How to Stop Losing Customers to Quick-Commerce Apps?

Rajesh's problem is not unique. Many kirana store owners in India are facing the same challenge. They are struggling to keep up with the changing consumer behavior and the rise of quick-commerce apps. According to a recent survey, over 70% of kirana store owners in Tier 2 and Tier 3 cities have reported a decline in sales due to the competition from quick-commerce apps. The survey also found that the main reason for this decline is the lack of a systematic approach to customer retention and follow-up.

Rajesh's store has around 500 regular customers, and he used to see them at least once a month. However, over the past few months, he has noticed that many of them have stopped coming to his store. He has tried to reach out to them through phone calls and WhatsApp messages, but it's becoming increasingly difficult to keep track of who needs to be reminded and when. Rajesh estimates that he is losing around ₹10,000 per month due to the decline in sales. This is a significant amount for a small business like his, and he needs to find a way to stop the bleeding.

The problem of customer retention and follow-up is not just about losing sales; it's also about the time and effort that Rajesh has to put in to manage his customer relationships. He spends around 2 hours every day making phone calls and sending WhatsApp messages to his customers. This is time that he could be spending on other aspects of his business, such as managing his inventory or improving his store's operations.

Managing customer retention and follow-up can be a daunting task for kirana store owners. However, there are some practical steps that they can take to improve their customer relationships. Here are some steps that Rajesh can take today:

1. Keep a notebook: Rajesh can keep a notebook to track his customers' purchases and remind them when they need to restock. This can be a simple and effective way to manage his customer relationships.
2. Use Excel: Rajesh can use Excel to create a spreadsheet that tracks his customers' purchases and reminds him when they need to be followed up. This can be a more efficient way to manage his customer relationships than using a notebook.
3. Create WhatsApp groups: Rajesh can create WhatsApp groups for his customers and send them reminders and updates about his store. This can be a convenient way to communicate with his customers and keep them informed about his store's offerings.
4. Make phone calls: Rajesh can make phone calls to his customers to remind them when they need to restock. This can be a personal and effective way to communicate with his customers.
5. Offer loyalty programs: Rajesh can offer loyalty programs to his customers to incentivize them to continue shopping at his store. This can be a effective way to retain his customers and encourage them to come back to his store.

However, these methods have their limitations. Keeping a notebook or using Excel can be time-consuming and prone to errors. Creating WhatsApp groups can be inconvenient for customers who may not want to receive messages from Rajesh's store. Making phone calls can be time-consuming and may not be effective for customers who do not answer their phones. Offering loyalty programs can be expensive and may not be effective for customers who are not loyal to Rajesh's store.

As a kirana store owner, Rajesh also needs to comply with GST regulations. He needs to ensure that he is charging the correct GST rate for his products and keeping accurate records of his sales. For example, he needs to charge 0% GST for unbranded, loose food staples like rice and wheat, and 5% GST for branded and pre-packaged staples. He also needs to keep accurate records of his sales to ensure that he is complying with GST regulations.