As per management of JustDial, mobile accounts for more than 35% of total searches on its platforms. As per management cost of app promotions could be Rs150-200 per download and it plans to market its product differently using ?Evangelists?. The company plans to start an evangelist program where freelancers (mostly college going kids) and some employees will try to educate consumers on SP and its value proposition. Since this program will continue for a few years, the expenses will recur till then.
Of the total campaigns, 20% are premium listings and this has remain unchanged over the last quarter. These listings account for 40-45% of revenue. The company has not witnessed any material churn in its paid campaigns. In its view, SMEs now realize that their own survival depends on having an online presence.
Just Dial plans to launch its JD Cash by April 2015 which would allow it to process payments through various instruments like credit card, debit card, net banking etc. Company will collect payment from the user and credit the vendor digital cash which would give confidence to the vendor to deliver products. Just Dial may need a license for wallet from RBI however even with out a license it can start the service through partnerships with existing players.
JD does not plan to get into fulfillment / delivery of orders while the JD guarantee program will be extended to only select vendors and to only 15,000 unique products. The 7 hour delivery promise (for orders placed before 2 pm) is a challenge however, that is being met.
International business: Just Dial maintained that cash burn in its international business is unlikely to be significant going forward. Just Dial continues to build content in UK where this service is already live and would be launching it in Middle East by end of Q4. There are no special efforts being made to monetize or increase traffic through inorganic ways resulting in minimal cash burn. The company is also not spending much in US and Canada other than maintaining the site and the app.
