CASE STUDY : REDUCING RETURNS ON FIRSTCRY.

COM APP

PRESENTED BY:
NITIN KUMAR
ROHIT CHOUDHARY
RUDRANSH GUPTA
OVERVIEW PROBLEM USER PERSONA SOLUTIONS GTM STRATEGY PRIORITIZE METRICS

ABOUT THE COMPANY MARKET SIZE COMPETITORS

Asia’s largest online baby and kids store and INDIAN MARKET
India’s largest online shop for new mom and
baby products. -Revenue in the Children's Apparel segment amounts to
US$21.54bn in 2023.
2,00,000+ -The market is expected to grow annually by 2.53%
Unique Products (CAGR 2023-2027). MARKET SHARE
-The Children's Apparel segment is expected to show a
volume growth of 3.2% in 2024.
6,000+ GLOBAL MARKET
Brands Hosted
-Revenue in the Children's Apparel segment amounts to
US$267.50bn in 2023.
-The market is expected to grow annually by 2.46% (CAGR
7.5 Million+ 2023-2027).
Registered Users

380+ TARGET AUDIENCE

Offline Stores
Niche Market
Young Parents
Age: 25-35 Years
OVERVIEW PROBLEM USER PERSONA SOLUTIONS GTM STRATEGY PRIORITIZE Metrics

PROBLEM AT HAND
Reduce returns and build trust by addressing sizing issues and finickiness of kids in online baby product shopping

KEY ISSUE
Increasing returns on the online platform due to size and fit issues of baby products and the finickiness of kids between 3-5 years old, resulting in parents frequently buying and
returning items

WHY DO USER RETURN ORDERS ?

The primary reasons for product returns are sizing issues (62%), dissatisfaction with the product (39%), defects or damage upon delivery (30%), and product not matching the
description (30%) source : study

WHY SOLVE THIS PROBLEM? APPROACH

Order returns can be costly Our approach to reducing return rates will prioritize tackling sizing issues,
Order returns can damage brand reputation which account for 62% of returns, followed by addressing instances where
Order returns severely undermine profitability and cripple growth prospects. the product does not match the description.

OBJECTIVE

Reduce return rate Boost user trust

OVERVIEW PROBLEM
USER JOURNEY
Discovering
FirstCry App
Download and install
the FirstCry App
Evaluating the
Overall Experience
Assess the return process
and determine whether to
continue using FirstCry
USER PAIN POINTS
Time Sensitivity
Return delays may Returning a product due
hinder immediate use,
particularly for time-
sensitive events. inconvenient for parents.
USER PERSONA
Browsing and Checking Out and
Selecting Item Making Payment
Browse the item categories Review items in the cart
and add to cart and proceed to checkout
Purchasing Returning item and
Replacement Clothes receiving refund
Hand over the package to
Make adjustments to size,
color, or style, if necessary the delivery partner and
monitor refund status on app
Inconvenience Finickiness of kids
Kids' pickiness in the 3-5
to sizing issues can be age range complicates
time-consuming and returns as they get
attached or have
preferences, challenging
parents.
SOLUTIONS
Receiving and
Trying on Item
Check for any visible damage
and assess the overall fit
Initiating a Return
Initiate the return process on
the FirstCry App, scheduling a
pickup date and time
Financial Implications
Parents may face financial
consequences when they
have to return products
because of sizing
problems.
GTM STRATEGY PRIORITIZE metrics
USER PERSONA
DEMOGRAPHIC
Name: Riya
Age: 29 Years
Working mother from Bangalore,
dedicated to providing comfortable
and stylish clothing for her 3-year-
old daughter.
GOAL
Seeks a convenient and efficient online
shopping experience, where she can find
the right-sized clothing for her daughter
without any hassle.
PAIN POINTS
Inconsistent size charts cause confusion, hampering informed
purchasing decisions.
Sizing issues lead to expenses and hassle, impacting shopping
experience.
Finds it challenging to shop offline due to time constraints, which
limits her options and convenience.
OVERVIEW PROBLEM USER PERSONA SOLUTIONS GTM STRATEGY PRIORITIZE Metrics

SOLUTION 1 : FIT ASSESSMENT WITH BUYER REVIEWS AND PERSONALIZED RECOMMENDATIONS

FIT ASSESSMENT FEEDBACK SYSTEM WIREFRAME

Implement a gamified feedback system to reward customers for detailed reviews, driving
active participation and improving the quantity and quality of fit-related feedback.
Create a dedicated product page section showcasing customer reviews focused on clothing
fit, facilitating easy access and evaluation of fit-related feedback from other buyers.
Introduce fit indicators or a rating system (e.g., loose, tight, true to size) derived from
customer feedback, providing users with a quick overview to make informed purchasing
decisions

PERSONALIZED PRODUCT RECOMMENDATIONS

Utilize fit assessment data for tailored product suggestions, enhancing user satisfaction and
increasing cross-selling and upselling opportunities.
Leverage user preferences and browsing history to deliver personalized recommendations,
ensuring a seamless and enjoyable shopping experience

BENEFITS FOR THE USER BENEFITS FOR THE COMPANY

Accurate fit assessments, personalized recommendations increase confidence
Users can avoid ill-fitting purchases, reduce returns, and save time and money..
Reliable fit information, address sizing concerns conveniently
Purchases where a recommendation was clicked saw a 10% higher AOV
Personalized product recommendations drive 7% of visits, 24% of
orders, and 26% of revenue
Recommended products drive higher engagement, as shoppers who
click recommendations spend an average of 12.9 minutes on-site
compared to 2.9 minutes for non-clickers. source
OVERVIEW PROBLEM USER PERSONA
SOLUTION 2 : IMPROVED RETURN POLICY IN COLLABORATION WITH OFFLINE RETAILERS
COLLABORATION WITH OFFLINE STORES
Bringing into the game the reliable and trusted offline stores
associated with FirstCry to collaborate with.
Taking into advantage the O2O business strategy model that
served as the basis of FirstCry's foundation
Develop a seamless process for customers to return products
purchased through the FirstCry app to these offline stores.
Enable customers to choose between returning items by
shipping them back or visiting a partnered offline store.
ENHANCED COMMUNICATION AND TRANSPARENCY
Clearly communicate the new return policy and its benefits
to customers through various channels, such as app
notifications, emails, and social media.
Provide detailed and transparent information on how the
collaboration with offline stores works, including store
locations, return procedures, and timelines.
Offer real-time tracking of return status and updates to keep
customers informed throughout the process.
SOLUTIONS GTM STRATEGY PRIORITIZE Metrics
TRAINING AND SUPPORT FOR OFFLINE STORE STAFF
Conduct training sessions with the staff at partnered offline stores to
ensure they are knowledgeable about the return process and sizing-
related issues.
Equip them with tools and resources to assist customers with sizing-
related returns and exchanges effectively.
BENEFITS FOR THE COMPANY
For retailers with a physical presence, 46.7% of shoppers prefer to return products to
stores, while just 26.7% prefer mailing them back, Implementing this solution will
increase customer satisfaction, drive more in-store foot traffic
Implementing the return policy in collaboration with offline retailers led to an
average increase of 4.1% in unique customers, 8.4% in items sold, and 7.6% in net
revenue in areas within a 15km radius.
source
BENEFITS FOR THE USER
Collaborating with offline retailers enables users to receive immediate refunds or exchanges,
ensuring a seamless and prompt resolution to their return requests.
OVERVIEW PROBLEM USER PERSONA SOLUTIONS GTM STRATEGY PRIORITIZE Metrics
SOLUTION 3 : VIRTUAL FITTING TOOLS USING AUGMENTED REALITY AND ARTIFICIAL INTELLIGENCE
INTEGRATION OF AUGMENTED REALITY WHY IMPLEMENT THIS?
Implement AR functionality within the FirstCry app, enabling 40% of the shoppers are willing to pay more for products that WIREFRAME
users to virtually try on clothing, shoes, and other products with a could be experienced through AR, and 71% say they would
high level of accuracy. shop at a retail store more often if they used augmented
Develop a user-friendly interface that enables easy access to the reality. source
AR feature and seamless integration with the product catalog. Virtual dressing room software reduces returns by up to 10%
by matching precise body data with product information. source
Implementing virtual dressing room software can lead to an
USER EDUCATION AND GUIDANCE OF AR average conversion rate growth of 13-16%. source
3D, AR, and VR are dramatically changing the retail landscape
Provide clear instructions and tutorials on how to use the AR globally, with 68% of consumers in APAC and 58% in Europe
feature effectively. reporting to have advocated for immersive technology
source
Educate users on the benefits and limitations of virtual fitting, experiences.
setting realistic expectations for fit accuracy.

BENEFITS FOR THE USER BENEFITS FOR THE COMPANY

Virtual fitting tools have been shown to improve size accuracy The implementation of virtual fitting tools can lead to a 36%
by up to 75%, reducing the chances of ordering the wrong size reduction in return rates, specifically related to sizing issues
Users who utilize virtual fitting tools are 65% more likely to Implementing virtual fitting tools has shown to contribute to an
make accurate size selections, leading to a reduced need for 18% increase in average order value source

returns and exchanges 65% of the users are more likely to place an order after
source
interacting with a product in AR
OVERVIEW PROBLEM USER PERSONA SOLUTIONS GTM STRATEGY PRIORITIZE Metrics

GO-TO-MARKET STRATEGY
EDUCATORS AND CHILD
NEW PARENTS EXPERIENCED PARENTS RELATIVES AND FRIENDS CARE PROVIDERS RESELLERS AND RETAILERS

COMMON NEEDS AND COMMON NEEDS AND COMMON NEEDS AND COMMON NEEDS AND COMMON NEEDS AND
CONCERNS CONCERNS CONCERNS CONCERNS CONCERNS

Baby care products Educational toys Gift ideas Classroom supplies Wholesale pricing
Feeding essentials School supplies Party supplies Educational toys and Stock availability
Safety gear Clothing for older kids Personalized items games Shipping and logistics
Clothing Sports equipment Seasonal and holiday Books Marketing materials and
Toys and books Books products Furniture and storage support
Gift cards Safety and hygiene Product information and
products specifications

MARKETING STRATEGIES MARKETING STRATEGIES MARKETING STRATEGIES MARKETING STRATEGIES MARKETING STRATEGIES

Targeted ads
Support groups and forums
Blog posts and articles
Discounts and promotions
In-app features and
recommendations
Parenting advice Gift guides
Product recommendations Special occasion
Discounts and promotions promotions
In-app features and Personalized
recommendations recommendations
Discounts and promotions
Bulk discounts
Product recommendations
Partner programs
Discounts and promotions
In-app features and
recommendations
Business partnerships
Volume discounts
Exclusive products
Promotions and incentives
In-app features and
recommendations
OVERVIEW PROBLEM USER PERSONA SOLUTIONS GTM STRATEGY PRIORITIZE Metrics

PRIORITIZATION

RICE FRAMEWORK

REACH IMPACT CONFIDENCE EFFORT

SOLUTION (in %) (0-3) (in %) (0-3)
SCORE PRIORITY

FIT ASSESSMENT WITH BUYER

100 3 100 1 3 1
RECOMMENDATIONS

IMPROVED RETURN POLICY WITH OFFLINE

80 3 80 3 0.64 2
RETAILERS

VIRTUAL FITTING TOOLS USING AR AND AI 60 2 60 2 0.36 3

OVERVIEW PROBLEM USER PERSONA SOLUTIONS GTM STRATEGY PRIORITIZE Metrics

SUCCESS METRICS

North Star Metric

Order Return Rate (No. of return order in a month/No. of total order in a month), as it serves as the pivotal measure
reflecting the success of reducing returns and improving customer satisfaction in the online shopping experience

SOLUTION GOAL METRICS TO BE TRACKED

Fit Assessment with Buyer Reviews and Number/Quality of Reviews by Buyers

Minimize returns due to sizing issues, provide Number of Order Returns due to Size/Fit Issues
Personalized Recommendations
accurate size and fit guidance to users Average duration spent on the personalized product tab
Number of Orders Placed after Clicking on Recommendations

Optimize returns, reduce costs, enhance

Improved Return Policy in collaboration with satisfaction with quick refunds, increased No. of offline returns per month / No. of total returns per month
offline retailers footfall at offline stores through Customer Satisfaction Score (CSAT)
collaboration.

Enhance user confidence in online shopping by AR Adoption Rate, Frequency of AR Tool Usage
Virtual Fitting tools using Augmented reality and providing an accurate virtual fitting experience, Increase in AOV with AR Usage
Artificial intelligence reducing returns due to uncertainty in product fit Return Reduction through AR Implementation
and appearance. User Feedback on AR Experience, Fit Confidence Level