Let me ask you a quick question: How do you perceive light? You will say, of course, through your eyes. Excellent, John, that’s correct. The eyes are the only organs in the human body that can detect light, and they identify it before your brain assigns meaning to the information. They can also adjust automatically to varying levels of light; contracting in bright conditions and expanding in low-light settings.
While it may be needless to say, the eyes are vital and require proper care. This need has given rise to a thriving industry, which has grown considerably in the past and is expected to continue to do so in the future – the Eyewear industry.
The eyewear industry has seen a massive transformation in recent years, with the emergence of several new players and the introduction of innovative products. However, one company has remained a dominant force in this field, controlling over 80% of the major eyewear brands – Luxottica. As a global leader in the eyewear industry, Luxottica has been able to enjoy a near monopoly-like status, thanks to its vertically integrated business model and its strategic acquisitions. In this blog, we will take a closer look at how Luxottica has been able to establish and maintain its dominance in the eyewear industry, and the impact it has had on consumers and competitors alike.
“Believe nothing you hear, and only one half that you see.” – Edgar Allan Poe
Poor eyesight has bothered humans since time immemorial. Roman orator Cicero in the history allegedly complained of being dependent on slaves for reading. The first ever lens was ground from quartz in 750 BCE, that is present day Iraq. The ancient Greeks filled glass spheres with water to see clearly.
Arab polymath Ion al-Haytham laid the laws of optics in 1021, it is said. Most agree that spectacles were first made in Pisa, Italy. The first mass production took place on the land of Munaro, Venice.
In around the years of 1440, a smart person named Gutenberg invented the printing press. Which was a hit at that time. It increased the number of books everywhere, making the process of writing and manufacturing books efficient and fast. This made more people read books and more people getting eyesight issues. Which in turn made eyeglasses popular, and the need for reading glasses increased substantially. You can see the cause and effect relation in all these events.
Are you finding history dull? Let’s shift our focus to the present scenario.
Eyewear Industry: Now
While sunglasses are generally used to protect human eyes from Ultraviolet radiation of the sun. Branded corrective glasses and sunglasses are expensive. If you are a person who wear glasses then you would find this relatable. In today’s modern world, when we all are glued to our screens, glasses are a form of necessity.
With the technology boom that the world is witnessing right now, the glasses or eyewear industry is also seeing a massive scale. In this section, we will discuss the magnitude and forecasted studies around the sector.
Global Eyewear Markets
This is a forecast about the global eyewear markets. All the values are in billions, Yes sir billions. The global eyewear market, which is made up of spectacles, contact lenses, sunglasses, and other eyewear products, was estimated to be worth around 140 billion U.S. dollars in 2020 and was forecast to reach a value of 165 billion U.S. dollars by 2025.
Two eyewear executives recently told the Los Angeles Times columnist that quality frames can be made in the range from 4$ to 8$ and if you want designer and customized frames and glasses, that could be made in well under 15$. Then why such a huge markup on price?
According to an IBISworld report, the top four companies manage more than 60 percent of the eyewear industry revenue, following almost a decade of mergers and acquisitions.
These skyrocketing numbers tell one this for sure, that it is one of the hottest businesses out there. The companies providing this product are getting massive and massive. One of the biggest makers of eyeglasses in the world is Luxottica.
Luxottica is a multinational eyewear conglomerate based in Italy. The company was founded in 1961 by Leonardo Del Vecchio and has since become the world’s largest eyewear company, controlling over 80% of the major eyewear brands.
Luxottica designs, manufactures and distributes eyewear for various brands, including Ray-Ban, Oakley, Persol, Vogue Eyewear, and many others. The company also owns retail chains such as LensCrafters, Sunglass Hut, and Pearle Vision.
Italian eyewear behemoth Luxottica is considered to play a dominant role in the glasses industry all over the globe. It is in fact the largest maker of glasses in the world. It owns several big names in this line of products. It signs exclusive manufacturing and licensing deals with in-fame designer names, like that of Prada, Coach, Chanel. It even owns Eyemed, the biggest eyes insurance provider in the world. So, you see quite a big party !
History and Establishment of Luxottica
Leonardo Del Vecchio – Luxottica Founder
Leonardo Del Vecchio, founded Luxottica in Italy in 1961. The name is simply the combination of the Italian words for light (Luce) and optics (Ottica). It manufactured components for the optical industry. Leonardo soon shifted from being a supplier of equipment and components to manufacturers of eyewear. And in 1971 they launched their first line of house-made glasses.
In the 1980s, eyeglasses began to evolve from being a necessary medical device to becoming a fashion accessory. Luxottica recognized this trend and capitalized on it by partnering with various fashion brands. Through these licensing agreements, Luxottica would take inspiration from the fashion brands and design matching eyewear to complement their collections.
Luxottica’s first major partnership in this regard was with Giorgio Armani, the renowned Italian fashion designer, in 1988. Following this successful collaboration, Luxottica continued to acquire other major players in the industry, such as Vogue Eyewear, Ray-Ban, and Oakley. The company also ventured into retail, acquiring Cole National, LensCrafters, and Sunglass Hut.
These strategic mergers and acquisitions have helped Luxottica establish a dominant position in the eyewear industry and expand its offerings to include a vast portfolio of brands and retail outlets.
Geography and Spread of Luxottica
In total the brand has around 9000 stores worldwide. Their owned subsidiary EyeMed has over 28,000 eye professionals and the insurance provider covers 39 millions in America alone.
It has its manufacturing units everywhere, I mean almost everywhere, Latin America, and, of course, its native Italy, as well as manufacturing facilities in the U.S., China, Brazil, Italy, and two units in Japan and India. In 2018, Luxottica had net sales of just under 9 billion euros. That’s about 10 billion U.S. dollars and an increase of 22 percent since 2013.
To put it straight forward: if a brand wants to sell glasses, they want to be on Luxottica’s huge network of stores, and if a store wants to sell popular brands, they’ll want to offer Luxottica products, You know them already, Ray-Ban, Chanel, and Bulgari.
Some argue that Luxottica’s unreasonable size plus power stifles competition and establishes it as a monopoly, causing the whole industry to fester. The profits in this industry are relatively obscene.
To tackle the trend of eyeglasses being expensive, online retailers like Warby came to the rescue. In an interview, Warby’s founder shared a funny anecdote about once forgetting his pair of glasses and thought about the prices of those glasses. It was ridiculous to pay about 700$ for specs. So, with this inspiration he and his brother led the founding stones to build an online retailer for affordable eyewear. It became an instant hit that after opening their first store in 2013, they have grown to more than 90 stores by now.
Brands Under Luxottica
Luxottica has a lot of brands working under this big umbrella organization. The brands we know and which have a strong presence in the luxury items market. We will only speak of the most notable ones like Ray Ban, Vogue, Oakley, Chanel, Coach, Ralph, Prada and Versace and many more. These names are close synonyms to fashion accessories but these are not all where Luxottica has a stronghold.
Luxottica also owns retail brands to sell its products directly to customers. The enlisted brands are – David Clulow, EyeMed, LensCrafters, Sunglass Hut, Optical, Laubman & Pank, Pearle Vision, and more. These brands and retail stores ensure that Luxottica sells the majority of frames they make successfully to the public. Even if you want and try to go with your favourite eyewear brand, there is a good probability that you will be paying your money to Luxottica.
Global Revenue of Luxottica
The above image shows Global revenue of Luxottica, starting from 2007 to 2020. The figures stated are in million euros. This graph is quite evident of the hold that the company has in this product segment.
Infamous Mergers of Luxottica
The company is famous for not only buying retail or fashion stores, it is also known to have had big mergers in the past. These were immensely successful partnering’s that bore fruit to every volunteer in the group.
EssilorLuxottica is an Italian and French vertical integrated multinational corp. It is based in Paris and was founded in 2018 from the merger of Luxottica with the French Essilor. The group designs, markets and produces ophthalmic lenses, equipment and prescription glasses plus sunglasses.
The merger company EssilorLuxottica has a portfolio of licensed brands like Ray-Ban, Oakley, Michael Kors, Varilux, Crizal, and LensCrafters. The company has reported 14.4 billion euros in revenues.
Hype Analysis of Luxottica
The success of the brand is not just because of the big spread that the company has. It is just one factor to the overall success.
Partnering with designers
The initial hype was induced by Luxottica by partnering with designers. In fact it was the first corporation to do so. Successful partnerships with designers like Armani and the like made the company sales go skyrocket. They know how to ride the wave of fashion swiftly.
Ray-Ban stories by Facebook
Ray-Ban Stories
In the recent past, months from now, Facebook partnered with a brand Ray-Ban to introduce “Ray-Ban stories”. They were a sort of smart glasses that could instantly capture moments as videos and pictures to share on social media. These glasses were made keeping in mind the instantaneously sharing of media on social networks. Facebook chose Ray-Ban to partner for the glasses due to their wide reach.
Luxottica Facts
Here are some facts about Luxottica:
It is the largest eyewear company in the world.
The name of the company is derived from the combination of two Italian words, Luce (light) and Ottica (optics).
They were the first to work with designers to turn glasses into accessories of fashion.
They have over 28 eyewear and 19 retailer brands in their portfolio.
Luxottica has a vertically integrated business model, which means it controls the entire supply chain from design and manufacturing to distribution and retail.
Climate change once affected Luxottica eyewear sales in Europe. Reason being late summer.
The company has faced criticism over the years for its dominant market position and for its pricing practices, particularly in the United States.
In 2020, Luxottica was ranked number 76 on Forbes’ list of the world’s most valuable brands, with a brand value of $9.2 billion.
How Did Luxottica Become the Dominant Player in the Eyewear Industry?
Luxottica became the dominant player in the eyewear industry through a combination of strategic acquisitions, vertical integration, brand power, and retail presence.
Aggressive Acquisition Strategy – One of the key factors behind Luxottica’s success is its aggressive acquisition strategy. Over the years, the company has acquired many of the world’s most iconic eyewear brands, including Ray-Ban, Oakley, and Persol. By acquiring these brands, Luxottica was able to capitalize on their popularity and build a loyal customer base, giving it a significant competitive advantage over its rivals.
Vertical Integration Strategy – Another reason behind Luxottica’s success is its vertical integration strategy. Unlike many other eyewear companies, Luxottica controls the entire supply chain, from design and manufacturing to distribution and retail. This means that the company has complete control over the production process, allowing it to maintain a high level of quality and consistency across its products.
Brand Power – Luxottica’s brand power is another factor that has contributed to its dominance in the industry. The company owns some of the most iconic and recognizable eyewear brands in the world, including Ray-Ban and Oakley. By leveraging the popularity of these brands, Luxottica has been able to charge premium prices for its products, further solidifying its position as the dominant player in the industry.
Retail Presence – Luxottica’s strong retail presence is another key factor that has helped it maintain its monopoly in the eyewear industry. The company operates over 9,000 retail stores worldwide, including LensCrafters, Sunglass Hut, and Pearle Vision.
How Does Luxottica’s Monopoly Affect Consumers?
Luxottica’s dominance in the eyewear industry has had a significant impact on consumers. With little competition in the market, consumers are forced to pay higher prices for eyewear, which can be a significant burden, particularly for those on a tight budget.
Critics argue that Luxottica’s monopoly also limits innovation in the industry, as there is little incentive for competitors to invest in new technology or designs when they are unlikely to be able to compete with Luxottica’s economies of scale.
Conclusion
Reading the article above, one thing is clear, Luxottica is a big player in the eyewear industry. Its recent merger with Essilor is making the company stronger. However the FTA (Federal trade commission) tends to be easy going or sympathetic to vertical mergers. Vertical mergers are mergers between two companies at different areas of the supply chain. In this case, Luxottica makes and sells frames whereas Essilor makes and sells lenses.
Senate Democrats condemned the Essilor-Luxottica merger as an example of corporate consolidation gone too far. This merger will further strengthen the hold that Luxottica already enjoys in the market. So surely this merger is getting on some experts’ nerves. This is seen as a group that will almost establish a monopoly in the eyewear industry.
A good thing around all this scenario is that eyewear companies like Warby, are trying to make glasses cheaper for the general public. As it is not a mandate for everybody to go for expensive pairs of glasses or to jump into the fashion line. This will be a game changer for sure in the future as it is already welcomed by the public.
Luxottica will mostly dominate the fashion line with its brands and retail chain. It is forecasted that the corporation will earn billions in this decade, seeing its size and mergers. It is amazing to see a brand as big as this, moulding the industry in such ways, and many people don’t even know about the name. Started with humble beginnings, now it is here. It’s truly an eye opener in the story of spectacles.
FAQs
What does Luxottica do?
Luxottica is an Italian eyewear conglomerate that designs, manufactures, and distributes eyewear products. The company owns many popular eyewear brands and retail stores.
Who is the founder of Luxottica?
Leonardo Del Vecchio founded Luxottica in 1961.
Who is Luxottica biggest competitor?
Luxottica’s top competitors are Specsavers, Pair Eyewear, TJX and FGX International.
What companies do Luxottica own?
Luxottica owns brands such as Ray-Ban, Oakley, Vogue Eyewear, Persol, Oliver Peoples, Arnette, Costa del Mar and Alain Mikli, as well as licensed brands including Giorgio Armani, Burberry, Bulgari, Chanel, Coach, Dolce&Gabbana, Ferrari, Michael Kors, Prada, Ralph Lauren, Tiffany & Co.
How does Luxottica’s monopoly in the industry affect consumers?
Luxottica’s monopoly in the industry can lead to higher prices, reduced access to affordable eyewear, limited innovation and choice, and anti-competitive practices.
Are there any alternative eyewear companies that consumers can turn to?
While Luxottica is the dominant player in the industry, there are still some independent and smaller eyewear companies that consumers can turn to for more affordable and diverse options.
One of the primary components of business management and commerce, marketing is defined as the process of creating, exploring, and delivering value to meet the needs of the target audience. Be it a product or service, different types of advertising methods are needed to raise awareness and increase sales.
One effective marketing technique that contributes to lead generation is marketing offers. A marketing offer is defined as any free product, service, or content given to a website visitor in exchange for them performing a specific action (like filling out a form). An effective marketing offer is a critical tool that nurtures existing leads, thereby, making them more sales-ready.
Creating a marketing offer that is compelling and attractive to the end customer requires a multifaceted and deep knowledge of the consumer psyche, the operational business environment, the product or service placement within the market, and the competition. The deeper and richer knowledge about these, the more irresistible the marketing offer.
Many effective marketing options can be offered to the end consumer including –
Discounts and Promotions
Discounts and Promotions
These can rightly be called ‘eyeball-grabbers’. These are also brilliant ways to get visitor information in exchange for a promotional offer or discount. This information can later be useful to push targeted marketing promotions.
Webinars and Courses on Specific Topics
Webinars and Courses on Specific Topics
This is a tactic that helps in establishing the entrepreneur as a subject matter expert. It also has the added benefit of visitors learning more about a topic or gaining a skill while also providing their information.
This is another excellent way for a business or an entrepreneur to establish themselves as an authority on specific subjects. Such guides and e-books can be tailor-made to either offer solutions to an existing problem or to the interests that can help in building the reputation of the subject matter expert.
Memberships and Loyalty Programs
Memberships and Loyalty Programs
These programs are designed to offer a sense of exclusivity to potential customers. They give access to rewards and perks that are otherwise not offered to customers who are not members.
Product Demonstrations and Consultations
Product Demonstrations and Consultations
An offer for a consultation or a product demonstration can go a long way in converting a potential customer to a successful sale. It also has the added benefit of them learning more about the product or service as well as giving their contact information for future reference.
Researches and Case Studies
Researches and Case Studies
These are excellent knowledge-sharing platforms that act as strong incentives for potential customers to give their contact information. They offer value and insights that are readily and freely available.
Free Tools and Trials
Free Tools and Trials
These are excellent ways for potential customers to visit the business site and test the products and services free of cost. This offers a risk-free way for them to try the product or service themselves without outright purchasing it.
While ensuring the many key features while creating marketing offers, what makes them compelling are the way they are designed, the information contained therein, and the value that it delivers. There are several important elements to create an irresistible marketing offer.
Communication Clarity
Copywriting is a required skill for creating an offer that is clear in its idea and communication. It is imperative to develop and deliver an offer that is easily understood as it directly impacts sales. The best way is to utilize numbers, dates, and percentages that portray the specifics that are relevant to the target audience. Also, it is important to ensure that the promises made through the offer are followed through and delivered through the product or service that is being sold.
Offering Value
A marketing offer that delivers equivalent or more value than the cost of the product or service snowballs into higher sales. Even word-of-mouth publicity works in favor of the marketing offer. Conversely, inconsistency in the marketing offer and low delivery of value can have disastrous effects and can result in refunds, product refusal, and disputes negatively impacting reputation and business.
The Secret to Creating Irresistible Marketing Offers
Offer Explanation
This is necessary to overcome natural and inborn skepticism in the consumer. Any marketing offer must provide a solid logical reason for the offer. There needs to be a real and quantifiable reason for the offer and what it can do for the customer.
Need for Immediate Response
It is imperative to convey that time is of the essence. The offer is time sensitive and would expire within a few hours or days or even hours. It could also be that the product on offer is available in a limited quantity. This creates a need for an immediate response from the prospective customer. It can lock the sale more effectively than any other method while also making the customer’s information available.
Providing a Strong Guarantee
Businesses know the importance of providing strong guarantees to prospective customers that take away the risk from them. This is a two-pronged strategy. First, it shows the business’s confidence in its product or service and its absolute belief that the customer is going to like the offer. Second, the prospective customer is compelled to take immediate action due to the risk-free nature of the offer.
Creating Strong Call-to-Action Buttons
These buttons are navigators that take the customer to the next step with ease. These buttons need to be present in big and bold colors taking the prospective customer in the intended direction without giving them too many choices.
Conclusion
Marketing offers are a strategy, that if conceptualized correctly, can greatly help a business increase its sales and widen its customer pool. It is, therefore, necessary to ascertain that any marketing offer that is being created meets a specific criterion and addresses a certain need that is essential to the end consumer. A marketing offer that delivers value, adheres to its promises and clearly states the particulars of a product or service has a higher potential for success.
FAQs
What is a marketing offer?
A marketing offer is defined as any free product, service, or content given to a website visitor in exchange for them performing a specific action(like filling out a form). An effective marketing offer is a critical tool that nurtures existing leads, thereby, making them more sales-ready.
What are the key features of a marketing offer?
Following are the key features of marketing offer –
Discounts and Promotions
Webinars and Courses on Specific Topics
Guides & E-books
Memberships and Loyalty Programs
Product Demonstrations and Consultations
Researches and Case Studies
Free Tools and Trials
How to create a compelling market offer?
There are several important elements to create an irresistible marketing offer, some of them are –
The Web3 industry is rapidly evolving, bringing new opportunities and challenges to businesses. The global market size of Web3 is expected to grow to $82.72 billion by 2030 from $3.3 billion in 2021. In India, the Web3 market is expected to grow from $0.0049 billion in 2022 to $1.1 billion by 2032, growing at a CAGR of 57%.
With increasing growth opportunities, many companies are working to make a contribution to this industry. A Web3 company that has emerged recently is Jupiter Meta. Jupiter Meta is a Metaverse, XR, and Web3 company. The company helps businesses achieve their goals quickly and effectively with the use of tokenomics, blockchain, and XR applications.
Recently, we at StartupTalky had the opportunity to interview Manasa Rajan, CEO and Co-founder of Jupiter Meta. In this interview, she discussed and shared insights into the company’s approach to the Web3 industry and its innovative solutions for businesses.
Now, let’s take a closer look at Manasa’s responses and see what we can learn from them.
StartupTalky: What does your company do? What was the motivation/vision with which you started?
Manasa: Jupiter Meta is a Metaverse XR and Web3.0 company. We create focussed solutions for businesses, across improving product experience, customer engagement, brand marketing, and L&D.
We are a team of people who feel passionate about the potential of the blockchain and metaverse tech – around creating value for creators, value for brands & their superfans, through adding a realm of experiential storytelling in marketing and making concepts easy to understand & learning fun!
Web3 is constantly evolving and the landscape is becoming niche to some extent. This means that there are not many who can offer an integrated solution that comes from the convergence of these technologies. That’s an opportunity we have realized and have moved towards, in the last 12 months, since our inception.
We created the World’s first NFT wall art project to impact social change! An NFT art collection by an Indian artist collective, based on Indian pop culture whilst capturing the ethos of the city – the ‘Icons of Chennai’ collection was a success for us on many fronts.
Launched the first music NFTs in India within a metaverse concert, with the singer-composer Karthik. The music NFTs were sold out in 3 days and created a new token-led revenue model for the artist and opened up commercial use cases for the NFT holders as a secondary market.
We are building token-led user-community mobilizing projects for brands to help them create more value for their loyal customers and new monetization opportunities.
We are building an ESG innovation-led marketplace for creating access and scalability for sustainable solutions across the board.
Building customer experience focussed AR solutions for the retail sector across categories. This is a large part of our portfolio today.
Launching functional metaverses for SMEs to impact better product storytelling and lead generation!
StartupTalky: What is/are the USP/s of your products/services?
Manasa: While being technology agnostic is a key driver for us, the core of our solutioning lies in the fact that we are better problem solvers, storytellers, and strategic thinkers. The Web3.0 industry is fragmented though in a very nascent stage. We are positioned to bring about adoption from across industry verticals and products/services by being cognizant of the fact that what this technology allows is to solve real-world business problems and bring about economic value and is not destined to be purely for speculative or entertainment value.
StartupTalky: How has the Web3 industry changed in recent years and how has your company adapted to these changes?
Manasa: Technology development has been faster than deployment. However, the industry has been hit specifically with the crypto winter and the loss of sentiment around NFTs to some extent. The challenges of the metaverse still continue.
But what has helped in this organized chaos is that we have focused on utility-based solutions and creating an impact for businesses that is measurable and goal focussed, thus enabling adoption.
StartupTalky: How do you stay up-to-date on the latest trends and developments in the Web3 industry?
Manasa: The industry is constantly learning and evolving. You will see a Web3.0 or blockchain conclave every week, pan India. There are tech forums that allow our resources to be updated on trends and innovations. We also practice a very collaborative approach, partnering with many tech entities and thought leaders to create ease in information sharing.
StartupTalky: What key metrics do you track to check the company’s growth and performance?
Manasa: Our mission is to impact 10,000 businesses through our solutions. We have a start and are finding our way through to achieve that illustrious goal. This can come from being ahead of the curve in terms of understanding technological development and platforms, and market learnings from across the globe as some countries like the UAE are agile in adoption.
However, our goal is to positively impact our client’s businesses and help them achieve predetermined, tangible success metrics in each and every project implementation. We actively track metrics like engagement, dwell time, views, revenue, etc across AR, metaverse, and token-led initiatives.
StartupTalky: What were the most significant challenges your company faced in the past year and how did you overcome them?
Manasa: Since the technology is at a very nascent stage one of the significant challenges we faced and continue to overcome is adoption. The cost of such adoption in relation to the ROI is not something we can refer back to as there are very few established use cases. However, we have taken a path of accelerating adoption by helping businesses adapt and leverage solutions that will make a huge impact. Our AR solutioning has found significant appeal and adoption because of that very fact. We believe this could trigger more interest and thereby help us achieve economies of scale.
StartupTalky: What are the different strategies you use for marketing? Tell us about any growth hack which you pulled off.
Manasa: A combination of communication and solutions-led approaches that include collaborations with tech partners, industry experts, and marketing/advertising agencies to drive awareness and the use of digital platforms to show the successes and possibilities through innovative solutions in this space has worked positively for us.
Our decision to partner with advertising agencies, we believe will yield a better impact. As brand custodians, agencies want to thrive on helping brands gain salience and by partnering with us they are able to take this new breed of technology solutions to brands. This makes the process faster, transparent, and mutually beneficial.
StartupTalky: What are the important tools and software you use to run your business smoothly?
Manasa: As a multi-city technology company we constantly explore and use tools and solutions to create greater efficiencies and better communication for the team.
StartupTalky: What opportunities do you see for future growth in the Web3 industry in India and the world? What kind of difference in market behavior have you seen within states in India?
Manasa: Web3.0 is here to stay. It will redefine economies as already evident. As more and more businesses look forward to engaging with customers and businesses (B2C and B2B) in more innovative and effective ways, the adoption of Web3 will trigger better opportunities for entities like ours. Web2 took more than a decade to fully mature and will continue to improve and will integrate with Web 3.0 offerings to create traction. Across industries from fashion to logistics, food to healthcare, aviation to technology services, what will drive opportunities whether in India or on a global scale is the solution architecture that can make a positive impact.
In India, many states have adopted Web3.0 and have set a benchmark already. A top-to-bottom approach will benefit not just from an adoption perspective but also build legitimacy through a regulatory framework. While states like Telangana, Tamil Nadu, Karnataka, and Maharashtra are seen as leaders primarily because of opportunities for businesses, the other states will witness participation.
StartupTalky: How do you plan to expand the customer, product, and team base in the future?
Manasa: We have a targeted approach to focus on certain niche solutions for specific industries and going deep within that category. This helps us build leadership and reach within those categories and create adoption at scale. Retail, L&D, and Technology companies to name a few.
Our core team comes with a varied skill set and experience across industry, this gives us an edge and makes us relevant partners to businesses. We will continue to hire creative and tech resources to help us scale.
Partnerships with industry and technology experts help us scale and also helps strengthen our customer base and implementations.
StartupTalky: One tip that you would like to share with people reading this article who want to get into entrepreneurship?
Manasa: If you have a vision that you want to build towards, this path (of being an entrepreneur) can be meaningful and full of accelerated learning and growth! Never easy, but always interesting and not a dull moment. But, the larger vision must be the motivator!
The definition of Economics states that it is a social science that studies the production, distribution, and consumption of goods and services. It focuses on the behavior and interactions of economic agents and how economies work.
The analysis of economics can be applied throughout society and across diverse subjects like – Business, Finance, Healthcare, Engineering, Crime, Education, Family, Feminism, Law, Philosophy, Politics, Religion, Social Institutions, War, Science, and Environment. Economics includes broad distinctions between positive economics and normative economics, economic theory and applied economics, rational and behavioral economics, and between mainstream economics and heterodox economics.
What is Economics?
As complex as these concepts sound, the study of economics can be understood easily through some books that simplify the concept for a better understanding.
Best Books for Understanding Economics
Economics is an integral part of everyday life as it teaches the workings of personal finances as well as how to manage them. This is a list of books that breaks the vast and deep subject of economics into simpler language and concepts that are easy to understand.
James D. Gwartney, Richard L. Stroup, Dwight R. Lee
Goodreads Rating
3.81 out of 5
Best Books to Understand Economics – Common Sense Economics
Renowned economists themselves, the authors of this book explain important and basic concepts like supply & demand, trade, and private ownership in a language that is clear and easy to understand. ‘Common Sense Economics’ successfully answers questions posed by beginners on the subject – How an economy works & what redistribution of wealth is.
The Road to Serfdom
Book
The Road to Serfdom
Author
F. A. Hayek and Bruce Caldwell
Goodreads Rating
3.89 out of 5
Best Books to Understand Economics – The Road to Serfdom
This 1944 publication is regarded as a gospel in the world of economic writing. Over the years this book has sold over 400,000 copies and been translated into more than 20 languages. Hayek’s book covered the then-controversial warning against state control over the production of goods. The book has since been updated by a Hayek scholar, Bruce Caldwell who has added clarification and a modern take on Hayek’s writing. F. A. Hayek was the recipient of the Medal of Freedom and the Nobel Memorial Prize in Economics. He also taught at the University of London, the University of Chicago, and the University of Freiburg.
The Armchair Economist
Book
The Armchair Economist
Author
Steven E. Landsburg
Goodreads Rating
3.75 out of 5
Best Books to Understand Economics – The Armchair Economist
The book applies real-world situations to economic theory. It attempts to answer questions like – Why do celebrity endorsements sell products? Do Government deficits matter? Why do women pay more for the dry cleaners? A revised edition of the book includes many more such queries and makes the economic concepts easier to understand. Steven E. Landsburg has written two textbooks on economics and is a Professor of Economics at the University of Rochester.
Misbehaving: The Making of Behavioural Economics
Book
Misbehaving: The Making of Behavioural Economics
Author
Richard H. Thaler
Goodreads Rating
4.17 out of 5
Best Books to Understand Economics – Misbehaving: The Making of Behavioural Economics
True to its title, this book denounces the idea that economic theory is based on the behavior of rational people. Turning economic theory on its head, Thaler states that humans are inherently flawed and easily succumb to bias and emotional decision-making. This causes a ripple effect on the economy. Thaler uses this theory to then educate his readers on the ways to avoid these emotional pitfalls and make smarter decisions. Richard H. Thaler is a Professor of Economics and Behavioural Science at the University of Chicago’s Graduate School of Business. He is also a Research Associate at the National Bureau of Economic Research.
Economics in One Lesson
Book
Economics In One Lesson
Author
Henry Hazlitt
Goodreads Rating
4.17 out of 5
Best Books to Understand Economics – Economics in One Lesson
This is a book that is sincere in its approach to explaining economic theory. Written in 1946 it explains the intersection of the government and the economy and the importance of the free market. Hazlitt’s lessons include anti-deficit approaches to the markets and economic liberty. His book has sold more than a million copies which is proof itself of the relevancy of his lessons. Henry Hazlitt was a founding co-president of the Foundation for Economic Education and an editor of The Freeman magazine.
Freakonomics
Book
Freakonomics
Author
Steven Levitt and Stephen Dubner
Goodreads Rating
4 out of 5
Best Books to Understand Economics – Freakonomics
The cover of the book mentions ‘New York Times Bestseller’ and rightly so as it was a runaway hit. Its unconventional writing tackles everyday questions and explores the answers through the lens of an economist. The kind of questions it asks are different and may seem irrelevant, but the answers speak to what incentivizes people and how people make decisions. It also calls conventional wisdom into question. Steven Levitt is a Professor of Economics at the University of Chicago and Stephen Dubner is an award-winning journalist and a radio and television personality.
Thinking Fast and Slow
Book
Thinking Fast and Slow
Author
Daniel Kahneman
Goodreads Rating
4.18 out of 5
Best Books to Understand Economics – Thinking Fast and Slow
Daniel Kahneman is a psychologist and has won a Nobel Prize in Economics. His book delves into the human psyche and the two systems that power our thoughts – one fast and the other slow. The author says that these two systems are responsible for our thoughts and actions and define everything from overconfidence in the workplace to cognitive bias and how we make decisions on where to vacation next. He delves even further into when to trust intuition and how to avoid common pitfalls while taking personal or professional decisions.
Best Books to Understand Economics – Capital in the Twenty-First Century
Thomas Piketty, in his book, offers an unparalleled take on the history of wealth inequality in Europe and the United States of America. He has detailed the havoc that such an inequality can wreak on an economy. He clearly explains that when the rate of return is greater than the rate of economic growth in a country, wealth inequality will continue to flourish. Capital in the Twenty-First Century is the winner of the Financial Times and McKinsey Business Book of the Year awards and a New York Times and Wall Street Journal best seller.
Good Economics for Hard Times
Book
Good Economics for Hard Times
Author
Abhijit V. Banerjee and Esther Duflo
Goodreads Rating
4.24 out of 5
Best Books to Understand Economics – Good Economics for Hard Times
Good Economics for Hard Times tackles the pressing economic issues of this age – climate change, globalization, immigration, and inequality. It couples it with modern economic takes that could very well be the solutions to the biggest issues being faced by the world in current times. The book has gone back to the basic concept of ‘Why Economics Matters’.
Conclusion
Economics surrounds us in our everyday lives. Knowingly or unknowingly, each one of us applies it every day. It is a topic of utmost importance and hence, it becomes necessary for everyone to try and grasp the basic concept of what constitutes the larger topic of Economics. The books mentioned above have all the relevant information that is written in a simple, easy-to-understand language.
FAQs
What is Economics?
The definition of Economics states that it is a social science that studies the production, distribution, and consumption of goods and services. It focuses on the behavior and interactions of economic agents and how economies work.
Name a few books to understand Economics in a simple way.
Following is the list of a few books through which Economics can be understood in a simple way –
UPI or Unified Payments Interface is an instant real-time payment system created by the National Payments Corporation of India, which likewise implies that the Reserve Bank of India controls it. It helps to instantly transfer funds between two bank accounts with the help of a mobile app. The most common ones you might have come across in recent times are Paytm, PhonePe, MobiKwik, iMobile, BHIM app, among many others. Even the banks that boast of their own UPI app include Airtel Money, Axis Pay, Baroda MPay, Pockets-ICICI Bank, SBI Pay, Yes Pay, and so many others.
UPI reported 6.28 bn transactions in July 2022 that amounted to Rs 10.62 trillion, which is the highest-ever transaction volume since 2016!
In the words of Indian economist Raghuram Rajan, UPI means the
“WhatsApp moment for banking”
What is UPI? | Unified Payments Interface Explained
If you’re new to UPI or want to learn more about how it works, this blog is for you. In this post, we’ll cover everything you need to know about UPI, including its features, services, advantges and disadvantages, and how to use it. We’ll also discuss different types of UPI apps and how to use them. By the end of this blog, you’ll have a clear understanding of UPI and how it can benefit you in your daily life.
The UPI payments or Unified payments interface is a payment mechanism that allows instant money transfer without bank details. The UPI is developed by the NPCI and rather than a bank account number and IFSC code, the virtual payment address is utilized to pay through the UPI. UPI offers a wide range of services that make it a convenient and efficient payment system.
Here are some of the key services offered by UPI:
The most cost-effective way of money transfer
Fund transfer via NEFT entails a minimum charge of Rs 2.5 per transaction while the IMPS charges Rs 2.5 per transaction. On the other hand, UPI only charges 50 paise or less per transaction through the Unified payments interface. As such it has the potential to promote non-cash transactions of small amounts throughout India, which it is currently taking up seriously.
Cash-free functioning
UPI payments have made it a possibility for you to transfer a small amount to your vegetable vendor in a matter of seconds. Think Paytm or BHIM cards hanging on the local grocery store replacing the trouble you went through earlier to get a proper change. Think of the lesser time spent in the ATM lines. Going cash-free removes many hassles from your life and makes everything smoother in the age of digital India.
Security
People have stuck with their cash payments because primarily they couldn’t rely on online transactions and card payments as they ask for bank account details. However, the UPI method of payment cracks the deal here. The payment through the UPI does not require card details or the details of a bank account. You just need to enter your virtual payment address this way (think about the mobile number linked to your UPI app).
Real-Time Fund Transfer
Everything about the UPI app is an instant formula. Traditionally, adding new pay for the online fund transfer takes some time. This time varies from half an hour to 24 hours. In UPI, you can add a new payee instantly and transfer funds. Also, the process of fund transfer takes a few seconds with the help of a good data connection, which is very accessible for everyone now!
Cheaper alternative to POS machine
It is difficult to pay with the help of a banking card (debit or credit) everywhere you go. Most of the merchants don’t have a card swiping machine or sometimes the machines fail to catch signals. The machine in question is known as the POS terminal, which is a costly affair for the billing party involved. They have to pay the service charge for each transaction, which varies from 1.25% to 2.5% of the transaction value. This is why the UPI apps for merchants were introduced. You would have also faced the situation when the vendor asks for the service charge from you. It happens in a competitive market. Keeping the POS terminal is not very beneficial for small traders. However, UPI would help you do the same job without any cost incurred. As UPI operates through the smartphone, anyone can collect money without spending time and money on such machines. Also, the transaction cost is a mere 50 paisa, which is very low compared to the POS terminal.
One UPI app works for all the bank accounts
One might think that Axis Pay only supports Axis Bank accounts but the user gets to choose the UPI app they want to use and link all their Axis and Non-Axis bank accounts with them without any limitation. Be careful to choose the app that gives you maximum ease and options.
One-Stop Solution
The digital wallet has eased online payments. Opting for mobile recharges, buying rail tickets, shopping online and more have become very smooth because of the emergence of digital wallets. However, the number of such wallets is increasing by the day. Paytm, Freecharge, Flipkart, and IRCTC want you to keep the digital wallet. Naturally, it becomes a hassle to maintain more than one wallet. The UPI ends this problem as well. The payments through the UPI are as simple as payments through wallets, and only one app is enough to pay anywhere. Also, the UPI does not ask for money in advance. Rather, your money remains in the bank account and keeps earning interest. Digital wallets, on the other hand, don’t give us any interest as well.
Overall, UPI offers a range of services that make it a versatile and convenient payment system for users in India. Its user-friendly interface, quick transaction times, and advanced security features have made it a popular choice for digital payments.
Unified Payments Interface is developed by the National Payments Corporation of India
Currently, UPI is a free of charge payment platform. However, there has been no official statement from the authorities regarding a permanent waiver of transaction fees. The reason why UPI is free to use is its simple and cost-effective design. NPCI has been instrumental in democratizing mobile payments in India, making UPI a preferred mode of payment for even small transactions.
Despite the lack of transaction fees, NPCI has indicated that they would keep the cost of UPI very low. They have proposed a range of charges from 0 to 50 paisa per transaction. This range of charges is intended to keep UPI cost-effective and accessible for all users, including those who make small transactions frequently.
The UPI system is hailed as one of the most successful real-time payment (RTP) systems in the world since it has been adopted in India. This innovative payment interface offers simplicity, safety, and security to P2P as well as P2M (person to merchant) transactions in India. According to 2021 reports, the UPI system of payments reinforced by the UPI bank apps helped in successfully materializing over 39 Bn financial transactions, which amounts to a business of around $940 Bn, which is again equivalent to around 31% of India’s GDP. The ease of use of the UPI apps and the interoperability between them are some of the prominent reasons driving the growth of the UPI industry. The total number of transactions in a month crossed an all-time high of the $100 billion mark in October 2021.
As per a recent report, UPI continues to be the primary platform for digital payments in India, as the total number of transactions surged by 70% in 2022, reaching a staggering count of 74 billion.
The growth of UPI has transformed the digital payments landscape in India, and its impact is being felt across various industries. With its user-friendly features, low transaction costs, and growing acceptance among consumers and merchants, UPI is poised to become the de facto standard for digital payments in India in the years to come.
Unified Payments Interface (UPI) has been integrated with credit cards to provide users with a convenient and secure payment option. With this integration, users can link their credit card to their UPI ID and make payments using their credit card balance.
This integration has several benefits for users. Firstly, it eliminates the need to carry multiple payment instruments, as users can now use their credit card for UPI transactions. Secondly, it enables users to make digital payments even if they do not have sufficient funds in their bank account, as they can use their credit card balance for UPI transactions.
To link a credit card to UPI, users need to follow a few simple steps. They need to open their UPI-enabled mobile banking app, go to the add payment option, and select credit card as the payment instrument. They will then need to enter the details of their credit card, such as the card number, expiry date, and CVV. Once the details are verified, the credit card will be linked to the user’s UPI ID.
Once the credit card is linked, users can make payments using their credit card balance by selecting the credit card option on the payment screen. The payment will be processed through the credit card network, and the user’s credit card balance will be debited accordingly. Users can also view their credit card transactions and balance on the UPI app.
UPI to Reduce Declined Payment and Payment Timeouts
Users of UPI have frequently reported issues related to payment timeouts and declined payments, which poses a significant challenge for UPI transactions. To address these issues, the National Payments Corporation of India (NPCI) has set its sights on reducing declined or timed-out payments through a new feature.
The NPCI aims to minimize these issues in real-time by enabling banks to take action within 30 seconds to unblock funds that may have been caught due to failed UPI transactions. Currently, this process can take up to 24 hours, causing inconvenience and frustration for users.
This move by NPCI is expected to significantly improve the user experience of UPI transactions and further strengthen the position of UPI as the preferred digital payments platform in India. By reducing the number of declined or timed-out payments, UPI will become even more reliable and convenient for users, boosting its adoption across the country.
Growth of UPI outside of India
The UPI, which has been strictly an Indian concept, prevalent across the nation will now be also adopted by Nepal. This has made Nepal the first country to adopt the Indian UPI system, as of February 2022. The deployment of the UPI system in Nepal would be overseen by NPCI International Payments Ltd. (NIPL), the international arm of NPCI with a partnership with Gateway Payments Service (GPS) and Manam Infotech. Here GPS serves as the authorized payment system operator in Nepal whereas Manam Infotech will further aid in the deployment of the services in Nepal.
The UPI transactions have been accepted by many other countries too, after Nepal. These mobile-based fast, real-time payments, are now already happening in the UAE, Singapore, and Bhutan. France will be the latest addition to this list of countries. According to the National Payments Corporation of India (NPCI) announcement on June 17, 2022, the UPI and RuPay cards will be accepted in France soon. The NPCI’s international wing has already signed a memorandum of understanding (MoU) with the Lyra network of France for the acceptance of the UPI and RuPay across the country.
The Tata Group will soon be joining the league of the UPI apps, as per the news dated March 16, 2022. The multinational conglomerate is currently seeking clearance from the NPCI as per the reports. The Tata Group might also partner with ICICI Bank, as a private lender, via its digital commerce vertical Tata Digital, to power its UPI infrastructure. Tata Group has already applied to the NPCI to operate as TPAP (Third Party Application Providers) and is hoping it can go live soon.
According to the latest updates dated July 12, 2022, NPCI stated all of the UPI-based applications should first obtain the authorisation of the customers before they start recording their location and geographic coordinates. This system shall be followed without exception even for the customers who have already agreed to reveal their location originally while using the services, mentioned NPCI. In addition, the National Payments Corporation of India also mentioned that the UPI services of the apps shall continue even after the customers have revoked their consent for “sharing the location or geographical details for the app”.
Some major growth highlights of UPI are listed below:
The UPI transactions touched new heights when they crossed Rs 5 lakh crore mark in value in March 2021.
NPCI has mentioned that it will ban all gaming transactions via UPI on April 20, 2021.
Unified Payments Interface (UPI) crossed the 4 billion mark of transactions for the first time ever in October. These transactions concluded 2021 at a record high, where it recorded Rs 456 crore worth of transactions at Rs 8.26 lakh crore ($111.2 Bn).
The UPI payments recorded around 4.53 billion transactions, which is worth Rs 8.26 trillion in February 2022. It has almost doubled since the same time last year. Besides, the total value of UPI transactions was measured to be at Rs 41 trillion.
UPI recorded 6+ billion transactions in July 2022, which is the highest ever volume since it was founded in 2016. The 6.28 bn transactions that UPI platforms have seen amounted to Rs 10.62 trillion.
UPI boasts of a network of 330+ banks and an average ticket size of INR 1,730 per transaction. This makes UPI the most popular digital payment system in India.
The MoM Growth of UPI Transactions
The UPI transactions have been growing month on month. Though the UPI transactions declined slightly in June 2022, where there were Rs 586 crore transactions in contradiction with the Rs 595 crore transactions noticed in May 2022, the UPI payments have largely been quite unaffected by the RBI guidelines and the global economic scenario.
Among the duopoly that we always witness in the UPI ecosystem, of PhonePe and Google Pay, Whatsapp has risen to a record high in June 2022 with its UPI payment feature. Though WhatsApp Pay accounts for only 0.4% of the total UPI ecosystem of India, it has registered 2.3 crore transactions worth Rs 4,290.6 crore, thereby rising by 45% MoM in transaction volume and jumping 6.5X MoM in transaction count. The transaction count of Whatsapp Pay in May 2022, was only 34.8 lakhs, which were worth around Rs 294.98 crore.
Here is a table showing the MoM growth of UPI transactions in India:
Year
Total Number of Transactions
MoM Growth
2016
0.32 million
N/A
2017
915 million
2,746%
2018
17.9 billion
1,857%
2019
10.8 billion
-40.3%
2020
22.3 billion
106%
2021
43.5 billion
95.2%
2022
74 billion
70%
Crypto Payments Stopped through UPI
Some of the platforms including Mobikwik, the wallet firm of India, and the international crypto exchange, Coinbase, have been using the UPI platforms for cryptocurrency transactions. However, as per the NPCI statement, it wasn’t aware of any such happenings.
“We are not aware of any crypto exchange using UPI,” said NPCI
in a statement on April 7, 2022, which indirectly meant a warning to all the platforms doing so and an urge to stop them from doing so.
UPI – Milestones
UPI transactions concluded 2021 at a record high, where it recorded Rs 456 crore transactions at Rs 8.26 lakh crore ($111.2 Bn). The UPI transactions crossed the 6 bn mark in July 2022. PhonePe, GPay and Paytm are leading the UPI game in India with 96.47% of transactions being conducted via these UPI platforms.
PhonePe has been leading the UPI space since the beginning of the year. The Bengaluru-based digital payments app witnessed an 85.5% increase in its revenue from operations, which is recorded at Rs 690 crore in FY21 from Rs 372 crore in FY20. Google Payis the next in line among the other UPI apps, as per the reports dated 15th October 2021.
A month after the launch of UPI123Pay, the UPI transactions surged by over 19% (19.6%), thereby becoming 540 cr transactions, when compared with February 2022’s 452 cr transactions. Furthermore, the transaction value also witnessed a record rise of 16.17%, which was recorded at Rs 9.60 Tn in March from the previous month’s Rs 8.26 Tn.
The real-time payment system, which was commonly referred to as the UPI, recorded 558 cr transactions, worth Rs 9.8 lakh crore in April 2022. The total transactions seen in March 2022 were 540 crores and valued at Rs 9.60 lakh crore. With total transactions for the month worth Rs 4.86 lakh crore, PhonePe stood as the UPI leader, followed by GPay, which materialised Rs 3.39 lakh crore worth of transactions. Paytm, Amazon Pay, and Whatsapp Pay, with Rs 101.65K crore, Rs 6699 crore, and Rs 242 crore, made up the league of 5 of the largest UPI apps that recorded the highest individual transaction values also in April 2022, along with being the most popular UPI apps of the month.
Fast forward to August 8, 2022 reports, PhonePe, Google Pay and Paytm command a whoping 96.47% of the UPI transactions done in the month of July 2022. Here, PhonePe led the other UPI platforms with 47.67% of transactions, followed by Google Pay’s 33.9% and Paytm’s 14.87% shares of the UPI market in transaction count.
UPI Transaction Count in July 2022
Launch of UPI123Pay for the Feature Phone Users
As per the recent surveys, 74 crore mobile users have smartphones while the others out of 118 crore mobile users have feature phones, which are designed for voice calling and texting. This reveals that a significant portion of Indian mobile users uses feature phones. The UPI facility has certainly extended a whole new era of convenient bank account transactions merging multiple banks under one phone number so much so that the RBI thinks that the UPI should also be extended to feature phone users. This is the reason why the Reserve Bank of India governor Shaktikanta Das, has launched UPI for feature phone users, who can use the UPI facility without the need for the internet, which will help over 400 mn feature phone users use the homegrown payments network of India.
UPI, which was easily available to date for smartphone owners and the users of smartphones, was available only via the complicated method of USSD for the others will now be easily accessible with the launch of UPI123Pay on March 8, 2022.
While with the earlier Unstructured Supplementary Service Data (USSD) mode, the feature phone users had to dial *99#, which brought a set of menus before and initiated transactions, the new method will be easier and more cost-effective than the USSD method, which involved numerous chargeable messages.
There are 4 different technologies that will be used in this newly christened method of UPI123Pay. These are:
IVR – The Interactive Voice Response or IVR numbers stand at the core of this process where the users can dial a number and start a secured call from their feature phones. After registering themselves, they can then start their financial transactions without the internet.
Apps – The users can also use apps on their feature phones where they can avail of a wide range of UPI functions, which will help them proceed with the kind of UPI transactions they like, excluding the scan and pay transaction, the work for which is currently in progress.
Proximity Sound-based – Another method that the feature phone users can use involves proximity sound-based technology. This technology relies on sound waves to enable networking. This eventually helps them perform contactless offline and proximity data communication on any device.
Missed calls – The final method that the feature phone users can avail of is the Indian missed call approach. In this method, the users will receive a callback from a standard number, which will let them authenticate and make their transactions smoothly.
Since the launch of UPI123Pay on March 8, 2022, more than 37K users have joined the new initiative and 21,833 successful transactions have happened via the same, as per the written reply received from the Minister of State for Finance, Bhagwat K Karad.
Real-Time Payment Dispute Resolution System
NPCI is planning to launch a real-time payment dispute resolution system for the UPI ecosystem. While announcing the upcoming rollout of the feature, NPCI MD and CEO Dilip Asbe mentioned that the all-new dispute resolution system would remove 80-90% of payment failures in real-time. This feature is all set to be rolled out in September 2022.
DigiSaathi
NPCI or the National Payments Commission of India launched DigiSaathi in India along with UPI123Pay, which is the phone’s feature for real-time payments through UPI. DigiSaathi was brought in as a 24×7 helpline for the UPI123Pay, which will provide them with information on digital payments products and services. This DigiSaathi has been further made available by the NPCI for the users on Whatsapp. DigiSaathi, when it was launched in March 2021, was only available for the users via calling at 14431 and 1800-891-3333, but now they can simply text +91-892-891-3333 to access the same helpline.
The UPI apps are the apps that are designed to follow the UPI mode transactions and are primarily designed to focus on the same. There are several UPI apps that have gained popularity in India due to their ease of use, security, and convenience.
Here are some of the most prominent UPI apps:
PhonePe – This UPI app is owned by Flipkart and has gained popularity due to its ease of use and seamless transactions. It also offers cashback and discounts on various transactions.
Google Pay – This app was formerly known as Google Tez and is one of the most popular UPI apps in India. It allows users to transfer money directly from their bank accounts and has several features such as bill payments, mobile recharges, and more.
BharatPe – BharatPe was founded in 2018 in India. The company offers a range of digital payment solutions for small and medium-sized businesses (SMBs) to accept payments from customers using UPI, debit/credit cards, and more.
BHIM – BHIM is a UPI app developed by the National Payments Corporation of India (NPCI). It allows users to transfer money between bank accounts and has features such as bill payments, balance inquiry, and more.
Amazon Pay – Amazon Pay is a digital wallet service offered by Amazon that allows users to make UPI payments, recharge their mobile phones, pay bills, and more. It also offers cashback and discounts on various transactions.
Whatsapp Pay – WhatsApp Pay was launched in India in 2020. The service allows WhatsApp users in India to send and receive money from their contacts directly within the app.
If you haven’t already started using a UPI app or a Unified Payments Portal (UPI), then it is not something really difficult.
So, if you are wondering about “how to pay using UPI?” then you need not worry!
Here first, you will be needing to register yourself and create a unique UPI ID/VPA. You can register for UPI before using the payments system with the help of any UPI-enabled bank mobile application or third-party application. After the registration is done, you can then start using UPI to send and receive payments. Here are some easy steps to guide you with the process:
Step 1: You need to install either the UPI app or your banking UPI app from Google Play Store or Apple App Store.
Step 2: Then, you need to choose your preferred language, verify your mobile number and eventually select your bank account.
Step 3: Now, you need to create your profile by typing in the basic details like your name, virtual ID, password, and more. This virtual ID that you will create here will stand as your payment address.
Step 4: Next, you will need to go to the option that says Add/Link/Manage Bank Account on the app, and proceed with linking your bank and account number with the virtual ID that you have created in the previous step.
Step 5: After that, you need to create your MPIN (Mobile Personal Identification Number), which is a security code that will be asked every single time you want to continue with a UPI transaction.
Step 6: You would now be successfully registered.
UPI – UPI App Transaction Limit
The NPCI has maintained that while there is no daily limit on the number of transactions, the maximum amount of fund transfer that is possible per day is 1 lac Rupees only. This means that you can pay multiple times to different payees every day, which makes going cash-free a reality. However, when it comes to the BHIM app money transfer limit, then the app allows you to send/receive Rs 40,000 per transaction and Rs 40,000 per day.
Some UPI apps like SBI Pay and WhatsApp Money only allow 20 transactions per day which are also enough for regular use in the everyday life of the users.
UPI – Upcoming Features
UPI Features | Authorized Transactions | Authentication
In the digital world, everyday people are solving new problems through online methods. UPI has identified the opportunities to relieve the users even further and will most likely come up with these improvements in their newer versions.
Pre-Authorized Transactions
Forgetting to pay your bills can be penalized at times and cause you unnecessary trouble. In the UPI, one can pre-authorize the app to draw money for the selected items directly from the bank account before the due dates. This system would also work for EMIs and other bill payments. One would have the ease to customize as per the needs and also put a monthly cap on the automatic payments.
Biometric Authentication
Just like your smartphone unlocks itself through your fingerprint, the UPI app is set to be ‘smarter’. This technology would work on phones which can capture fingerprints or high-quality iris images. The biometric authentication would end the need for MPIN during UPI money transfers.
Error Resolve
As of now, the UPI gives an error if the same mobile number is linked to multiple people’s bank accounts. Commonly, the same mobile number is registered to the account of the husband and wife. The UPI would resolve this problem in the next version of UPI.
UPI – Advantages
UPI (Unified Payments Interface) has several advantages that make it a popular mode of digital payments in India. Here are some of the key advantages of using UPI:
One of the major advantages of UPI is that it is fast, hassle-free, and the cheapest way of money transfer.
UPI is also very fast and a safe medium, while you only need a UPI ID for carrying out a transaction.
It is easy to use as it only requires a single click authentication that involves only two factors.
The user can easily link all their accounts to one ID on the UPI app.
You also have an option of scanning with a QR code to make online and offline purchases.
If the user owns a business, he/she can get payments from clients through this app’s option of collecting payments.
While making payments on UPI, the user does not have to pay any charges as it is free by the Government.
You also get exciting cashback offers.
UPI – Disadvantages
While UPI has several advantages, there are also a few potential disadvantages of UPI system. Here are some of the key drawbacks of UPI:
Sometimes, there can be delays in payments, it takes up to 48 hours for the money to get back to your bank account.
The UPI money transfer limit is currently Rs 100,000, which you can send to anyone through the mobile app.
The UPI pin only consists of four to six digits, which should be elongated for more security.
Another major disadvantage of UPI is that it is very slow in making payments sometimes, but that can be avoided by using faster internet services.
While UPI is gaining popularity in India, it may not be accessible to everyone. Users need to have a bank account and a smartphone with a compatible UPI app to use the service.
Overall, while UPI has several advantages, it is important to be aware of these potential disadvantages of UPI before using the system. By understanding the limitations of UPI, users can make informed decisions about when and how to use this payment system.
UPI – Challenges
The UPI apps and the sector, as a whole, have faced many challenges already overcoming which it is treading on the path of glory. One of the major challenges of the UPI industry was when the world witnessed one of the most dreadful diseases of modern times in the form of the coronavirus pandemic.
Due to the lockdown imposed to contain the spread of COVID-19, UPI has recorded transactions of less than one billion for the month of April after 12 months of constant growth. This is the first time in the past seven months that UPI volume went below the one billion mark. According to the National Payments Corporation of India (NPCI), UPI has registered 0.99 billion transactions amounting to Rs 1,51,140 crore(Rs 1.51 trillion).
Unified Payments Interface (UPI) is an instant payment system developed by the National Payments Corporation of India (NPCI), an RBI-regulated entity. UPI can be used through various apps like Google Pay and PhonePe to make direct payments from one bank account to another.
The lockdown imposed by the government due to COVID-19 has caused everything to shut down or be just semi-operational. The coronavirus outbreak has devasted many sectors of human life, let it be the financial sector, industrial sector, etc. resulting in an economic crisis. Yet, India’s success with a unified payments interface (UPI) has continued to bring essential services to consumers amid the lockdown as well.
Though the government was able to transfer the relief money through UPI in the bank accounts of crores of Indians, UPI witnessed a 20.8% drop in volume and a 26.7% fall in value as compared to the month before. As corona effect, UPI had registered a little drop in payments volume in March resulting from 1.25 billion transactions worth Rs 2,06,462 crore or Rs 2.06 trillion.
Moreover, along with UPI, NPCI’s real-time payments service IMPS has also registered a sharp fall in volume as well as the value of transactions. In April, IMPS processed 122.47 million payments worth Rs 1,21,140.79 crore which is almost half of the previous month. In the previous month i.e. March, the figure was 216.82 million transactions worth Rs 2,01,961.70 crore.
The decline is shocking as in February 2020, the RBI governor, Shaktikanta Das, highlighted that digital payments accounted for almost 97% of the daily payment system transactions in terms of volume. He also mentioned that digital payments had accelerated by 50% in terms of volume in the last five years.
However, UPI body NPCI’s CEO Dilip Asbe said, “For the last five years, the number of transactions of UPI has been growing continuously month-on-month. But now there has been a slight drop in the volume due to the lockdown. The drop in volumes is due to near-zero restricted spends such as on e-commerce, travel, and similar online platforms. We expect volumes to pick up soon.”
Reasons behind the drop in transactions
It was anticipated that a nationwide lockdown to curb the spread of the Covid-19 pandemic would affect the digital payment volumes. However, financial experts were assured that digital payments will not get affected adversely but rather continue to grow as people would rely on digital transactions to avoid physical contact.
During the initial days of the lockdown, e-commerce, food tech, grocery as well as other online platforms were unable to operate. This led to a gradual fall in transactions but later the government allowed essential services to continue. Moreover, payments to PM-CARES via UPI have been the driving force behind UPI’s growth, which is still a 20.8% drop and these numbers are only in a few million.
Yet, transactions did not come back to normal as the government only allowed transactions on essentials. Hence, a majority of e-commerce services are still waiting for government orders. Soon, the government is likely to relax the norms for e-commerce platforms and allow them to deliver non-essential goods as well.
According to payment gateway Razorpay’s digital transaction report, for the month of April, the transactions in logistics have dropped by 96%, the travel sector has declined by 87%, food, and beverage by 68%, and groceries by 54%. In the last 30 days, transactions in cities like Ahmedabad, Mumbai, and Chennai took a hit of 43%, 32%, and 25% respectively. The report recorded transactions between when the lockdown was announced.
Razorpay’s report also stated that UPI emerged as the most popular digital payment method from March 24 to April 23, with 43% of the total transactions during the period. It was followed by card payments with 39% and net banking with 10%. However, compared to the previous month, transactions through UPI declined by 37%, cards by 30%, and net banking by 28%.
Steps taken to deal with the drop
Though the situation worsened throughout the lockdown, NPCI seemed prepared to handle the lockdown. CEO Dilip Asbe said that NPCI can have multiple sessions and had a spare capacity to handle the demand. In order to ensure that everything keeps running smoothly, around 5% of the NPCI’s workforce travelled to the office.
NPCI has already devised a plan for the situation with due consideration of all the factors. Asbe said that NPCI has received complaints from some businesses about delays in cheque clearing. He added that there could be issues on the last mile. “While we are in touch with banks, there might be some issues with uploading because of the lockdown. These issues might be hard to resolve now as most of the workforce isn’t available now,” said he. However, Asbe also mentioned that the main objective there was to keep employees safe. If they are safe, the operations can be managed. “There are things we cannot disclose, but there is enough backup in case something goes wrong,” he added,
The government also used the UPI technology for facilitating the transfer of money in the bank accounts of beneficiaries within a day under the Pradhan Mantri Garib Kalyan Yojana (PMGKY). He further noted that besides this transfer of relief funds, the government has been using UPI for transferring monetary perks in various schemes such as Ujwala and MNREGA.
After the success of the implementation of UPI in these schemes, many state governments then relied on UPI technology to transfer funds under various schemes. Madhya Pradesh government recently transferred some relief money to the accounts of lakhs of construction workers. PM Narendra Modi had also urged people to go for digital payment to ensure safety from the infection.
Major Challenge for the Stakeholders
India’s free payments system, UPI is not actually free for all. It is simply free for the users and merchants but the stakeholders have to pay a price for it. As per RBI, the costs incurred by the stakeholders in a peer-to-merchant (P2M) UPI transaction with an average order value of ₹800 is nearly ₹2 i.e, 0.25% of the transaction value. So, for example, if 16 lakh crore INR worth of transactions have occurred in the previous year on the UPI that means it costs roughly 4,000 crore INR ($500 million) to banks, NPCI, and the payment service provider.
UPI – Transaction Rules from January 2021
The Reserve Bank of India (RBI) has come up with the ”positive pay system” for cheque payments. This system is introduced in order to keep a check on banking fraud. According to the positive pay system, the user is required to re-confirm their key details for payments that go beyond 50,000. The user, however, has a choice to use this system.
UPI offers several benefits over other payment systems such as NEFT, RTGS, and IMPS. Here are some of the key advantages of UPI:
UPI vs NEFT
Both the platforms are known to have pros and cons. UPI facilitates instant transfer for free, whereas it can only transfer Rs 1 Lakh per day. NEFT on the other hand allows the user to transfer funds from any bank branch to any individual having an account with any other bank branch in India. A disadvantage of NEFT is that the cost is higher than UPI and it takes about 12 hours for one NEFT transfer.
UPI vs RTGS
UPI transactions are fast, simple to use, and free of charge, and are ideal for future payments, loan repayment, or credit card payments. Whereas the Real Time Gross Settlement (RTGS), is said to be of high value and needs to be processed in real-time, and is ideal for the transfer of Rs 2 lakhs and above.
UPI vs IMPS
The Immediate Payments Service (IMPS), is an instant interbank electronic fund transfer service that helps the user to access your bank account and transfer funds immediately and securely. However, with UPI the user can pay directly from a bank account to different merchants, both online and offline, without the hassle of typing your credit card details, IFSC code, or wallet passcodes.
Conclusion
UPI is a game-changing payment system that has made digital payments accessible and affordable for millions of people in India. Its ease of use, low cost, and instant transfer capabilities have made it the preferred payment option for individuals and businesses alike, and it is set to revolutionize the way people make payments in India for years to come.
With all the knowledge of UPIs, it is safe to say that people are encouraged to take a step toward going cash-free. Many other improvements are expected in the newer updates so it would not hurt to make the shift and keep up with the new digital times of managing funds.
FAQs
What is the use of UPI?
UPI or Unified Payments Interface is an instant real-time payment system created by National Payments Corporation India, which likewise implies that the Reserve Bank of India controls it.
What are the services of UPI?
The services of UPI are Cash-free functioning, Security, Real-Time Fund Transfer, a Cheaper Alternative to POS machines, and One UPI app that works for all bank accounts.
What is the Unified Payment Interface meaning?
Unified Payment Interface refers to a system that empowers the users with multiple bank accounts under a single mobile application for effective transactions. It is an all-in-one interface for payments, hence “unified”.
What are the charges for UPI?
UPI is free of charge at present. However, at the meeting of banks with NPCI on February 14, 2020, it has been decided that UPI transactions are free for up to 20 transactions per person.
What is the current UPI transfer limit?
Currently, the UPI transfer limit is set to Rs 1 lakh, as decided by the NPCI.
Can the UPI app for the current account be used?
The UPI app for current accounts can easily be used both by merchants and consumers and they work just as well as the UPI for savings accounts.
What are UPI transaction charges?
At present, the UPI transfer limit per UPI transaction is ₹1 Lakh.
Is UPI safe?
Yes, UPI is safe and secure as it has a number of measures that ensure its safety.
Is a debit card necessary for UPI?
Yes, the debit card is mandatory to set the UPI pin.
How to use UPI to transfer money?
UPI can easily be used to transfer money, in which a user needs to have his/her bank account connected along with a working UPI ID and a phone number that is linked with the bank account.
No, UPI is a domestic payment system and can only be used to transfer money within India.
Which banks support UPI?
Most major banks in India support UPI, including State Bank of India, HDFC Bank, ICICI Bank, Axis Bank, and others.
How does UPI work?
UPI allows users to link their bank accounts to a mobile app and make payments directly from their account. Users can transfer money to other bank accounts by using the recipient’s UPI ID or mobile number.
What should I do if my UPI transaction fails?
If your UPI transaction fails, you can try again after a few minutes. If the problem persists, you can contact your bank’s customer service for assistance.
Can I link multiple bank accounts to UPI?
Yes, you can link multiple bank accounts to UPI. You can switch between accounts while making payments or choose a default account for transactions.
Is there any disadvantages of UPI?
Yes, there are some disadvantages of UPI. It requires a stable internet connection and a smartphone to make transactions, and it may not be widely accepted in all merchants and stores.
The academic environment in the US defines leadership as a process of social influence in which a person can enlist the aid and support of others in the accomplishment of a common and ethical task. Leadership encompasses the ability of an individual, group, or organization to lead, influence, or guide other individuals, teams, or organizations.
A recent scientific study addresses the long-held question – Are leaders born or made? The answer suggests that leadership is 30% genetic and 70% learned or acquired. Hence, the answer can be construed as that while a person is born with natural leadership qualities, he or she can learn and acquire the skills that are needed to be a good leader.
Books to Learn Leadership
Natural leadership qualities can be honed and sharpened by learning the precise skills of leadership. Fortunately, the knowledge is freely available from the many published books. Some of the best books that teach leadership skills are –
The Five Dysfunctions of a Team – A Leadership Fable
Book
The Five Dysfunctions of a Team
Author
Patrick Lencioni
Goodreads Rating
3.98 out of 5
The Five Dysfunctions of a Team
The author has, through his book, provided an in-depth analysis of the five different dysfunctions of a team – the absence of trust, fear of conflict, lack of commitment, avoidance of accountability, and inattention to results. This analysis explains the reasons behind a team’s inability to function and perform cohesively. This book, through its reasoning, helps leaders avoid the struggles and pitfalls that can break a team and rather help them grow and prosper together.
The Leadership Challenge
Book
The Leadership Challenge
Author
James Kouzes and Barry Posner
Goodreads Rating
4.01 out of 5
The Leadership Challenge
This is a great book to read to stay relevant and effective in a modern working environment. The authors put forth their Five Practices of Exemplary Leadership that, if executed well, allow leaders to bridge the chasm between just getting things done and making great things happen. The book teaches leaders how to mobilize others to do extraordinary things within their organizations.
The 7 Habits of Highly Effective People
Book
The 7 Habits of Highly Effective People
Author
Stephen R. Covey
Goodreads Rating
4.15 out of 5
The 7 Habits of Highly Effective People
This book, originally published in 1989 remains as relevant in the current times when challenges have become increasingly difficult. Its holistic, integrated, and principle-centered approach to resolving personal and professional difficulties is what has made this book a number-one national bestseller.
How to Win Friends and Influence People
Book
How to Win Friends and Influence People
Author
Dale Carnegie
Goodreads Rating
4.22 out of 5
How to Win Friends & Influence People
Almost all book lists will be incomplete without this masterpiece which was published in 1936 and has sold more than 15 million copies worldwide. It helps in achieving maximum potential as a leader through its advice on career advancement, persuasion, communication, and influence that are as relevant today as when they were when the book was published.
Primal Leadership – Unleashing the Power of Emotional Intelligence
Book
Primal Leadership – Unleashing the Power of Emotional Intelligence
Author
Daniel Goleman, Richard Boyatzis, and Annie McKee
Goodreads Rating
3.99 out of 5
Primal Leadership – Unleashing the Power of Emotional Intelligence
This book expanded the definition of a great leader beyond being strategic, visionary, and brimming with powerful ideas. Great leaders inspire passion and work through emotions. They affect at a much more primal level. The book describes what great leaders must do to become emotionally intelligent leaders. Primal Leadership established ‘emotional intelligence’ in the business lexicon and remains a must-read for anyone that leads or aspires to lead.
The 21 Irrefutable Laws of Leadership – Follow Them & People Will Follow You
Book
The 21 Irrefutable Laws of Leadership – Follow Them & People Will Follow You
Author
John C. Maxwell
Goodreads Rating
4.15 out of 5
The 21 Irrefutable Laws of Leadership – Follow Them & People Will Follow You
The book outlines each of the 21 laws as a separate chapter. These laws, when understood and put into practice guide the readers towards setting a direction, aligning the people, inspiring and motivating them to follow a common goal. It aims at creating a leader that people willingly follow. Maxwell is a world-famous leadership expert and the author of several acclaimed books like Leadershift, The 360 Degree Leader, and Leadership Gold.
Leadership
The Effective Executive – The Definitive Guide to Getting the Right Things Done
Book
The Effective Executive – The Definitive Guide to Getting the Right Things Done
Author
Peter Drucker
Goodreads Rating
4.08 out of 5
The Effective Executive – The Definitive Guide to Getting the Right Things Done
He is known as the father of ‘Modern Management’. Peter Drucker wrote this classic in 1967 which remains relevant today as it outlines the five practices that are essential for business management. In his book, he cites that the measure of a truly effective executive is the ability to do the right things at the right time. The book is a brilliant read to learn and understand the fundamentals of what makes a great leader.
The Art of War
Book
The Art of War
Author
Sun Tzu
Goodreads Rating
3.97 out of 5
The Art of War
Dating back to more than 2000 years ago, this book is an ancient Chinese military treatise that is devoted to warfare tactics and strategies. It was written by the Chinese military strategist Sun Tzu and is composed of 13 chapters. It is one of the most influential East Asian texts and has influenced countless business tactics, legal strategies, military thinking, and many more.
First, Break All the Rules – What the World’s Greatest Managers Do Differently
Book
First, Break All the Rules – What the World’s Greatest Managers Do Differently
Author
Marcus Buckingham, Curt Coffman
Goodreads Rating
3.94 out of 5
First, Break All the Rules – What the World’s Greatest Managers Do Differently
This book has been a management bestseller for a long time. It presents the remarkable findings of Gallup’s in-depth study of more than 80,000 managers. What the data reveals highlights that great managers share one trait in common despite varying backgrounds and styles. Great managers do not hesitate nor fear breaking sacred business rules. This book is a great career lesson for managers and leaders.
Drive – The Surprising Truth About What Motivates Us
Book
Drive – The Surprising Truth About What Motivates Us
Author
Daniel H. Pink
Goodreads Rating
3.95 out of 5
Drive – The Surprising Truth About What Motivates Us
The traditional carrot-and-stick approach to motivation has been cited as a mistake in the current work environment by author Daniel Pink. The new work world that is described in the book is built on leaders who find creative and innovative ways to tap into the deep-seated desires of their team members. They recognize their team members need to be autonomous in their work and continually improve to find a higher purpose. This is one of the essential skills to be an effective leader.
Conclusion
The list that encompasses great books that teach the art of leadership is never ending with many newer publications joining the list consistently. However, these are some of the classics that have remained valid through time.
FAQs
Which are the best books to learn leadership?
Some of the best books to learn leadership are-
The Five Dysfunctions of a Team – A Leadership Fable
The Leadership Challenge
The 7 Habits of Highly Effective People
How to Win Friends & Influence People
Primal Leadership – Unleashing the Power of Emotional Intelligence
The 21 Irrefutable Laws of Leadership – Follow Them & People Will Follow You
The Effective Executive – The Definitive Guide to Getting the Right Things Done
The Art of War
First, Break All the Rules – What the World’s Greatest Managers Do Differently
Drive – The Surprising Truth About What Motivates Us
What is good leadership capable of?
Leadership encompasses the ability of an individual, group, or organization to lead, influence, or guide other individuals, teams, or organizations.
One of the most commonly used words in search engine optimization is backlinks. Building backlinks with well-known, reputable, and authoritative websites is crucial for Google’s algorithm. They may determine whether a website improves or deteriorates in Google’s search results.
Inbound links, incoming links, and one-way links are other names for backlinks. These clickable links let you navigate across the pages of different websites. Backlinks are thought to have a significant impact on the quantity and quality of traffic to your website from Google and other major search engines. As they contain more content that drives traffic to their web pages and websites, backlinked pages are more likely to get high organic search engine results.
Backlinks are a great way to increase traffic to your website. By having other websites link to yours, you’re effectively giving them a vote of confidence. The more votes you have, the more credible and useful your website appears to be. This will help you attract more visitors from search engines.
Due to this, the more votes you have, the better Google, Bing, Yahoo, and other search engines will rank your website. The idea of including backlinks in a search engine’s algorithm is not new. Backlinks served as the foundation for the PageRank algorithm that Google first developed. Google later modified its algorithm, though, in a number of ways. Backlinks are still thriving and are a significant ranking element. Along with “content” and “RankBrain,” backlinks are still regarded as one of Google’s three key ranking criteria.
The fact that other companies endorse your website sends a positive message to Google. Search engines learn that a page or site is worth connecting to when other websites link to it, making it appear on a SERP. Therefore, building backlinks might help your website rank higher or be more visible in search results.
There are several kinds of backlinks. A better position in the SERPs is achieved through the use of high-quality backlinks. One high-quality backlink can be more effective than 100 low-quality ones.
A backlink is deemed high-quality if it satisfies the following criteria:
It’s located on a page with more links to reliable websites.
It points to a domain authority-rich website.
It comes from a reliable source in the mentioned industry.
It comes from a different website than the links on your page.
It’s not a backlink exchange.
Not a “spammy” link at all.
To be competitive in SEO, a website generally needs between 40 to 50 backlinks to its homepage and between 0 to 100 backlinks to individual web pages. However, this number can vary based on several factors such as industry competition, the quality of backlinks, relevance to website content, and overall SEO strategy.
The quality of backlinks is extremely important because quality links can improve a website’s overall rank with fewer links. To be competitive in the long term, it’s best to focus on acquiring high-quality backlinks with high PageRank ratings.
Getting the most backlinks with the best PageRank possible should be your aim if you want to be long-term competitive for keywords and rank higher. When it comes to building backlinks, quality is always preferable to quantity.
It is therefore preferable to obtain one backlink with a high PR9 rather than 10 with a lower PR1.
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Factors Affecting the Number of Backlinks a Website Needs
There are various factors that determine how many backlinks your website needs. Let’s go into further depth about it.
Domain Authority
A domain’s comprehensive strength is measured by the SEO statistic known as Domain Authority (DA), which was initially created by Moz. The Ahrefs equivalent of DA, Domain Rating (DR), displays the strength of a website’s backlink profile. And Semrush’s adaptation of DA called the Authority Score (AS), is used to gauge a website’s overall quality and SEO effectiveness.
Each of the three aspects—DA, DR, and AS—is given a score out of 100, with higher scores denoting a more robust domain that is more likely to provide better SERP outcomes.
A website with a greater domain authority should appear higher in Google for a target keyword, all other things being equal in terms of content quality, matching user search intent, on-page SEO, and technical SEO. However, as you’ll see in the section on keyword difficulty after that, it isn’t always the case.
That would typically occur since Google’s algorithm considers off-page SEO elements like backlinks when determining where a website should rank in the index. A website’s domain authority will rise if more authoritative websites connect to it. This increases its perceived value to Internet users and, as a result, the ranking algorithm.
Keyword Difficulty
Another parameter that SEO tools use to determine how challenging it could be to rank a web page for a particular phrase is keyword difficulty. It also uses a 100-point scale, similar to domain authority, with higher scores signifying more difficult competition.
The keyword difficulty score is influenced by four things:
Domain authority: The overall strength of a domain
Page authority: The strength of a specific web page
Citation flow: The total number of links pointing to a specific web page
Trust flow: The standard of the backlinks pointing to a certain web page.
Domain authority is one key metric to help you determine how difficult it may be to rank a web page in the search engine results pages (SERPs) for a given keyword phrase. However, it’s not the only metric you should consider. Metrics like citation flow and trust flow are also important because they show not just the quantity of backlinks but also the quality of those incoming links.
The DA score is not the be-all and end-all when it comes to a website’s ranking. A lower DA score does not mean a website is out of the running to rank highly; in fact, a site with a lower DA can outrank one with a higher DA score, provided it has better-quality backlinks to the individual web page. Additionally, there’s one other thing these SEO metrics do not take into consideration when judging a URL: the quality of the on-page SEO.
On-page SEO is a powerful ranking factor for some keywords because it provides Google’s algorithm with the correct signals to rank the content for a set of keywords. However, off-page SEO, such as backlinks, is not always the most powerful SEO ranking factor, especially when on-page SEO is optimized well on the page.
Internal Linking
The quantity of internal links a page obtains also affects how many backlinks it should have.
There are many SEO case studies that show how internal links can help increase a web page’s rankings in the search engine results pages (SERPs). Some SEO testing indicates that on average, 3 internal links are equal to 1 external backlink.
Not only does Google report that pages with more internal links are seen as more important to user experience, but they also state that these pages should be given higher visibility in the SERPs. So, if you want your page to rank higher on SERPs, make sure to include plenty of internal links!
Linking internally to the pages you want to rank in Google using keyword-rich anchor text will help send relevant signals to the search engine. Additionally, choose to link from other relevant content on your site instead of randomly because the annotation text can also be considered by Google’s indexing algorithm.
Increasing Website Traffic With Fewer Backlinks
Backlink Quality vs. Quantity: Impact on Rankings and Authority
It is challenging to attempt to increase the number of backlinks to your website and specific web pages. And because Google only wants natural and organic backlinks to happen on the Internet, it actively opposes this strategy.
And as you see above, ranking a page in the top 10 places on Google doesn’t necessarily require having a ton of backlinks. Here are some SEO-recommended practices you may do to improve your ranking outcomes with fewer backlinks:
Pick phrases with low keyword difficulty ratings and select at least 3-5 keywords to focus on while optimizing the website.
Put your keywords in the appropriate HTML locations for Google to crawl to achieve the greatest on-page SEO possible.
Aim to satisfy the user’s search purpose with your content. You may generate content that is comparable to what is being rewarded by looking at the top-ranking websites in Google for your core keyword phrase.
Make at least five contextual internal links with keyword-rich anchor text to the page after the article is published.
If you can, include a link on your homepage to the website. Usually, the homepage has the highest internal PageRank score.
Instead of focusing on specific pages, focus on increasing the number of high-quality backlinks to the home page.
The only time you should consider increasing the number of backlinks to a certain web page is after you have done all you can to improve the strength of the SEO elements you can control on your site.
Once your web page and internal SEO signals are effectively tuned, you may discover that you require fewer backlinks than you initially thought to rank for your keywords.
With that, all said, what can we do to get an objective estimate?
How to Determine the Number of Links Needed
Here is how to determine how many links you need after all the disclaimers with the help of a tool:
Enter the term you wish to rank for at Semrush Keyword Overview.
Semrush will inform you of the typical number of links required to reach page 1 of search results.
You may also view the ranking pages to examine the range of values.
You will undoubtedly note that there is a wide range in the number of high-quality links that websites receive when they rank on page one; this is why the number is average rather than precise.
However, once you know this figure, you’ll be able to set goals for how many links you need to create.
Hope you now have a better knowledge of backlinks and how they help your website rank. Likewise, when it comes to backlinks, quality prevails over quantity!
The quality of backlinks is extremely important because quality links can improve a website’s overall rank with fewer links. To be competitive in the long term, it’s best to focus on acquiring high-quality backlinks with high PageRank ratings.
What determines keyword difficulty?
The keyword difficulty score is influenced by four things:
Domain authority
Page authority
Citation flow
Trust flow
Are backlinks also called inbound links?
Inbound links, incoming links, and one-way links are other names for backlinks.
It was in the 1990s that the word ‘digital marketing’ was coined as Customer Relationship Management (CRM) applications grew significantly adding to marketing technology with the rise in computer usage and the internet. At the turn of the century the iPhone was born, and the number of internet users was rising exponentially as people began to make use of the virtual world to make their decisions about their needs. This paved the way for the world of marketing to begin integrating technology into its development.
The ever-evolving marketing climate gave birth to marketing automation in 2007 using software to automate conventional marketing processes. This helped the world of commerce to segment its customers, launch multichannel campaigns, and personalize information for the end consumers based on their specific activities. With the advent of social media, the growth of digital marketing became more sophisticated as the consumers’ dependence on digital electronics increased and deepened.
In 2022, global digital marketing was valued at USD 321 billion which is further expected to grow at a CAGR of 13.1% between 2023 and 2028 to reach a total valuation of USD 671.86 billion.
A vital component of overall marketing strategy, digital marketing allows businesses to send tailor-made messages to a specific audience, thereby, directly reaching their target customers. There are many ways in which this can be accomplished. The many forms of digital marketing include Search Engine Optimisation (SEO), Pay-per-Click, Social Media Marketing, Content Marketing, Email Marketing, Mobile Marketing, Marketing Analytics, and Affiliate Marketing.
A new and emerging trend of marketing that forward-thinking businesses are now employing is WhatsApp Marketing. This is the most recent way for businesses to engage with their customers and get their undivided attention.
Through WhatsApp marketing, companies engage in conversational commerce by sending out WhatsApp newsletters.
A WhatsApp newsletter is like any other digital send-out with one major difference. It is more personal and targeted to a specific audience. Like a traditional email newsletter, a WhatsApp newsletter can contain a special offer, an exclusive discount, a new product announcement, or even a picture or video message. The difference is that, unlike an email newsletter, it will contain only one of these messages.
WhatsApp Newsletter
With a 98% open rate, the WhatsApp newsletter allows businesses to stay in close touch with their customers while also gaining their trust easily due to the ease of reach.
Elements of WhatsApp Newsletters
WhatsApp has the potential to become the next end-to-end relationship channel. However, it cannot replace the email marketing efforts. Rather, it can be an extremely useful and harmonious co-channel of email marketing, being used for lower frequency and highly relevant communication.
A few key elements of WhatsApp newsletters to maximize engagement are –
Newsletters to not exceed the 150-word limit
‘Quick Reply’ buttons can be programmed into the newsletters
A CTA (Call to Action) button can immediately lead the recipient to the business website
Keeping in mind these few key elements, a business can ensure consumer engagement as well as promote sales through call-to-action initiatives.
WhatsApp Newsletters, Explained.
Benefits of WhatsApp Newsletters
WhatsApp’s global popularity makes it an effective tool for conversational commerce. Although the app can facilitate number blocking, the many benefits of using this tool for marketing make it a highly preferable medium.
The engagement rate is high – almost 100% as recipients open and read newsletters
Allows businesses to accurately measure audience responses
Templates are highly attractive ensuring receiver engagement with minimal effort
There are no spam or junk folders on the app in which such newsletters can automatically disappear
Marketing costs are considerably lower
Businesses must be careful and sensitive to the number of messages being sent through WhatsApp broadcasts to keep it interesting, engaging, and effective.
The nature of the business or service determines how a WhatsApp newsletter can be utilized for optimal benefits. Commonly, this broadcasting channel is used to announce new product launches, sales promotion campaigns, engagement, and/or research.
Keeping customers updated in real-time about the status of their orders
Celebrate special occasions of customers like birthdays, anniversaries, promotions, etc. with personalized messages or customized offers
Highly personalized, specialized, and improved customer service and retention
Sending messages and receiving responses in real-time from customers allowing to resolve queries or complaints quickly
Considerable reduction in abandoned carts
Conclusion
WhatsApp, currently, is the most popular global messenger app with more than 2 billion users. These statistics easily make it the most popular choice for businesses to deliver relevant information to their customers faster as well as close sales. Digital Marketing is ever-evolving as technology grows. How the world of marketing evolves with technology remains to be seen.
FAQs
Name a few forms of Digital Marketing.
Below are a few forms of Digital Marketing-
WhatsApp Marketing
Search Engine Optimisation
Pay-per-Click
Social Media Marketing
Content Marketing
Email Marketing
Mobile Marketing
Affiliate Marketing
What is WhatsApp Newsletter?
A WhatsApp newsletter is like any other digital send-out with one major difference. It is more personal and targeted to a specific audience. Like a traditional email newsletter, a WhatsApp newsletter can contain a special offer, an exclusive discount, a new product announcement, or even a picture or video message. The difference is that, unlike an email newsletter, it will contain only one of these messages.
Research by MindGym into business performances during the global recession between 2007 and 2009 found that only 9% of companies performed better than their business rivals in terms of sales and recording profits. The report put forth the supposition that the success of these companies was attributable to a culture of high performance allowing them to maximize productivity and drive innovation.
By the end of 2022, business leaders were setting their priorities and planning for the year ahead and beyond. A cornerstone for this planning included setting a high-performance culture that improves productivity, increases profits, and accounts for happier employees.
Organizational culture is a cumulative effect of what people do and how they do it and its effects on the company’s performance. It is a set of values, beliefs, attitudes, philosophies, and practices followed by organizations that guide the actions and behaviors of the employees. High performance is a reference to individuals, teams, or organizations as a whole, who are laser-focused on their goals. They are able to achieve better results through a common vision, collaboration, skills, and resilience.
Hence, high-performance culture can be defined as a working style that helps employees thrive, take ownership, and become accountable by using available tools and resources to achieve high goals.
How to create a high performance culture | Andrew Sillitoe | TEDxRoyalTunbridgeWells
Ways to Create High-Performance Culture
For many years now, there has been rising awareness about building an organizational culture that is conducive to happier employees leading to high productivity. However, the post-pandemic world has seen a tectonic shift in working styles and environments as employees shuffle between working from home and working from the office. The hybrid style of working has further stressed the need for organizations to build a uniform and crisp culture that ensures its sanctity and relevance. Creating a high-performance culture has become a key business strategy to ensure a thriving business in 2023 and beyond.
There is no one defined way to create a high-performance culture as different business structures require different approaches. However, there are some common hallmarks and approaches.
Defining Behavioral Patterns
Acceptable behavioral patterns that are tailor-made for a particular business need to be clearly defined and communicated. This allows for every employee to have an understanding of a shared vocabulary that mobilizes change and also helps the leadership to monitor the progress in the cultural shift.
Reframe Mindsets
People from different backgrounds, cultures, and thought processes come together in the workplace. However, the atmosphere of the organization has a profound effect on the beliefs and value systems of its employees. Hence, it is the organization’s responsibility to send the right behavioral cues through every act, be it a performance review or the way a meeting is conducted. It is these cues that are sent from the leadership that builds a culture of high performance by reframing the mindsets of all employees.
Utilize Major Business Initiatives to Drive Desired Culture
Highlighting behaviors and mindsets of employees that deliver the most business value becomes self-reinforcing. It ensures that the desired behaviors and values take hold by generating a magnetic pull as people take cues from their leader’s signals. This also accelerates the momentum of a culture that values high performance.
Creating a Coherent Employee Experience
An organization that creates and executes a program to ensure a coherent employee experience speeds the process of transition to a high-performance culture. This means that there is value added to the employee through a compelling change story, leadership role modeling, the opportunity for skill building, and formal changes to processes, systems, and incentives that increase employee clarity.
Create Opportunities for Personal Growth and Overcome Personal Barriers
The equation is simple. For the organizational culture to change, its people must change. This can be achieved by designing a program that allows each individual to recognize their own behavior patterns as well as what requires a change.
Make the Journey Employee-Centric
After all, it is the employees of any organization that builds and sustain the organizational culture. While it is true that cultural change moves top-down, change efforts have to be employee-centric. The more employees see value in certain behaviors, the easier will be to change to building a high-performance culture.
A high-performance culture within an organization is roundly beneficial to all, be it the leadership or the employees.
Increased Productivity
It creates an enjoyable, healthy working space that encourages engaged, highly functional, and consistent employees. It positively impacts the quality and performance of the workforce and encourages them to explore newer ideas in their pursuit of success.
Builds Brand Identity
An organization’s interactions within and outside the company build its reputation and image. Companies with a strong brand identity tend to attract more business
Attracts the Right Talent
A high-performance culture that strengthens employees and their work resulting in satisfied staff attracts the right talent pool of workers.
Lowers Attrition Rate
Organizations that have a strong cultural hold of high-performance result in employees who feel valued and respected. This leads to satisfied and happy employees automatically lowering the attrition rate.
Healthy Working Environment
A strong organizational culture improves work-flows as well as helps in overcoming any biases and ambiguity. It eases the decision-making process. Well-informed team members are motivated to perform at their best. A high-performance culture promotes a uniform work structure to create a healthy working environment.
Conclusion
In the post-pandemic world, employees want to work with businesses that are open, inclusive, and customer-centric. They also want an organization that has a strong culture in place. Going into the future, creating a high-performance culture within the organization has assumed critical importance to ensure continued success and relevance for any business.
FAQs
What is High-Performance culture?
High-performance culture can be defined as a working style that helps employees thrive, take ownership, and become accountable by using available tools and resources to achieve high goals.
What are the ways to create High-Performance culture in an organization?
Following are a few ways through which High-Performance culture can be attained in an organization-
Defining Behavioral Patterns
Reframe Mindsets
Utilize Major Business Initiatives to Drive Desired Culture
Creating a Coherent Employee Experience
Create Opportunities for Personal Growth and Overcome Personal Barriers
Make the Journey Employee-Centric
What are the advantages of having High-Performance culture within an organization?
Below are the advantages of having High-Performance culture within an organization-
Generative AI has created quite a buzz lately, and people are curious. Since OpenAI launched ChatGPT in November last year, it has got 100 million users putting it to good use. And believe it or not, it is doing a pretty good job for the intended purpose. As a generative AI Chatbot trained on a massive dataset of dialogue-based texts and codes, OpenAI’s ChatGPT has captured the attention of literally everyone who is even slightly keeping up tabs on new tech, and it has got 100m users to prove my point.
So, what is generative AI, how do people use it to search queries, and how does this generative AI search work?
Well, first thing first. Generative AI is a kind of machine learning (ML) that uses algorithms to create new data from existing datasets of texts, audio, visuals, and codes, that can be used for various tasks such as image generation, text summarization, audio and video generation, and natural language processing. ChatGPT is also a generative AI-based chatbot, capable of having human-like conversations, but way more powerful and efficient than Siri and Google Assistant.
At present, OpenAI’s ChatGPT is freely available for people to try out the limited capabilities of this generative AI-based conversational tool— but its newer and upgraded version, ChatGPT Plus, is not free. Users can still take a USD 20 subscription plan to use the new GPT-4 (a large language model) based- ChatGPT Plus, which offers larger context as input and can have more extensive and more creative content than its predecessor.
Microsoft also integrated OpenAI’s GPT-4 large language model customized specifically for search in its Bing Search and launched it as the ‘New Bing’. In a blog post, Microsoft says,
“New AI Bing is an AI-enhanced web search experience that can provide you with better search, more complete answers, a new chat experience and the ability to generate content.’’
Microsoft Chairman CEO, Mr. Satya Nadella, on the day of its launch, said that AI would fundamentally change every software category, starting with the largest of all being the search category. He added, “Today, we’re launching Bing and Edge powered by AI copilot and chat, to help people get more from search and the web.’’
Although, the new Bing search is not yet available for everybody to use as Microsoft is yet to roll it out for everyone.
For a moment, you’d wonder where is Google— the company which ruled web searches over the past two decades. Well, Google is not behind in this Generative AI race. It’s working on its very own Generative AI chatbot named Bard— based on Google’s large language model, LaMDA (Language Model for Dialogue Applications). Google announced it in its 2021 annual Google I/O meet.
Google CEO Sunder Pichai on February 6, one day before the launch of Microsoft’s new Bing AI, introduced Bard in a blog post. “Bard seeks to combine the breadth of the world’s knowledge with the power, intelligence, and creativity of our large language models”, said Mr. Pichai.
Google says that it aims to bring the benefits of AI into our everyday products, and it isn’t in the race for AI first. Perhaps that is why Google is behind Microsoft and playing catch up, but there are other participants in this AI race tool. Apple Inc. is also working on its own AI model, and so is IBM.
The Generative AI Search
Search, as we know it, is simply opening our favorite web browser and search engine— Bing, Yahoo, or Google, and typing in the query we want to look for. Sometimes it’s not even a query. We simply type in the word ‘Cat’, and the search engine comes up with a list of websites that it believes have the answer to our questions (the input) accurately. Well, that is how keyword-based traditional search works.
The generative AI search, on the other hand, is a relatively new technology that uses machine learning and natural language processing to search for information. It works by analyzing large amounts of data and generating new, relevant results based on the input provided. The process involves gathering data from multiple sources such as websites, databases, or social media platforms like Twitter or Facebook. This data is then analyzed using algorithms designed particularly for the task at hand—in this case, digging through vast amounts of information quickly and accurately finding what you are looking for— all without you having manually look through each piece.
The AI-based algorithm looks at patterns in the text that indicate specific topics are related, thus, helping to narrow down your results even further before presenting them back out again as an organized list with all relevant options included within it.
The next step involves taking those generated results and running them against various other sources, such as images or videos if necessary; this allows you to get a better understanding of what exactly was found during your initial query process – giving users access not only textual but also visual content when searching online too.
Finally, once everything has been collected together into one place, then sort these items according to their relevance level – making sure that only the most relevant pieces appear first, and the lesser ones stay towards the bottom part where nobody would bother looking anyway all this while presenting it to you in a human-like output. Well, that’s the gist of it.
You must understand that the algorithm searches through all kinds of data, be it text, image, audio, or video because generative AI is not just limited to text.
Ultimately generative AI searches provide you with an efficient way of finding answers quickly regardless you know anything about the topic beforehand or not – allowing you to save time (well, time is money!) while still getting quality output every single time.
What are Generative AI models?
How Generative AI Search Differs from Traditional Web Search
Google has, time and again, emphasized that it uses AI (BERT, MUM) to give you quick and accurate results, but generative AI search is quite different from traditional searching. For one, it uses deep learning models instead of keyword-based indexing systems like those used by most popular web browsers today.
Deep learning models can understand complex relationships between data points within a dataset, allowing them to skillfully understand what users are searching for when they enter their queries into the system. For example, if someone were searching for “Italian restaurants near me” on Google or Bing, these services would typically return listings based solely on keywords entered by the user without considering any additional factors such as location or cuisine preference—but with an advanced generative AI system in place these criteria could be taken into account as well resulting in much more accurate recommendations are tailored specifically to meet per needs.
Google and ChatGPT
Generative AI Search also allows you to enhance your search results through conversation and generate the relevant answers in a human-like output while providing you with link(s) to the resources it compiled the results from. Another advantage that comes with using an advanced generative AI system over conventional ones is its ability to identify patterns amongst the vast amount of data and produce the most relevant results without requiring you to put too much effort or time into researching your query firsthand.
Generative AI searches can generate more relevant results than regular keyword-based searches because of their ability to understand natural language queries and return personalized recommendations based on user preferences. Generative AI search would certainly revolutionize web search, but what matters most is accurate and unbiased AI, as the results can only be as good as the training data set. While Microsoft has already launched its New Bing AI and Chat with its enhanced edge web browser, Google is not rushing into the AI race and improving its generative AI-based chatbot Bard.
FAQs
What is Generative AI?
Generative AI is a kind of machine learning (ML) that uses algorithms to create new data from existing datasets of texts, audio, visuals, and codes, that can be used for various tasks such as image generation, text summarization, audio and video generation, and natural language processing.
How does Generative AI search work?
The generative AI search, on the other hand, is a relatively new technology that uses machine learning and natural language processing to search for information.
PV Vyshnavi
