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  • Cryptocurrency: Boon Or Bane to The World Economy

    With the industrialization and absorption of technology, digital currencies are gaining much importance of late. Bitcoin is undoubtedly one of the most popular digital currencies because it was the first-ever cryptocurrency that was discovered in 2009, by the pseudonymous developer Satoshi Nakamoto. Therefore, the people who are aware of cryptocurrencies and their concepts are well-versed with bitcoins at least.

    The global cryptocurrency industry was last estimated towards the end of 2021 at $910.3 million and is expected to grow at a CAGR of 11.1% to $1902.5 million in 2028. Though we are still devoid of the exact data, the total cryptocurrency investors in India range between 15-20 million, where the total crypto holdings were estimated at 400 billion rupees ($5.37 billion).

    Though the cryptocurrencies or the income drawn by the Indians from the same were not taxed earlier, in a recent move to bring the cryptocurrencies and non-fungible tokens (NFTs) under the tax bracket, the Indian Finance Minister Nirmala Sitharaman announced a 30% tax on the income from the transfer of virtual digital assets on February 1, 2022, Tuesday. Sitharaman further specified that no deductions and/or exemptions would be allowed here. The crypto tax, being proposed at 30%, is the highest tax band that has been introduced in the country so far. This crypto tax news is also happily welcomed by the crypto industry, founders and entrepreneurs alike. The chiefs of 3 major organizations – WazirX, CoinDCX, and ASQI responded cheerfully to the news as soon as it was disclosed by the Indian government, happy at the progressive stance the government is taking.

    In this article, we will talk about the significant advantages and disadvantages of Cryptocurrencies.

    What Is Cryptocurrency?
    Types of Cryptocurrency
    Pros of Cryptocurrency
    Cons of Cryptocurrency

    What Is Cryptocurrency?

    Cryptocurrency Adoption Growth in Different Countries
    Cryptocurrency Adoption in Different Countries

    A cryptocurrency is a type of virtual currency that uses digital files as money. Normally, the files are designed using the same methods as cryptography. Cryptocurrencies use ‘decentralized control’, which means that they aren’t managed by the government or one person.

    Types of Cryptocurrency

    There are many different types of cryptocurrency in the market that are taking the world by storm. Some well-known currencies are:

    Bitcoin (BTC)

    Bitcoin is the most popular cryptocurrency out there and its development is the inspiration and result of the development of other cryptocurrencies. It was founded in the year 2009  by Satoshi Nakamoto, whose identity is revealed. The current value of bitcoin is INR 1514136.15

    Litecoin (LTC)

    Litecoin was developed in the year 2011. The creator was Charles Lee, who was a former Google engineer. The current market value of Litecoin is INR 3934.91. It is quite similar to bitcoin and is popular as well.

    Ethereum

    Ethereum was founded by programmer Vitalik Buterin in 2013, he is also the co-founder of Bitcoin Magazine. The current market value of Ethereum is INR 83896.38.

    Zcash (ZEC)

    Zcash, another form of cryptocurrency was founded by Zooko Wilcox-O’Hearn. This crypto was developed and released in the year 2016. The current market value of Zcash is INRT 4716.53.

    Stellar Lumen (XLM)

    Stellar Lumen was created by Jed McCaleb in 2014, who is an American programmer and entrepreneur. as it is cheap it is said to be good for investment. The current market value of Stellar Lumen is INR 8.4.

    Cardano

    Another cryptocurrency that is taking over the world is Cardano. It was developed by Charles Hoskinson, who is also the co-founder of Ethereum. The current value of Cardano is INR 35.31.

    Cons of Cryptocurrency

    People are getting more and more obsessed with cryptocurrency. Here are some advantages of Cryptocurrency investments:

    Protection from Inflation

    It’s one of the great advantages of cryptocurrency as inflation has caused multiple currencies to make their value decline over time. Nearly every cryptocurrency, at the time of its launch, is issued with a set amount. The source code defines the amount of any coin; like, there are only 21 million Bitcoins released in the world. So, as the demand increases, its value will rise, which will keep up with the market and, in the long run, restrain inflation.

    Instant and 24 Hour Accessibility

    It is possible that you can spend or purchase anywhere you are, and you do not even require a system to use it. Everything can be done from your mobile device, implying that even those with limited usage of technology are still able to make their investments and make decisions in real-time. This convenience is a fundamental feature for the selection and buying of bitcoin and it is being used all over the world to give opportunities for those who would earlier have struggled to become online customers.

    Self Governed and Managed

    Governance and preservation of any currency are determinants for its development. The cryptocurrency transactions are collected by miners on their hardware, and they get a transaction charge as a reward for doing so. Since the miners are getting paid for it, they keep transaction records precise and updated, maintaining the honesty of the cryptocurrency and the records decentralized.

    Secure and Private

    Privacy and security have always been a primary concern for cryptocurrencies. The blockchain record is based on many numerical puzzles, which are difficult to decode. This makes a cryptocurrency extra secure than conventional electronic transactions. Cryptocurrencies, for better safety and privacy, use pseudonyms that are unconnected to users, accounts, or saved data that could be connected to a profile.

    Ease in Currency Exchange

    Cryptocurrency can be obtained using multiple currencies like the US dollar, European euro, British pound, Indian rupee, or Japanese yen. With the help of different cryptocurrency pocketbooks and exchanges, a currency can be converted into another by trading in cryptocurrency,  with minimal transaction fees.

    Decentralized

    A significant advantage of cryptocurrency is its decentralization. The majority of cryptocurrencies are regulated by the developers using them, and the individuals who have a notable amount of the coin. The decentralization assists keep the currency monopoly free and in check so that no organization can ascertain the movement and the value of the coin, which, in turn, will keep it stable and secure, unlike currencies that are controlled by the government.

    Cost-Effective Mode Of Transaction

    One of the important applications of cryptocurrencies is to transfer money across borders. With the help of cryptocurrency, the transaction expenses handled by a user are decreased to a negligible amount. It does so by eradicating the necessity for third parties, like VISA or PayPal, to approve a transaction. Transactions, whether foreign or national in cryptocurrencies, are lightning-fast. This is because the verification requires very little time, as there are very few hurdles to pass.

    Cons of Cryptocurrency

    There are many reasons cryptocurrencies are still facing the heat from people. Some of the disadvantages of cryptocurrency investment are:

    Used for Illegal Transactions

    Since the privacy and security of cryptocurrency transactions are stable, it is difficult for the government to track down each user by their wallet address or keep checks on their data. Bitcoin has been used as a mode of exchanging money for a lot of illegal contracts in history, such as acquiring drugs on the dark web. Cryptocurrencies are also used by some to convert their illegal money through a trustworthy mediator to mask its origin.

    No Security in Case of Loss

    As with emerging technology, some use incompetence to scam, trick and steal your hard-earned bucks. This has proven to be the problem with digital currencies, so it is necessary to be informed of the security risks. With a few primary security, one can decrease the possibility of causing a loss that cannot be restored.

    Conversion of Cryptocurrencies

    Some cryptocurrencies can only be patronized in one or a few fiat currencies. This limits the user to convert these currencies into one of the major currencies, like Ethereum or Bitcoin, then through other exchanges, to their wanted coin. By doing so, the additional transaction fees are added in the process, requiring unnecessary money.

    Adverse Effects of Mining on the Environment

    Mining cryptocurrencies requires a lot of power and electricity, making it extremely energy-intensive. The greatest culprit in this is Bitcoin. Mining Bitcoin requires advanced computers and enormous energy. It cannot be done on regular computers.

    No Refund or Cancellation Policy

    If there occurs a dispute between involving parties, or if a person wrongly transfers funds to the wallet address, they cannot be recovered by the sender. As there are no rebates, one can generate a transaction whose product or services they never received.

    Prone to Market Fluctuations

    There are numerous ways that one can use cryptocurrencies, but a lot of people utilizing them at the moment are solely using them as an investment. While eager users are using their digital money to purchase tickets to sporting events, gamble online, or wait for the market fluctuations to work in their favour. Treating your bitcoins as any other commodity may be the way to initiate a more widespread understanding and trust in the new currencies.

    Conclusion

    With recent developmental and rules regarding cryptocurrency in every country. People are getting more and more interested in them. Of course, there are cons of cryptocurrencies that make people question themselves before indulging in them. However, with technology taking over the world, people cannot deny the pros of cryptocurrencies. It is just a matter of time before cryptocurrency will take over the world.

    FAQs

    What are the advantages of Cryptocurrency?

    The advantages of Cryptocurrency are that it is decentralized in nature, it is not affected by inflation, and transferring money across borders is easy.

    What are the disadvantages of Cryptocurrency?

    Some of the disadvantages of cryptocurrency are, It is used for money laundering, it is highly volatile and it has high-security risks.

    Is it good to invest in Cryptocurrency?

    Investing in crypto can be profitable but it is risky too, as it is a highly volatile currency and is prone to market fluctuations.

    What are the different Cryptocurrency wallets?

    Some of the best Cryptocurrency wallets are:

    • Coinbase
    • Binance Chain (BNB)
    • PointPay Banking Wallet
    • Bitfinex
    • Blockchain
    • Paxful Wallet
    • Overbit
    • eToro
    • Ledger Nano
    • WireX

  • What Went Wrong with Ola’s Used Cars and Quick Commerce Business?

    The famous ride-hailing platform Ola has decided to shut down its used cars division, Ola Cars and its quick commerce business, Ola Dash.

    At a time when the quick commerce segment in India is expected to reach $5.5 billion by 2025, growing 15 times its current size, why did Ola decide to close Ola Dash operations?

    Ola Cars which allowed customers to buy and sell second-hand cars is also being closed down within one year of its launch. For what reasons Ola Cars was shut down? Find answers to all of these questions in this article.

    Why Did Ola Shut Down Ola Dash and Ola Cars?
    Future Plans of Ola

    Why Did Ola Shut Down Ola Dash and Ola Cars?

    Ola said that they decided to shut down both of their businesses since they wanted to focus more on Ola Electric. But, is that it? Or is there something more to it? Let’s uncover the exact reasons that led to the closing down of Ola Cars and Ola Dash.

    No Laser-Sharp Focus

    Ola originally started with a ride-hailing business model. In that sector, Ola became very successful. Although the company has always tried to enter new sectors. This is not the first time that Ola is closing one of its startups.

    In 2015, the company founded a food delivery service Ola Cafes, a similar service to UberEats.

    Ola Cafe
    Ola Cafe

    The company also launched a grocery delivery service Ola Stores. Both of these businesses were shut down a year later because the company was not able to attract a lot of customers.

    In 2019, the company again tried to jump into the food delivery service by acquiring Foodpanda. However, the company was not able to gain the expected revenue and the company was shut down.

    Even after shutting down 3 of its subsidiaries Ola’s will to experiment didn’t stop. In 2019, the company launched Ola Foods, a cloud kitchen business where the company planned to build 500 facilities across the country. But, only 50 cloud kitchens were set up in 2020.

    Unfortunately, Ola Foods also failed and now the company is selling its cloud kitchen equipment at a 30-50% discount.

    This year Ola tried to leverage the rapidly growing quick commerce segment with Ola Dash but, as you know, this business failed as well.

    All these things show us that the company lacked the laser-sharp focus that any business needs in order to be successful in the market. There is nothing wrong with entering different markets but, you should first understand the market conditions.

    Ola has 4 failed startups because the company never understood the competition and market conditions. When Ola tried to enter 3-4 different markets where the company didn’t have any expertise the company was not able to properly strategize and allocate resources to different sectors.

    On top of that, Ola’s primary ride-hailing service was incurring heavy losses as well. A lot of drivers were leaving the company due to huge salary cuts. Customers as well were not using Ola due to a surge in prices.

    Due to all of these reasons the company had no option other than closing down Ola Cars and Ola Dash.

    Uncertain Nature of Quick Commerce

    As we all know all the companies which are in the quick commerce segment are facing heavy losses. Be it Dunzo, Zomato or Swiggy Instamart.

    Ola was also one of those companies which were incurring heavy losses in the quick commerce segment. But, why are these companies incurring losses?

    There are two reasons for this: No customer loyalty and heavy discounts. Let’s understand both of these aspects in great detail.

    To acquire customers in the quick commerce segment, you need to give heavy discounts to customers on groceries and other items in order to encourage them to try the app. When companies are giving discounts they are not making any profits. But, still, the companies are giving heavy discounts because this is the only way to make customers habituated to your app.

    But, here the question arises: How long can you give customers discounts? At a certain point in time, any company like Zomato or Ola Dash have to stop giving discounts.

    As customers are using their service just for discounts, there is no customer loyalty. Due to this Ola was not able to make a loyal customer base.

    Apart from this, the increased competition in the market from newly launched startups like Zepto and Dunzo made things worse for Ola and the company decided to shut down Ola Dash.

    Future Plans of Ola

    The quick commerce segment is booming in India. There is a tough fight going on with so many startups like Zepto, Dunzo and Swiggy Instamart in order to capture the quick commerce market in India.

    In December 2021, Swiggy invested $700 million into Instamart.

    On the other hand, Zomato recently acquired Blinkit, a quick-commerce grocery delivery platform for Rs 4,447.

    Zepto, a very popular 10-minute delivery platform, raised $200 million, taking the total valuation of the company to $900 million.

    If so many companies are draining millions of money in this sector why did Ola decide to shut down Ola Dash?

    Ola said that the company wants to focus more on Ola Electric. Instead of dabbling between multiple businesses Ola has reassessed its priorities and decided to use all of its resources in strengthening its electric sector.

    Ola Car’s infra, technology and capabilities will be repurposed towards growing Ola Electric’s sales and service network, the company said in a statement.

    Ola’s decision to shift its complete focus on the electric business makes sense because, within months of its launch, Ola Electric has already become India’s largest EV company.

    Ola Electric
    Ola Electric

    Ola Electric is delivering huge profits for the company, Rs 500 crore revenue in its first two months of FY 22-23. The company is on its way to surpassing a $1 billion run rate by the end of this year.

    Due to all of these positive correlations the company has understood that if they want to stay in the race for a long time it must focus on its electric scooters. Ola has also planned to launch its second electric scooter before the end of this year.

    Apart from focusing on its electric sector the company also wants to invest in new areas like cell manufacturing and financial services. To enter the world of fintech Ola has acquired Avail Finance, India’s first neobank that aims to provide financial services to the blue-collared workforce.

    Conclusion

    As Ola is now allocating all their resources towards Ola Electric it would be interesting to see the future of this company. Even though Ola Electric is India’s largest EV company, it did face a lot of problems in the past for its faulty batteries.

    The competition in the electric sector has increased tremendously with players like TATA Motors, Mahindra, Okinawa, Tunwal and Kia Motors. Ola needs to continuously innovate and understand the market conditions if they want to be successful in the EV sector.

    FAQs

    Why did Ola shut down Ola Cars and Ola Dash?

    Ola decided to shut down its used car division, Ola Cars and its quick commerce business, Ola Dash because the company wants to use all of its resources in strengthening Ola Electric. Ola Car’s infra, technology and capabilities will be repurposed towards growing Ola Electric’s sales and service network.

    What is Ola Cars?

    Using Ola Cars customers could buy and sell their used cars. Under this business, the company would purchase used cars from people and from the company’s driver-partners and would sell them to interested buyers.

  • Funding A Startup? Important Facts To Keep In Mind

    A startup investor is someone hungry for staking their money in a new business with a growth prospective.

    They are constantly on the lookout for strong signals that can persuade them to invest their money.

    Keep reading to understand the main areas to focus on when funding a startup and valuable tips.

    What is a Startup?

    As the name suggests, a startup is a business in the initial stages of formation. The founders usually finance the business from many sources.

    It can be personal savings, loans from financial institutions, seed capital, financing from angel investors, incubators, or accelerators.

    There are many types of startups; however, the most common are small businesses, buyable, scalable, offshoot, and social startups.

    The idea behind startups is to develop products or services, bring them to the market and find acceptance among customers.

    Why Do Entrepreneurs Fund Startups?

    In answering this question, we must understand why startups need funding. A new business requires funds or capital to take off, increase visibility and attract the attention of a wide market.

    For this, they need to raise capital to support the business venture, and that’s where funding comes in to provide the resource.

    Mostly, funding comes in the form of cash but can also be the effort or time taken to build the business at the foundation stages.

    With this in mind, why should you fund a startup as an entrepreneur?

    First things first, entrepreneurs enter into business to make money. When you put your hard-earned money into a startup, you want to be sure it will come back with interest.

    Other than supporting the startup venture, you’ll want your money to multiply because you’re an entrepreneur.

    In addition, as a funder, you’ll develop an interest in the upcoming startup and see it grow into a big venture.

    In America, some of the big names have a history of being financed through successive stages of funding. It can be at the beginning, customer or market, and credit stage that includes taking out external loans.

    Some of the most successful companies that took off to grow into big names as a result of funding include Apple, Oracle, eBay, and Microsoft.

    When building a business from scratch, it’s always important to be prepared for any eventuality. Funding startups is likely to continue into the future as innovation takes center stage.

    Things To Keep In Mind Before Funding A Startup

    Now that you understand what a startup is and why people or institutions invest their money in startups, next, we look at things to keep in mind before funding a startup.

    1. Examine The Growth Prospects Of The Startup

    Knowing if the startup has a growth projection in the short term and long term is one of the most important things to consider before you advance money for its take-off.

    According to research, most startups die at the infancy stage due to a lack of planning funds running out, lack of proper research, ineffective marketing, poor partnerships, and lack of interaction with industry experts.

    Likewise, a big mistake most new companies make is to scale up too quickly by bringing onboard new people, spending a lot of money, and trying to get new customers without nailing down their product, marketing, and business model.

    A startup with growth projections has clear goals and ways to meet its objectives.

    2. Look at the Executive Summary

    The executive summary contains vital information about why the startup wants to exist. Remember, there’s no ton of information about the business because it’s new.

    Therefore the summary should be convincing and contain valuable information as well as the value proposition of investing in the business.

    3. Interrogate the Business Opportunity

    The startup should explain how it’s different from other companies and the nitty-gritty details about its products and services.

    The proposal should also include the target market, audience, competition, and why they deserve funding.

    They should give projections about the market segments they want to target and share of the market.

    4. Scrutinize the Financial Statements

    Even though it’s a new business, the proposal should provide details about their financial stability and what they’ll contribute to the project.

    Before you step in, the founders will have to raise the initial capital. A small business may get an online loan depending on the nature of the venture.

    A payday loan is also an option if the founder is employed in an organization and the startup is part of their side hassle. Whatever the source, these details should be available in the business plan.

    The financials should also show revenue and expense structure to up their odds of getting funded.

    5. Examine Current and Future Credit Requirements

    Of course, as the business expands, it will require funding which can be from banks, private lenders, credit unions, or CreditNinja loans in Minnesota , for example.

    The startup must disclose their estimated funding requirements and be candid about their expectations from lending institutions.

    They should also disclose how they intend to use their future cash requirements and whether the business will meet loan repayments at that time.

    Usually, as a business grows, metrics like credit score and reports will be used to determine its financial health. Thus the startup should detail how it intends to maintain sound financial stability.

    6. Review The Management Team

    The startup should give you a short description of the management team.

    As an investor, you just don’t want to know the ins and outs of the finances. You also want to know about the people within the business, particularly the directors, management team, and staff.

    The team should have a distinguished background to whom you invest your money. They should spill the beans about the founders’ educational background, work experience, and financial stability.

    Do the founders have a history of bankruptcy or debt repayment? Ask that too.

    Conclusion

    You need to be confident, which is vital to your venture’s success. When funding a startup, you stand a better chance of being successful if you exude confidence in your dealings with the venture. By scrutinizing all the details, you should be certain that the startup meets the criteria of being funded and taking off on a good start. Most importantly, keep your chin up, believe in the business, and know that it takes time for a business to scale up.

  • 5 Financial Analysis Terms Every Startup Data Professional Needs to Know

    When it comes to in-house talent at startups, the best data scientists have one important factor that sets them apart: they are interested in and knowledgeable about the overall business picture of the company where they work.

    It doesn’t matter if you’re operating in the mobile app sector, running a DTC ecommerce brand, or any other business vertical – you can be as skilled as you like at building and deploying algorithms, but unless you understand how they apply to your company’s bottom line, you won’t get far.

    Not only that, but as big data becomes a tool in every part of startup operations, many data scientists may find their talents and interests begin aligning with a realm of niche expertise such as security, customer service, sales, or marketing. One of the most exciting new areas for data scientists is in the financial sector, as financial analysts are beginning to see the rewards of incorporating typical data science skills like artificial intelligence into their jobs and day-to-day tasks.

    Even if you’re not working in the finance sector, financial data is an increasingly important part of the picture, and financial tasks become part of the job. This is the case for any industry you’re in – the FP&A team is likely to inevitably need help with data reporting analysis.

    No matter where your career path will take you, data scientists should at least be able to understand these five basic financial analysis terms to continue at the top of their game and keep themselves open to opportunities in their own field or in a new one.

    1. Risk analytics

    Risk management is an important part of any team at a growing startup. Typically, it falls to the C-suite. But as companies grow more adept at collecting and sorting through data, risk analytics has gained prominence. Previously, leaders would use their intuition to guide their ventures. Today, there has to be hard data behind their decisions.

    The purpose of risk analytics is to “measure, quantify, and even predict risk,” according to Deloitte. It requires data scientists to build models that will monitor, assess, and report risk to the relevant parties.

    It’s not just a finance department responsibility, either – risk assessment has to create a unified view of all sorts of risks the company faces, and how to approach them from a data-backed perspective.

    2. Expected value

    In statistics, expected value has a pretty well-defined meaning: it’s simply the anticipated average value for an investment, calculated by multiplying each of the possible outcomes by the likelihood that each outcome will occur. Then, these values are all summed up.

    In the finance world, these values allow investors to choose the scenario that is most likely to give them the most desired outcome. In the data science world, the expected value is one of the underpinning concepts of probability theory and machine learning. When an executive is wondering whether she should take that big risk or not, a data scientist will likely be called in to discuss what the long-term outcome is most likely to be.

    Many data scientists will know the mathematical definition and significance, but it pays to be aware of the relevance of the term in a business sense, too.

    3. Cost accounting

    Cost accounting is the process by which a company will identify how it is spending money, how much money it’s earning, and where money is being lost.

    An example of this is cost volume profit analysis, where FP&A leaders will determine how many sales it would take to break even with the cost of doing business. Simply put, it’s a way to hypothetically balance the books.

    Data scientists are being called in to help with this process, since it involves a holistic look at the business’s expenses and potential earnings across multiple departments. To create a realistic cost accounting model, data scientists need a good grasp of their employer’s business model.

    4. Financial accounting

    Financial accounting is retrospective – it’s an analysis of transactions that have occurred over a past period of time. Despite the similarity of the name, financial accounting is subtly different from cost accounting.

    Cost accounting is geared towards internal audiences. However, financial accounting is outward-facing. It’s designed to help shareholders, lenders, and regulators get a better view of the business. The statements presented in financial accounting show revenues, expenses, assets, liabilities, and equity.

    Accounting is by its very nature an analytical skill. As data science languages and techniques have evolved, it’s become more efficient to use data science skills to create reports and plans of financial accounting.

    5. Credit allocation

    Credit allocation is one of the secretive forces behind economic growth. It’s defined by Mathur and Marcelin as “a process of how a bank divides its financial resources and other sources of credit to different processes, borrowers and projects.” Basically, it’s how sources of credit decide how much financial credit to give people.

    This goes hand in hand with the risk analytics discussed earlier. Data scientists frequently are in the position of building models that will help decide how much credit to allocate, like credit scores. Data scientists are needed to help companies optimize profit while minimizing risk to themselves.

    Credit allocation is an enormous topic, especially if you’re unfamiliar. To learn more about it, I recommend starting with an actual case study. This paper from 2017 examines the relationship between credit allocation, risk management, and loan portfolio performance of microfinance institutions. It’s a fascinating read, and data scientists can follow along with the methodology to understand how their own skills can be useful.

    These financial terms are just stepping stones

    This is a short article, and each of these terms has had multiple books written on the subject. Think of this as more of an introductory guide than a definitive source of knowledge.

    Whether you plan to move into the finance sector or not, data scientists need to have a thorough knowledge of financial terms and concepts to stay competitive in the workforce. These five are not comprehensive, but they’re a good place to start.

  • How Can Personal Loans Be Beneficial for Improving Your Credit Score?

    The credit score is a component that plays a vital role in getting approvals for loans. High credit ratings increase the chances of getting loans with low-interest rates. Obtaining loans at a reasonable rate becomes difficult if one has a history of credit problems.

    Maintaining a credit score of 750 or higher will allow you to obtain a personal loan at a more favorable interest rate. There are many channels via which you can enhance the number that represents your creditworthiness.

    You may maintain a good credit score by acquiring various credits, but you shouldn’t borrow beyond a certain limit. Make sure that the overall sum of your EMIs don’t exceed 40% of your income. The monthly payment of a loan that has been predetermined comprises not only the interest but also a portion of the principal. Having a lot of debt on credit cards with high interest rates will reduce your credit score. At such a time, consolidating multiple debts with a single personal loan at a lower interest rate and a single monthly EMI would be beneficial. Timely repayment of the EMI as per the agreed-upon schedule will help you improve your credit score.

    Borrowing a personal loan can strengthen your credit standing in the long run. Personal loans, when utilized responsibly, can be an effective tool for eliminating debt and building a positive payment history, both of which can assist raise a person’s credit score. If your credit score is low and you cannot get a loan at favorable terms, it is advisable to wait and improve your score by paying off existing debts instead of taking another loan at high-interest rates.

    Many assume that getting a personal loan will harm their credit score. This statement is inaccurate; a personal loan can help enhance one’s credit score. To get a handle on how a personal loan and one’s credit score are related, one must first be familiar with the methodology behind determining one’s credit score.

    Calculation Methods for Credit Score

    In India, credit bureaus like CIBIL are responsible for monitoring credit-related transactions and updating borrowers’ credit scores, including those who use credit cards. The score can range from 300 to 900, with a score of 750 or more considered favorably by lending institutions.

    When determining a person’s credit score, credit agencies consider many factors. The most critical factors are:

    • Credit background and credit use history
    • The duration of one’s credit history
    • Blend of Credit
    • New credit

    The agencies turn to exclusive algorithms when determining an individual’s credit score based on the above-mentioned considerations.

    Strategies for Enhancing Your Credit Rating with the Use of a Personal Loan

    Your credit history can be improved in a few different ways with the help of a personal loan. Loans to consolidate existing debt and loans to build credit tend to be the most frequently chosen alternatives.

    Consolidation of Debts through Loans

    As the name suggests, these loans are personal loans utilized to consolidate existing debt.

    Designed to Create Credit

    A personal loan is used by many as a credit-builder loan. This is especially useful for borrowers with no credit history and thus may have a CIBIL score of “-1” or “NH”. Fullerton India provides loans to eligible candidates with no credit history, providing that they meet the other required criteria in terms of age, income, employment, work experience, and so on.

    Pay off your credit card bills

    A personal loan is a valuable financial instrument that does not have end-usage restrictions. Therefore, you can keep the funds for emergency purposes or use them as a fund to pay your credit card bills timely. In such a case, you will not be dependent on your salary/income to pay the bills. Paying credit card bills timely is immensely helpful in building a good credit record.

    The Bottom Line

    Getting a personal loan for debt consolidation helps you manage multiple debts efficiently. Timely repayment of the EMIs allows you to establish a history of on-time payments, which would benefit your credit score. Before applying, ensure that you do your research well. Choose a reputed lender whose eligibility criteria match your profile. Ensure that you understand the terms of the loan product well (such as interest rate – on a monthly Vs annual basis) so that you can be sure that you have obtained the best interest rate for a personal loan available for your specific circumstances by comparing loan offers from multiple financial institutions.

    However, making multiple applications to several lenders simultaneously lowers your credit score – so make sure you choose the lender well and apply only to one at a time.

    It is important to remember that this type of credit repair technique has its downsides if you fail to make wise decisions. A new loan may initially lower your credit score as it entails additional risk. Be sure to make timely payments consistently and avoid opening any new accounts.

  • Top 12 Proven Strategies to Convert Free Trial Users to Paying Customers

    We all love SaaS products like Spotify, Trello, MailChimp, etc. But how many of us use the paid version of them? Well, not many individuals use the paid version cause these brands monetize on the enterprise version of the app.

    But, what if the brand offers a SaaS tool only for B2B professionals? A freemium model is not the go-to option for each SaaS company. Also, unlike these well-established brands, it is hard for most SaaS brands to get users to try their products and become paid customers.

    Netflix India had the hardest time converting users into paid customers. Many other SaaS products, especially new SaaS companies face the same issue. Let us look deeper into the issue first.

    Types of Free Trials
    Why Free Users Do Not Convert Into Paid Customers?
    12 Proven Ways to Boost the Free Trial Conversion Rate

    Types of Free Trials

    There could be a couple of reasons that your free trial users are not converting. Firstly, let us look into the types of free trials:

    Freemium Model– It means offering a set of features for free forever and charging for certain premium features. Example: Trello

    Opt-in Free Trial– It offers the user a free demo period of 14-30 days without any credit card information, in exchange for the email address. Example: Salesforce

    Opt-out Free Trial– It is similar to an opt-in free trial with a limited period of the demo but demands credit card information. Example: Netflix

    The difference in the model also impacts the free trial conversion rate. It is generally noticed that conversion is maximum for an opt-out free trial. However, it is hard to get more sign-ups for the same. Nonetheless, what are the reasons that users pull back after trying your product?

    Why Free Users Do Not Convert Into Paid Customers?

    High User Expectations

    There could be a gap between the user expectation and your product offering. The user might be looking for some specific features which are not USP for your product.

    Better Alternative

    The user might have a better alternative that solves the problem at a lower price or gives better performance. For instance, many companies prefer Slack over Microsoft Teams. Microsoft teams might be a cheaper alternative but Slack offers better integration and usability.

    Bad Boarding Experience

    Another reason that drives users away is an inefficient boarding experience. A smooth onboarding process means sending onboarding emails, tool setup & personalized demo, and providing an onboarding kit. Brands often miss multiple touchpoints to impact the users which affects the conversion rate.

    The product does not solve the user’s problem

    If your product does not solve the user’s problem and acts as additional friction or workload, conversions will drastically decrease. However, there are times when the best products can not convert as they are unable to communicate and highlight their value or lose points in customer management.

    Here are 12 strategies that would help you increase your free trial conversion rate.

    12 Proven Ways to Boost the Free Trial Conversion Rate

    Conversion is not just about bringing more features or improving your product. The best-in-class product could also perform variably low due to mistakes like poor onboarding process, too much friction, complexity in product set-up, or lack of incentive. Below are 12 tactics that can enhance your trial to paid conversion rate.

    Easy to Use Product

    Your product might not have all the advanced features but if it can solve the users’ problems with ease, it will definitely get more paid users. Ensure that your product is easy to use and does not add up to the workload. It should have enough guidance to move around and use the product smoothly. Alternatively, there are many other ways to fill in the gap in case of a complex product.

    Offer Personalized Demo

    Sometimes the products are hard to understand and require assistance initially. In those cases, a personalized demo is a great way to highlight the use cases and make the user thorough with the product. Also, a dedicated team that helps onboarding with setup and a demo works exceptionally great to boost trial to paid conversion rate.

    Create Resource Centre

    Another way to tackle the issue of a complex product is by creating a resource library that the user can refer to as and when required. You can have a separate center on the website or within the product integrated into different places. Also, this is a great place to highlight case studies for your product and tap into any customer queries.

    Highlight USP

    Some brands fail in communicating their USP and hence lose a big margin to their competitors. What stands you apart from 50 other products available in the market that might be cheaper or more expensive than you? Identify and communicate this through your content throughout platforms and sales pages. It can help you cross the bridge if you have various close competitors.

    Provide Conditional Offers

    Apart from conveying brand USP and features, providing an incentive works as a great way to offer premium features and get paid customers. Something like this offer by Grammarly.

    Grammarly Offer
    Grammarly Offer

    It gives a 50% off which is only available till midnight. They help in attracting more paid users. Once the users opt-in for the paid version, it is generally noticed that they don’t unsubscribe from it.

    Choose Opt-out Trials

    Opt-out trials are a great way to increase your trial to paid conversion rate. Since it requires credit card details, it helps qualify users beforehand. It has the highest conversion rate of 30-60% for many brands. However, a SaaS brand that is new in the market shouldn’t opt for it as it wouldn’t get great results. It is great for brands with an existing brand foot in the market that wish to scale.

    Leverage Email Sequences

    Emails can play a major role in conversion if leveraged smartly. Firstly, setting an onboarding email sequence in place is really important. It smoothens the process of onboarding and keeps the users hooked to the product.

    Secondly, using emails to send reminders about the end of the trial period is another way to use emails. Lastly, they are a great way to get customer feedback or voice any offers/features.

    Ease the Upgradation Process

    The process of moving from a free to paid version should not be a hassle for the user. It should include collecting credit card details + only necessary information. Also, It should not be complex for users to find a portal to upgrade to the paid version. The installation and upgradation should be effortless.

    Provide Personal Support

    Chatbots are a great way to handle customer grievances promptly. Chatbots or dedicated sales person could act as a team to solve queries for the users and create a better understanding of the product. Also, mark down the common queries that you get and eliminate/ simplify those elements to reduce friction.

    Limit Number of Paid Features

    As crucial as it is to show what the paid version of the tool can do, it is advisable to restrict the number of paid features. Only provide limited premium features depending upon the product usage and customer pain points.

    Alternatively, offer premium features for a limited time or number of times. For instance, limit a particular feature, let us say integration with Google Suite for up to two times only.

    After this, the trial may continue but those premium features are exhausted. This again boosts the free trial conversion rate. Also, try and limit the demo period to 14 days at maximum. It gives enough time for users to try the product and get clarity about it.

    Optimize User Journey

    A user journey is crucial for a business to understand how the user uses the product, where it lags, and what is the key to better performance. You should optimize this user journey by first analyzing it well with the help of heatmaps and then filling in gaps.

    Start by holding a consistent narrative across platforms. Also, establish credibility in the niche with the right type of content and PR. Each user interaction should solve a goal for the user and add value to it. Aim to remove any unnecessary friction and ask for minimal details.

    Use Heatmaps and Activity-based Triggers

    Heatmaps are a crucial tool for SaaS brands to understand user activity. Not only do they help in understanding the user journey but also assist in optimizing the product for conversion.

    Heatmap
    Heatmap

    You can use activity-based triggers that incentivize and ease product usage. HubSpot uses Activity-based Triggers efficiently to maximize conversion. Look at the email below:

    Activity-based Email
    Activity-based Email

    It uses activity-based triggers, communicates value, gives an enticing offer, and highlights USP.

    These strategies can be a great starting point to understanding the loopholes and fixing them up. But how much should a business aim for as a free trial conversion rate?

    Conversion Benchmarks

    A standard benchmark for free trial conversion rate is 4% across all the types of free demos offered and industries. Apart from these more defined conversion rate benchmarks based on the model of the free trial are:

    • Freemium– Below 10%
    • Opt-in Free Trial– 5-25%
    • Opt-out Free Trial– 30-50%

    This shows that the opt-out model is great to convert users but is generally advisable for brands with goodwill that wish to scale further. The Freemium model offers the lowest conversion rate and hence is adopted by companies that make money by selling to enterprises.

    If your product has lower rates, look into the loopholes and fix them with mentioned strategies or some other solution. However, there are cases in which companies outperform these standards, such as Slack with a 30% conversion rate.

    FAQs

    What does “Free trial conversion rate” mean?

    The free trial conversion rate means the percent of users that convert to paid customers after a free trial over a defined period.

    How to calculate your “Free trial conversion rate”?

    Paid customers after a free trial/ Free trial sign-ups x 100. For instance, if your tool gets 35,000 sign-ups in a month for a 14-day trial. Out of these 7,000 users convert into paid customers. Then, the free trial conversion rate is 20%.

    What is a good conversion rate from free to paid?

    15% to 20% is considered a good conversion rate.

    How do I convert my free trials to paying customers?

    Offer demo, highlight your USP, provide excellent customer support, and provide exciting offers.

  • All About Pitch Deck Presentation | Pitch Deck Tips for Pitching Investors

    If you’re a business owner, you’ll need to know how to pitch your idea. Even if you don’t intend to seek investment, having a strong elevator presentation demonstrates that you understand your company inside and out. Which will come in handy if and when you decide to seek funding. Whether you’re a new owner or a “corporate entrepreneur,” your pitch deck is crucial, because it represents your logic for why investors should believe in your concept and provide you with a substantial sum.

    To market their firm to potential investors, startups commonly create a “pitch deck.” It’s tough and time-consuming to raise funds from investors. As a result, it’s critical for a business to develop a strong investor presentation deck by telling a fascinating and appealing tale.

    We’ll talk about the value of a solid pitch deck and other financing presentation tips in this article.

    What is a Pitch Deck?
    Importance of Pitch Deck
    Tips To Successful Pitch for Funding

    Pitch Deck Tips | How to create a Pitch Deck for Investors

    What is a Pitch Deck?

    A pitch deck, also defined as a start-up or investor pitch deck, is a demonstration that provides information regarding the company to interested clients. The fundamental purpose of a pitch deck, as weird as it may sound, is to get to the next round, not to get funds.

    Obtaining finance entails a multi-step procedure. The first step on the scale is a good, informative pitch deck. You’ll want to pitch investors with a concept that piques their interest and encourages them to interact with you. A pitch deck presentation is made up of a number of slides that help you create a convincing tale about your company. You can make one with standard software like PowerPoint or with a cutting-edge tool like Visme to produce a one-of-a-kind slideshow.

    Importance of Pitch Deck

    A Pitch deck is the first tool entrepreneurs use to communicate with investors, whether online or in person. It serves as a marketing pitch for financiers, allowing people to comprehend the startup in the way that they are used to. A pitch deck assists in conveying information to potential investors, clients, and partners in an organised and aesthetically appealing manner. The goal of the pitch deck is to explain the sophisticated workings of your business and the industry it works in, to stockholders interested in your venture, with the goal of generating their attention to your startup.

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    Tips To Successful Pitch for Funding

    Pitch Deck Presentation
    Pitch Deck Presentation

    Funding is quite important for any startup growth. Pitch Deck presentation helps in telling a compelling story of your business that attract investors to invest in your startup. Many startups turned unicorns with successful pitch deck presentations. Here are some pitch deck tips for pitching investors to your business.

    Build an Impressive Presentation

    Spend the effort preparing your pitch deck beforehand. The idea is to make a deck that is simple to work with and that gets financiers enthused about your company. With this in mind, you should prepare a 10-minute edition as well as an extensive one that covers everything you’d like to share with possible investors.

    Rehearse Your Pitch Properly

    You should work on your pitch. Because if you won’t be able to swiftly communicate with each aspect of your company, every other piece of advice on this list will be rendered useless. Too many founders believe that simply knowing their business will enable them to articulate its value quickly and effectively. Furthermore, having a dynamite pitch deck with eye-popping images would suffice. As a result, they arrive at pitch meetings ill-prepared. Spend the time to rehearse, simplify your content, and maintain just the aspects that contribute to the success of your company. Anything else can be left on the final cut.

    Show Realistic Target Market

    Target Market in Pitch Deck Presentation of DocSend
    Target Market in Pitch Deck Presentation of DocSend

    Even if it is true one day, don’t say that everyone on the planet is possibly your intended audience. Consider who you’re designing your item for and divide your marketplace into TAM, SAM, and SOM segments. This will not only amaze your listeners, but it will also assist you in strategizing your roll-out strategy. When talking about your target market, strive to create a user persona or your ideal customer if you can. This can assist investors in visualising the possible consumer base and shows that you’ve given careful consideration to who your company will service. In a fast pitch, it’s also far easier to communicate to a specific person rather than a large audience.

    Business Model of Your Startup

    Business model in Pitch Deck Presentation shared by Mint
    Business model in Pitch Deck Presentation shared by Mint

    This presentation is usually the most important to investors. How are you going to make a profit? The business model of your business is very crucial, be it a freemium business model, subscription business model or Franchise Business Model. Be very detailed about your products and pricing, and underline how eagerly your consumer awaits your entrance once more.

    Share Your Milestones

    Milestone shared in a Pitch Deck Presentation shared by Castle
    Milestone shared in a Pitch Deck Presentation shared by Castle

    You would like to establish credibility early in the presentation. Take some time to share the success you’ve gained in your field. This is your chance to talk about your accomplishments. What you and your team have accomplished thus far will impress the investors (sales, contracts, key hires, product launches, and so on). You’ve probably stated parts and pieces of this already, but now is the time to establish a whole picture of your company. But don’t simply talk about what you’ve done; also talk about where you’re headed. Show them a timeline with the next stages and extra milestones, as well as how the financing will assist in attaining them.

    Introduce Your Crucial Team Members

    Investors are more interested in people than ideas, so be sure to include information on your hard-working crew and why they are the best people to manage this company. Also, make sure to mention any skill sets that your team may be lacking. Most startup teams are short on crucial personnel, such as marketing, managerial knowledge, programmers, sales, operations, and financial management. Let them know you’re aware that you’re not an expert in every field.

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    Conclusion

    You won’t know how fantastic your pitch is unless you give it a try. Don’t get too worked up, and approach each investor pitch as a learning opportunity for both you and your company. You’ll only get better as time goes on, and you’ll be able to apply what you’ve learned to all aspects of your company.

    FAQs

    What is a Pitch Deck Presentation?

    Pitching is a short-term presentation of your business idea that can last anywhere from a few seconds to a few minutes. You can either utilise a PowerPoint to support your speech or simply deliver it verbally. A pitch’s main purpose is to attract new consumers, investors, or stakeholders to your company.

    What makes a good pitch deck?

    It should include your company plan’s main themes, the items and services you offer, high-level financial estimates, and capital requirements.

    What does a great pitch deck look like?

    A pitch deck is a 10- to 20-slide presentation that gives a quick overview of your firm, revenue, business model, and startup goal.

    What are the elements of a good Pitch Deck presentation?

    Some elements of a good Pitch Deck Presentation for startups are:

    • Product/Service the Business Offer
    • The Problem your business is solving
    • Target Market Size
    • Business Model
    • Revenue Model
    • Competition
    • Crucial Team Member

  • How to Run Ads on Amazon and What Should You Know to Plan a Successful Advertisement Campaign?

    Amazon is the largest online retailer across the world. In 2020, it generated revenue of US$ 120,968 million becoming the leading e-commerce market, globally.

    Approximately 197 million people use Amazon worldwide. In the U.S. alone 95 million people have Amazon Prime membership and spend an average of around $ 1400 each year.

    Therefore, advertising and listing your products on Amazon gives you an unmatched opportunity to create awareness and visibility of your products and boost sales. Moreover, as Amazon is trusted by millions of users seeing your product or brand advertisement on Amazon makes them appear more authentic and reliable.

    Hence, advertising on Amazon becomes a very important part of your marketing strategy. However, a number of people complain that they are unable to derive the desired returns.

    They claim to spend a huge amount of money on advertising but cannot get enough customers. If this is happening with you as well then this blog is meant just for you.

    Advertising your products on Amazon and increasing your sales through it can be complicated. In this blog, we will share the tips and tricks that will help you throughout this process and help bring more sales.

    But, before we tell you about the tips to follow for a successful advertisement strategy, let us first discuss in brief how Amazon ads are created.

    How to Run Ads on Amazon?
    What Should You Know Before Running Ads on Amazon?
    Types of Advertising Campaigns on Amazon
    Tips to Create and Run a Successful Ad Campaign on Amazon

    How to Run Ads on Amazon?

    Advertising on Amazon is a great way especially for the new sellers to create brand awareness. Let us see how to create and run ad campaigns on Amazon.

    Amazon allows you to create two types of advertisement campaigns. They have sponsored brand campaigns and sponsored product campaigns. The first can only be created by the sellers who have registered a brand with Amazon while the latter can be run by any seller.

    Amazon Sponsored Product Ads
    Amazon Sponsored Product Ads

    Both these campaigns are meant to increase product or brand awareness and visibility that in turn increase the sales of the product.

    The next thing you need to understand to run an advertisement campaign is bidding. Amazon does not charge you for running ads but as soon as a user clicks on your product to see the details an advertisement expense is deducted irrespective of whether or not the visitor buys the product.

    This amount depends on the bid that you place while setting your advertisement campaign. In case two sellers are selling similar products, the product of the seller who has placed a higher bid will be shown on the top.

    Now let us see the step-by-step process of how to run advertisements on Amazon.

    Creating Campaign

    • First of all, log in to the Amazon Seller Panel.
    • On the top of your screen, you will see a number of options such as catalog, inventory, pricing, etc. Click on the Advertising option. A list of options will come down. Click on the Campaign Manager option.
    • On the next screen, you will find a tab “Create Campaign”, click on this.
    • The next screen will ask you to choose your campaign type. This includes the two options as stated earlier i.e. sponsored products and sponsored brands.
    • You can choose the option suitable for you. For reference here, we will go with sponsored product option.
    • As soon as you click continue the next screen will open that has multiple questions related to running the advertisement campaign.
    • The first column is the campaign name. You can choose any name that may help you in easy identification later as this will only be visible to you.
    • The second column asks you about the start and end date of your advertisement campaign, you can choose this as per your convenience.

    Setting the Budget

    • The next option requires setting the daily budget of your advertisement campaign. This is the amount that you are willing to pay every day to run the campaign. Amazon desires this amount to be greater than Rs. 50 per day.
    • As explained earlier Amazon only charges the advertisement expense when a user clicks on your product to view details. Hence, the daily budget amount also depends on your per-click bid. For example, if you have set the bid at Rs 5 per click and the daily budget at Rs. 100, as soon as 20 users click on your product, your daily budget will exhaust. Therefore, the higher the daily budget the longer your product will be visible to the customers. Mostly, it is suggested to keep the daily budget around Rs. 500 as it runs throughout the day.

    Targeting

    • The next option is targeting. Here, you will find two options i.e. automatic and manual targeting.
    • In manual targeting, you will have to choose the keywords through which your product will be displayed to the viewers while in automatic targeting Amazon decides the keywords on its own.
    • If you are a beginner it is better to choose automatic targeting to see the viewer response first.
    • The next option is a campaign bidding strategy. There are three options to choose from viz. dynamic bid – down only, dynamic bid – up and down, and fixed bids.
    • The first option lowers your bid when the ads are less likely to convert into sales. The second option raises or lowers the bid in real-time depending on the possibility of conversions. The third option keeps the bid fixed.
    • Now, you will have to create an ad group. You can add multiple ad groups in a single campaign.
    • The first column is to select the name of your ad group which will only be visible to you.
    • The next option is to choose the product for your advertisement. Here, we would suggest choosing the product from a single category while in a particular ad group.
    • Now, you will have to choose the automatic targeting where you will find two options set default bid and set bid by targeting group.
    • We recommend choosing the first option if you are just a beginner and also choosing your bid as suggested by Amazon as this increases the chances of sales.
    • Next column negative keyword targeting is optional. You can leave this option blank if you are just beginning.
    • After a month or more of running your advertisement campaign, you can add the keywords in this column that do not bring any sales to your product.
    • The final step is to click the “Launch Campaign” button. Your advertisement campaign will be launched as soon as you click this option.

    Now, when we know how to run an advertisement campaign on Amazon we can now move forward to understand how to make our advertisement campaign successful.

    What Should You Know Before Running Ads on Amazon?

    Even when Amazon offers you a broad platform to create brand awareness and visibility, not all advertisement campaigns running on Amazon can be called successful.

    The reason for this is the money spent on these campaigns, which is quite high in comparison to the sales brought through them.

    As per a survey, the annual advertisement cost on Amazon increased from 16.9 billion U.S. dollars in 2014 to 10.9 billion U.S. dollars in 2021.

    Annual Advertising Costs of Amazon
    Annual Advertising Costs of Amazon

    This indicates that more and more retailers on Amazon are now opting to run advertisement campaigns. This has obviously increased the price of advertising but the sales are also increasing at an equal speed.

    However, many vendors still cannot get the conversion rates they desire. They should understand that advertising for different brands and products is different and requires a unique strategy.

    Types of Advertising Campaigns on Amazon

    Amazon offers six different types of advertising campaigns. They are:

    Amazon Sponsored Ads

    As explained above these are the pay-per-click and keyword-targeted ads. These are displayed on the top of the page when a viewer searches for a product.

    Amazon Headline Search Ads

    Also known as the sponsored brand campaign these are the keyword-targeted ads that are displayed alongside the search results.

    Amazon Product Display Ads

    These are also the pay-per-click ads that appear on customer review pages, product detail pages, below the search results, and on top of the offer listing pages.

    Amazon Native Ads

    These are of three types viz. recommendation ads, search ads, and custom ads. These ads can be displayed on your brand’s own website.

    Amazon Video Ads

    These ads can be placed on Amazon-owned sites and devices such as IMDb, Amazon.com, Amazon fire TV, etc.

    Amazon Stores

    These are the multi-page online stores on Amazon that can be used by the seller to promote their brands.

    Each of these campaigns is meant to grab the attention of viewers and increase the conversion rate of the product. You will have to choose the advertising strategy best suited for your product or brand.

    Also, your work is not over just by choosing the strategy and launching a campaign. A routine and thorough analysis of your campaign, including the new trending keywords and discarding the old ones, and making other required changes regularly should be an essential part of your advertising campaign.

    After all, this, remember that every marketing strategy is different and every product or brand requires unique advertising practices to get noticed there are certain basic rules that make a difference.

    Tips to Create and Run a Successful Ad Campaign on Amazon

    Below we have mentioned the 6 tips to create and run a successful advertisement campaign and boost your sales on Amazon.

    Identify your goals

    Are you trying to boost your conversion rates or just increase your brand awareness? Whatever your target be it should be clear to you so you can choose the right marketing strategy and implement it correctly.

    This will also help you identify the right metric to measure your success. For example, if you are focusing on increasing your sales Advertising Cost of Sales (ACoS) can be the right metric. Similarly, if you are here to create brand awareness customer impressions can be a perfect fit for you.

    The product page of Amazon is divided into objectives to help you easily choose the best-suited advertisement strategy for your brand or product.

    As explained earlier Amazon only charges the advertisement fee when a user clicks on your ad to view the product details. To make every click count you must advertise the best of your products so that maximum numbers of clicks turn into sales.

    You must also ensure time and again that the advertised products are available in stock and competitively priced.

    It is also advised to choose the products that display the featured offer on Amazon. When several brands are selling the same product, Amazon combines them into one product detail page.

    If your product becomes a part of a featured offer, it will definitely increase the visibility and sales of your product.

    You can use a number of measures to make your product the featured offer such as pricing your product reasonably, including multiple shipping options or free shipping wherever possible, offering support services to ensure happy and satisfied customers, and reviewing your inventory.

    Strong title and compelling details

    This is one of the most ignored but impactful steps. The title of your product is the first impression for the potential customers. Therefore, it should be strong and catchy.

    You can include details such as brand name, product type, size, color, material, key features, quantity, etc. in the title. The best titles are usually 60 characters long, easy to read, and informative.

    Next, come the product details. An attractive title might tempt the user to click on your product but the precisely crafted, clear, and concise details are the reason most users buy a product.

    It is always a good idea to include multiple bullet points in the description of your product. The shoppers today are smart and capable of making informed decisions. Your responsibility as a seller is to guide them in making the right choice.

    The product description must provide the details such as uses, content, dimensions, origin, operational considerations, etc. of the product.

    The product description is the small narrative of your product so it must be crisp and clear including all the necessary details. Apply the unique voice of your brand while writing the description. This will help you create a positive user experience.

    You must also include high-quality, zoomable images of your product. This will help provide the user with a clear picture of what to expect. If possible also include a short demo video highlighting important features and details of the product.

    Select the right channel to advertise:

    Amazon offers multiple options for you to display your product advertisement. For example, voice ads can be put on Alexa-enabled devices.

    Choose the right channel to advertise your product.

    Get creative with your ads and give them a unique positive tone that reaches the customer and rings a bell.

    Also, you must choose the right advertising campaign for your product between sponsored brand and sponsored product. While the first type of advertisement is meant to increase brand awareness the latter helps you boost the individual product sales.

    Category-specific targeting

    While looking for products on Amazon you must have seen the heading “Product you might be interested in”. This is category-specific targeting.

    Basically, the advanced targeting functionality feature of Amazon gives you the opportunity to display your products along with the other products belonging to the same category.  This helps you enhance the effectiveness of your ads.

    Displaying your products alongside the other famous brands and top-rated products makes them look more reliable and allows you to increase brand recognition.

    Choose keywords wisely

    Keywords are the essence of your advertisement so it is highly crucial to choose them wisely. The right keywords can really make your brand popular.

    Choose specific keywords that are likely to be used by high-intent people. Include important details of the product as keywords that may be of interest to the target audience.

    Also, it is equally important to get rid of negative keywords that do not serve the purpose of your product. These keywords just increase your ad spend without bringing any traffic.

    You must regularly check the viewer response to include the new trending keywords in your advertisement strategy and remove the old redundant ones.

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    Conclusion

    Amazon being the largest online marketplace worldwide provides you with the platform to reach a much wider than possible through any other way. However, without an impactful marketing strategy, it can be difficult to create brand awareness or boost sales through this great platform.

    By using the simple tips for running a successful advertising campaign on Amazon mentioned in this blog you can definitely increase the visibility and sales of your product on Amazon. You can thank us later.

    FAQs

    Can you run ads for Amazon products?

    Yes, you can run ads on Amazon for your products. Amazon ads are a great way to increase the visibility of your product and get on the front page of Amazon.

    Is it free to advertise on Amazon?

    Ads on Amazon work on cost-per-click ads, if a user clicks on the ad Amazon charges you.

  • Top 10 Important Elements to Include in Your Pitch Deck

    The world is witnessing a huge rise in the number of startups in recent years. Many youngsters are showing interest in developing innovative ideas and starting their own businesses. Thanks to affordable technology for feeding ideas and options to those young entrepreneurs to shape their dreams.

    The first and foremost thing that a startup requires is a fund. However creative the idea is and however talented the founder is, the startup will never take a step further without funds. So, how can a startup raise funds? There are various investors and venture capitalists who are ready to fund startups with excellent business ideas and a knowledgeable team.

    The primary thing that the founders should do is impress the investors with the pitch. The pitch deck should contain such things that should convince the funders to release money from their pockets. Let us know more about the pitch deck and the elements it should carry most importantly in it.

    What is a Pitch Deck?
    Important elements to be included in your Pitch Deck

    1. Product
    2. Problems
    3. Solution
    4. Funding and Financials
    5. Revenue Model
    6. Traction
    7. Target Market
    8. Competitors
    9. Team
    10. Exit Strategy

    Pitch Deck Tips

    What is a Pitch Deck?

    A Pitch Deck is a presentation that gives an overview of the startup to the investors. It should contain all important information about our business like its nature, demand in the market, future plans, strategies, etc. Informative and short pitches are the ones that gain the interest of investors.

    Initially, Pitch Deck serves to be the face of a startup and it is how we introduce our company to the financial backers. The first impression it creates stands out to be crucial. So certain things that cultivate trust in the survival, success and future of your startup have to be considered and included while getting the pitch ready.

    Important elements to be included in your Pitch Deck

    The following article covers the important requirements for a pitch deck:

    Product

    If yours is a product-based startup, then take your product to the investors. Get them to know your product personally. Sometimes, your product might speak more than your words. Let them use your product and know it well. Even if your product is in the development or underdeveloped stage, create some samples or models to present to the investors. The visual presentation would give you an added advantage during the pitching.

    Problems

    Give a brief explanation of the problems you are facing as a business. Explain where the problem exists, the reason for its existence, where future issues can arise and so on. A simple narration with a relatable example could help investors understand the problems better. This might gain you a positive note on your in-depth business knowledge and a solution to the problem. Even if the investors fail to invest in your startup, their experienced advice could be of great help in the future.

    Solution

    Moz Solutions in Pitch Deck
    Moz Solutions in Pitch Deck

    Providing solutions to the problems can cause you some good during the pitch. If identifying the problem shows your understanding of the business then solutions show the knowledge you possess over it. Explain to them how you are going to solve the problem, how it is going to impact the business, the reason for choosing this particular solution, etc. If the solution or the strategy is adopted from a predecessor, then explain how they made it happen. Also, be prepared to counter any questions to be shot against you by the investors.

    Funding and Financials

    Investors won’t grant funds without you asking for it. You need to quote the required funding amount, its purpose and how it will be utilized, and the return the investors would get from it. If you are an existing startup, then you need to provide your past financials in a simple chart or graph along with the above-said details. It should contain spending, areas of your spending, profits, revenue, etc.

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    Revenue Model

    How do you make your revenue? An investor would be most interested to know your revenue model. You can use the information from the target market slide to assist you in briefing the revenue model. Explain the demand for your product or service in the market and how it would pay you back. Dissect the cost and profit from your sales and give brief reasoning for your pricing strategy. This is the other most important element to be included in your pitch deck.

    Traction

    Moz Ptchdeck 

    Project your company’s growth with the current market situation for a foreseeing future. If you are an already existing startup then elaborate your growth trajectory in the pitch deck. You can also mention the benchmarks you have created or the milestones achieved in the past. It can be anything in terms of profit, revenue, sales, awards, etc. This is done to incite confidence in the investors and reduce the fear of risking their finances.

    Target Market

    Sickweather Pitch Deck showing Target Market
    Sickweather Pitch Deck showing Target Market

    Every company, product or service-based, has a target market or customers. That particular targeted area should form part of your pitch deck. When describing this segment, you can include the nature or category of your market, the current and future demand, the impact of your competitors, and so forth. Investors would like to know where the major focus of your startup would be. They might judge your company’s long-term stability with the market you are about to target.

    Competitors

    One of the most important elements to be included in a pitch deck is the competition. Knowing the competition helps you to know about your business well. Since every action of the competitor might have a direct impact on your success and survival, understand your competition well. Not knowing them is a result of ignorance and improper market study. No investor would be ready to invest even a dime in such a startup. So, include a detailed study on your competitors in your pitch deck.

    Team

    Buffer Team in Pitch Deck
    Buffer Team in Pitch Deck

    A team is the core of any business. However great your planning and strategies might be, you need a great team to put everything into action. Assigning the roles to your team, and choosing the right person for the right task, is highly important. Give the investors a clear map of your management and operations team and their expertise.

    Exit Strategy

    Every investor wanted to know the exit strategy when the business gets transformed into a larger one, like going public, in the future. They would like to know your plans for the future and expansion strategies, or in simple terms, where the business will be in the next five or ten years. If you are planning on something like getting acquired, divesting your investments, etc. explain why it is the best choice for the investors.

    Conclusion

    The above are some of the key elements that should become a part of your pitch deck. They assist you in creating an imposing pitch presentation that in turn helps you secure funds and investors for your startup.

    FAQs

    What is a pitch deck?

    A Pitch Deck is a presentation that gives an overview of the startup to the investors.

    What are the important elements to be included in your Pitch Deck?

    10 important elements to be included in your pitch deck are:

    • Product
    • Problems
    • Solution
    • Funding and Financials
    • Revenue Model
    • Traction
    • Target Market
    • Competitors
    • Team
    • Exit Strategy

    Why Is Pitch Deck Important?

    Pitch deck is the first communication means for entrepreneurs to reach out to potential investors.

  • AAIBA Design – Creative Solutions for Businesses to Build Their Brand

    Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by AAIBA Design.

    Design industry is the most emerging industry in the world in the digital world. Creative design and arts play a crucial role in advertising industry, public relation, and marketing companies. Creative designs and visuals help in creating great impact on the audience and thereby helps in brand communication. Creative visuals, beautiful designs have an excellent ability to translate your brand to public. AAIBA Design Private Limited is a brand design agency that provides advertising services and helps your brand to communicate creatively to the public.

    Read the startup story of AAIBA Design, its founder, offered services, and more about it.

    AAIBA Design – Company Highlights

    Startup Name AAIBA Design
    Headquarters Mumbai
    Industry Brand Design and Brand Consultancy Agency
    Founder Saurabh Chandekar and Rasika Chandekar
    Founded 2013
    Instagram Page aaibadesign

    AAIBA Design – About
    AAIBA Design – Founder and Team
    AAIBA Design – The Idea and Startup Story
    AAIBA Design – Name and Logo
    AAIBA Design – Services
    AAIBA Design – Business Model
    AAIBA Design – Revenue Model
    AAIBA Design – Customer Acquisition
    AAIBA Design – Achievements
    AAIBA Design – Work Culture
    AAIBA Design – Competitors
    AAIBA Design – Tools Used in the Company
    AAIBA Design – Advisors and Mentors
    AAIBA Design – Awards and Recognitions
    AAIBA Design – Future Plans

    AAIBA Design – About

    As the name ‘AAIBA’ suggests, they give their client’s communication the right voice it needs. They are very passionate about what they do and the kind of communication they build around it. They help guide their clients through the advertising world offering expert insights on the market, quality, the estimated budget, etc. They ensure that the client benefits from the association and solutions they provide.

    AAIBA Design – Founder and Team

    Saurabh Chandekar – Co-Founder of AAIBA Design

    Saurabh Chandekar and Rasika Chandekar are the co-founders of AAIBA Design. The shares of the company are distributed 50-50 between the co-founders.

    Saurabh Chandekar is the Creative Director/ Aaiba Design private limited. He has completed his graduation from Abhinav Kala Mahavidyalay, Pune. He was born into an art driven family. His father, Late Mr. Sadanand Chandekar was a famous stand-up comedian of his time. It is only right to say that art has always been in his DNA and has always been something that excited him right from the very beginning. His love for art made me choose advertising as a career.

    They are a team of 20  people and the majority of the team consists of women which further makes the workplace more empowering.

    AAIBA Design – The Idea and Startup Story

    Saurabh started his career working at advertising agencies. Working with corporate helped him hone his advertising skills for which he also won a lot of accolades. This helped him gain the confidence to start his own agency. It was easier to win the trust of the clients with the credentials he had with his previous work experience and he knew, he could do much more with his own brand. Hence, AAIBA was born in 2015 and he was able to put his passion and skills to best use and serve its clients with the best advertising and creative solutions.

    AAIBA Design Logo
    AAIBA Design Logo

    They haven’t illustrated too much into the making of the logo, it is simply an ode to the founder’s Aai and Baba, his inspirations and pillars of strength. Hence the name, AAIBA.

    AAIBA Design – Services

    They offer a variety of services in their advertising agency. Research and Analysis are our strong points. They make sure that every solution offered to each client is customized according to their brand’s needs. They offer deep-rooted insights, psychological aspects are taken into consideration and then they walk their clients through the process offering consultations that could help their brand further.

    AAIBA Design – Business Model

    AAIBA Design provides all kinds of design services to its clients right from the crafting of their company name to designing their first logo to positioning the brand in the market, they explore all kinds of value additions in terms of manufacturing, vendor management, etc. They are a design consultancy company that provides the best solutions for all our clients.

    AAIBA Design – Revenue Model

    They are not a manufacturing unit selling a tangible product, they are a service company with a revenue model fluctuating and changing all the time. The cost of IPs ( Intellectual Properties) run the whole show. There is no fixed cost involved because there is no specific rate card for the services they offer since services differ according to the project. They are a bootstrapped business. Bootstrapping is the best business model one can opt for because it is easier to drive a company without the involvement of investors. It is easier to have things play out the way you want and thus do justice to your visions and goals.

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    AAIBA Design – Customer Acquisition

    One of the highlights of AAIBA design is that they never had to hire a marketing manager or business developer to promote their business. They believe that credibility plays an important role in acquiring customers. The more real you are the better. They ensure that they put their best foot forward and deliver the best services. It is important to be genuine and consistent with clients throughout the time together. Perseverance and sincerity is the key to success.

    When AAIBA Design first started they had only 3 accounts and fast forward to today they cater to 35 clients. It is not an easy task to start an agency, especially a creative one which has immeasurable parameters to consider. It is a vague process but it is not rocket science. Getting the confidence of your clients and being genuine in what you do is what keeps the business running and growing. Basically, you are selling your soul but in a good way.

    AAIBA Design – Achievements

    AAIBA Design FOOD FESTIVAL
    AAIBA Design FOOD FESTIVAL

    Some recognition attained by AAIBA Design are:

    • They are working on one of TOP 3 clients in the world – Capapie Sports, they are a sports equipment brand for shooters participating in various world games.
    • They also executed notable campaigns for D’lecta Foods – FETA Cheese range. The consumer communication carried out was aiming to introduce the audience to a new category of cheese i.e the FETA cheese or the healthier cheese. A cheese specific to salads, the campaign ‘ The Perfect Salad Cheese’ promoted the range through various retail store promotions, print promotions, social media, etc. For social media, the AAIBA team came up with original healthy recipes for the audience. The team leaned towards highlighting the nutritional facts of the products as opposed to typical ‘delicious cheese’ appeal that is used.
    • One of the highlights of my career was conducting this art exhibition in Mumbai, earlier this year, which was inaugurated by Aaditya Thackeray – #MumbaiInFrames.  It was so well received by the audience and definitely something I am very proud of.
    • In 2020, AAIBA was felicitated with the  Grand Jury Award at NYX Marcom Awards. We designed a campaign for the Isuzu X Food Festival bringing local hidden flavours and rare delicacies from different regions under one roof, taking guests on one of a kind food adventure. As a visual language, the illustrated versions of food were derived so as to create interest around the food. The colours and style of the illustrations were designed to take the audience closer to the regional culture. The entire illustrated campaign was conceived as a mood setter for the festival.
    AAIBA Design FOOD FESTIVAL - STUDIO NYX AWARD-08
    AAIBA Design FOOD FESTIVAL – STUDIO NYX AWARD-08

    AAIBA Design – Work Culture

    AAIBA is a family with no hierarchy in the company. They do not encourage toxicity at the workplace and Saurabh Chandekar himself makes it a point to stay connected with employees at the family level. They have always promoted a friendly atmosphere in the company.

    They are always looking to empower the workplace by hiring more and more talented individuals and making the workplace more comfortable which is why there is no hierarchy present in the organization. This gives individuals room to grow and bring in their best creative selves.

    AAIBA Design – Competitors

    Many colleagues and friends of founder are working in the same industry but he have never seen them as competitions nor has he ever been threatened by their work. It is imperative to have so much faith in yourself that you shouldn’t be distracted by others’ success and that’s what AAIBA Design abide by.

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    AAIBA Design – Tools Used in the Company

    Some tools AAIBA Design uses are:

    • Illustrator
    • Photoshop

    AAIBA Design – Advisors and Mentors

    Saurabh Chandekar considers his Aai and baba as the primary mentors, personally and professionally. In the Advertising world, he have always looked up to Ex Ogilvy NCD, Nipun Salvi and  sir, Piyush Pandey, Ogilvy.

    AAIBA Design – Awards and Recognitions

    In the year 2013, AAIBA Design won the prestigious ‘Cannes 2013’ for the Lifebuoy Roti Campaigns.

    Awards won by AAIBA Design are:

    • AFAQS Foxglove 2019 – Best social media campaign
    • AFAQS Foxglove 2017 – Best print campaign – Silver
    • INDI POOL Magazine Nominated amongst India’s top 3 Best Graphic Design Studios
    • IDA Design – Los Angeles – International award for poster design category – Bronze Metal
    • AFAQS Foxglove 2018 – Best print campaign – Silver Meta
    • AFAQS Foxglove 2018 – Best non traditional media campaign – Gold Metal
    • Design Thinking Conclave 2018 – Best design thinking organisation.

    AAIBA Design – Future Plans

    In the next 5 years, they plan to take ‘AAIBA’ overseas and expand globally. Going global and offering their services to international clients has been our mission for the longest time and fulfilling that would certainly be a dream come true for me just like any other entrepreneur.

    FAQs

    When was AAIBA Design founded?

    AAIBA Design was founded in 2013 in Mumbai.

    Who is the founder of AAIBA Design?

    Saurabh Chandekar and Rasika Chandekar are the founders of AAIBA Design.

    What does AAIBA Design do?

    AAIBA Design is a Mumbai based design studio that provides solutions for advertising and brand communication strategy & design.