Paytm - From Offering Change to Changing the Offering


Today’s brew is for Paytm,
Brew Date: 1st June 2015
Type: Served Hot – Redefine and Transform brew.


To understand the business model of Paytm, check out the following links:
  
The Brew will analyze Paytm on the following points:
a) Business Analysis
b) Improvisation to Business Strategy (Not required, the frameworks are all laid in the Business Analysis part)

a) Business Analysis:
Paytm is India’s largest mobile commerce platform. Paytm started by offering mobile recharge and utility bill payments and today it offers a full marketplace to consumers on its mobile apps.

By the progressions of Paytm from being a Mobile/DTH recharge offerings firm to a full fledge M – Commerce firm with an end-to-end platform enablement, Paytm has clearly figured out the spot where it wants to play, and with its competence of Technology combined with the driving principles of User Experience along with Simplicity of Use.

1) The Brew insists that Paytm keeps its Emphasis on being a Technology company driven by the principles of User Experience and Simplicity, with current offerings in Mobile Commerce space rather than understanding itself as an M-Commerce Company. This understanding forms the Competence of the Firm along with Strategy of driving M-Commerce more acceptable, accessible and reachable to the Consumers.

In having this direction, 2 things get aligned to the Paytm Competence: It can be a Platform model extending its reach to the larger base of folks and its focus on Tech + Consumer Experience + Simplicity will essentially keep the innovation model at the heart of the company. A no-brainer, given that most of the companies is able to differentiate in the market and marketplace model.

2) Given the principles of success for Paytm, to have an impact on the Indian Consumerism chapter, Paytm will have to replicate the Entire Process and Value Chain for all Stakeholders (Consumer, Seller, Logistics, etc.).

For Consumers, it will be setting up an end to end Virtual Consumer Solutions platform – Engaging with Consumers on their needs with Combination of Communication tools + Marketplace + Payment + Logistics + After Sales + User Review & Social Chain. The pivot here is that Paytm is not just a M-Commerce site, it is an Consumer Solutions firm which proactively engages with the Consumers through Chat, Call etc functionality, understanding their needs and then proposes the Solutions realizing Consumer’s fulfillment of needs and satisfaction.

For Sellers, it will be setting up an end-to-end procurement – Selling Solutions – logistics value chain, which can intelligently help them with profitability, revenue

3) Reviewing is the new currency and reputation: Given that all players are offering commoditized services, Paytm has a huge scope to disrupt the way the game is played and perceived. In this era of Connectedness, Convenience, and Value premise, Paytm with its offerings of Communication, User Reviews, and Value premise have potential to set up new parameters of decision making and buying.
The parameters on Communication can be earliest time to responsive along with relevancy, leading to faster consumer decision-making process.

Developing a New measure, which parameterizes User Buying behavior in the context of Convenience, Utility, Connectedness, and Experience will be key.

This currency can be expanded to both dimensions, Products and Services, thus incorporating and integrating Paytm solutions in the user behavior and decision making process seamlessly while adding further value.

4) Offering Other Solutions as a Stand Alone plug and play Platform:
Bcos Paytm has an end to end Commerce Solution built it makes sense in Establishing itself as a Platform for Consumer Solutions as well as Fulfillment player garners it a larger user base to experience its services but as well offerings developing and offerings its standalone individual solutions will be a key to differentiate and drive the user experience. The aim is to be present holistically and as well as in plug and play standalone setup to derive the user experience and engagement.

Precisely, A Person / User / Entity can still be a Paytm Consumer by not being Paytm Customer, similarly, holds true for all the stakeholders.

5) Enabling Local Discovery, Interests driven intelligent platforms: Needless to put, for a company, which intends to disrupt the consumerism chapter by offering tech solutions, Paytm will have to focus on intelligent Local discovery mechanisms, Auto generation of User’s Personalised preferences.
     
6) Driving Consumer Experience will be the key to building up
Though covered in detail in point 2, just wanted to re-emphasize if we have not forgotten the basic principles while reaching till this point. Driving a great Consumer experience will be a key, and this needs to be attained by not offering Tech Competence, but by disrupting the entire Need value chain, right from Need Trigger / Need Generation / or its Identification to the Fulfillment of the Need along with Satisfaction and Contentment.

7) Establishing Competence in every part of the Value Chain leading to a Great Consumer experience.
Paytm is an End to End Commerce Solutions Company having its Solutions in Payment, Seller Ecosystem of setting virtual store and marketplace etc, establishing individual competence of User Experience along with value and utility will be a key and part to design a Holistic solution to Consumer Need Value Chain solution.

8) Making the Virtual Shopping experience Social while decision-making (both, Pre and Post), Real Time Fulfillment of needs, Proactive Need Identification and offering Consumer Solutions will be key to disrupt the Indian Consumerism story along with enhancement of the user base.

9) Convergence of Local factors and virtual factors,
Bcos Paytm is an end-to-end commerce enablement solutions firm, Paytm should as well focus on being present in some part of the Fulfillment value chain if not entirely. For example, in services, the payment, the user review can happen on platform whereas rest of the things is physical.

Conclusively, The Brew recommends Paytm to not just be a Mobile Commerce Marketplace company but to be a Platform based Consumer Solutions Company enabling M – Commerce.

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