An Approach Note to Double the SnapDeal.com Revenue

by

Saumil Shrivastava,Alumnus IIT Bombay,

Internet Marketing Evangelisthttp://saumilshrivastava.com

http://saumili.com

An Approach Note to Double the Revenue

• Better user experience such as by offering deals by category & customized alerts

• Personalized products & services recommendations

• Reward Points System

20

Revenue:20

Crores/ Month

Personalized User Experience, Effective Marketing, Social Media Promotion & Expansion in Services Segment to Drive Revenue

• Launch SnapDeal App for Mobile Devices.

• Effective marketing through better targeting & positioning.

• Social Media Promotion via social apps & on-site integration of social plugins.

• Affiliate Partner Program / Improved Referral program

• New products / services will lead to new subscribers and increase value per subscriber.

• Launch comprehensive deals in high margin services segment.

• Improving the existing product catalogue based on current trend.

Improve Transaction Rate

Increase Subscribers

Increase Value per Subscriber

• TR = Transaction Rate

• S = Total Subscribers

• VPS = Value per Subscriber

VPS = 165

S = 35 Lac

TR = 35%

Transaction Rate Depends on Personalized User Experience

Radius Feature for Localized Deals

Radius Feature for Localized Deals

Wiki Links/ Live Chat/Reviews/ Ratings / No. of

times Deal is Bought

Wiki Links/ Live Chat/Reviews/ Ratings / No. of

times Deal is Bought

Deals by CategoryDeals by Category

Lifestyle, Electronics, Computers, Mobile,

Travel, Services

Wikilinks / Live Chats /No. of times a deal is bought to assist

in purchase decision

Reviews/Ratings creates trust. Follow up to get

reviews

Customized AlertsCustomized AlertsRecently Viewed Deals / Similar

Deals

Recently Viewed Deals / Similar

Deals

Customized Mailers /

Behavioural Targeting

Customized Mailers /

Behavioural Targeting

B.T will improve conversions. Emailers based on intelligence

RSS Syndication Deal Alerts / SnapDeal Toolbar

Recommendations for personalized experience

Welcome Mail enables to set alerts by

category & frequency

• On-site User Experience : Provide deals by category for easier navigation; Localized deals for better user experience; “Wiki links” & “Live Chat or Ask a question” for making informed purchase decision; Suggestion of Deals based on “I want to Eat, Travel, Shop, Exercise. etc”; “Deals Package for by Occasion such as Birthday, Anniversary etc.” for personalized experience.

• Trust & Loyalty: 1> Cancellation policy / Refund Policy, 30 days. return guarantee. Offered by competitor. (Lack of trust – 99%). 2> Not Enough Reviews about the products (Out of 62% of online shoppers, only 12% actually bought it. Majority searched for info.) 3> Need to add 360 degree pic/Video (63% want to see product before buying).

• Off-site User Experience: Customized Mailers based on historic data such as Open rate & Clicks; Behavioural targeting across the web.

Deals by Localities or Radius

Mobile Commerce

Mobile Commerce

Social Media Integration

Social Media Integration

Affiliate Partner / Referral Program

Affiliate Partner / Referral Program

Launch Mobile App for Android, Blackberry, iPhone & Mobile on the Web

• Shopping on the go, anytime, anywhere.

• Daily deals at one click.

• Convenience for subscribers to redeem deals from the phone(Mailer to registered users to enable mobile alerts)

Launch Mobile App for Android, Blackberry, iPhone & Mobile on the Web

• Shopping on the go, anytime, anywhere.

• Daily deals at one click.

• Convenience for subscribers to redeem deals from the phone(Mailer to registered users to enable mobile alerts)

• SnapDeal FB Cart that enables FB users to search & purchase deals on FB itself.

• Share plugins for each deal

• Integrate FB Commenting widget with review section or add a comment option.

• FB Connect on payment page. (FB connect must be highlighted on the homepage itself.)

• SnapDeal FB Cart that enables FB users to search & purchase deals on FB itself.

• Share plugins for each deal

• Integrate FB Commenting widget with review section or add a comment option.

• FB Connect on payment page. (FB connect must be highlighted on the homepage itself.)

• Launch Affiliate program on a revenue sharing model to increase inbound links, brand visibility & conversions.

• Existing referral program offers up to Rs. 100 SD cash. This should be changed to fixed SD cash. The Referral program is not prominent on the website.

• Launch Affiliate program on a revenue sharing model to increase inbound links, brand visibility & conversions.

• Existing referral program offers up to Rs. 100 SD cash. This should be changed to fixed SD cash. The Referral program is not prominent on the website.

Increase Subscribers via Effective Marketing, Mobile Apps & Social Media Integration

Effective marketing through better targeting & positioning on Online & Offline media. For ex: Customized FB ads based on Age, Sex, Likes & Interests.

Fashion Accessories

Electronic Items: TV,

Audio System

Book: Fiction/ Non-Fiction

Movie: DVDs/CDs by

Genre/ Language

Product &

Partnership

Partnership with Theatres

Mobile/ Computers

Accessories

• E-tailing: Approx. INR 2700 Crores: computers/mobiles/home appliances/Electronic (Healthy growth rate of 33%)

• As per Ebay census 2011: Electronics & Lifestyle are among the hottest selling segments. Increasing user preference for books & digital products.

• Pcs, Laptops, computer peripherals, accessories, storage, cameras, mobiles contribute 61% of e-tailing market i.e. approx. INR 1600 Crores.

• Mobile Downloads (ring tone, wallpapers, screen guard or pictures download), Prepaid recharge INR 560 Crores.

• Personal items such as jewellery, apparels, cosmetics, apparels, shoes and watches account for 19% (INR 500 Crores).

• Electronic Items such as TV, Audio Systems, other accessories account for 13% of e-tailing market. (INR 350 Crores)

• Home & Kitchen Appliances account for 4% of the e-tailing market. (INR 108 Crores)

Product Deals Based on Current Trends; Strategic Partnership to Improve Loyalty

• Partnership with Theatres to offer discounted tickets 1-2 weeks after the release of the movie. This will create a win-win situation for both merchants & consumers. This is turn will increase the number of new subscribers as well as returning subscribers.

• Books & Tickets are more successful than apparels as they don’t require touch and feel experience by buyers.

Health-Beauty –Fitness Services

Budgeted Hotels

Event Services

Repair Services

Key Services

Travel Packages

Training Institutes • Top competitors such as Koovs aggressively expanding in the

services segment.

• Hotel Bookings & Travel packages together account for approx. 3 % of the online travel industry ~ 1000 Crores

• Training Institutes such as Computer Multi-Media Classes, Language Classes, Music-Theatre-Dance Classes, Tutoring-private lessons, CFA/GMAT/GRE Coaching Institutes

• Miscellaneous: Extension of Warranty Services, Moving Storage such as Packers & Movers, Car Test Drive of New Launches Vehicles, Car-Movie Rental Service

Focus on Services Segment to Increase Margins

Thank You