How the Pragma D2C Operating System losses for a COD rich business

Saving over ₹1,50,00,000 in COD related revenue

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Meet the Client

Emami has been innovating and launching brands meeting multiple consumer needs for more than 35 years - one of the major skin care and health care FMCG companies in India providing affordable natural skin care and healthcare products.

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Challenge: Unrecoupable Losses due to surplus of COD orders

With close to 85% of all purchases being COD (Cash-on-delivery), the load losses that pile up are far greater than compared to brands with greater prepaid orders.
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Ultimately the potential lost revenue is too great to forgo - As the brand takes the blow entirely for RTOs, order cancellations, carrier partner errors etc., leading to NDRs. 

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Solution: Implementing solutions to actualize loss prevention at every COD stage

The Pragma D2C Operating System was installed to target the key stages to analyse and optimise intricate aspects.

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Stage 1 - RTO prevention

• The consumer info is verified for errors in real-time. Such as pincode mistakes or invalid phone numbers.
• 300+ parameters placed to detect fraudulent purchases, bots, scammers, impulsive buyers etc .,
• COD order verification - where a message is sent to the consumer via a choice platform (WhatsApp, Facebook, Instagram, Email, or SMS) to confirm purchase
• Data across platforms and 250+ brands & their platforms, offering info on high RTO risk users to be flagged
• Dynamically disable the COD option for high RTO risk users. Based on prior user data across brands and platforms.

Stage 2 - Realtime NDR management

• The delivery partner and the customer are kept in contact in real-time to avoid NDRs
• SLA breaches are reported in Logistic analysis, to keep your carrier partners in check

Stage 3 - RMS (Returns Management System)

• Cashless COD refunds activated for improved customer satisfaction

Stage 4 - Post-purchase

• Increased prepaid orders by 14.33% - COD to prepaid conversion tactics are carried out on consumer preferred platforms (WhatsApp, Facebook, Instagram, Email, or SMS) to limit losses in case of returns
• With the help of geoanalysis, the closest fulfilment centre is assigned to the delivery partner in order to achieve on-time delivery - so COD orders are not cancelled due to delays
  

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Result: Saved over ₹1,50,00,000 in COD related revenue FY21

• RTOs reduced by 36.70%

• With Customer data & analytics - user data from previous purchase and other portfolio brands to flag high RTO risk users

• 21,980 NDRs solved and fulfilled
• Prepaid Orders increased by 14.33%

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“Cash-on-delivery is still preferred by our target market, but we adapted by reducing our COD related losses with Pragma integrations -  saw an evident reduction in various stages of our customer journey.”
- Emami

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The bottom line…

1. Data oriented approach to handle COD related losses
2. Automation max - COD verification, COD to paid conversion, Dynamically disabling COD in checkout for high risk consumers etc.
3. COD related losses reduced by more than ₹1,50,00,000 FY21

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Enabling a Loss-free Ecommerce Business

Pragma. D2C Operating System.

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