Boost Customer Retention: Learn from....

a brand ruling online eyewear shopping

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Hey there ๐Ÿ–

A few days back, one of my cousins wore glasses she didn't own before - she glued herself to a laptop at home and did no shopping in the bazaar. Confused about how she got those, I asked if they belonged to someone else in the house. 

Believe me! I was shocked at the answer I got - an answer not through words, but she showed me practically how to get them online ๐Ÿ˜ฎ

And that's when I understood how everyone around me in the college looked so stylish ๐Ÿ˜ with those designer-styled glasses on because I went through every available shop in the town but couldn't find such ones. 

Let me tell you, though glasses were different, one thing that stayed common in all these people's purchases was the platform they got it from, Lenskart ๐Ÿค”

Not just these people I know, but the whole of India is purchasing glasses from the same platform. So, what did Lenskart do to attract that large audience? Let's find it out. 

Key Takeaways for PMs [Lenskart]

  • Leverage User Research: Deeply understand customer pain points and preferences to drive product innovation.

  • Prioritize Features Strategically: Focus on critical features that address core user needs directly for maximum impact.

  • Utilize Cutting-Edge Technology: Implement advanced tools like AR and AI to enhance the user experience and differentiate your product.

  • Iterate Based on Feedback: Continuously gather and act on user feedback to refine and improve the product.

  • Optimize User Journey: Ensure a seamless and engaging user journey from discovery to post-purchase to improve customer satisfaction and retention.

Source: Business Today

Lenskart is an innovative online eyewear retailer that offers a wide range of products, including prescription glasses, sunglasses, and contact lenses.

Its core functionality is about providing an online shopping experience through advanced features like virtual try-on technology and AI-driven personalized recommendations. 

These features allow customers to visualize how different frames will look on their faces and receive tailored suggestions based on their choices. The target audience for Lenskart includes individuals who need vision correction or desire fashionable eyewear. 

It includes a broad demographic range, from young professionals seeking trendy frames to older adults needing reliable prescription lenses, and addresses several problems in the traditional eyewear shopping experience:

  • Limited Choices: Physical stores often offer a limited selection of frames.

  • Inconvenience: Visiting multiple stores to find the right pair can be time-consuming.

  • Uncertainty with Online Shopping: Customers are often unsure if the frames they select online will suit them.

These challenges Lenskart aimed to solve were improving customer acquisition and retention by improving the online shopping experience. The desired outcomes included increasing user engagement, reducing return rates, and boosting overall customer satisfaction and loyalty. 

By integrating technology and user-centric design, Lenskart sought to transform the eyewear shopping journey, making it more convenient, personalized, and enjoyable.

So, let's see how Lenskart became a thought leader in the eyewear industry, especially what it did to become what it is today. 

Understanding the Problem

Specific Problem Addressed

Lenskart identified that traditional eyewear shopping was inconvenient and often frustrating for customers. Common issues included:

  • Limited Choices: Brick-and-mortar stores often have a limited range of products.

  • Time-Consuming: Visiting physical stores takes time and effort.

  • Uncertainty in Online Shopping: Customers hesitated to buy eyewear online without trying it on.

User Research Insights

Lenskart conducted extensive user research to understand these pain points better. The research methods included:

  • Surveys and Questionnaires: The team surveyed over 10,000 customers to gather data on their shopping experiences.

  • Focus Groups: Small groups of customers provided in-depth feedback on their needs and challenges.

  • Customer Interviews: One-on-one interviews were conducted with frequent eyewear buyers to understand their expectations.

What Problems Did Lenskart Identify?

From conducting extensive research in the market, here are a few issues but crucial that Lenskart found:

Pain Points Identified

  • Difficulty in Selecting Frames: 65% of customers found it hard online to choose frames that suit their faces.

  • Lengthy Return Process: 45% were dissatisfied with the cumbersome return process for unsuitable products.

  • Lack of Personalization: 55% of users wanted personalized recommendations but did not receive them.

Lenskart analyzed the broader eyewear market to stay competitive. Key trends included:

  • Growth in Online Shopping: The global online eyewear market might grow at a CAGR of 7.6% from 2020 to 2025.

  • Demand for AR Technology: Virtual try-on features were becoming popular among competitors.

  • Increased Competition: Major players like Warby Parker and Zenni Optical were investing heavily in online experiences.

Quantifying the Impact

To quantify the impact of these problems:

  • Customer Churn Rate: Lenskart noticed a churn rate of 30% among new users due to dissatisfaction.

  • Lost Revenue: Estimated annual revenue loss of $2 million due to unsatisfied customers not returning.

  • Return Rates: 20% of online purchases were coming back, adding to operational costs.

Lenskart aimed to significantly improve customer acquisition and retention by focusing on these areas. 

Developing the Solution

Source: MOSIAC Lille

Ideation

  • Brainstorming Sessions: Lenskart organized multiple brainstorming sessions with cross-functional teams, including product managers, designers, engineers, and customer service representatives.

  • User Research Insights: The ideas were grounded in user feedback from surveys, focus groups, and interviews. For example, users expressed a need for virtual try-on technology to reduce uncertainty.

  • Competitive Analysis: Lenskart also examined successful features from competitors like Warby Parker's Home Try-On program and integrated similar yet improved features.

Prioritization

  • Critical Features Identification: The team used the MoSCoW method (Must have, Should have, Could have, Won't have) to prioritize features.

  • Virtual Try-On Technology: Essential to allow users to see how frames look on their faces.

  • Personalized Recommendations: AI-driven suggestions based on user preferences and facial recognition.

  • Streamlined Return Process: Simplified return procedures to enhance customer satisfaction.

  • Impact vs. Effort Matrix: Features were evaluated based on their potential impact on user satisfaction and the effort required to implement them.

User Journey Mapping

  • Awareness Stage: Users discovered Lenskart through ads or word of mouth.

  • Consideration Stage: Users explored the product catalogue and used the virtual try-on feature.

  • Decision Stage: Users received personalized recommendations and made a purchase.

  • Post-Purchase Stage: Users effortlessly managed returns if needed and received follow-up support.

  • Identifying Pain Points: The journey map highlighted potential friction points, such as difficulties in navigating the website or understanding the return process.

Minimum Viable Product (MVP)

  • Virtual Try-On: Implemented try-on option using augmented reality (AR) technology.

  • AI-Powered Recommendations: Used a basic algorithm to suggest frames based on user data.

  • Simplified Checkout and Return: Built an easy-to-use interface for purchasing and returning products.

  • Early Feedback: Released to a small user group to gather initial feedback, following up with metrics like user engagement, satisfaction scores, and return rates.

Key Product Features and Functionalities

Source: LinkedIn

Virtual Try-On Technology

  • AR Integration: Users can see how different frames look on their faces in real-time.

  • User Feedback: Reduced uncertainty and improved confidence in purchasing decisions.

Personalized Recommendations

  • AI Algorithms: Analyzes user preferences, past purchases, and facial features.

  • User Satisfaction: Enhanced shopping experience by providing tailored suggestions.

Streamlined Return Process

  • Easy Returns: Simplified process with clear instructions and pre-paid return labels.

  • User Convenience: Addressed the pain point of lengthy and cumbersome return procedures.

Extensive Product Catalog

  • Wide Range of Options: Varied styles, colours, and price points to cater to different tastes and budgets.

  • Enhanced User Experience: Users appreciated the vast selection, which made finding the right pair easier.

Lenskart effectively addressed the core issues identified through user research by following a structured product development process. This approach ensured that the developed solution met user needs and positioned Lenskart competitively in the online eyewear market.

Implementing the Solution

Source: Bril Mindz

Product Development Timeline

Month 1-2: Research and Planning

- Conducted user research and competitive analysis.
- Finalized feature prioritization and project scope.
- Mapped user journeys and created initial wireframes.

Month 3-4: Development of MVP

- Built the virtual try-on feature using AR technology.
- Developed AI algorithms for personalized recommendations.
- Designed the user interface and user experience (UI/UX).
- Integrated a simplified return process.

Month 5: Internal Testing and Iteration

- Conducted internal testing with employees and a small group of beta users.
- Collected feedback and made necessary adjustments to the MVP.

Month 6: Soft Launch

- Launched the MVP to a broader audience.
- Monitored metrics such as user engagement, satisfaction, and return rates.
- Gathered extensive user feedback for further improvements.

Month 7-8: Full Launch and Optimization

- Rolled out the finalized product to all users.
- Continued to optimize ongoing user feedback and data analysis.

Technology Stack and Tools

Frontend Development

  • Frameworks: React.js for the web app, React Native for the mobile app.

  • Tools: Adobe XD and Figma for design and prototyping.

Backend Development

  • Frameworks: Node.js and Express.js for building server-side applications.

  • Database: MongoDB for managing user data and product catalogues.

Augmented Reality (AR)

  • Technology: ARKit for iOS and ARCore for Android to implement virtual try-on features.

  • Libraries: Three.js for 3D graphics.

AI and Machine Learning

  • Frameworks: TensorFlow and Scikit-learn for developing suggestion algorithms.

  • Tools: Python for scripting and data analysis.

Team Structure and Roles

  • Product Managers: Responsible for overseeing the project, setting goals, and ensuring alignment with business objectives.

  • Designers: Handled UI/UX design, user journey mapping, and creating wireframes and prototypes.

  • Frontend Developers: Focused on building the user interface for web and mobile.

  • Backend Developers: Managed server-side logic, databases, and API integration.

  • AR Specialists: Implemented the virtual try-on feature using AR technologies.

  • Data Scientists: Developed and refined AI algorithms for personalized recommendations.

Challenges and Solutions

  • Technical Complexity: Integrating AR technology and AI algorithms posed significant technical challenges. Solution: Dedicated a specialized team for AR and AI development, ensured thorough testing and iterated based on feedback.

  • User Experience Consistency: Ensuring a seamless experience across web and mobile platforms. Solution: Conducted extensive cross-platform testing and utilized design tools to maintain a consistent look and feel.

  • Scalability: Building a system that could handle increased user traffic and data processing. Solution: Used scalable technologies like Node.js and MongoDB and implemented load balancing and caching strategies.

Lenskart successfully launched a product that addressed user needs and positioned itself in the online eyewear market by planning and executing the implementation phase.

Results & Learnings

Source: Lenskart

Key Metrics Used to Measure Success

User Adoption

  • Metric: Number of new users signing up on the platform.

  • Result: A 25% increase in user sign-ups within the first three months post-launch.

User Engagement

  • Metric: Time spent on site and frequency of feature use.

  • Result: Average session duration increased by 40%, with 60% of users utilizing the virtual try-on feature.

Conversion Rates

  • Metric: Percentage of users purchasing using the platform.

  • Result: Conversion rate improved from 8% to 15%.

Customer Retention

  • Metric: Repeat purchase rate.

  • Result: 20% increase in repeat purchases.

Quantifying the Positive Impact

  • Monthly revenue increased by 30% within the first six months.

  • Data: Return rates dropped from 20% to 12%.

  • Net Promoter Score (NPS) improved from 50 to 70.

Unexpected Results and Learnings

Increased Mobile Usage

  • Observation: Mobile app usage surged by 50%, highlighting the importance of a seamless mobile experience.

  • Learning: Focused more resources on optimizing the mobile platform and adding mobile-specific features.

AI Recommendations Popularity

  • Observation: Users heavily relied on AI-driven suggestions, with 70% of purchases influenced by these recommendations.

  • Learning: Improved AI algorithms further to improve accuracy and user satisfaction.

Demand for More AR Features

  • Observation: Users expressed interest in additional AR functionalities, such as virtual adjustments for fit.

  • Learning: Began exploring advanced AR features to further enhance the virtual try-on experience.

Continuous iteration based on unexpected findings ensured that Lenskart remained responsive to user needs and market trends, thickening its position as a leader in the online eyewear industry.

Conclusion

Lenskart addressed significant challenges in the eyewear shopping experience by leveraging cutting-edge technology and a user-focused approach. '

Through detailed user research, innovative solutions like virtual try-on technology, and personalized recommendations, Lenskart significantly improved customer acquisition and retention. 

Key metrics showed increased user engagement, higher conversion rates, and improved customer satisfaction.

Moving forward, Lenskart plans to continue refining its features and expanding its offerings to maintain its leadership in the online eyewear market, ensuring it consistently meets and exceeds customer expectations.

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