Is Chaupaati creating a new market?

From the time Chaupaati started, we have always felt that our eventual success would NOT rely on how much of the market we are able to capture, but what market we are able to create. Mobilizing an existing market is not as attractive for start-ups, as fulfilling a latent need. Solving solved problems is not as interesting as solving an unsolved problem. Though we are miles away from being disruptive innovators (addressing non-consumption), we discovered some early signs of fulfilling a latent need, not entirely by design.

One of our regular customers Rakesh Rane, a computer dealer from Lamington Road said to Kiran Patil, Chaupaati’s head of sales: “Yaar tumhare buyers non-serious hote hain, lekin unke saath deal hoti hai.” (Your buyers are non-serious, but they convert to a sale). Kiran was stumped by the irony. Isn’t conversion the only criteria for lead quality! He pealed the onion, however, and connected the dots for us.

The way Chaupaati works is that we advertise hot deals across categories using a variety of media - print, SMS, flyers, online, etc. Consumers call 922-222-1947 and a representative directs those callers to their favorite deals within their locality, budget and feature preferences. Many of our deals appeal to consumers who have not yet made up their minds about buying a product, are usually first time buyers for those products, are attracted by a too-good-to-be-true deal and call us to learn more.

To Rakesh Rane who has advertised his deals on Chaupaati and also advertised his business in a yellow pages, the lead received from Chaupaati is quite different from the one received from the talking yellow pages companies. In case of Chaupaati, the consumer with a latent need asks stupid questions about the computer and does not know what to ask. This consumer wants to be told and sold. In the other case, the consumer with a specific need asks pointed questions (that she is also asking 7 other similar businesses in the list) and is a savvy comparitive shopper. This consumer wants to ask and task. For this customer, one of five Chaupaati leads converts to a sale, whereas one in thirty five yellow-pages leads converts to a sale.

Of course, we continue to figure out how to address the savvy consumer, and whether the higher conversions are a result of the tender-love-and-affection of a small company or is it a product flow that works. We would love to hear your thoughts.