How focus on Service Transformed CPG Retail into a Profitable Direct-to-Consumer Model

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devender yadav

In a market where water delivery has long been mediated by distributors and outdated call-center systems, Agthia Group’s bold move to reinvent its consumer-facing model is drawing attention. Spearheaded by Devender Yadav, Product Owner for D2C E-commerce at Agthia, the transformation of the company’s flagship brand, Al Ain Water, into a service-first digital platform is being hailed as one of the region’s most impactful pivots in the consumer-packaged goods (CPG) sector.

Coming from the expert’s table, Yadav emphasized that this shift wasn’t just about cutting out the distributors from sales channel—it was about fundamentally rethinking the customer experience. “D2C isn’t just a sales channel—it’s a service channel,” he said. “The focus was on making water delivery as easy, transparent, and reliable as ordering a cab or groceries. That meant reengineering every touchpoint the customer interacts with.” Reportedly, the initiative delivered remarkable results. By the end of FY 2024, Al Ain Water recorded a 9.6% increase in sales YOY, and an impressive 10.2% gain in market share in the region.

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The transformation was underpinned by the rapid development of a digital ecosystem launched in just six months which included a new native iOS and Android mobile app, a redesigned website optimized for experimentation and A/B testing, and a WhatsApp bot that serves as an accessible support channel. These digital pillars formed the foundation for a service strategy that prioritized customer convenience and transparency. “The WhatsApp bot was not merely a novelty—it evolved into a vital support tool by handling frequently asked questions, thereby reducing the workload on the Customer Service team,” Yadav noted. “But we had to overcome language barriers and performance issues by building custom connectors and mapping Arabic commands. It had to feel human, not robotic.”

One of the most significant impacts of the project was on customer satisfaction. Customer complaints were reportedly reduced by 63%, while the Net Promoter Score (NPS) jumped by 15 points. These figures, executives say, reflect more than improvements in tech stack—they represent the success of a customer-first mindset and the accompanying digital ecosystem. “Convenience is not optional in D2C,” said Yadav. “From a simplified registration process to automating delivery routes, every operational change was about reducing friction.”

The backend revamp was equally critical, particularly due to the challenges of integrating the new digital platforms with Agthia’s legacy systems. The engineering efforts focused on overcoming syncing delays, optimizing a pricing structure originally built for B2B to align with D2C business logic, and automating fulfillment flows. A particularly notable challenge was integrating a cost-effective payment gateway, Magnati, which lacked native Shopify support. “We had to custom-build the payment integration,” Yadav explained. “It wasn’t glamorous work, but it was essential to make checkout smooth and localized for UAE consumers.”

A key operational centerpiece of the transformation was the automation of delivery route assignment process for newly onboarded customers and address changes. Previously, these tasks were handled manually, often resulting in delivery delays of up to three days. Now, with route automation in place, fulfillment has become faster and more reliable—an essential component for water delivery, which operates on tight recurring cycles. Additionally, user journey improvements such as customer-friendly area mapping through geo-locations during registration ensured ease of access, even for new users unfamiliar with the digital interface.

Internally, the initiative required a cultural shift as well. Leading a cross-functional team of 10, Yadav helped orchestrate collaboration across departments ranging from tech and operations to customer service and marketing. His leadership earned company-wide recognition and an internal award for driving business innovation. “What we built wasn’t just a tech stack—it was a new way of doing business,” he said. “We now own the customer relationship end-to-end, and that gives us unprecedented agility in how we serve them.”

Reflecting on the broader implications of the transformation, Yadav shared his perspective on future trends in D2C. He believes the next evolution will be shaped by hyper-reliable and flexible subscription models. “Owning the customer experience means delivering not just convenience but also predictability,” he said. “Real-time logistics data integrated directly into customer-facing apps will soon become a baseline, not a bonus. And packaging, delivery timing, and sustainability will start influencing purchase decisions even more than price.”

Additionally, Yadav sees the real opportunity for CPG brands like Agthia in shifting from acquisition-focused strategies to customer lifetime value models. “Personalized communication, timely service, and a frictionless experience—that’s how you keep customers, not just get them,” he noted. The success of the Al Ain Water project demonstrates that a legacy B2B enterprise can, in fact, leap into the digital age with the speed and agility of a startup—if guided by the right strategy and leadership.

Ultimately, Agthia’s D2C transformation, guided by Yadav, offers a compelling case study on how digital infrastructure, operational re-engineering, and a deep commitment to service can reshape how essential products are delivered—and how customers experience them.

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