Engagement & Retention project | Horeca stop

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Engagement & Retention project | Horeca stop

Core Value and its Frequency

The Core Value Proposition of Horeca Stop is to provide all the nonfood procurements in one place. It does so by starting with a company with 1 SKU providing end-to-end delivery and post-sales services and onboarding clients on its portal. The client eventually ordered multiple SKUs as they had a hassle-free experience with us and eventually got retained on our platform.

They are consistently delivering service to clients by providing them access to the huge catalog for their hotels and restaurants.

Giving them consultation for free for their kitchen equipment and what kind of product or material would be better for their restaurants and cafes. Efforts to cross-sell other relevant products by continuously being in touch and visiting the client.

Natural Frequency for Horeca Stop

Casual users - Order just once or maybe in a year

Core users - Order every 2-3 months

Power users - order every month or we can call the Annual rate contract clients

Other Sub products -

Consultation with Horeca Stop-

Once a user takes the service of the consultation along with taking our products we have seen a high retention rate as they understand that we are not like traditional vendors we are the ones who have a thorough knowledge of this sector and know the industry in and out and that helps to build the trust factor on the company and helps to retain more and more clients on our platform.

Customer Segmentation

Casual Users -

A small restaurant owner, who orders just for crockery once got our reference through India Mart who was exploring India Mart sales people got the lead and they pitched and sent a quotation and he ordered because he liked our quotation.

Core users -

A Cafe owner who has multiple cafe chains or multiple restaurants in various areas who got us through some reference or took consultation for their restaurant opening or kitchen equipment and now built trust in us.

For them, pricing is the second factor but to work with HS and the relationship they have built with time and trust in the quality is the main thing to choose HS over and over.

Power Users -

A QSR brand like Wow Momos has Annual contracts with HS to supply some SKUs every month regularly.

They have already attained all the factors like trust, price, and quality and already made a contract for a year in which in any case they have to order a quantity in which the deal got closed anyhow and we have to deliver those quantities irrespective of anything.

	ICP1	ICP2	ICP3
Demographics
Name	Bhim Singh	Chandan Kumar	Abhijeet Agarwal
Age	35-40	40-45	25-30
Title	Head of Procurement	Procurement Department of bi hotel chains	CEO
Gender	Male	Male	Male
Location	India	India	India
Relationship	Married	Married with 1 kid	Unmarried
Salary bracket	INR 10,00,000-15,00,000	INR 1500000-200000	INR 5,00000-10,00,000
B2B Org Specific
Company Size	100-200 employees	Hotel chains with more than 5000 employees	Early stage with 5-10 employees
Org Structure	Structured	Structured	Not structured
Industry domain	QSR Brand	Hospitality	Hospitality (Cafes and Coffee chain brands)
GMV	$7.7Bn	$27.43 billion	$1-2Mn
Technology Maturity	Growth Stage	Mature	Early Start
Customer Base of org.	$25.46Bn	$19.3 billion	10k-20K Customers
Annual IT budget	NA	$28% including digital marketing	NA
Growth of company	Fast Growing Chain around 20-25%	Growing in terms of rooms every year	10-15%
Compliance	Strategic	Compliant	NA
Contract in Years	1-2 years	1 year	1 time only
Persona Specific
Role in Decision	Head of Procurement which decides from which vendor to buy	Part of the panel which decides product to buy	The decision maker in the panel
Motivation	Low prices, Reliability, and hassle-free Supply chain	Low prices, Reliability, and hassle-free Supply chain	Best prices, Hassle-free supply, Knows the importance of tech and post-sales
Pain Point	Co-ordinate with a lot of vendors daily for supply and logistics Credit Payments, Lot of invoices to raise and handle and pay on time Delivery issues on time, Get some money in between the deal	Giving tenders to different companies helps them to take their cut in between	Co-ordinate with a lot of vendors daily for supply and logistics Credit Payments, Lot of invoices to raise and handle and pay on time Delivery issues on time, getting the low prices from the vendors
Organization Influence	High	Moderate	Highest
Channel for contact	Call and Email	Email, Call	Email, Call
Personal time	Family time, not really an active user of Social media, Television, News	LinkedIn, Amazon, Family time, News	LinkedIn, Amazon, IG, Economic Times of Hospitality, Magazine

In terms of persona-based, if I have to segment my client into casual core and power

Bhim Singh - who is into QSR brand and needs to take orders every month because his requirement would be in packaging products like Paper cups, burger boxes, lids, etc which he needs on an everyday basis and needs to order every month or every 15 days according to the sale of the outlets. He will be my power user as I will sign only a contract with him to deliver products on time. Here the delivery time and volume of the SKUs that he needs to serve his customer are very crucial and I have to make sure that his delivery and volume never get delayed to ensure client satisfaction.

Chandan Kumar - who is into hotel chains which have requirements for different chains but not monthly but maybe in 2-3 months for different hotel chains and not just the one product but he can get a requirement for different products so his TAT time usually would be 2 months and would have to deliver on every chain.

This makes him my core user as he already used my products and services once and now his requirement increases with time for other products with one or two deliveries with the right product consultation I was able to get his trust as a company that I can deliver and provides services on time so I have already gotten the brand awareness in his mind whenever he gets a requirement to fulfill.

Abhijeet Agrawal - He is the owner of a small cafe or small restaurant that he is gonna open soon and has started looking for products on Indiamart for better prices and good quality. He has no idea about HS and HS is just like another vendor for him which is available in the market. Because of our lower prices, he enquired through IndiaMART, and one of our sales representatives got in touch and sent him a quotation he liked the quotation and gave us an order.

For him, we are still like the other vendors available in the market which deliver maybe the crockery and cutlerys.

This makes him my casual user as I don't know when his next requirement is or whether there will be any requirement or not.

Natural Frequency products based

For any user, the frequency depends on the products they are ordering

If there is any product that has a shell life of 1-2 years of course they are not gonna repeat the order for that particular time but maybe they can order some other products.

Let's categorize this based on the type of Hotel or restaurant -

A small cafe or restaurant -

Their natural frequency of orders will be much less especially if they are in the proper sitting restaurants because once they are done with the opening they usually don't order they tend to purchase everything in advance according to their sitting capacity and other main requirement is crockery cutlery glass which has a shelf life for a year to two years.

Therefore their natural frequency of ordering is once or twice in year.

A small QSR Brand -

Their natural frequency of orders will be better than the cafe but not as up to the other QSR brands because of the sale of their outlets and their no of outlets lets take just 2 or 3 at the moment so they also prefer to order in advance according to their sales and will not order frequently.

Their natural frequency would be once in 6 months.

A Hotel chain or big restaurants

Any hotel chain that has multiple hotels and restaurants in pan India their frequency would be high as they can not predict every city's frequency depending on their guests. Every city has different guests and usually, these hotels do procure centrally to ease their operations.

They are not dependent on one company or vendor to supply their procurements for every category they have 2 to 3 vendors because the consumption is very high.

Their frequency of ordering would be once or twice in 2-3 months.

A Big QSR Brand -

Any big QSR brand that has multiple outlets in multiple cities with high brand value and regular sales is very high then the consumption of products would be very high also they use paper products and containers which are not reusable and have to calculate their online orders for which also they take packaging products.

Their natural frequency and volumes are very high but they are also not dependent on one vendor for their all SKUs as the consumption and usage are very high and they can not afford to lose their customers because of the inefficiency of the products.

The natural frequency of ordering would be once or twice a month according to the Skus they have ordered.

Engagement Framework

	Framework	Selected	Rationalise
Breadth	The other products they are using	Np
Depth	How many products they are ordering in a month	Yes	This gives the trust of the client in HS
Frequency	How many times they are ordering	Yes	Even if it is one product they are ordering through us which helps to build the trust

Depth -

It is the primary factor for the metrics to choose the engagement as they showed us the trust and drove more retention from the customer side.

How many products and how much time they are ordering from HS means they already have brand awareness in their mind and whenever it comes to ordering any procurement for their outlet they remember HS by themselves and therefore it drives more engagement and retention.

Frequency -

Irrespective of the product even if they are ordering one product from HS which means they are continuously in touch with us we can engage them to buy other products from us which therefore drives more engagement and retention.

Retention

According to our client's data our retention is 75-80% quarterly. We take it quarterly because most of the requirements count is quarterly.

Day 7 is the day from the time when delivery takes place so retention starts from this day itself.

By Day 30 it is 30-40% which means the customer who has various requirements and starts from the first product usually gets retained on Day 30.

Day 90 most clients who come on board with us get retained on our platform and start ordering frequently with us.

This means HS retained most of its clients depending on the product's usage and consumption.

HS creates brand awareness in the minds of the people which starts just after the delivery.

Salespeople keep taking up every 6 months with clients like hotels and give them nudges and reminders for any other requirements.

I don't have many users or client information to draw the retention curve but so far from all the client information I have it gets flattened from day 30 after the 1 delivery as needs to take follow-up for other requirements and then it depends on the sales person that how much he can keep up with the followups to get the next requirement from the client for various other categories.

Power Users like Big QSr brands WOW Momos, Burger Singh, and Cure Foods drive the best retention as they have requirements every month and every SKU is in packaging or whatever category we pitch it would come for every month's requirement.

Acquisition channel

Organic keyword or Indiamart package drives the best retention as we get most of the leads from there and the intent of the buyer is fulfillment which means they are already looking for one product and possibly we can convert those buyers into our clients.

The referral is also one of the major acquisition channels where we get the most retention as they are coming to us through some of our industry friends' suggestions and we already served them well.

Partnerships with the consultants where we can say retain the consultants on our platform through which we get the projects done and if we retain consultants every month we get the big projects to do through them.

Reasons for churn

1- No requirement at the moment for any products in their hotel

2- Issues with the delivery timing or the service which they get through our salesman.

3-Prices are high in every quotation we send them for various products many times.

4- The quality of the product that we sent for sampling is not up to the mark at the price they are taking from other vendors at the moment.

5- In some of the cases the vendors or the tenders get finalized from other persons with whom we are not in touch or maybe from their senior and the prices were better from the other vendor's side.

6- Hotel or cafe gets shut down

Involuntary reason for churn

1- No requirements at the moment for any product in their hotel or restaurants

2- Hotel or Cafe gets shut down

Voluntary reason for churn

All other reasons that are mentioned above are voluntary reasons for churned users.

Negative Actions

1- When we know they get the requirements continuously but they have stopped giving us the BOQ.

2- After sharing the quotation and after every quotation they are saying that the prices are very high from other vendors and not telling us the prices which they are receiving from the other vendors.

3- Delivery time gets delayed by one day or two and they started sending emails and not considering the one or two days late delivery along with that they are raising concerns for their KAM.

4- They stopped taking the calls of their KAM at any hour he is trying to reach out for the client relationship building but they are not showing any interest to even pick up a call.

Resurrection Campaign Design

Campaign	Segment of User	Frequency	offer	Pitch Content	Success Metrics
Ordered before but for some time they didn't like the pricing of the quotation which we sending them	Core and Casual	Every 3 months or at the time of requirement	We can reduce our margins on particular product and can give major discounts to particular client from our side.	For you, we are giving you discounts and the offer prices you want for the product and you won't get this price from any other vendor.	the success rate is very high as we lower down our margins to beat the rates of other than a high chance that they would buy from us only.
Delivery delayed issue and KAM was not responding	Core and Power	Once every month or twice every month	A dedicated KAM and the head KAM for the service with delivery tracking details	We understand that this must be what you were not expecting, we have you covered as our main focus is the delivery and service to our clients. Being the head of KAM I have taken your account and will handle personally and send you all the delivery track details to track by yourself just after the dispatch of the order.	It takes time to again built the trust but if some heads call then they think they are getting the priority so again to try with HS high chance of retention at least would give the next order by continuous follow-up.
The category which we were dealing already finalised or gave the tender to another vendor at better prices	Core - Hotel chain	Every 2-3 months	Better price than any other vendor in the category where we have strong prices.	We can pitch for the category in which we have a strong hold on the prices and pitch that we are here to cover you for every segment if not we can try for another one as you know how are services are and maybe we can look for the Room amenities now and will offer you the best prices from any other vendor as we have a stronghold with the companies	The success rate is not very high as they have fixed vendors for everything but as they know HS and worked already if we can give a better prices chances are that we can get the tenor for different categories. Pitch only the category where we know we have the strong hands on.
The quality of the product that we sent for sampling did not like	Casual usually	Just ordered once a long time back	Giving high-end products at the same price	Don't worry it's just a one product we are a one-stop solution and have a variety of other catalogs from high-end brands. We are suggesting you take the particular brand which is a bit on the higher side but as you are a customer already and for continuous business we are giving you the same price just for you.	High chance of conversion as we have observed in our clients that if we sell something by saying this is a high-end product even if it is not they tend to buy the product just by the look and feel of the product.
Didn't give orders for a long time for a particular category they used to give	Casual Usually sometimes can be core too	once in a 6 month	Giving a broad product portfolio that too in discounted price with some other freemium products	It's been a long since you ordered from us. I understand that you didn't have the requirement for a particular product but we wanted to let you know that we are in every category that you might use regularly like tissues, packaging containers for your delivery and we have the best prices for you and that if you buy 100 tissue boxes we will give you one tissue box free or maybe in better order volume we will give you free tissue holder or customised tissues at the sam price.	Not really a high chance of retention but it can be done in some time by continuously visiting the client or taking followups from the sales team as they would have a brand name in mind whenever they get any kind of requirements. This doesn't give instant results but with the right steps and following it surely gives results as it is all about the brand awareness in your mind at the time of ordering.