Case Study

M-Commerce in retail industry

Customer background

  1. The Customer is a leading online retail provider in a city
  2. It’s the first business unit to introduce online retailing business in this city
  3. They have their own warehouse, delivery team and tie up with various small scale retailers within the city. All orders should be cleared and delivered the same day
  4. They started their business with an e-commerce website. In 2 years time they were able to create a brand for themselves

Business requirement

  1. With the growing usage of smart phones, the customer wanted to create a mobile application for iPhone and android platforms
  2. By doing this the customer aimed at generating more sales revenue and building a stronger brand
  3. Neologix was approached for the development of their android and iPhone applications

Major challenge

  • To completely revamp their existing systems and build both the e-commerce and m-commerce platforms
  • To develop and integrate an m-commerce application into the existing platform
  • We investigated on both the options and came to a conclusion that we go with the second option
  • The reason for the second option is the following,
  • Since the customer had already invested in building this e-commerce platform, it would not be cost effective for the customer to develop this again
  • The e-commerce platform developed earlier was robust and customizable to meet the new requirement
  • The business has trained people and vendor using the existing system and it would be a very hectic job to train all these people into a new system again

Our solution

  • This online retail shop is catering to a very impulsive buying group of customers , hence it is very important that the applications support impulsive purchase
  • When a new feature is to be launched by the business, the feature needs to go it all the ordering platforms with ease ( web, android, iPhone, tablet versions also ) and hence we suggested phonegap technology for the same. With this the maintenance of the application is much cheaper when compared to native application development.
  • We designed an application in which the user could purchase a product in just 3 clicks and supported all options in the home screen itself.
  • As and when new offers or new products were launched the users needed to get information instantly. For this to happen we implemented push notifications
  • We integrated the m-commerce application to the existing back office application and also made tweaks and added new modules to the existing e-commerce application in such a way that if a new modules is to be added, it could be easily implemented in all the ordering platforms
  • Since 4G was not rapidly available in this city, we needed to make sure that the application is very light in size and we aimed a customer download time of not more than 1 minute.
  • Along with this we also provided real time access to orders to all our vendor partners on their mobiles. This would enable the partners to get the order information instantly and start packing.
  • We also implemented a mobile delivery system, using which the delivery people can also input the delivery status information realtime, this would enable the customer to track the status of the delivery anytime anywhere. 9.We also provided mobile access to senior managers, where they could have access to all the important key performance indicators, statistical information for taking managerial decisions

Return on investment

  • After one year of implementation we collected some data from our customer and given below are some statistical information.
  • ROI – After one year of investment on the mobile application, the shareholders have received an ROI of 80% on the investment done
  • Sales – There has been an increase in sales by 120%
  • Mobile Customers- 20% of the orders are coming through SmartPhones
  • The brand has more visibility and the number of customer registrations has increased by 100%.
  • The basket value has increased by 25%.

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