Internet Usage in Rural India

According to a survey conducted jointly by IMRB International and IAMAI, the number of active internet users (those who have used internet at least once in the last one month) in rural India increased by 27 per cent to 4.2 million in 2009 from 3.3 million in 2008 and is expected to further grow by 28 per cent to 5.4 million by the end of 2010.

The survey reveals that the internet was used for the following purposes by rural population in 2009:

85% used it for emails
67% accessed music and videos
48% used it for educational research
42% used it for general information search.
13% for knowing more about latest farming techniques
8% to find more about fertilizers and pesticides.

Internet related initiatives with farming as a focus would certainly trigger internet literacy to rise faster (in rural India). Schemes like Common Service Centres (CSC) and State Wide Area Network (SWAN)

The same survey stated that 84% of people in rural India don’t know what Internet is all about:

84% are unaware of internet
31% do not have internet access point
25% has no internet connection.
38% do not feel the need for internet.

“On your marks, Get set, BUY!!!”

This article was written by me & published in International Point of Purchase Magazine, January 2010 issue and is copy right protected.

To understand the self-service industry in India and determine the demand of multi-channel self-service technologies, NCR commissioned BuzzBack Market Research to conduct a shopper study. The research reveals that time pressed shoppers are game for quick and convenient shopping trips where they increasingly handle number of transactions on their own through self-service devices and thus in-store self-service technologies play a vital role in meeting their service needs. Such on-the-go consumers prefer to do business with companies that make things easier for them.

People want more control of their interaction with businesses and would not prefer waiting for assistance with transactions when they can more quickly and easily do it themselves at guaranteed quality! Consumers increasingly expect to be served where and when they choose, and are putting pressure on businesses and government agencies to deliver seamless service through the integration of self-serve devices, including the Internet, mobile devices and multipurpose kiosks.


The survey covered 505 Indian respondents. We bring you the insights!

Background on survey methodology

A total of 505 Indian respondents, participated in this study which consisted of 54% females and 46% Males. The age profile of respondents ranged from 18 years to 65 years.

Findings:
The survey reveals how self-service is playing a key role in providing consumers with more flexibility and choice as they change their purchase decisions and behavior in order to beat recessionary pressures. Cyclic economic conditions, not only change people’s perception of value but also influence their decision making with regards to the brands bought. In the Indian retail context, the recent spate of economic conditions has thrown up some unique challenges for marketers which, if handled well, can be successfully leveraged to build a long lasting relationship with the customer or cause an irreversible damage of losing them. The research throws light on the economic conditions and how consumers weigh their decisions based on them.

Effect of economic climate on shopping and purchase decisions

The existing economic environment resulted into interesting findings about people’s shopping patterns. When asked about how the economic climate was affecting their shopping habits, 63% shoppers said that they would use internet to research about various products and prices and 60% shoppers stated that they would want to receive price comparisons, product reviews, coupons, promotion and store sales information online or via email from retailers, which shows that online medium is gaining immense importance with respect to finding definitive answers to customer’s queries and making sure that they are not only buying the right product, but at best possible deals. Also because of the slowdown, customers have become more value conscious, 57% people stated that they are ready to change loyalties by switching on to another retailer for the sake of better value. Bargain hunting or ‘shop hopping’ between their favorite retailers in search of the best deal and choosing store brand or generic products over brand name options will be a norm.
So, value proposition is one of themes that can be exploited by brand marketers. Tangible value is what will increase your customers opportunity cost, making him stay with a brand. Self service technology such as automated coupon dispensers, or information kiosks within the store can be effectively used for value communication purpose and influence purchase decisions
Price promotions, discounted merchandise offered by marketers to make up for their short term sales goals, and are successful in enticing consumers. However, investing in your brand communication and building your brands is what will reap the benefits. 68% of the respondents said that they would want to buy discounted goods and 59% said that they were interested in limited period offers. Such price wars are bound to challenge Brand allegiance compounded with changing shopping patterns of consumers.

Rush Hour:

Time spent by consumers within a retail outlet is one of the important metrics used to gauge store profitability. Time spent & conveniences inside the store are other major trends that were tracked in the survey. 72% shoppers said that they would desire to pay for their shopping more quickly so they do not need to increase the overall time spent shopping & 64% of the respondents felt that other customers spent considerably more time shopping which made the stores busier adding to their discomfort. This calls for better optimization of billing counters or deploying self service check-out and billing facilities which would not only make the process quick and convenient for the consumers but also make the stores less crowded and more experiential.

“May I Help You?” -Staff allocation in retail stores:

The research also examined the extent to which consumers would prefer to wait for personal assistance when banking, shopping, dining, etc. Results showed that while respondents prefer to manage the majority of activities on their own, a significant number still prefer person-to-person encounter, which is typical in Indian retail context. Even though there is a growing trend of retailers deploying self service apparatus, shoppers at the same time would also prefer sales personnel in the retail outlet. When asked about the importance of staff in retail stores, 79% shoppers stated that they preferred to ask sales staff about the product locations and 75% shoppers felt that sales staff made their purchase process faster. Although convenient and user friendly, it would be difficult for retailers to solely depend upon self service technologies. The presence of human element to explain the process or just provide required information will continue to be imperative.

Proper deployment of self-service will allow businesses to focus personal assistance where consumers find it most valuable. Companies that want to remain competitive in the future will need to understand how to deploy self-service to maximize convenience and provide the flexibility required by consumers.


Convenient non-retail self-service solutions in stores

Self-service non retail solutions are not yet common in the Indian context but due to introduction of advanced technology and its fast adoption, people are slowly getting to know the utility aspect of self service tools. When shoppers were asked that what according to them would be convenient to use in a store to obtain non retail services, 74% of shoppers said that receiving discount offerings and product information on large screens in store is what they would prefer and 62% people said that they would like kiosks that shows you where to find products and product sections in the store. This largely highlights the importance that shoppers lay on seeking relevant information and convenient product placements within the stores.

Convenient self-service solutions in stores to help with purchases

As consumers adapt their behavior to cope with the slow down, they are also looking for more advice and help from companies with decisions. On account of emergence of ‘mall culture’ and different organized retail formats coming out in the markets, many in store self service tools have a potential to grow and generate sizable demands. On the convenience platform, when shoppers were asked to select self-service solutions in a store which would help them in their purchases, 73% customers preferred getting information about discount vouchers via their mobile phones to redeem in store. Taking into consideration the high mobile penetration in India, it is not surprising that this is the most sought after self service tool. Second on the preference list was getting confirmation of the time slot for a home delivery on their mobile phone which 64% of the shoppers preferred. This re emphasizes the importance of mobile phones as a means to connect with Indian audiences and give out information.

Affinity towards retailers who adopt self-service solutions

When asked about their likelihood to shop with a retailer that gives them the flexibility to interact easily via online, mobile and kiosk self-service channels versus a retailer that doesn’t offer such facilities, a staggering 93% shoppers preferred the former laying down an encouraging scope of innovative work in multi channel self serve industry. Also 81% shoppers showed increased likelihood to use self service since past one year. Ensuring a consistent and predictable customer experience is a challenge for even the best companies in the world, however self service can streamline many processes followed by retailers thus enabling consistency.

Brand Building

Smart companies are implementing ways to take the in-store experience beyond the lease line to extend brand affinity, drive consumer behavior and provide relevant lifestyle content to the consumer. All these advancements aim to enhance the shopping experience, lifting it to more than just a trip to a store, but rather a theatrical experience where purchasing merchandise is only part of the journey. Implementing self service technologies in the retail environment enhances positive perception of the deployer’s brand. 80% of the shoppers perceived the brand positively because of adoption of self service technologies.
Not only are these solutions successful at engaging consumers, but they have also been proven to extend dwell time and increase brand awareness – key factors in ongoing loyalty and long-term buying relationships.
In addition to the traditional touch points used for decades and the ubiquity of the Web in our daily lives, companies should strive to reach their customer base in new and innovative ways that are meaningful engaging and enriching. The ultimate goal is to take advantage of channels that the public is already tapping into in a meaningful way and integrate company’s brand into those various touchpoints, including but not limited to e-mailers, info kiosks etc.

Multi channel self services which continue to give you information, anytime, anywhere are most preferred by consumers. 58% shoppers are more likely to do business with companies that offer these services. Content delivery , information sharing, ease of transaction, interactive interfaces etc are some of the most powerful tools in dynamically delivering a company’s products and services easily, effectively and immersively while at the same time, engaging the customer with the overall brand. Whether in a store or at a non-retail point, the engagement must deliver an instant “A-ha!” moment that connects the individual experience and on-screen/self service content to everything else the organization is doing in the marketplace.

Research shows consumers are seeking out those companies that can offer both value and service by adapting quickly to their changing needs in these uncertain times.
Multi-channel self-service is a smart capital investment. It provides the choice that consumers are demanding while being cost-effective to companies that allows them to redeploy employees to improve service and sales. As consumers experience these benefits of self-service across multiple industries, they will come to expect the same levels of interaction in more aspects of their lives.