping Destinations.

🛍️ Serving customers from the largest collections of fashion and lifestyle brands.

🚚 Equipping them with the convenience of doorstep delivery without stepping out of their home.

👀 Real-Time tracking of delivery

🤑 Super-fast delivery, 100% authentic products, and multiple payment options (Cash on Delivery and EMI facility)

👏 Easy exchanges and hassle-free returns.

💸Most attractive discounts and the best deals available on the largest collection of brands

💻 user-friendly interface and search option like photo search, vernacular search and fashion chat GPT make it easy for customers to find the products.

📍Serves to more than 19,000 pin codes in the country.(ref.source)

👭Value add services like personalised styling provides personalised recommendations to the customers based on their previous purchases and a try on feature on product page gives the customer a feel of how the product will look on them.

How do the users experience it repeatedly?

Existing User:

• Push Notifications
• Recommendations based on previous purchases.
• Clear visuals/text of CVP mentioned on each page on website.
• Consuming content on social media channels.
• Emails about latest offers, events and sale.

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New User :

• Free deliveries and easy return policy.
• Consuming content on social media channels and then making a purchase.
• Searches on Google showcasing Myntra offers fashion, accessories , home at a great price.

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Natural Frequency of Users:

• Casual users: 1-2 times a year

Casual Myntra users usually shops form offline markets. They only shop from Myntra in exceptional cases. They do value options like free delivery, easy return and exchange.

• Core users: 3-4 times a year

Core Myntra users usually 3-4 times a year however they do shop from other competitors as well. They prefer to order quality product and do price check before ordering. They seek good customer support.

• Power users: Once in 1-2 months

The power Myntra users order once or twice in every month. They seek to purchase high quality products. They purchase on Myntra recommendations about brands.

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Sub Products of Myntra :

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Natural Frequency of sub products is completely related to the natural frequency of buying from Myntra as all these sub products can be used on the similar frequency of purchase.

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UNDERSTANDING RFM FRAMEWORK FOR MYNTRA :​

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The RFM framework (Recency, Frequency, Monetary) is an ideal choice. This framework helps identify and categorise customers based on their purchasing behaviour, allowing Myntra to tailor its E&R strategies effectively.

1.Recency:

Measures how recently a customer made a purchase.

• Metric: Days since last purchase.
• Reasoning: Customers who have purchased recently are more likely to engage again. Focusing on recent purchasers can help boost retention rates.

2. Frequency:

Measures how often a customer makes a purchase within a given time period.

• Metric: Number of purchases a user makes in a month.
• Reasoning: Frequent purchases indicate strong engagement and loyalty. By tracking frequency, Myntra can identify core customers who are consistently active and tailor rewards and promotions to encourage continued engagement.

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3. Monetary:

Measures the total spending of a customer over a specific period.

• Metric: Total spend per user in a month or average order value.
• Reasoning: High spenders are valuable customers. Understanding their purchasing behavior allows Myntra to offer personalised recommendations and exclusive deals to maximize their lifetime value.

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Integrating with Frequency, Breadth and Depth Metrics

• Frequency:
• • Metric: Number of purchases and visits per month.
  • Reasoning: High frequency indicates strong engagement and loyalty. Encouraging frequent interactions helps retain customers and increases their lifetime value.

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• Depth:
• • Metric: Average order value, number of items in wishlist, number of pages visited.
  • Reasoning: Higher depth indicates users are spending more time and money per session, enhancing overall engagement.

• Breadth:
• • Metric: Number of sub-products/categories experienced, visits to Myntra Insider/Studio/supercoins.
  • Reasoning: Broader engagement across different features and categories indicates a well-rounded user experience and helps identify cross-selling opportunities

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Based on the above framework, we have selected frequency of depth of engagement to optimise for all the engagement frameworks.

Frequency = X times in Y time = 1 order/ week irrespective of the transaction value which will led the user to build a habit.

There are several reasons for this:

1. Indicator of Engagement:Frequency directly measures how often customers interact with Myntra, whether through purchases or visits. High frequency indicates strong customer engagement and a high level of brand interaction.
2. Customer Loyalty:Frequent purchases and visits suggest that customers are satisfied with their experiences and trust the brand. Increasing frequency helps build customer loyalty, moving users from casual to core to power.
3. Revenue Growth:Encouraging frequent purchases increases overall sales volume and revenue. Frequent interactions will provide more opportunities for cross-selling and upselling, boosting the average order value and total spend.
4. Retention:Customers who engage frequently are less likely to churn. By focusing on frequency, Myntra can develop targeted strategies to keep customers coming back, such as loyalty programs, personalised offers, and regular engagement campaigns.
5. Behavioural Insights:Tracking frequency provides valuable insights into customer behaviour and preferences. This data can be used to tailor marketing strategies, improve product recommendations, and enhance the overall shopping experience.

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(By prioritising frequency, Myntra can ensure that its customers remain engaged and loyal, leading to sustained revenue growth and a competitive edge in the fashion e-commerce market.)

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🚴🏻‍♀️ Defining Active User and Key Metrics for Myntra :

Active User Definition:

An active user on Myntra is someone who signs up, makes a purchase without initiating a return, and repeats this purchase at least once every 6 months. This timeframe aligns with typical seasonal shopping behaviours observed among users.(User call insight)

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Rationale:

• Engagement Criteria: Signing up and making a non-returnable purchase demonstrates initial engagement and ongoing interest in Myntra's offerings.
• Purchase Frequency: Requiring a repeat purchase every 6 months ensures consistent engagement and participation in the platform's activities.
• Seasonal Shopping Behaviour: The 6-month timeframe corresponds with observed patterns where users tend to shop for fashion apparel seasonally, validating the chosen period.

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There are other key metrics for Active Users:

1. Monthly App Visits:
2. • Metric: Users who visit the Myntra app or website at least once a month.
   • Reasoning: Regular visits demonstrate continuous interest and engagement with the platform, reflecting active user participation.
3. Order Placement in the Last 6 Months:
4. • Metric: Users who have placed at least one order in the last 6 months, with no returns initiated within the 14-day return window.
   • Reasoning: This metric indicates active purchasing behavior and satisfaction with products received, essential for measuring user retention and lifetime value.
5. Sales Participation:
6. • Metric: Number of users who make purchases during sales events (e.g., seasonal sales, festive sales).
   • Reasoning: Participation in sales events shows responsiveness to promotions and price incentives, highlighting user engagement with Myntra's promotional strategies.
7. Average User Session Time:
8. • Metric: Average time (in minutes) users spend per session browsing on Myntra.
   • Reasoning: Longer session times indicate deeper engagement and interest in products, contributing to higher chances of making a purchase.
9. Myntra Insider Engagement:
10. • Metric: Number of users actively using Myntra Insider features (e.g., redeeming SuperCoins, accessing exclusive offers).
    • Reasoning: Engagement with Myntra Insider reflects loyalty and commitment to the platform, influencing repeat purchases and higher customer retention.
11. SuperCoins Redemption:
12. • Metric: Users who utilise Myntra Insider offers by redeeming SuperCoins for discounts or rewards.
    • Reasoning: Redeeming SuperCoins shows active participation in loyalty programs, incentivising continued purchases and increasing customer lifetime value.
13. Saved Payment Methods:
14. • Metric: Users who save their payment details for seamless checkout.
    • Reasoning: Saving payment methods simplifies the purchase process, indicating trust and convenience in using Myntra for shopping.
15. Wishlist Activity:
16. • Metric: Number of users who create and maintain wishlist on Myntra.
    • Reasoning: Wishlist reflect intent to purchase and interest in specific products, providing opportunities for targeted marketing and personalised recommendations.
17. Cart Additions:
18. • Metric: Users who add items to their shopping cart.
    • Reasoning: Adding items to the cart signifies strong purchase intent, requiring strategies to convert abandoned carts into completed purchases through timely incentives or reminders.

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Natural Frequency:

• Casual Users: 1-3 Orders per year

(Usually users that have not explored the breadth of the Myntra)

• Core Users: 4*-6 Orders per year*

Usually users that are loyal to a particular category(fwd/luxe/etc.) and have a recurring behaviour to buy that.

• Power Users: 8+ orders per year

Usually loyalists of the brand, who have explored almost and use Myntra for all their shopping needs.

User Segmentation Framework 👥

A. Power/Core/Casual Segmentation:​

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B. ICP/Persona Segmentation:

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C. Products/Feature Used Segmentation:​

D. Revenue Generated Segmentation:​

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E. Advanced Segmentation:​

Product Hooks:

The following are three recommended product hooks that will help us crack engagement and retention campaigns for Myntra users:

🪝 Product Hook 1: Myntra Style Insider Subscription

Goal:

Encourage core users to purchase more products and increase their purchase frequency while providing them with value and convenience.

Problem Statement:

Core users often have varying needs for fashion and lifestyle products and might not remember to explore new collections or reorder, resulting in gaps between purchases.

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Current Alternative:

• Core users make individual, one-time purchases based on their needs, leading to potential delays in exploring new collections and missing out on timely deals.
• Users opt for ad-hoc browsing and shopping during sales events.

Solution: The Style Insider Subscription

• Exclusive Discounts: Subscribers enjoy exclusive discounts on monthly subscriptions, making our products more budget-friendly.
• Personalised Fashion Boxes: Tailored fashion boxes curated by stylists based on user preferences and trends.
• Early Access: Subscribers get early access to new collections and sales events.
• Flexible Customisation: Users can tailor their subscription with a combination of clothing, accessories, and beauty products.
• Style Points: Subscribers earn extra style points for every purchase, which can be redeemed for additional discounts and perks.

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User Flow:​

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Success Metrics:

1. Increase in monthly order frequency among core users.
2. Growth in the average order value (AOV) for Style Insider subscribers.
3. Reduction in churn rate among core users.
4. Positive user feedback and satisfaction.

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Other Metrics to Track:

1. Subscriber retention rate.
2. Average subscription duration.
3. Conversion rate of core users to Style Insider subscribers.
4. Customer feedback on subscription experience.

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🪝 Product Hook 2: Interactive Fashion Events

Goal:

Boost user engagement and session duration by providing interactive and immersive fashion experiences.

Problem Statement:

Users tend to have short session durations and low interaction rates with additional app features beyond shopping.

Current Alternative:

• Standard shopping apps with minimal interactive elements.
• Limited engagement with additional features like fashion tips and live events.

Solution: Interactive Fashion Events

• Live Fashion Shows: Users can join live fashion shows hosted by designers and influencers.
• Virtual Try-On: Augmented reality (AR) feature that allows users to virtually try on clothes and accessories.
• Fashion Quizzes and Challenges: Engaging quizzes and challenges where users can win discounts and prizes.
• Interactive Polls: Real-time polls during live events to involve users in fashion decisions.

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User Flow:​

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Success Metrics:

1. Increase in average session duration.
2. Higher participation rates in live events.
3. Growth in user interaction with virtual try-on features.
4. Positive user feedback and satisfaction.

Other Metrics to Track:

1. Number of users attending live events.
2. Engagement rate with interactive features.
3. Conversion rate of event participants to purchasers.
4. Customer feedback on interactive experiences.

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🪝 Product Hook 3: Myntra Loyalty Program

Goal:

Boost customer retention by rewarding loyal users with exclusive benefits and creating a sense of community.

Problem Statement:

Many users do not feel adequately rewarded for their loyalty, leading to decreased engagement and higher churn rates.

Current Alternative:

• Basic loyalty programs with limited rewards.
• Standard discount codes and seasonal sales.

Solution: The Fashion Loyalty Program

• Tiered Membership: Users start at a basic tier and can progress to higher tiers (Silver, Gold, Platinum) based on their activity.
• Points System: Users earn points for every purchase, review, and referral.
• Exclusive Benefits: Higher tiers offer perks like free shipping, priority customer support, and invitations to VIP events.
• Community Features: A dedicated space for loyal customers to share their fashion looks, participate in exclusive forums, and get personalised style advice.

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​User Flow:

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​Success Metrics:

1. Increase in repeat purchases.
2. Growth in the number of users progressing through loyalty tiers.
3. Higher engagement in community features.
4. Positive user feedback and satisfaction.

Other Metrics to Track:

1. Number of users in each loyalty tier.
2. Redemption rate of loyalty points.
3. Conversion rate of regular users to loyal program participants.
4. Customer feedback on the loyalty program experience.

🗣️ Engagement Campaigns:

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📢 RETENTION :

Bird's-eye view: Myntra

What is your current retention rate in terms of users?

• A realistic customer retention rate is between 30%-40% for an E-commerce business.
• Myntra has 60 million Monthly active users and 100 million+ total registered users. Retention rate for Myntra = 60/100 = 60% (approximately)
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(Source - https://www.financialexpress.com/business/industry-myntra-vs-entire-online-fashion-market-turns-ebitda-positive-for-last-two-quarters-reports-33-surge-in-monthly-active-users-3439167/)

At what time period does your retention curve flatten? Draw the retention curve.

According to available data, Myntra's customer retention rate varies based on different time periods and segments. As of recent insights, Myntra has reported varying retention rates across different cohorts and segments:

• Day 2 (D2): ~55%
• Day 7 (D7): ~45%
• Day 30 (D30): ~40%
• Day 90 (D90): ~35%
• Month 6 (M6): ~34%
• Month 12 (M12): ~33%

Retention Curve and Flattening Period?

Myntra initially sees high user engagement when customers start using the platform for fashion shopping.

However, competition from Ajio, Amazon, and other factors like Myntra's acquisition by Flipkart and the Covid-19 pandemic have affected retention rates.

Currently, Myntra's retention curve is most likely to stabilise around 8 weeks after users begin engaging with the platform.

Fashion and lifestyle products on Myntra are durable and less frequently purchased, so long-term retention is typically measured quarterly or annually to gauge ongoing user loyalty.

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Which ICPs drive the Best Retention?

Both core and power users contribute significantly to Myntra's retention metrics, each driven by different motivations related to product stickiness and brand loyalty.

Core Users :

Characteristics:

• Consistent frequency (once/twice a month)
• High AOV (> Rs. 500)
• Avg. monthly spend of ~Rs. 1500

Behaviour:

• Very loyal to specific products
• Likely to keep buying preferred products

Retention Reason:

• High retention due to product stickiness

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​Power Users :

Characteristics:

• Extremely high frequency (once/twice a week)
• Reasonable AOV (between Rs. 300-500)
• Avg. monthly spend of ~Rs. 2500

Behavior:

• Loyal to the brand as a whole
• Willing to try new products and variants

Retention Reason:

• High retention due to brand loyalty and exploration

Which Channel drive users to Retain?

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Which features/sub features drive the best retention?

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🧩CHURN :

Churned users for Myntra are those who were previously active customers, having placed orders in the past, but have not engaged or made a purchase for a prolonged period, specifically defined as 15-18 months.

This timeframe aligns with the assumption that a casual user places orders once a year on average.

❌Negative actions :

• Muting push/WhatsApp notifications: Users mute notifications indicating lost interest in offers and campaigns.
• App uninstalled: Users no longer need Myntra’s service or prefer other platforms.
• Abandoning carts: Users add items to cart but abandon them, possibly due to price comparison or indecision.
• High session time with no purchase or low AOV: Users spend time browsing but do not make purchases or have low average order values.
• Reduced frequency of app usage: Users visit less frequently, potentially shopping elsewhere or offline.
• Decrease in session time per visit: Users spend less time due to dissatisfaction with collection or price sensitivity.
• Negative reviews on social media: Users express dissatisfaction with products or services, impacting brand reputation.
• Increase in support tickets: Higher complaints indicate dissatisfaction with Myntra’s products or services.
• Low NPS, CSAT score: Low scores suggest unhappiness with products, impacting retention.
• High product returns: Increased returns signal dissatisfaction with product quality or fit, leading to potential churn.

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⏳Retention Campaigns :

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CREATIVE REFERENCES (E&R):

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Thank You!

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