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Teaching Note

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NYKAA: TIME TO REDEFINE CUSTOMER EXPERIENCE

Shailesh Pandey and Pooja Darda wrote this teaching note as an aid to instructors in the classroom use of the case Nykaa: Time to
Redefine Customer Experience, No. W34787. This teaching note should not be used in any way that would prejudice the future use
of the case.

This publication may not be transmitted, photocopied, digitized, or otherwise reproduced in any form or by any means without the
permission of the copyright holder. Reproduction of this material is not covered under authorization by any reproduction rights

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Copyright © 2024, Ivey Business School Foundation Version: 2024-04-19

SYNOPSIS
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Nykaa E-Retail Limited (Nykaa) has come a long way since its founding in 2012 by Falguni Nayar in
Mumbai, India, establishing itself as a prominent participant in the e-commerce and retail industry. Not
only has Nykaa revolutionized the field of online shopping in India for beauty and personal care products,
but it has also played an essential role in the development of an ecosystem within that field. Nykaa has
curated an offering of assorted beauty products spanning a variety of categories, including make-up,
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skincare, haircare, bath and body, fragrance, grooming equipment, personal care, and health and wellness.
The company offers an enormous selection of over 2,400 legitimate brands. Nykaa has been able to maintain
consistent growth because of its unrelenting concentration on the requirements of its customers and its close
working relationships with other companies. However, feedback and reviews from customers have
indicated a disconnect between client expectations and Nykaa’s performance. An increase in customer
complaints, encompassing technical issues and problems related to customer assistance, exchanges, returns,
and refunds—essentially, the entire customer experience—is revealing opportunities for improvement.
Nykaa’s leadership has expressed concern over the increasing number of incidents of consumer
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dissatisfaction, an issue that is coming to light amid an increasingly competitive digital landscape.

LEARNING OBJECTIVES

By working through the case, students can achieve the following objectives:

• Understand the growth drivers in the beauty and personal care industry.
•
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Understand and apply the customer buying behaviour model from an e-commerce perspective.
• Understand and analyze service quality by applying the gap model of service quality.
• Be able to apply the service recovery paradox.
• Analyze the role of technology in enhancing the customer experience.

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POSITION IN COURSE

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This case is suitable for graduate- and postgraduate-level courses on marketing management, customer
relationship management, and services marketing as well as for executive education programs in similar
areas. It is also suitable for covering the topics of customer engagement and experience management in
digital marketing courses and management development programs.

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RELEVANT READINGS

• A. Parasuraman, Valarie Zeithaml, and Leonard Berry, “A Conceptual Model of Service Quality,”
Journal of Marketing 49 (1985): 41–50.
• Celso Augusto De Matos, Jorge Luiz Henrique, and Carlos Alberto Vargas Rossi, “Service Recovery

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Paradox: A Meta-Analysis,” Journal of Service Research 10, no. 1 (2007): 60–77.
• Roger D. Blackwell, Paul W. Miniard, and James F. Engel, Consumer Behaviour, 9th ed. (Mason:
South-Western Thomas Learning, 2001), 23–36.

ASSIGNMENT QUESTIONS

1. What are the key drivers in the beauty and personal care industry in India?
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2. How does a customer make a purchase through e-commerce websites/apps?
3. What gaps exist between Nykaa customers’ expectations and their actual experiences while making
purchases online?
4. Considering Nykaa’s recent challenges, how can the company strategically utilize effective service
recovery techniques to not only address these issues but also turn dissatisfied customers into loyal
advocates for the brand?
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5. How can Nykaa leverage insights from the current landscape to position itself as the preferred choice
for customers in the years ahead?

TEACHING PLAN

This case is suitable for 90-minute class session, based on following suggested time allotments:
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Discussion Topic Time (minutes)

Introduction to the case 10
Key drivers in the beauty and personal care industry in India 10
Consumer buying behaviour from an e-commerce perspective 10
Gap model of service quality 20
Service recovery paradox 20
Role of technology in enhancing the customer experience 10
Wrap-up 10
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ANALYSIS

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1. What are the key drivers in the beauty and personal care industry in India?

The instructor can initiate a discussion on recent trends and key drivers in Indian e-commerce and then
summarize the discussion with the following points:

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Millennials and Gen Z

Gen Z, a generation that entered the world at the beginning of the digital age, accounts for about a quarter of
the world’s population and about a quarter of India’s total population.1 Most millennials (77 per cent) and Gen
Z (76 per cent of households) use the internet to shop for cosmetics and hygiene products. When it comes to
online purchases, millennials also have the greatest order frequency and annual expenditure rates.2

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Sustainability and Natural/Organic Ingredients

Concerns regarding the possible adverse consequences of using products that include a lot of chemicals are
driving consumers in the direction of natural and organic skin care products. Companies are utilizing plant
extracts and natural oils in order to provide chemical-free options that are appealing to consumers who are
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concerned about the environment.3

Male Grooming Products and Wellness

There has been a recent uptick in products aimed specifically towards men’s mental and emotional health,
reflecting a growing trend in male grooming. Brands are using new forms of marketing and packaging to
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reach men who are interested in preventative care.4

E-Commerce and Digital Engagement

The ability to reach and interact with customers is crucial, and here is where e-commerce, brand websites,
and social media play a role. Brands can attract new customers, improve relationships with existing ones,
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and maintain a competitive edge by leveraging digital platforms.5

1
[Link], “How Gen Z Is Changing the Indian Beauty Industry,” Times of India, June 22, 2021,
[Link]
industry/articleshow/[Link].
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2
Tony Scianna, “Millennials and Gen Z Generational Beauty Trends: NilesonIQ,” Global Cosmetics Industry, September 21,
2021, [Link]
beauty-trends-nielseniq.
3
Mani Singhal, “Trends Shaping the Future of the Indian Beauty and Personal Care Market,” [Link], The Economic Times,
August 23, 2022, [Link]
personal-care-market/5278.
4
“Top 5 Key Factors Driving Growth in the Personal Care Industry,” Revieve (blog), accessed May 5, 2022,
[Link]
5
Singhal, “Trends Shaping the Future.”

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Customization and Personalization

The beauty and personal care industry is driven by artificial intelligence (AI)-powered quizzes, and is
increasingly using testing methodologies to provide personalized product and service offers. Brands who
listen to their consumers and provide individualized service and wares see a rise in brand loyalty and
consumer happiness.6

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Ageless Beauty and Multigenerational Approach

Companies are expanding their product lines to meet the needs of both the growing millennial generation
and the dwindling baby boomer generation. Innovations to combat aging and solve a wider spectrum of
issues associated with aging are increasingly aimed at millennials.
Market Growth and Global Landscape

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Specifically, the cosmetics, skincare, personal care, and fragrances subsegments of the global beauty and
personal care industry are driving this expansion. Factors like e-commerce and rising consumer spending
are fuelling the rapid growth of this industry in India and other emerging countries.

Challenges of Access and Inclusivity

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While there has been market expansion, not all people can benefit from it; for example, many women still
don’t have easy access to cosmetics. Filling this void could enhance sales and exposure to new customers.

Market Size and Development of E-Commerce

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Projections indicate a considerable expansion in the market size of the online beauty and personal care
business in the coming years. Nykaa could improve the quality of its customer service and stay ahead of
the competition by adopting the following ideas. Nykaa could take a number of different approaches to its
product line, including maintaining an emphasis on natural and organic materials, specializing in male
grooming and wellness solutions, utilizing digital platforms to facilitate frictionless interaction with
customers, introducing personalization options, and considering the different needs of consumers across
generations. Nykaa can reach a wider audience and attract a more diverse clientele by focusing on
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accessibility and inclusion.

2. How does a customer make a purchase through e-commerce websites/apps?

To complete a transaction on an e-commerce site or mobile app, customers must follow a few simple steps.
We can evaluate this from Nykaa’s perspective using the consumer decision-making process of the
consumer buying behaviour model,7 which breaks down the buying process into many steps.
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6
Saumya Tewari, “Indian Beauty Consumers Are Highly Influenced by Digital, Says Report,” Mint, November 3, 2020,
[Link]
[Link].
7
Roger D. Blackwell, Paul W. Miniard, and James F. Engel, Consumer Behavior, 9th ed. (Mason: South-Western Thomas
Learning, 2001), 23–36.

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Problem Recognition

This stage of the buying process begins when a consumer recognizes a need or problem that can be solved
by a service or product available in a marketplace (whether online or offline). It could be because the
consumer is out of the product, wants to upgrade, or is responding to promotional offers.

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Targeted advertising, individualized suggestions, and the presentation of new products or trends are just a
few of the ways e-commerce platforms can help bring attention to issues. Customers’ past selections and
interests can be used to provide more personalized recommendations.

Information Search

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As soon as a need is identified, customers start looking for answers online. Customers can browse the online
storefront or mobile app, learn about products, and compare costs and options. In this phase, the customer
looks for answers both within themselves (via memory and experience) and without (through websites and
user reviews).

Customers can find a wealth of resources, including reviews and ratings, on e-commerce sites to help them
make purchasing decisions. Customers are able to make more informed purchases with the aid of in-depth
product descriptions, high-resolution photos, and reviews and ratings from other buyers. At this point,
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customers have access both to the website and products available for purchase—advantages for Nykaa—
and to the reviews of such products, which might lead them to switch to competitors’ websites/apps—a
disadvantage for Nykaa.

Evaluation of Alternatives
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In making their purchasing decisions, consumers consider a number of factors, including cost, quality,
features, and trust in the manufacturer or retailer. They may decide to buy only one or two items that they
know will satisfy all of their requirements. Using an online platform, customers can quickly and simply
compare products side by side, read reviews, and filter and sort products based on their preferences—all
from the comfort of their own home. Having access to a wealth of data simplifies the evaluating procedure.
At this stage, negative reviews can pose a problem for Nykaa (see Exhibit TN-1).
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At the evaluation of alternatives stage, the instructor can ask the class to develop a table outlining a set of
alternatives (see Exhibit TN-2); at this stage, customer reviews play a very important role for the customer.
Previous research has shown that 61 per cent of customers read reviews on websites. Furthermore,
historically, roughly 90 per cent of customers check reviews prior to making an online purchase. Customers
spent 31 per cent more on popular companies with generally positive evaluations than on brands receiving
mostly bad feedback.8 Poor customer service and negative reviews could hurt Nykaa’s chances of being
chosen by consumers among other options when making a purchasing decision.
Do

8
“How Ratings & Reviews Impact Cosmetic Brands & Top Beauty Trends,” Wonderflow, October 21, 2021,
[Link]

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Purchase Decision

At this stage, the customer has made their final decision and is adding the item to their virtual shopping
basket. The perceived value, accessibility, payment options, and promotions and discounts all play a role
in the final choice to buy a product.

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Online marketplaces provide customers with a wide range of payment methods, safe shopping carts, and
up-to-the-minute stock levels. Customers can buy with assurance due to the transparency of the product’s
availability and expected delivery date.

Post-Purchase Behaviour

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A customer’s evaluation of their purchase decision occurs post-transaction. Customer satisfaction is more
likely if the product does what it says it will do and lives up to its value proposition. However, discontent
is possible if there is even a slight difference between expectations and actual experience.

After making a purchase on an e-commerce platform, many buyers are asked to rate and review their
experience. Customers are more likely to be satisfied with a business if they read positive evaluations and
find it simple to request a refund or exchange.
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The buying experience on an e-commerce platform is streamlined and enjoyable because it takes advantage
of the way consumers make decisions. These platforms can successfully impact customer behaviour and
promote successful online transactions if they are familiar with and aligned with each stage of this paradigm.

3. What gaps exist between Nykaa customers’ expectations and their actual experiences while
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making purchases online?

After analyzing the consumer buying behaviour through e-commerce, the instructor should further initiate
a discussion on the different service gaps in Nykaa’s service delivery affecting service quality. The
instructor can refer to the article by Parasuraman, Zeithaml, and Berry, “A Conceptual Model of Service
Quality” (see Relevant Readings), for the analysis.9 Students should be further guided to give their insights
on strategies that Nykaa should pursue to bridge the gaps resulting from failures in customer service. Exhibit
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TN-3 outlines the gaps and the approaches Nykaa could take to close them.

4. Considering Nykaa's recent challenges, how can the company strategically utilize effective
service recovery techniques to not only address these issues but also turn dissatisfied
customers into loyal advocates for the brand?

It is recommended that the instructor facilitate a class discussion on customer service failures and urge
students to provide a suitable recovery strategy to ensure that customers do not defect from Nykaa and that
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they return to the portal to make future purchases. The instructor can introduce the service recovery paradox
during the discussion and highlight the importance of satisfying a dissatisfied customer, and then summarize
the discussion based on the issues highlighted in Nykaa’s case (see Exhibit TN-4).

9
A. Parasuraman, Valarie Zeithaml, and Leonard Berry, “A Conceptual Model of Service Quality,” Journal of Marketing 49
(1985): 41–50.

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In the event of a service outage, prompt service recovery measures are required, making the SRP’s existence
highly desirable.10

The service recovery paradox, as defined by McCollough and Bharadwaj, occurs when customers’ post-
failure expectations are higher than their pre-failure expectations. This is analogous to the company
proactively addressing potential sources of dissatisfaction before they arise so that it may better meet the

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needs of its clientele. However, even minor issues that go unaddressed by the company can drive clients
away and force them to look elsewhere for what they need.11

5. How can Nykaa leverage insights from the current landscape to position itself as the preferred
choice for customers in the years ahead?

The instructor can initiate a conversation about the breadth of current technical tendencies that aim to

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improve the client experience. With an increasing number of customers prioritizing individualized products,
the cosmetics and personal care sector has necessarily embraced technological advancements. More and
more people are opting for customized beauty products and spa services because they want results that are
tailored to their own needs.12 The following are some techniques Nykaa can use to identify and adapt to
future technological changes, improve the customer experience, and solve potential issues in e-commerce
especially in the beauty and personal care industry.
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Invest in Research and Development: Nykaa can invest in research and development projects that aim to
incorporate emerging technology into all stages of the consumer experience. AI, augmented reality, virtual
reality, and the Internet of Things are all examples of cutting-edge tech that Nykaa might look into for better
serving its customers.13

Smart Mirror Integration: Smart mirror technology could be useful in both brick-and-mortar stores and
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virtual marketplaces. Smart mirrors with high-definition cameras and AI capabilities can offer
instantaneous advice on skincare and make-up, improving the shopper’s overall experience.

Educating and Engaging Customers: Nykaa can educate its customers using cutting-edge tools. For
instance, it could provide a chatbot or virtual assistant beauty tutorials, skin analysis, and advice to increase
consumer engagement and product understanding.
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Review and Refinement: Collecting and acting upon client feedback is an ongoing process. Nykaa can
measure the success of technical solutions on a regular basis and tweak them as needed.

3D Printing and Customization: Nykaa cam explore the possibility of a 3D make-up printer for cosmetics,
and skincare items for individual use. Customization options for cosmetics could attract more buyers and
increase sales.
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10
Andreas Edström and Beatrice Nylander, “Where Service Recovery Meets Its Paradox: A Search for the Level of Service Recovery
Required for the Service Recovery Paradox to Occur in the Hotel Industry,” University of Gävle, accessed August 15, 2023.
11
“The Service Recovery Paradox,” MBA Knowledge Base, accessed January 25 2022, [Link]
management/the-service-recovery-paradox/.
12
Anagha R. Ratna, “How Beauty Industry Is Using Tech to Transform Experience,” [Link], May 19, 2023,
[Link]
13
Dr. Shilpa Nikam, “How Technology Is Seeping into the Future of the Beauty Industry?,” Times of India, February 16, 2023,
[Link]

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Improve the Capabilities of Virtual Try-Ons: Nykaa can invest in augmented reality and virtual reality to
let customers visually test out cosmetics and skincare items. Make-up application tutorials, skin type
analysis, and individualized product suggestions would all fall under this category.14

Natural Language Processing: Virtual try-on apps have effectively eliminated the need for brick-and-mortar
storefronts, but they have not yet proven adept at taking the place of experienced beauty consultants who

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interact with customers and make product recommendations. When it comes to capturing the proper
customer emotions and helping marketers adapt product offerings, natural language processing tools in
virtual try-on applications have taken over the role previously filled by beauty experts at the counter.15

Advanced Customer Relationship Management (CRM) Technologies: Companies are bolstering their CRM
skills and incorporating these into gadgets to match the progress made in the beauty tech sector. Smart
product searches and real-time order placement are made possible with the use of AI and machine learning

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in today’s modern CRM platforms. Nykaa can think along these lines for determining what will enhance
the customer relationship and solving the issue of customer complaints and dissatisfaction.

WHAT HAPPENED

Nykaa has partnered with [Link] as a technology provider to enhance its customers’ shopping experience
and encourage repeat business.16 By partnering with [Link], Nykaa is now equipped to employ bot-
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qualified queries to address common customer service concerns, including order cancellations, returns,
shipping questions, replacements, refunds, and payment problems. Nykaa was able to swap software systems
(including ticketing software, CRM, and more) with minimal disruption because of [Link]’s extensive
collection of integration possibilities. Both traditional machine learning principles and more recent deep
learning approaches were used in creating [Link]’s automation and natural language understanding
modules.17 To provide its customers with the best possible service, Nykaa has teamed up with third-party
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logistics providers like Eshopbox to handle order fulfillment, which will be helping in live order-tracking
updates, inventory management and stock information, order accuracy, and other aspects.18
No
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14
Nikam, “How Technology Is Seeping.”
15
“New Technology Innovations Are Shaping the Beauty Industry,” Wipro, April 2022, [Link]
packaged-goods/new-technology-innovations-are-shaping-the-beauty-industry/.
16
Debolina Biswas, “With Nykaa as the First Client, This Startup Automates Customer Engagement for over 5K Businesses,”
Your Story, February 22, 2020, [Link]
17
Retail, “A Leading Indian Beauty Brand Automated Customer Support Using AI-Based Platform,” INDIAai, September 12,
2021, [Link]
18
Versha Kamwal, “Nykaa Fulfilment: Build Loyalty with Superior Beauty and Cosmetics Fulfilment,” Eshopbox (blog),
February 14, 2023, [Link]

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EXHIBIT TN-1: CONSUMER BUYING BEHAVIOUR PROCESS AT NYKAA

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• Can be triggered by low product supply
Problem • Desire for an upgrade
Recognition • Marketing incentives
• Targeted ads

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• Looking at new product categories

• Personal sources: This includes family, friends, neighbours

• Commercial sources: This includes advertising,
Information Search salespeople, dealers, packaging, display
• Public sources: This includes mass media, consumer

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rating organizations, websites
• Experimental sources: This includes handling, examining,
using

Evaluations • Cost, quality, features, trust, brand name

of • Side-by-side product comparison
Alternatives • Reading reviews
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• Filtering based on preferences
(see Exhibit TN-2)

Purchase Decision • Influenced by perceived value

• Availability
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• Payment options
• Promotions
• Peer recommendations
• Positive reviews

Post-Purchase • Customer satisfaction if product meets expectations

Behaviour • Submission of ratings and reviews
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• Positive reviews lead to satisfaction and loyalty

Source: Roger D. Blackwell, Paul W. Miniard, and James F. Engel, Consumer Behavior, 9th ed. (Mason: South-Western
Thomas Learning, 2001), 23–36.
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EXHIBIT TN-2: EVALUATIONS OF ALTERNATIVES

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• Sugar Cosmetics
• Lakmé
• Revlon
• Purplle
Complete Market Set • Nykaa

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All possible products/services • Nivea
that can satisfy need/problem
• Myntra (newly entered in BPC industry)
• Tira (newly entered in BPC industry)

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Awareness Set
• Sugar Cosmetics
All available alternatives
• Lakmé
emerge after search
• Revlon
• Purplle
• Nykaa
91% of customers
• Nivea
expect online delivery;
majority of customers go
for a repeat purchase if the
• Sugar Cosmetics
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customer experience is
Evoked Set • Lakmé positive19
Selected based on cost, quality, • Revlon
features, trust reviews • Purplle
Nykaa

(Maybe)
Lakmé
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Consideration Set If it works on addressing

Fit in the criteria to solve the (Hypothetical) customer reviews and the
problem customer experience
Based on customer
experience and customer
reviews

Note: BPC = beauty and personal care.

Source: Created by the case authors using Semaj Longbottom, pub., “Chapter 8 Decision Making,” Slide Player,
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[Link]
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19
“Five Consumer Trends Inspire Brand Innovation,” Insights in Marketing, accessed January 2023,
[Link]

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EXHIBIT TN-3: NYKAA SERVICE GAP MODEL DESCRIPTION

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Gap (Issues) Description Reasons Service Issue at Strategies to Overcome Gaps
Nykaa
The Knowledge Difference between Insufficient marketing Customers’ opinions Nykaa’s management should do research to better understand client expectations
Gap customer’s expected research of Nykaa's products and analyze customer reviews.
service from Nykaa Inadequate upward and services It should examine complaints.
and management communication suffered when they Nykaa should reduce the levels between the staff members who deal with consumer
perceptions Too many tiers of received damaged contact and management, and improve upward communication.
management or expired goods.
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The Standard The way that Lack of management’s Customers were From the perspective of the client, Nykaa’s top management should consistently
Gap management commitment to service dissatisfied since demonstrate devotion to quality.
interprets the level quality their experiences Nykaa’s middle management should establish, convey, and uphold standards for their
of service that Employee perceptions during delivery did divisions’ customer-focused services.
customers want and of infeasibility not match their The staff should receive training from Nykaa on the abilities that will help them
how that is Inadequate goal setting expectations. provide superior service.
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translated to service Inadequate task Nykaa should be open to trying out different business models that can help it get past
procedures and standardization obstacles to providing high-quality services.
service To provide prompt customer service, it should make sure that repetitive operations
specifications are standardized with the use of technology.
To ensure that workers prioritize their tasks, it should make the key results areas
(KRAs) clear to them.
Nykaa needs to evaluate how well the staff is performing and give regular feedback.
The Delivery Disparity between Technical breakdowns Customers had To contribute to customer satisfaction, Nykaa should make sure that workers are
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Gap service quality or malfunctions hoped for seamless clear on the roles they play and the KRA attributed thereto.
specifications and Role conflict and dependable Nykaa should use creative methods for hiring, selecting, and keeping employees in
the services actually Lack of perceived interactions online, order to draw in the best talent in the sector. In addition to giving employees the
provided control but encountered technical training they need to complete their assigned tasks successfully, Nykaa
Poor employee–job fit technological issues should also train them in interpersonal skills. This is especially important when
Poor technology fit that dampened their dealing with customers. Employees should be taught about customer expectations,

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Poor supervision or experience. perceptions, problems, and priority setting in addition to time management and
training process standardization.
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By promoting teamwork and giving them more leeway, especially when interacting
with clients, Nykaa could empower the managers and staff.
The The inconsistency Lack of horizontal Customers were left To build ties between sales/marketing, operations, and human resource departments,
Communication between how communication frustrated by Nykaa should create internal educational, motivating, and promotional initiatives.
Gap services are Lack of communication Nykaa’s poor Before clients see the advertisements, Nykaa’s sales, marketing, and operations
delivered and how with advertising agency communication teams should examine them.
clients are informed Inadequate regarding the status Nykaa needs to determine the uncontrolled causes of poor service performance and
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communication of their orders and make sure that services are provided at the same standards everywhere.
between sales and any delays they may By promoting teamwork and giving them more leeway, especially when interacting
operations departments have encountered. with clients, Nykaa could empower the managers and staff.
Differences in policies
and procedures across
branches/divisions
Propensity to
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overpromise t

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EXHIBIT TN-3 (CONTINUED)

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Gap Description Reasons Service Issue at Nykaa Strategies to Overcome Gaps
(Issues)
The The difference Extent of this gap All the above issues and, Customers’ expectations can be managed if Nykaa is transparent about
Customer between customer depends upon other finally, the response from what can and cannot be done.
Gap expectations and gaps listed above Nykaa In the event of a service breakdown, Nykaa should analyze all consumer
perceptions Customers expected input from all channels and act swiftly, rewarding good teamwork and giving
efficient and helpful employees more leeway in their interactions with customers.
customer support, but
encountered difficulties in
No
getting proper assistance
or resolutions.

Source: A. Parasuraman, Valarie Zeithaml, and Leonard Berry, “A Conceptual Model of Service Quality,” Journal of Marketing 49 (1985): 41–50.
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EXHIBIT TN-4: SERVICE RECOVERY PARADOX CHART FOR NYKAA
Issues Strategy for Service Recovery (Service Paradox)
Errors in Order Apologize to the impacted customers as soon as possible and acknowledge the error
Processing and Get the right order out the door as soon as possible, and keep customers apprised of its whereabouts with up-to-date tracking information
Fulfilment Offer customers a discount or freebie to indicate how much their dedication to Nykaa is appreciated, and thank them for their patience
Inventory If an item is out of stock, let the consumers know so they may make other plans or place a backorder
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Management Issues Set up a way to alert buyers when previously out-of-stock products are once again available
Make up for their loss by giving customers a special deal or a discount on their next purchase
Inadequate or Improve interaction by keeping customers apprised of their orders’ development as they progress through fulfillment
Ineffective Customer Offer a discount on future purchases as a gesture of gratitude for their patience, and explain why the delays occurred
Communication

Permissions@[Link] or 617.783.7860.
Delivery and In the event of a delivery problem, react quickly and provide fast solutions, such as sending a replacement or issuing a refund
Logistics Issues Removing the non-performing delivery partners and improving upon the logistics facilities
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As a gesture of good faith, offer free express shipping or a loyalty discount on the customer’s next purchase
Technical Issues Express regret for the trouble this has caused the consumer and reassure them that efforts are being made to improve the situation
with Website or Get customers to try shopping online again and have a better experience by offering them a limited-time discount
Mobile App
Issues with Product Verify the quality and legitimacy of the product before shipping it out
Quality or If a poor product was delivered, apologize and give a discount or freebie as compensation
Authenticity Add verified vendors based on quality, performance, authenticity
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Provide recommendations of both the verified vendors and other vendors when customer is searching the products online
Inadequate Redesign the system and placing more emphasis on response, to address customer complaints regarding support
Customer Support Train the customer care department to respond quickly to customer complaints by keeping an eye on all touchpoints
Establish chatbots and digital voice assistants to quickly respond to customer queries
Demonstrate Nykaa’s commitment to better customer care by extending a heartfelt apology and offering a personalized discount
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Source: Created by the case authors. t

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