"Grozd" develops best international E-commerce and delivery practices in the local market

Consumer experience is gradually becoming the fifth "P" of the marketing mix. Today, it's hard to overestimate the role of positive CX in strategic business development. COVID-19 has dealt a serious blow to many market players. Only companies that have improved the customer experience and staked on E-commerce, were able to quickly and painlessly adapt to the new conditions. As did the Saratov grocery store chain called "Grozd", introducing e-commerce (grozd.ru) and express delivery. Odyssey became a partner in the implementation and development of the new service.

"Grozd" includes about 230 stores located in 25 cities of the Saratov region. The chain's assortment includes not only tens of thousands of suppliers' goods, but also about 200 products under its own brand "Taste of Life". The first important impetus for the creation of e-commerce and the introduction of own delivery for "Grozd" was the development of the coronavirus infection and the crisis caused by it. During the quarantine, customers adapted quickly enough to online shopping. Within a few months, a new sustainable shopping habit was formed - shopping online.

Consumer flexibility, the understanding that online shopping can save time, became the next reason for "Grozd" to implement and develop the new sales channel. "Grozd" is not the only grocery store chain that decided to expand the set of sales formats offered to the customer. Large federal players, having ambitions and resources, also began to develop online locally. "Grozd" was not ready to give its competitors the lion's share of the market, and this was the decisive factor for the introduction of e-commerce and express delivery.

Project objectives

- To be the first in the region to meet the growing demand for the purchase of food products online;

- To compensate for the loss of revenue from declining traffic in stores due to online sales;

- To create a loyal customer base in the new channel of online sales;

- To take market share before competitors come;

- To compete effectively for customers.

Project statistics

- Online assortment continues to expand, which now includes more than 900 items;

- Delivery geography is developing;

- Order is fulfilled in less than 2 hours from the moment of placement, the plan is to speed up the process.

Odyssey provides the customer with expertise that goes far beyond the usual commitments to automate e-commerce processes. We not only give tools for e-commerce but also embed them into existing business processes, integrate them into the IT landscape, work out both the functional and marketing development of the tools - creating conditions for their effective use by the customer.

Project stages

MVP (minimum viable product) by Scrum was created in less than a month of work for the launch of a new e-commerce sales channel:

- Elaboration of business processes and architecture of e-commerce;

- Assortment management process;

- End-to-end order process (selection to cart, checkout, reservation of goods);

- Payment process; Kitting; Express delivery and self-delivery;

- Loading orders and payments into ERP system with generation of accounting entries;

- Customer and employee notification system;

- Integration with web analytics systems.

Ongoing development activities:

- Elaboration of digital development strategy for "Grozd";

- Uploading of promotional information from ERP system to the online store;

- Finalization of the desktop and mobile versions of the site in order to improve usability and increase site conversion;

- Development of API for completing orders via mobile devices;

- Elaboration and adjustment of advertising channels, lead generation and traffic analysis;

- Integration with loyalty system

- Issue virtual loyalty cards, payment by points;

- Mobile application for buyers.

At the first stage we developed a model of the end-to-end process of the online store. Then we discussed it with representatives of Grozd's management, detailing its appearance, outlining the infrastructure, determined how it could be deployed. After that, a basic set of tools and attributes for E-commerce was formed. In total, the range of the store initially included more than 500 products, including nomenclature items produced under Grozd`s own brand, Taste of Life.

Andrey Lezhnev, Odyssey Project Manager

Initially, the online payment format was chosen: since the launch of e-commerce had to be done in the shortest possible time, this format seemed to be the most optimal.

It was also decided to connect Yandex.Kassa. Even at the first stage, it was decided to conduct a pilot launch of delivery to several stores. After field testing the system, it was possible to draw certain conclusions and eliminate the shortcomings identified so that the scaling of the project would be as painless as possible.

No E-commerce - no future

The idea of delivery, and even more so the implementation of this idea within the region, is quite revolutionary. The online store was launched in a month. In addition, the concept of maximizing the use of existing systems and resources while minimizing costs was defined. Odyssey understood the seriousness of the conditions and suggested the fastest and best solution. Grozd's existing functional GrandNode platform was taken as the basis. The main drivers of the project were: cost minimization - working with the existing infrastructure resources, high speed, support, ownership, proactivity.

P.S. + CX Large

FMCG retailers were trying to create an omni-channel shopping experience even before the pandemic. Even in "quiet" times, it was obvious to many progressive companies that the boundaries between online and offline shopping were becoming less and less distinguishable. Single assortment, loyalty program, click & collect service, reduction of delivery time and other initiatives actively contributed to the penetration of FMCG online commerce into the lives of consumers. COVID-19 was just the catalyst for implementing change. A new Nielsen survey conducted in late April found that 97% of FMCG and retail executives surveyed agreed that online commerce will require more, or at least as much, attention as it did before the massive spread of the coronavirus. Sixty-two percent of manufacturers and 85% of retailers agreed that investment in online commerce should increase over the next year.

The trend toward online shopping will continue to gain momentum. After the period of self-isolation is over, the FMCG market online shopping will establish itself at a new level, so it is important for companies to use the current situation to finally build the loyalty of those consumers who have used such services for the first time, and to ensure a place under the market sun for many years.

It is due to better conditions of online shopping, delivery and service that a positive customer experience will continue to be formed. FMCG marketers need to develop a detailed CX strategy that will enable them to:

- Understand the customer better than the competition.

- Create a personalized, data-driven experience.

- Build a company culture where every employee understands how their decisions impact the customer experience.

Grozd didn't just implement e-commerce and convenient delivery terms, but also defined a level of service unique to the local consumer. And once again it proved a simple truth: in difficulties lie opportunities.