Assignment 02

Daraz.lk

M M Wimalasena
UWU/ENM/17/065
Entrepreneurship and Management Degree Programme
Department of Management Sciences
Faculty of Management
Customer Relationship Management
ENM 342-2
Ms. P.G.M.S.K.Gamage
Content

Page No
1. Daraz.lk……………………………………………………………………………01
2. Customer Relationship Process of Daraz.lk……………………………………….03
3. Competitors of Daraz………………………………………………………………23
4. Issues and Suggestions for Daraz………………………………………………….37
5. References …………………………………………………………………………39
Daraz.lk

 Daraz is an online retail store that is operated and owned by the kayamu (Pvt) Ltd. It is
an online marketplace and logistics business operating in the South Asian and Southeast
Asian markets.
 Daraz was founded in 2012 by Muneeb Maayr (founder) and Farees shah (co-founder)
at the base venture maker, rocket internet, as an online fashion e-commerce marketplace
in Pakistan.
 The Daraz group in Bangladesh, Myanmar, Pakistan, and Sri Lanka operates e-
commerce sites and logistics services
 Daraz has constructed its own logistics company specifically tailored for e-commerce
operations in order to address the logistics problem in its markets-daraz express to lift
the industry standard.
 Daraz was purchased by the Alibaba group in 2018 and is currently operated by
separate CEO of the daraz subsidiary of Alibaba group.
 Daraz is leveraging Alibaba's global leadership and expertise in technology, online
shopping, mobile payments, and logistics as part of the Alibaba ecosystem to accelerate
growth in its markets. Shift, collaboration, consumer loyalty, honesty, and ownership
are supported by daraz values.
 A strong payment infrastructure has been developed by Daraz that is localized to each
market.
 Empowering Daraz sellers Daraz almost concentrates on inspiring its vendors, forming
the foundation of their marketplace.
 With their modern and cutting-edge systems, daraz provides its sellers with
unparalleled levels of control and ownership so that sellers can easily and efficiently
run their stores.
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 Through the daraz mobile application and website, daraz deliver a personalized
customer experience in online shopping in Sri Lanka.

 These are the categories of daraz,

Electronic Electronic TV & Home Health &

Devices Accessories Appliances Beauty

Babies & Groceries & Home & Women's

Toys Pets Lifestyle Fashion

Men's Watches & Sports & Automotive

Fashion Accessories Outdoor & Motorbike

 Currently, daraz has higher web traffic of 200,000 visiter per day, 30,000 registered
sellers, and 15,000 online sales per day.
 Daraz is now becoming a leading e-commerce brand in Sri Lanka uplifting small and
medium sellers.

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 2. Customer Relationship Management Process of daraz.lk

Customers are one of the key partners in e - retail business of daraz. Daraz.lk Customer
Relationship Management (CRM) is designed to deliver superior customer service throughout
the customer journey. The main function of daraz CRM are as follows;

CRM software of daraz is linked and operated from Singapore Alibaba Group operation. CRM
technology and aspects have been obtained from the daraz parent company Alibaba Group.

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Within the daraz CRM collecting and processing customer’s data technologically classified
procedure. Daraz uses the collected data to track customer touchpoints between customer and
company, deliver consideration of consumers’ needs, building a draft holistic client profile.
Ultimately, CRM utilizes to attract new visitors to daraz and turning the visitor into a regular
loyal customer.

2.1.Marketing

Daraz executes a number of marketing campaigns throughout the year to generate leads and
form loyal regular online ordering customers in Sri Lanka. Daraz marketing campaigns attract
potential customers to shop more online. Today daraz is beyond marketing and created a brand
identity for its campaigns.

2.1.1. Run Campaigns

Daraz.lk increase year on year revenue growth from running campaigns. Daraz campaigns for
each consecutive year as follows;

Daraz grand
Daraz 11 11 Love unlimited Daraz turns 4
Christmas sale

Daraz fashion Daraz Mall Daraz mobile

Awurudu wasi
week Fest week

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11 11 sale – 11 11 is the most awaited and successful campaign in each year. The last 11 11
campaigns in November 2020 recorded the biggest revenue within 7 days period. Which is
accounted for 4 billion of online sales via cash on delivery (COD), Online Payments, and
Installment Payments. Further this cause to achieve all the sales targets for the year of 2020.

Avurudu wasi and daraz turn into 4 campaigns which are localized to the Sri Lankan arena
focusing on Sinhala and Tamil new year and treat a loyal customer base. Daraz fashion week,
mobile week, campaigns which have been introduced by the Alibaba group to daraz to persuade
customers to shop clothing online. Whereas daraz mobile week focusing on increasing mobile
and electronic sales within a week.

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 2.1.2. Generate Leads

A lead is a website visitor who is interested in daraz retail products and services and shows
interest to purchase by the actions taken during the web site visit.

Daraz Lead
Generation

Search Engine
Social Media Google Display
Blog Optimization Mobile App Email Marketing
Marketing Network (GDN)
(SEO)

Facebook Daraz Life Daraz App Youtube Ads

Ads in Google
Instagram
Partner Sites

Youtube

Twitter

 Social Media Marketing

Daraz generates leads to daraz mobile applications or websites via social media channels. daraz
active on Facebook Instagram, YouTube, and Twitter. Within these channels, daraz creates a
purchase internet within the customer by using 30-sec to 10 min video clips and influences.

Daraz Facebook
Page and Daraz
Instagram
Business Page

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 Daraz Influences in daraz fashion week campaigns and
daraz grand Christmas campaigns.

 Blog

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Daraz blog is known as daraz life. Blog of daraz covers the content related to beauty, fashion,
lifestyle, and technology. Potential consumers are inspired by the content and that leads them
to visit the daraz app or website and place an order.

 Search Engine Optimization

Daraz is heavily known for search engine optimization (SEO). For example, the first two
organic results for “buy wireless Bluetooth headphones” are from daraz.

 Mobile Application

Daraz mobile application has a higher download among android and ios users. The potential
buyer of daraz has download the mobile application and browse products for which has
purchase intent.

Daraz has introduced notifications and promotions tabs in the mobile application to encourage
consumers to place an order utilizing offers.

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  Google Display Network

Daraz uses the google display network to advertise on YouTube and other Google partner sites.
The main objective of campaigns to take any action on the website or application. Google
display ads of daraz;

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  Email Marketing

Email marketing is another source of lead generation method followed by daraz to generate
leads. emails marketing is an informative method to educate consumers about upcoming offers
and deals by daraz.

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 2.1.3. Form a Database

daraz is a cookie-based site. Cookies are used to collect visitor browsing data. The data in
which browser cookies are collected delivered to daraz visitor data analytical tools.

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Daraz uses google analytics, google tag manager, and Facebook pixel to collect more website
visitor data.

With the above tools, daraz can identify the visitors who have clicked an item, purchase button,
add to cart button, check out button, and many more. Further results of the tools delivered a
detailed analysis of the customer’s demographic data, online behavioral data, acquisition data,
and conversion data.

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Ultimately the data gathered from the marketing tool will generate a database of each user of
the daraz mobile application and website.

Daraz registered user log in

Customers of daraz who have a user account in daraz will unknowingly agree to the terms and
conditions of the company.

User accounts actively collect consumer data-for example, all the past purchases-in order to
provide shoppers with a reliable and seamless shopping experience. Moreover, the customer
journey is virtual; no human contact at all: with only a few clicks, customers can view previous
orders, track packages, or update shipping details.

Moreover, the company has full authority to track all consumer moves within the website and
mobile application to deliver a personalized online experience.

2.2.Sales

Customer relationship management (CRM) is a crucial factor in improving the revenue of

daraz. The consumer care team requires CRM to expand customer service and raising the sales
revenue. Sales of daraz can be increased by following factors of sales in e-commerce CRM
namely, assign leads, qualifying leads, convert leads and track opportunities.

2.2.1. Assign leads

Assign leads is the assignment rule in CRM, which is used by daraz to identify potential leads
for place an order. Assignment rule is coupled with daily sales activities of daraz.

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Assignments of Daraz

Account Management

Orders and Warranty

Payments

Item Returns

Refunds

Promotions

The assignment rule is coded within the CRM system of daraz. Due to that, it automated the
task to be performed by the customer care service representatives. Further, the option to contact
customer service agent lively as given to the customer. Self-help support available for
customers during the non-operating hours of customer service agents.

Assign rules for customer care agents

Assignments are tracked by the users in the sales funnels and their potentiality to convert via
the sales funnel. Take required actions to push through the sales funnel.

For example, within the payments identify the failed checkout of customers and push customers
to complete the order via notifications, emails, and messages.

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 2.2.2. Qualify leads

In the qualifying leads CRM system of daraz identifies the target market segments. By
analyzing the database, daraz has identified that 18 to 35 years of male and female are the
potential customers or visitors.

it is mandatory to create a user account to order with daraz. Through the order history CRM
system qualifying the potential leads.

By analyzing customer order history and search history; the customer qualified as a lead to
purchase birthday decorations, camera equipment, hair irons, fairy lights, and cashews and
nuts.

The quailed lead will notify for the marketing and promotional campaigns for above product
categories as daraz believe that there is a potentiality that customer order similar products to
the above suggestions.

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Customers get notify of Flash deals, daraz mall offers and 70% discounted products daily and
marketing campaigns like daraz love unlimited.

Furthermore, the feed of the daraz app is also customized and personalized according to past
searches and orders of customers.

Under qualified daraz use, Google Display Network to deliver personalized ads for consumers
according to their online searches. This will help to capture new leads according to their past
searches on google.

2.2.3. Convert leads

daraz enforce consumers to buy online. To transform leads, daraz builds exposure for
consumers. For example, Sinhala language setting in both mobile app and website.

Daraz offers cash deliveries (COD) and installment payments for customers to experience
convenient online shopping. Customers who have fairness for the online transaction can choose
COD.

Daraz extent its leads conversion from offline to online, the company is doing its hardest to
draw new buyers and make them purchase goods. Daraz has 12000 daily orders, 4000
profitable sellers on daily basis, and 10000 sellers, and 3 billion online products.

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Daraz focuses on increase purchasing among 18 to 35 years young to middle-aged consumers
in Sri Lanka.

During the daraz fashion week, more women are attracted to purchase online and during the
mobile week, more men are attracted to purchase. While during valentine both men and women
attract purchases online.

2.2.4. Track opportunities

Daraz use campaign tracking consists of UTM Parameters. Through the UTM Parameters, the
marketing team can find out the potential opportunities to enforce and reinforce consumers to
place an order with daraz.

Daraz business intelligence team identified best performing sellers, best performing categories,
seller ratings, customer reviews and number of orders per seller, cart value per order, and
frequency of orders.

Daraz Seller Ratings

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Daraz Seller Center Order Overview

2.3.Orders
2.3.1. Deliver Products
3. First of all, customers visit the Daraz website or mobile application and scroll for the
relevant product online.
4. If the customer is satisfied with the sellers’ product offering and the seller reviews the
customer tent to purchase the product immediately.
5. Daraz promise 7days home delivery for each order.

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 • Customer order has been entered in the Daraz order pool. Once the
Processing vendor has confirmed it, it will be shipped within a specified
timeframe.

• order has been received from the seller and order is way via courier.
Shipped It will be delivered to customer as per the standard delivery time.
Customer be able to track the order from Daraz App

Delivered • Ordered item from daraz has been delivered to the customer.

2.3.2. Produce Invoices

 Invoices for each item ordered are produced by the seller of the product. Sellers are
notified by the daraz seller center account about the order.
 Daraz specially introduced the daraz seller center for the daraz registered sellers. Seller
print the invoice via the daraz seller center account and paste it with the package and
deliver to daraz express delivery team or third party logistics. (3PL).

Daraz package

Daraz invoice printed by the seller

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2.4. Support
2.4.1. Manage Cases
 Each request for assistance is an opportunity to improve the relationship with
consumers or a way to produce incremental revenue.
 Case management makes it possible to make the most of each interaction and become
the right champion of consumer satisfaction.
 Automation of the allocation of cases in Daraz ensures assigning each customer
question immediately and quickly.
 Further customer queries are entered to the exact division and have the best and most
reliable resolution.
 Because each company has a different process in CRM operation, Daraz has its own
automated Xcally software to manage cases properly.

Xcally software of daraz

2.4.2. Conduct Training

 Proper training is necessary for the Customer Service Agents to offer extraordinary
customer care for daraz customers.
 Daraz Customer Care Agents are able to speak all three languages Sinhala, Tamil, and
English to provide customized service to daraz customers to solve their problems in
online shopping.
 Daraz Delivery Riders of DEX – Daraz Express are able to speak all three languages to
provide superior customer service.
 Daraz has its customer support team to address the concerns. The after-sales team and
the customer support team are working closely to ensure delightful customer service.

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  Moreover, daraz offers training facilities and learning facilities for the sellers. Seller
Centre and Daraz University is a valuable example of it.

2.4.3. Provide Service

 Daraz mainly provides its services via the daraz website and mobile application.
 Daraz mainly offers retails products to customers online. However, currently
diversified its services as follows,
 Daraz Corporate – For Buying in Bulk

 Reload and pay bills

Via daraz customers able to settle water, electricity, and reload mobile phones of each service
provider.

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  Daraz Facebook page and Instagram handle provide a superior service to solve
customer problems before and after place an order with daraz.

Daraz Facebook page has a 13,765,026 follower base

Daraz communicate and solve customer
problems via Facebook Messenger

2.4.4. Develop Knowledge Base

 The knowledge and experience of the consumer need to be built to better understand
the company and its operation.
 Whenever Daraz launches a new service, they make a video tutorial to improve the
awareness of their customers.
 However, consumers also lack knowledge of the whole ordering process.

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3. Competitors of Daraz

Daraz is an online store that is into e retail. Two direct competitors can be identified as follows,

Both competitors of daraz are Sri Lankan startups. While daraz is a subsidiary of Alibaba Group
from China.

3.1. Unique Features of Daraz

Unique features of daraz are discussed compare to wasi.lk and takas.lk

Daraz Island Wide

30000 Seller
Daraz Hubs Corporate for Drop - Off
Base
Bulk Shopping Stations

Brand Daily Flash

Daraz Mall Just For You
Vouchers Deals

Top and Pay Draze First Search Engine

Influencers
Bills Games Optimization

Sell on daraz Daraz Affiliate Daraz Pola Daraz Fashion

Global Customer
Collection Reviews

I. Daraz Hubs

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  Twenty-seven hubs are located in Sri Lanka to cover the daraz delivery islandwide.
Each hub has a limit. If the limit exceeds the main sort center packages are delivered to
the 3PL.
 Hubs in Daraz consist of a hub manager, two assistance, and delivery riders. Delivery
riders are on a contract basis.
 Hubs are permitted to sort packages according to the distance to deliver to the customer
than sending the package to the main sort center located in Grand Pass.
 Using the hub rider's order can be fulfilled.

II. 30,000 Seller Base

Daraz has a registered active 30,000 sellers. It is equal to 10 times the number of sellers in the
Petta market. In wasi.lk and takas.lk e-commerce business model does not rely on sellers.

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III. Daraz Corporate for Bulk Shopping

Benefits of Daraz Corporate for Bulk Shopping are as follows,

 Able to order goods in large quantities

 Island-wide fast delivery
 Unbeatable massive discounts
 Account manager to handle the cooperate purchasing

IV. Island Wide Drop - Off Stations

 Daraz now offers a convenient service to drop off return items integration with Sri
Lankan postal service.
 Customers can drop off the product at the nearest post office. Then DEX riders or 3PL
delivered to the nearest hub or postal service send directly the product to the main sort
center.

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Daraz Island Wide Drop Off Stations

V. Daraz Mall

Daraz mall provides 100% genuine products, trusted brands and provide 14 days return to
customers. Also, offer special discounts and updates.

VI. Brand Vouchers

Under daraz brand vouchers in Sri Lanka offers new vouchers from brands and sellers every
day. Vouchers can use right away or can save to use later.

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VII. Just For You
 Daraz knows customer preference. Customers met with brands and products that have
a potential interest in.
 Just for you is a unique selection that varies from customer to customer. The longer
customer invests in the Daraz. daraz be able to know the customer better.

VIII. Daily Flash Deals

Customers get the chance to experience great deals during regular flash sales that are updated
with new and innovative items every day.

IX. Top and Pay Bills

 Under the Top-up and pay bills customers to be able to settle pre pre-paid mobile bills
online in seconds using the Daraz app. The Daraz app provides discounted services for
all related networks.
 E- stores offer access to digital vouchers, games, and even higher discounts.

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 X. Daraz First Games

Daraz First Games is a gaming platform that is introduced to buyers. By playing games with
Daraz First Games customers are be able to win coins and convert coins into vouchers.

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 XI. Search Engine Optimization (SEO)
 Daraz heavily invested in Search Engine Optimization (SEO) to drive visitors to the
daraz app and website.
 Improvements in SEO leads to a higher conversion rate of placing an order with daraz.
 The below example is the first organic result on the search engine result page.

XII. Influencers

 Daraz use influences to boost sales by recommending products to their fan bases.
Influences receive a referral code. For each purchased item by the referral, the code
influencer receives a 10% commission.

XIII. Sell on daraz

 Customers are also able to sell on daraz by registering as a seller. Daraz offers simple
product listings.
 Sellers can increase sales using daraz seller tools like vouchers, bundles, and hot selling
items.

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XIV. Daraz Affiliate

 Content creators, publishers, and bloggers can partner with the daraz affiliate program.
 Affiliates can recommend products to their audiences and fans and be able to earn a
commission for qualified purchases.
XV. Daraz Pola

Daraz pola sells essential items at the lowest prices. Customers receive 60% off than the market
price.

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XVI. Daraz Fashion

 Daraz Fashion consists of several subcategories; t-shirts, sneakers, flat heels, hair
accessories, dresses, and casual t-shirts.
 Daraz organizers daraz fashion week in each year for 7 days period in much grand
manner. Currently, daraz offers LKR 99 for each order under the fashion category from
8 pm to 10 pm.
XVII. Global Collection

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  Daraz registered sellers from china be able to sell products to Sri Lankan buyers
worldwide free shipping available.
XVIII. Customer Reviews

Customer Reviews other buyers to think twice before ordering the product. It is much helpful
for both seller and buyer to do business online.

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3.2. Innovative Methods of Daraz

Daraz E- Chatbots to
Single-click
commerce on the Handle Customer
Checkout
go Queries

New Payment Automate email Excellent

Integrations marketing customer support

Online Learning Multi-Channel

Platform Presence

I. Daraz E-commerce on the go

Wasi.lk and takas.lk, do not introduce the mobile application to online consumers in Sri
Lanka. The goal of the daraz mobile application is to design the best mobile experience for
both buyers and sellers. The mobile application uses to Cater to new customers and repeat
customers as well.

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 II. Single-click Checkout

The benefits of a one-click checkout are many: it lowers shopping cart abandonment rates,
encourages shoppers to make frequent orders faster while improving total revenue.

III. Chatbots to Handle Customer Queries

Today's chatbots are powered by neural networks, machine learning, and even AI technologies.
As a result, it is extremely insightful and can provide consumers with excellent customer
services.

Their quick response, accurate info, 24 x 7 availability, satisfying all consumer requirements
even large and small. Chatbots are the future of customer support in online shopping.

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IV. New Payment Integrations

Daraz has linked with all most all the commercial banks and government banks to provide great
offers and discounts to customers.

V. Automate email marketing

Daraz has automated the email marketing it the use of pre-set triggers enables to deliver hyper-
relevant and timely updates effortlessly, delighting daraz email subscribers. If the customer
abandons the cart, an email can persuade them to revisit the site and complete the purchase.

VI. Excellent customer support

Providing the best customer experience means being available on a multi-channel basis: this
will help to provide a customer swift response. Further, customer satisfaction easily is achieved
with goodwill.

Social Live
Email Phone Address
media chat

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VII. Online Learning Platform

Daraz offers to learn for customers and sellers. Customer learning of daraz is linked with the
daraz help center. Further seller support and learning are offered by daraz university.

VIII. Multi-Channel Presence

Multi-channel presence is that daraz advertisings are available both online and offline. Online
presence of daraz in the following channels. Facebook, Twitter, Instagram, YouTube, and daraz
life blog respectively. Besides, daraz advertises on traditional media about the largest shopping
campaign 11/11.

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4. Issues and Suggestions for daraz

Unavalibility of Order Received Conformation

•Within daraz website or mobil application there is no feature to conform the order receiving on
the customer end.
•Due that order conformation feature need to be introduced

Minimum Use of Upsell and Cross Sell

•Daraz sellers not use up sell and cross sell to incrase the order amounts.
•Daraz need to encourage sellers to cross sell and up sell products incrase the order value.

No specific Order delivery date

•Daraz provide a posible data range that order might arrive to customers' door step. These leads
to customer missing the order delivery.
•Insted of period of time daraz need to notify customer one day prior to cash on delivery and
regular deliveries as well.

Lengthy return and refund process

•Firstly customer need to return the item to drop-off loaction or DEX team, quality control
control at the daraz main sorting centre and finaly refund payments if there is a quality issue of
the returned product.
•This process take 10 - 15 business day and customer receive the return on 15 th business day to
bank account or on hand
•Suggest to introduce 7 days refund policy to customer than the lengthy return and refund
policy.

Notification and Promotional Messages

•Daraz send dozen of promotional messages and notification to mobile application and the given
email.
•This has been irritated by the customers as customer tent miss the important emails.
•Suggest is to provide control settings in the mobile application to customermize the notification
and promotional messages. Avalibility to unsubscribe promotional emails.

Tiny Product Descriptions

•Sellers update tiny product descriptions and customers willing to have more information before
purchase the item online.
•Some customers claim that sellers update one or two images of the product and it is not
enough for immediate purchase decision.
•Suggesting minimum 6 images of the product and detailed description of the product use.

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Demo Videos

•Within daraz demo videos are not avaliable.

•Suggest to at least one demo video within the images section to provide better
understanding for the product and it use to customer.

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Reference

1) Zoho.com. (2021). [online] Available at:

https://help.zoho.com/portal/en/kb/crm/automate-business-processes/assignment-
rules/articles/set-assignment-
rules#Step_4_Check_users_availability_before_assigning_a_record [Accessed 1 Feb.
2021].
2) Daraz (2019). What makes Daraz the best shopping app in Sri Lanka. [online] Daraz
Blog. Available at: https://blog.daraz.lk/2019/06/14/what-makes-daraz-the-best-
shopping-app-in-sri-lanka/ [Accessed 1 Feb. 2021].
3) Deepak Rajak (2018). Ecommerce daraz. [online] Slideshare.net. Available at:
https://www.slideshare.net/DeepakRajak17/ecommerce-daraz [Accessed 1 Feb. 2021].
4) Daraz.lk (2020). Nafees talks numbers at Daraz! YouTube. Available at:
https://www.youtube.com/watch?v=ZSFcqOU-WGU [Accessed 1 Feb. 2021].
5) ThinkwithGoogle (2015). AliExpress: E-commerce on the go. [online] Think with
Google. Available at: https://www.thinkwithgoogle.com/intl/en-154/marketing-
strategies/app-and-mobile/aliexpress-e-commerce-go/ [Accessed 1 Feb. 2021].

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