Group Project Report

CASHIFY

Under the Guidance of: Prof. Dhruv Nath

Authors: Section – B | Group 2

Udit Bansal 17P055

Nirav Devpura 17P152
Shivali Unishree 17P165
Swayamsiddha 17P174
Thacker Kaushik Khushabhai 17P176
Ravi Tanna 17P179

Submitted in partial fulfilment for the PGPM in the subject of

CRM
October 2018

1|P a g e CRM
Table of Contents

1. About Cashify ......................................................................................................................................................3

2. Cashify’s Business Model ...................................................................................................................................4

2.1 Re-Commerce Industry Overview .......................................................................................................................5

2.2 How is Reverse Commerce Better than Online Classifieds? ..............................................................................6

2.3 Benefits of Re-Commerce Model ..........................................................................................................................7

3. The Current Scenario .........................................................................................................................................9

3.1 SWOT Analysis ......................................................................................................................................................9

3.2 Cashify’s Market ................................................................................................................................................. 10

4. Primary Research ............................................................................................................................................. 11

5. Gaps Identified - Challenges ............................................................................................................................ 13

6. Solutions............................................................................................................................................................. 14

7. References .......................................................................................................................................................... 17

2|P a g e CRM
1. About Cashify
Cashify provides an online platform for re-selling electronic gadgets intended to offer a stress-free
experience to sell old gadgets. The Company's gadget re-selling platform helps users to calculate
the current worth of their electronic gadget by studying elements such as model number, defects
in the device and physical condition, providing them with a platform to sell their old device.

Cashify’s mission is to transform the way people sell their old gadgets online. They help you
unlock the highest price for your old gadget with the least amount of effort. Through their localized
network of professional buyers across the country, they make sure you are able to sell your old or
used gadgets in the fastest way possible and get the best customer experience, with the below
mentioned benefits -

• Get Instant Price Quote

• Assured Sale Guaranteed

• Assured Hassle-Free Experience

• Privacy of Information

• Free Device Pick-Up

• Instant Cash Delivered at Your Doorstep

3|P a g e CRM
2. Cashify’s Business Model
Cashify generates the best price for your used smartphone based on certain parameters such as the
model number of the phone, maker of the smartphone, screen condition and several other factors
to generate a computerised version of the best price available.

This customer simply has to go to Cashify’s website, click on the mobile section, select the brand,
select the variant and answer a few questions about the condition of the device. That isit. After that
Cashify will generate its price tag and home-deliver the cash to you so that you do not have to
move anywhere.

It is quite clear that Cashify as an option is very easy and convenient for those trying to sell their
old smartphone. There are no loopholes or conditions regarding the price that is generated for your
old smartphone and it is also the best in the business so you need not worry about anything.

4|P a g e CRM
2.1 Re-Commerce Industry Overview

Re-commerce companies actually buy the obsolete and undesired products, refurbish them, and
reintroduce them in the market.

These companies have set standards for pricing and have designed software to determine product
prices based on set metrics like age, wear and tear and market demand. The development of
technology has resulted in decrease in the shelf life of many goods. To counter this, and to make
profits through an entirely different business model, Reverse commerce model was introduced.

Reverse Marketplace is nothing but an online marketplace to sell old goods.

• $ 3 Billion Second Hand smartphone market

• Re-Commerce industry to grow at 35%
• 6-12 months is the time people are taking nowadays to change their smartphones
• 95% Unorganized trade – Huge Potential
• Metro cities are major users of Re-Commerce
• Logistics and Sourcing of products is a major concern
(Source: ReGlobe Founder Nakul Kumar)

These companies –

• Collect the obsolete and undesired products from the users and companies, and
returned goods from e-commerce portals. (Products may or may not contain any
defects)
• Sort them
• Repair them
• Repack them
• Make sure that these products work properly
• Sell them on Reverse Marketplaces or to the companies directly

5|P a g e CRM
2.2 How is Reverse Commerce Better than Online
Classifieds?
Re-Commerce business model has an upper hand over online classifieds (like Olx, Quikr, eBay,
etc.) as these companies actually buy the products of the users and not just provide a platform to
sell.

Online Classifieds don’t guarantee the sale of the products while Reverse commerce has well-
defined software to determine the price of the goods and guarantee the sale of the products around
that predetermined price.

These companies act as middlemen who purchase goods from you before selling they reach to the
ultimate user. Hence, privacy is maintained by keeping your personal details limited just to these
companies and not everyone.

Logistics costs are also supported by e-commerce companies.

6|P a g e CRM
2.3 Benefits of Re-Commerce Model
Re-commerce business model has a lot of benefits for the companies concerned and the users.

1. Guaranteed sale of used and obsolete products

Many users hesitate to buy expensive devices because of very less or no resale
opportunities. This new business model has guaranteed the sale of their used and
obsolete products and hence lured them to spend more and shift from online
classifieds to Re-Commerce Portals to sell their used devices.

2. Recycled goods at Reasonable Price

These companies usually provide B2B solutions to operators, retailers and

manufacturers or business-to-customer websites to final consumers who get these
goods at a reasonable price.

3. Less wastage of resources

Reusing of goods increases their total shelf life and result in less wastage of resources.

Cashify’s Competitors:

7|P a g e CRM
 • Gazelle: Gazelle is the leading e-commerce company that buys and sells pre-owned
consumer electronics
• uSell.com: uSell.com is a marketplace for used smartphones, tablets & other electronics
• InstaCash: InstaCash develops a re-commerce platform allowing users to sell used
smartphones
• Back Market: Back Market is an online retailer that provides refurbished mobiles,
desktops, laptops and tablets

8|P a g e CRM
3. The Current Scenario

3.1 SWOT Analysis

“Cashify offers consumers an online/ app platform to instantly encash any old /used gadgets
like smartphones, laptops etc. from the convenience of their doorstep”

Strengths:
• Haggle free, convenient & quick transactions
• Instant cash payments
• Free home pick up
• Unique Pricing Algorithm
• Wide dealer network

Weaknesses:
• No bargaining power to customers
• Selling of phones beyond repairs not allowed
• Feature of phone Diagnose not available

Opportunities:
• Start on demand back-up phone service
• Focus on Tier 2 and Tier 3 cities
• Spare part Market

Threats:
• Poaching of Customers by cashify’s sales executive
• Platforms like Amazon/Flipkart offering exchange offers
• Websites like Karma-Recycling recycling E-Waste

9|P a g e CRM
3.2 Cashify’s Market
• Major requests- Metro cities
• 50% requests cancellation
• *86% Conversion
• Average Response Time- 2-3 days

Source-Indian Business Report 2016

*As per the Cashify executive

Customer Segmentation:

1. Young & Middle-aged working population

2. Active users of Internet, aware about deals & discounts
3. Experiencers (VALS Segmentation)

10 | P a g e CRM
4. Primary Research

Reasons for not selling old phone/gadget

19% Don't want to lose data

30%
Not getting a good platform
20%
Not getting a good price
31%
Use old phone as backup phone

Reasons for not selling old phone/gadget

6%6% Don't sell

16% 44% Exchange programs by Amazon/Flipkart

Sell on classifieds like Olx/Quickr

28%
Sell in local market

Sell to cashify

Data Summary

Target Group Reviews:

Surbhi Sharma, NMIMS Student:
“But I have some old messages I have not deleted in my old phone. I don’t want to lose them. I just
like to scroll through them sometimes. Also, I won’t get more than a thousand rupees for it anyway.
Might as well, sell it“

Sharief Mastan, NITIE Student:

“I am curious about the margins the company is earning? Will I be able to get a better price if I
go directly to the dealer, since the company is also selling to the same dealer in the end.”

11 | P a g e CRM
Security Guard, MDI:
“My phone has become non- operational now but I believe the hardware parts can get me some
value”

Prof. Rajesh Pillania, MDI Gurgaon

“I occasionally need a back-up phone so even though I buy a phone twice a year, I like to keep
my old phones. But some of my old phones are not 4G enabled, but nobody wants to buy them
now.”

Please note that we are still in process of getting more reviews and we shall be
in position to give more thorough recommendation after more inputs from the
TG.

12 | P a g e CRM
5. Gaps Identified - Challenges
• Delayed Pick up – Cashify fulfils its pickup either using its own logistics team or through
3rd party logistics partners. In regions where it has a higher number of pick up partners as
compared to its own logistics team, complaints for delayed pickups received are higher.
• Cancellation by vendors – There are also instances where partner vendors cancel the
orders because of which there is a loss of leads.
• Hardware not listed – As per their analysis of reviews, users have complained of not all
models being listed on the platform. This leads to loss of opportunities for Cashify.
• Backup Phone: Cashify sales are directly affected because people usually keep their
phones as a backup
• No Option to Negotiate: Customer here can not negotiate the pricing. The current model
is such that it clearly gives out one clear pricing for the phones without physical
examination. It is given only on the basis of inputs selected by the customers.

13 | P a g e CRM
6. Solutions
1. Daily Logistics Dashboard – Develop a Daily Logistics Dashboard to monitor the
following:

a. Order pick up location (Pin Code)

b. Logistics partner location (Pin Code)
c. Logistics partner Name
d. Pick up personnel Name
e. Device Model
f. Time of the day
g. Day of the Week
h. Weather conditions

All of these are backed by certain hypothesis that had come up during a brainstorming
session. All these are factors of delay – whether it is a particular Logistics partner, a
location with difficult customers, some Pick up personnel or even the time of pick up and
the weather conditions – for example, regions with heavy rainfall could be a location for
frequent delays etc.

The above is also helpful for analysing cancellations.

The Daily level data can be rolled up into Weekly/Monthly reports.

2. Hardware listing – Hardware listing must be driven by demand of Models. Not all
Models should be accepted by Cashify. Only those for which the inventory can be
moved by Cashify.

Hence, the Demand and Supply has to be captured on an ongoing basis and reviewed on a
Monthly basis. User reviews can be analysed using Text analytics and a Monthly
Dashboard can be developed.

14 | P a g e CRM
 3. Failed Leads Ratio - In order to deal with the issue of exclusion of Cashify by the vendor
from the leads generated – we can track the number of failed leads on a real time basis for
every vendor. If the failed leads ratio is above a certain threshold value, Cashify can initiate
an investigation on the vendor to identify the reason of failure of these leads.

To track this ratio, the data has to be collected and analysed on a real-time basis by
Cashify’s system.

4. Develop a CRM system which will allow Customers to interact with the Cashify:
Focus Area:
a. Provide the option to quote price for the customer
b. Negotiation ability
i. The CRM shall allow customers to provide quotation for their mobile with
supportive screenshots and quotes from other legible sources
ii. This will ensure that the customer is not lost to a competition or to any
other medium
c. Predict the potential customer – Regain the customer
i. As we know the timing period for buying a new smartphone in India for
the customer is 6-12 months.
ii. Use analytics to again target such potential customers once they have
enrolled with Cashify
d. Data Warehouse design for analytics:
i. System should have a Datawarehouse which may consist following tables:
1. Dimensions:
a. Dim Customer
b. Dim Employees
c. Dim Time
d. Dim Region
e. Dim Quotations
f. Dim Products

15 | P a g e CRM
 g. Dim Payment
2. Fact:
a. Fact Sales
b. Fact Quotations

e. There are multiple benefits of this data warehouse:

i. Prediction of the upcoming requirement of Cashify from the same customer

ii. Prediction of quotations
iii. Accurate pricing based on competition quotations and condition of mobile
phones, etc.

7. Chatbot – Cashify can design and develop an in-house chatbot or partner with a service
provider to automate the interaction with customers. Few of the benefits of this solution
are -This chatbot service only allow the consumers to negotiate with Cashify and bring in
the much needed offline-like experience for consumers.
a. This tool will also help in reducing customer support costs and increase the
consumer engagement on the platform.
b. Chatbot conversations will provide a rich insight of the consumer’s mind, and can
help Cashify devise a wider product portfolio at varying price points.
c. It can also be used as marketing tool to send out personalized notifications and
increase user’s interest in Cashify

8. Penalise Order Cancellation

a. Partner vendors should be penalized every order cancelled by them for any
inappropriate reasons, and this cancellation amount can transfer in form of credits
or other marketing initiatives to bring back the lost potential customer.

16 | P a g e CRM
7. References
• https://www.owler.com/company/cashify
• https://craft.co/cashify/competitors?version=2&utm_expid=.23GKeaL4SUqHlOIzXV
C0sw.1&utm_referrer=https%3A%2F%2Fwww.google.co.in%2F
• https://www.cashify.in
• https://www.feedough.com/recommerce-business-model/

17 | P a g e CRM