In this interview, Shamik Sharma, Myntra's chief product and technology officer, tells you how Myntra.com constantly monitors its environment, keeps a sharp eye on trends, and shares new insights regarding social media.
CIO: As much as 25 percent of your revenue comes through Facebook. Do you intend to keep leveraging it?
Shamik Sharma: Actually, there has been a substantial reduction in the ROI we've gotten from social media. It's a single-digit figure now.
There are a number of causes for this decline. First, our overall net traffic has grown. Second, in the last few years, in India, Facebook has become cluttered as a marketing mechanism--although it used to be the preferred medium for promotions. As a medium for marketing, Facebook's ROI has diminished. We no longer intend to overburden our customers with a lot of marketing messages on social media. For us, social media now is more about engagement--not sales and marketing.
CIO: So, where does most of your traffic come from? And, more importantly, which channel, in your experience, ensures the highest returns?
Shamik Sharma:The first two important sources of Myntra.com's online traffic are consumers who directly type the website's name on a browser and Google search. Both contribute to 40 percent of our net traffic. The other sources of traffic are Facebook, partners and paid mediums such as affiliate networks.
Initially, Facebook gave us a good jump as a marketing medium. But we realized that scaling on Facebook was not very 'ROI effective'. Slowly, our focus on other channels has ensured better ROI. Today, the percentage of ROI from Facebook has come down to 8-10 percent. Our customer base is around 5 million, out of which 1.5 m are active customers.
Across these four sources, there's a division between desktop browsers and mobile browsers. Today, 5-10 percent of our traffic comes via mobiles, and we see that doubling every six to nine months.
CIO: Do you use analytics to gauge customer behaviour online?
Shamik Sharma: Analytics plays a major role at Myntra. One of our teams has built a huge analytics infrastructure that is used across the company. All the data that comes from the aforementioned sources goes into a data warehouse. Our sales and marketing teams later use a lot of reporting and dashboard solutions to figure out how their campaigns are faring. For instance, a customer who logs on to our site may browse for a dress and express interest in it. We capture that and all the details of all the products that a customer has viewed on our site and display suggestions accordingly when they visit later.
Also, our customer care team uses it to measure user experience.
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