Why Dukaan Tech Must Go Beyond Downloads, Help With Customer Retention

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Why Dukaan Tech Must Go Beyond Downloads, Help With Customer Retention

Divya Bhatia

@DivyaH2O

April 17, 2021

Product/Startups Sales & Marketing

282

For decades now, local shops around you have provided daily essentials, groceries, etc. They would accept payments in cash, place an order if there is a particular item you are looking for, and all was well. They managed to survive the constant onslaught of big retailers, supermarkets, and e-commerce giants.

Last year saw a minuscule-sized virus confine us within our concrete boxes, and without these local shops, we would not have made it through the year. Over 10+ million local shops have played a significant role for decades, and this pandemic has nothing but reinforced their importance in our lives.

However, it turns out that these millions of small shops have now become the next big target of tech firms to integrate technology into our local shopping experiences.

‘Dukan Tech’ is a word coined to describe the flurry of startups that are powering small businesses and shops to create a storefront digitally.

While the ‘Dukan Tech’ trend began in August’20, the concept has been a part of the ecosystem / has been on the horizon for a while with multiple companies existing for more than 6 years. However, it is the sudden lockdown(s) and re-opening of the economy that has fuelled and re-ignited the concept of ‘Dukan Tech’ further this year.

What is the need of going online?

A small shopkeeper with his very own online presence will not only be capable of reaching out to thousands of target consumers without requiring them to come to the shop physically but also retaining them through digital mediums of engagement for greater lengths of time.

Along with the digital presence, merchants have all kinds of technological resources and tools at their disposal that will allow them to automate monotonous tasks and improve their efficiency. This rapidly digitizing world has had a significant impact on consumer behavior towards making online purchases, thereby aiding the onslaught of e-commerce giants onto brick-and-mortar shops. Unless the local shops go online, there is no way for them to survive the fourth industrial revolution and beyond.

Why is it difficult to stay persistent on the digital storefront?

Setting up a merchant’s shop online is the first step towards the long digital journey, and the greatest difficulty lies in generating /reaching the demand or its customer base, without which, the engagement and retention on the platform will always be below average.

The lack of response shop owners initially face is the major disappointment that eventually causes them to rethink their decision to go digital. The thing is, without being able to curate continuous demand to grow their business, long-term value to the merchants is very low which makes it near impossible to retain them.

Digital storefront’s consistency lies directly proportional to the sustained customer side engagement, which is why it is the need of the hour to generate this engagement. At the moment, battles are being fought amongst online platforms for the increase in their application downloads, while completely side-tracking the retention aspect. While the digital storefront starts profiting after a certain gestation period, the merchants will only place their faith in technology when the revenue starts coming from their digital presence.

What is ahead for Dukan Tech?

The future of Dukan Tech lies in the solution of two major difficulties that are being faced by merchants and sellers. It begins with converting a merchant’s existing customer base into buyers for their digital storefront and tap a new customer base through various marketing channels.

This is followed by ensuring that they engage and re-engage with their customers, helping build loyal connections between the sellers and the buyers. Introducing consistency into their user engagement will help retain them indefinitely on their online storefronts.

Reports suggest that online food and grocery will expand to an $18 billion industry in our country by 2024. Retailing giants like Amazon, Flipkart, Reliance seem to align their growth plans by teaming up with over 10 million local stores in the country. The ongoing global crisis has proven to the world that the adoption of technology is not an option anymore. The sellers may not be technologically adept, but they surely know how business works, and the use of their selling prowess and business know-how will be a turning point for “Dukan Tech.”

Amazon flipkart Reliance Dukan Tech

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