Thursday, June 3, 2021

What next for payment apps, appointment booking apps and likes of Urban Company, Google business and Facebook marketplace?

A Covid-19 perspective: Thinking SMB growth and substance 

It's Jun 2021, we’re already in the middle of year 2 of lockdown. Life has not been easy, managing health and well-being has been difficult, keeping small businesses alive has been worse. 


India thrives on mom and pop shops. The jugaad country. The country of a billion-plus population, where everyone has learned to survive and dreams of growth by hard work. We’re conditioned from childhood how government jobs are safe, and how good grades, hard work and consistency will ensure you have a well-settled life and success in any endeavour we apply ourselves. That by saving enough, anyone with even small ideas can turn their dreams into big businesses - by working the grind with consistency of course. 


Covid-19 changed that. Not just for uber drivers and retail shop workers and food delivery agents or business owners, but more severely for the service industry. 


While payment and UPI apps were the next big thing in 2019 when everyone was out and about their one business and the worry of the hour was how to make payment fast, secure and convenient for fickle customers. And let's say an added layer of bookkeeping and making saving easier for everyone from a Kirana store owner to a local salon owner. Once covid hit, properties changed. 


Then with a sudden knee jerk reaction - like a flip switch even - literally overnight - we saw the rise of platforms like zoom, voice and video chats in 2020 and 2021. 


2020 - saw the rise of reels, live streaming and video lead workshops and teaching - Perfect for people who were at home, and were able to channel their energies and drive business growth and reach by using these mediums. We saw people start self-help reels, give workshops online and engage in live sessions. Everything they could do using a simple mobile device and internet from the comfort of their homes - just to ensure that their business stays relevant in the mind of customers. The one hope that remained - this phase was temporary and it was a business revenue hit everyone had to make way for. Nothing else needed to change. 


Come 2021 - We're still in lockdown. We’ve learned to live with ourselves and we're tired of waiting, losing patience. Small business owners are also humans after all. But they're growing sceptical, they can't step out and they can't take the risks they planned as optimistic SMB owners. The virus after all has evolved as well. But 'risk' is something Indian's specialise in taking. 


'Peth paalne ke liye karna padta hai babu' is the undertone of our 'jugaad' mindset after all. 'Calculated risk' is something one never really plans for like an extended vacation. Nor is it that much fun. So what now? 


We're slowly but surely getting vaccinated, and that instils a lot of misplaced encouragement and hope in the SMB owners who have mouths to feed and rents to pay and have waited it out patiently for a year. Once the government imposed lockdowns being to fade, people will risk et all, and open shop, period. 


But we can be smarter about this. There is a gap that wasn't really there actually, but a place that Paytm's of the world and Gpay's of the world (in coalition with their Google Business listing) can solve for - 'paid risk'. 


Two categories that have already perfected this is medical consultations and dining out - Practo and Zomat's of the world have set them up for success that it's not even occurring. as a problem to them. You can book find a slot in their calendar and book a time to visit a hospital to a restaurant and pay up for consultation for the time booked in case of medical tech - which is post covid ready and actually serves as category operational hygiene. 


If an SMB owner is told that today he can open shop and entertain customers, be it in a custom tailor store or a beauty parlour or a gym instructor for that matter - by ensuring that they book slots, and limit crowd in-store and get users to pay a fee as visitation charge redeemable against product or services in-store - then surely it makes sense for them to indulge in 'paid risk', right? 


If a service can be offered in the shop but with the guarantee of customer visit and purchase, who will not take this risk? 


Yes I know, one can critique that:

1. For paid order pickups from a grocery or Kirana shops  - one can set up an order on call and payment on UPI or Paytm. 

2. For selling clothes and taking custom measurements - one can set up a shop on Amazon or Instagram using Shopify or in some variation of that with a phone call. 

3. For selling home installation, maintenance and repair services, and home beauty and wellness services one can set up usage of urban clap. 


But these are very centric to individuals who sell services and not the business that sells services. Have you seen the verbal war salon aunties unleash in opposition to the usage of beauty services via Urban Company that comes home and do the same thing? 


The problem comes when we acknowledge that there are already existing businesses who need a selling solution right now, we're not planning for an audience that will come into existence to do this: 


Use case: Beauty salon

Step 1: The salon owner is able to list staff and their available timeslots as per various jobs that can be booked in the salon. 

Step 2: Payment against these services can be taken in advance. 

Step 3: Basis time and slot hold - the salon owner can define the working hours for the staff for each day. Keeping the business closed on days there is no business or having them wait for a walk-in customer. 

Step 4: Booking date and time changes can be made in-app, ensuring optimal safety of staff and customers as well as facility and resource management efficiencies. 

Step 5: Bonus if this can be done on their listing page in an app or better yet on their google business listing! (as we usually search for these things in the vicinity) 


Use case: Tailor shop or boutique

Step 1: Tailor shop is able to account for each tailers time and list out available time slots as per various jobs that can be booked in the shop. i.e.: Taking measurements for various new garments, fixing existing garments, rush jobs, elaborate dress planning and measurements, fabric shortlisting etc. 

Step 2: Payment against job type can be taken in advance for a fixed timeslot. 

Step 3: The boutique owner can align pick up dates for finished garments, for checking fittings and rework at time of the first visit and move same basis customer interaction. 

Step 4: Let a chat start between boutique and customer on progress thereon. Additional payment can also be made mid-conversation and job delivery.  

Step 5: Bonus if this can be done on their listing page in an app or better yet on their google business listing! (as we usually search for these things in the vicinity) and also helps travel to the same using google maps. 


Some context why this gap needs to be filled for consumers: 

So business competes with individuals who offer the same jobs. Businesses set benchmarks for hygiene and service quality, and as they do it in a secure vicinity, it is easier for them to sell the fact that their staff is not visiting homes for business that may have explored them to covid. 


Also, not everyone wants to get a Seema aunty at home who only uses Kasmara products to do facials and pedicures because Urban Company complies them to do so terming it as standardisation. 


Who can diversify or expand their existing universe into this space right away?

  1. So either like of Urban Company can quickly add this to their portfolio. 
  2. Or the likes of Paytm who already offer multiple other similar devices and brand store set-ups. 
  3. But overall I think Google business listings or Facebook marketplace can do this pretty well, and to the advantage of SMB businesses - but we all know the larger the giant, the slower it walks.
But in a post covid world as well - this gap evolves SMB businesses to be more digital and eventually spend on digital to get sure shot business and should become a norm in these unregulated service industries in India as well. And if it works here, LATAM, APAC region is an easy implementation of this business case! 

What will serve as a paid risk forsaker for the Indian economy if the lockdown continues this year will surely become a use case for future business starters as hygiene. Who knows how long Covid-19 is here to stay. 

Who know's how long we can only believe people spend on advertising without being able to guarantee return via digital? 

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