Treebo Hotels are well known for their tremendous facilities and services for its customers. With the advancing hotel budget network in India, Treebo Hotels are quite high on the list, closing a total of $34 million series in the C round.
And it’s estimated that by 2021, Treebo Hotels will lay in more profit than ever. Treebo Hotels are backed by some very prominent investors SAIF Partners and Matrix India Partners.
Treebo Hotels has experienced many ups and downs throughout the last four years which resulted in many lay-offs and fortunes plummet. Meanwhile, there was certain news in the market that Treebo Hotels are in acquisition deals with the Gurugram based Unicorn Oyo. That’s why Treebo Hotels spent around one year building a strong upholding strategy for the market that could bring the company back to its previous status and more.
The strong deed that came out was reducing the cash burn and certain liabilities along with bold strategies for improving revenue sources. In this article, we have discussed the business model of Treebo Hotels, briefly. Let’s get started!
Treebo Hotels is a prominent digital hotel chain developed by IIT Roorkee graduates Sidharth Gupta, Rahul Chaudhary and Kadam Jeet Singh. Treebo Hotels aims for providing top-notch quality hospitality in a stated budget segment.
The company focuses on the budget hotel sector by opting for a new well-organized hotel and taking that under the Franchise of Treebo Hotels. These become an official part of Treebo Hotel chains.
Treebo Hotels entirely manage all the aspects of hotels through advanced technology and look for the best revenue management and enhance the quality. With the growing hospitality industry in India, the customers get total facilities and can easily book any hotel under Treebo Hotels or Oyo with a minimum charge of Rs. 3,000 to Rs. 5,000. This offers the customers total hostel facilities without any interceptions.
Where does Treebo Hotels operate?
Treebo Hotels is a major part of India’s budget hotel chain that took over other hotels through Franchising.
With the latest data of 2020, Treebo Hotels has established its chain of hotels in over 113 cities with around 600 hotels across India.
Key Services of Treebo Hotels
It often becomes very tough in finding the right suitable hotel with fresh toiletries, clean rooms and affordable basic breakfast service. A middle-class always suffers in finding this at a reasonable price. And that’s where Treebo Hotels comes in.
Treebo Hotels provide great customer services and manage the basic requirements of the customers at their convenience. It provides exclusive hotel choices at very reasonable prices and with covering all aspects of the requirements.
Target Audience of Treebo Hotels
Treebo Hotels compete with the biggest hotel services of Oyo Room and FabHotels. Oyo is backed by SoftBank while FabHotels is backed by Goldman Sachs and these hotel services are extensively popular.
On this note, Treebo Hotels in its mid-to-premium segment targets corporate customers and especially middle-class customers.
Business Model of Treebo Hotels
Treebo Hotels believes in branding rather than aggregating a marketplace. Their business model is franchise based. Treebo Hotels looks for the most suited hotel with good service and keeps up the standard of their brand. They communicate with the owners and offer great customer acquisition channels, branding, management software and many more.
It charges around 40% of total revenue per cent from each hotel, which is quite high.
Treebo Hotels works through the mid-segment hotel industry and for that, a strong complete business model which holds the operational capabilities has become quite a necessity.
Treebo Hotels is looking for all aspects that can be covered in order to build a strong market upholding. And in the upcoming years, it is expected to grow more extensively.
What’s Unique about the Business Model of Treebo Hotels?
With most of the successful hotel services companies, look for a few hotels and sell them online. This makes them no different from MakeMyTrip or any other travelling company. However, Treebo Hotels offers the entire hotel services while covering all aspects of the requirements.
Customers often get upset or angry with the poor services by many hotels. But, Treebo Hotels offers great customer service and experiences.
Treebo Hotels is a Hotel Brand, not an aggregator and that’s why it is known to be the largest budget hotel chain across India. Treebo Hotels offers different locations in different cities at some very reasonable prices.
Good hospitality is very necessary for greeting the customers. And India greetings are more important than anything. Treebo Hotels offers such hospitality in their hotels.
How does Treebo Hotels make money?
In the past few years, Treebo Hotels experienced some major losses up to Rs. 114. 94 crore. That’s why from next year, 2018, Treebo Hotels increased its cash burn by 80 per cent and doubled the revenue growth. Treebo Hotels is now focusing on the immense profit deals by 2021.
Treebo Hotels operates the franchise model that’s why its major source of revenue is the hotels that come under the Treebo brand.
In the last funding round of Treebo Hotels, it raised around $23 million which includes the $17 million series B.
Treebo Hotels charges around the range of INR 1,000-3,000 per night with the best facilities of clean linen, free WiFi, bedding and other things. The annual revenue of Treebo Hotels as of 2019 is USD 11.7 million.
Conclusion
In the hyper-competitive market, Treebo Hotels are building their strong upholding. However, it experienced a major loss in past years but now, with advancing technology and services Treebo Hotels are stabilising their position.
Developing a strong technical on-ground operation is very important in this sector to bring consistent experience for the customers. This is known as the capital intensive business which requires funding and great effort to establish. And Treebo Hotel is quite prominent among the members of India’s rising budget hotel networks. Stay tuned for more updates!
FAQ
Who is the founder of Treebo?
Treebo Hotels is a budget hotel chain founded by Sidharth Gupta, Rahul Chaudhary, Kadam Jeet Jain in 2015.
What is the revenue of Treebo Hotels?
The estimated revenue of Treebo Hotels is $9.7 million as of 2020.
When was Treebo founded?
Treebo hotels was founded in 2015 by Sidharth Gupta, Rahul Chaudhary, Kadam Jeet Jain.
Selling your business can be a hard choice due to various reasons. Whether it is to protect you or for better fortune, it is important to understand the steps that you need to follow while you sell your business. In this article the steps that you need to follow if you are planning to sell your business in Australia. Keeping in mind that laws vary from place to place, the article adheres to the steps suggested by the Australian government in its self to avoid any kind of confusion and to present the article as objectively as possible.
There might be various reasons why you sell your business. Whatever the case maybe it is important that you scrutinise all the options available before finalising that you have to sell the business.
Having a clear idea will also help you engage with the buyer who will most probably ask the same question. Another reason why thinking enough before you choose to sell is that in many cases the sale can add additional financial responsibilities even when your intention was to get rid of it.
Employee entitlements or tax amounts may continue to haunt you even after the sale. So, if you are going to sell think it through.
Deciding means of Sale
There are different ways through which you can sell your business. While you can do it on your own it is highly recommended that you do it with the help of a business broker. They are professionals in the field who will help you have a better understanding of all kinds of legal documents and government requirements.
They also help you make the best out of the sale by advising you about the most profitable ways in which you can complete the transaction. However, it is extremely important to double-check the details of these professionals.
Analysing the Worth
One of the most important tasks, before you sell your business, is determining how much your business is worth. Giving the right pricing is a very determining factor. You can do this estimation either by doing a comparison with similar businesses in the market or you can look at the amount for which businesses similar to yours were sold.
This process will give you an idea about the possible market conditions. Another way is by calculating the differences that arise between assets and liabilities. It is important to consider tangible and intangible assets like buildings and brand recognition respectively. Or else you may also use the net profit of your business to finalise the value of your firm.
Finding the Right Buyer
There are multiple ways in which you can find buyers for your business. As mentioned earlier you can take the help of business brokers or agents to help you connect with a buyer who will give you the rightful price. Here too, Lloyds brokers will be an excellent guide and support to find a buyer in Australia.
You can also exploit your existing networks of friends employees or family to find out people who will be willing to buy your business. As technology gets revolutionised you can use different media to give publicity to the sale through advertisements.
You can always use the help of the customers of your business to find the right buyer. Whenever you try to convey the message of sale, make sure that you are clear about your requirements and other relevant information about which the buyer should be aware.
The part where you negotiate with your prospective buyer is a place where you need to be extremely careful, honest and accurate. During the negotiation make sure that there is a proper agreement at least on words on things like sale price, settlement period, the handover training for the buyer if necessary, demand of advance to be paid et cetera.
Writing the contract
The preparation of your contract is normally done by an intermediary for you. However, you should be aware of the requirements and laws that you need to follow as they vary from state to state. So make sure that you go through the rules and regulations pertaining to the state or territory in which the business is situated.
You will have the help of a solicitor to crosscheck the contract for you. They will help you figure out any kind of discrepancies and will also ensure that every detail of the sale is clearly mentioned in the contract. These include assets like property, equipment, stocks et cetera and also the liabilities inclusive of creditors.
If there are any other special kinds of agreements like the ones where you are restricted from starting a business in the same field or anything of the same kind, make sure that you are aware of all these and that they are properly mentioned in the contract. Be watchful about the things that are mentioned regarding the future of the business and if they have any connection with you.
Addressing the Employees
Employees are the most important driving force of any business. Being the foundation they are the ones who are the most affected when a careless sale happens. Hence it is important that you communicate with your own employees about the things that are going to happen and inform them about the decisions taken with regard to employee positions.
You are obliged to give them prior notice or provide payment in lieu of notice. If at all the employees are getting transferred along with your business make sure that you provide all the necessary details about the employees to the new business owner.
You need to seriously consider if CGT or Capital Gains Tax and GST or Goods and Services Tax apply to your business sale. The procedure you need to follow completely depends on whether you are registered for GST or CGT.
Transferring the Business
When you are transferring your business after the sale you need to make sure that you transfer all permits, licenses, and leases. Do not forget to cancel you are ABN. You can either transfer or cancel your business name as well.
Finalising things like activity statements, installment notices and tax returns are also an important part of transferring your business. Remember that until the transferring of the business to the new owner is complete you will be the one who is responsible for any kind of agreements and obligations which are a part of your business.
In Australia, it can take up to 12 months to complete the process of license transfer which means you need to plan well ahead.
FAQ
What are the three ways to value a company?
There are three main methods used to value a company is, DCF (Discounted Cash Flow analysis), comparable company analysis, and precedent transactions.
Do I have to pay tax if I sell my business?
Yes, you may have to pay capital gains tax if you sell your business.
There were a lot of articles and discussions about the tax evasions done by the big tech companies, which include Amazon, Google, Facebook, Netflix, etc. The companies have said to be paid very little amount in tax as they use tax havens and shift their operational region to avoid huge tax which should be paid to certain countries. The G7 summit has introduced a new tax system. Let’s look at the new tax system and how it would benefit India
The group of 7 countries that are commonly known as G7 countries has decided on implementing the historical tax system on the global tech and multinational companies which will be a global tax. This proposal and decision are made with the aim to reduce the tax evasions conducted by the companies where they generally shift their operation base to the regions with a lower tax rate.
Countries that have agreed to the Corporate Tax Deal
The deal is likely to be put forth in the G20 summit, which is going to be held in July 2021. As of now, a total of 7 countries agreed that includes Canada, Germany, France, Japan, Italy, the United Kingdom and the United States.
The proposal contained of 3 major decisions that were taken during the meeting.
The companies or the multinational corporations will be forced to pay taxes on the profit they earn overseas.
A minimum corporate tax of around 15% will be imposed on the multinational corporations on a global basis.
The countries can share taxes on the profit earned by the companies or multinational corporations in a specific country through digital sales where the company has not got a physical presence.
The G7 finance ministers and the Central bank governors conveyed that they will be committed to reaching an equitable solution on the allocation of taxing rights, the market countries will have to agree to share at least a taxation of 20% on the profits earned by the multinational corporations.
They also conveyed that they would provide a proper coordination in applying the new tax rules and to remove the digital service taxes and other similar taxes that are levied on the corporations. They further added that they were looking forward to getting into an agreement with regards to the corporate tax in the G20 summit held in July 2021.
How will India benefit from the tax deal?
In the year 2019 the Finance Minister of India, Nirmala Sitharaman had cut down the corporate tax rates for the Indian based companies to 22 % and for the new Indian based manufacturing companies to 15 %. This would add an advantage as the bilateral tax agreements between the countries are also around a similar range.
Since the tax rate in India is around 15 %,which is similar to the tax rate announced in the G7 summit, the country will not have to increase its tax rates. This would be a positive approach as India will be able to attract a lot of investments into the country. Furthermore, the existing tax havens may become unattractive and we can see a lot of investments coming into India.
The decision of the countries in taxing the multinational corporations that have a significant sale in the country without a physical presence will let India tax a lot of corporations that earn a huge amount of money through digital sales alone.
Amit Maheshwari who is a Tax Partner at the consulting firm AKM Global has conveyed that India would be able to benefit a lot from the newly proposed corporate tax as they are a big market for the huge tech companies.
However, it is to be noted that as part of the agreement India will have to stop collecting the Digital service tax that it has levied on the companies such as Amazon and Google. India levies a Digital Service Tax of around 2 % on the revenues generated in India through the digital services offered by these companies. This includes digital platform services, data-related services and digital sales.
India is expected to gain a lot from the new corporate tax discussed and approved in the G7 summit but tax havens such as Ireland, Netherlands, Luxemburg, Hong Kong and the Cayman Islands are going to face the consequences of the deal.
FAQ
What is G7 tax deal?
The Group of Seven or G7 countries have agreed on a tax deal to impose a global tax on multinational corporations. The proposal is aimed at reducing tax evasion committed by large multinational corporations that often shift their base of operations to regions with lower tax rates.
Which countries come under G7?
The seven G7 countries are Canada, France, Germany, Italy, Japan, the UK and the US.
Why was G7 tax deal proposed?
G7 corporate tax deal was proposed to reduce tax evasion committed by large multinational corporations that often shift their base of operations to regions with lower tax rates.
The United Kingdom has been trying to negotiate with India in terms of a free trade agreement between both the counties. The UK has launched a 14-week consultation process in order to seek the opinions from the public as well as businesses before negotiating on the agreement. Let’s look at what exactly is the free trade agreement and how it would benefit the countries.
The trade secretary of the UK, Liz Truss had begun the preparations for the trade deal between India and the UK. The country wants to remove the trade barriers in order to conduct the business and trade with India which includes removing a tariff of 150% on whisky and 125% on British-made cars.
The UK government is looking forward to seeking opinions from consumers and businesses from different sectors in order to help in crafting a deal that would help in increasing cooperation in the future. The industries which will be concentrated include science, technology and services which are expected to create high value jobs in the UK.
What is Free Trade Agreement?
A Free trade agreement is a situation or an pact between two or more nations in regards to imports and exports in between the countries. It can be understood as a removal of the barriers involved in imports and exports.
Under a free trade agreement good and services can be purchased or sold across international borders with very little or zero government intervention such as charging of tariffs, quotas, prohibitions or subsidiaries.
How India-UK agreement will double the trade between UK and India?
Both the countries already have a trade agreement and according to 2019, the trade between India and UK was worth 23 billion Euros and both the countries want to double the figures by the end of 2030. The recent free trade agreement is focused on concentrating much more than the movement of goods.
The free trade agreement concentrates on covering services, digital business and SMEs. So, it is expected to have a huge amount of content in a free trade agreement.
India exports to United Kingdom
What are the 5 Cs in India-UK Free Trade Agreement?
While both the governments are moving forward with the free trade agreement, it is expected to be characterized based on the 5 Cs.
1C
Where the 1st C would be Covid which both the countries have and are still suffering from. In India, the second wave has seen a drastic rise in the number of cases. The United Kingdom has been sending a lot of medical supplies and even both the countries are working together in rolling out the vaccines. Around a billion doses of Oxford-Astra Zeneca vaccines are being produced by the Serum Institute of India.
2C
The 2nd C would be commerce and the main focus of the Free trade agreement as seen both the countries are trying to double the trade by the year 2030. It is also seen that around half a million of jobs in each other’s economy are supported through the trade. India is also keen on UK’s expertise in Life sciences, Med Tech and diagnostics.
3C
The 3rd C refers to the community. It refers to the British Indian community which is expected to be around 1.5 million providing an advantage to the relationship. It is considered that the Anglo-Indian community is an entrepreneurial one and research has shown that around 174,000 people are employed under the companies owned by Anglo-Indians and all the companies have a combined revenue of over 35 billion Euros.
4C
4th C refers to the commonwealth which is considered to be the important glue of the relationship. The UK is the chair in the office with India in the commonwealth and India is a founding member of the Commonwealth summit. Both the countries are working together to increase the effectiveness.
5C
The 5th C which is the final one refers to the climatic changes. In the month of November, the UK will host COP-26 which is a climate change talks and India being the key country that is expected to be most affected by global warming will have a scope to working together in finding shared solutions. They have already started by scaling up the electric mobility market in the country.
It is expected that the UK will open up its fisheries sector to more Indian players, providing more opportunities for nurses and in return, India lifts the restrictions to import British fruits to the country and improved access to medical services. These actions are expected to create around 25,000 direct and indirect jobs in India.
Ranil Jayawardena who is the international trade minister of the UK has conveyed that the trade deal with India will break down certain barriers and will make it easier for British Businesses to sell goods in India. It will also help in gaining more investments, increasing wages and lowering prices in Britain.
FAQ
Is there a free trade agreement between UK and India?
Yes, UK and India has signed a free trade agreement which is concentrated on science, technology and services.
Which country has the most free trade agreements?
UK has the most free trade agreements with 37 FTA agreements with different countries.
Is FTA beneficial for India?
Yes, FTA is beneficial for India as it will ease export in the country and will create more jobs for the people of India.
Conclusion
Over the last 10-15 years the European Union had tried to sign a free trade agreement with India and failed. But since now the UK is an independent nation it is considered that the chances of getting into an agreement with India are higher than it was ever been.
Creating a great customer service experience for your audience is essential. But it’s arguably even more important for SaaS companies with tools that aren’t always the most self-explanatory or simple to use. To lower your volume of support tickets and give customers a self-serve support alternative, you need to provide customers with a comprehensive, self-service portal. That way, they’ll be able to find the support answers they need on their own time.
There’s a growing market for SaaS knowledge base solutions – for a good reason. They help companies organize their knowledge and provide a self-service option for their customers. But a knowledge base can help you with so much more than just basic SaaS customer support. It can serve as a marketing aid (and so much more).
Simply put, a knowledge base is a platform that includes a collection of questions, answers, guides, and documentation related to a product or service. Users are able to type a few words and find answers to common questions about the product. There are also private knowledge bases. These are collections of documents you create as a resource for your teams. For example, you can create a private knowledge base for your customer support team to help them find answers to common questions much faster. We’ll go through the advantages of a SaaS knowledge base now.
Advantages of Knowledge Base
Customization Options
SaaS knowledge base solutions are generally customizable, although less so than custom solutions. You can create a good-looking knowledge base with no coding on your part. This means you don’t need to invest expensive and valuable developer time, or agonize over what features to include. Of course, if you develop a custom solution, you will have absolute control over the form and function you want your knowledge base to take. This could be a good thing – or you may end up with scope creep. Being able to include every feature requested might mean you end up with a mess. SaaS knowledge base vendors understand the problems faced by customers and deliberately build the product with the most popular features. Most of the time, these are the features you badly need.
Customer Support Plus Marketing
Knowledge base articles can help demonstrate the quality of your product and set your company apart as an authority figure in your industry. They allow you to show off the features of your software to those who haven’t become paying customers just yet. Here’s how Slack does it in their knowledge base posts:
Customer support + Marketing
The more versatile and built out that your knowledge base is, the more effective it will be as a marketing tool since it will appeal to a much wider audience.
Easy to learn
SaaS knowledge base system usually don’t require any training because they’re out-of-the-box solutions – as simple to pick up as a normal content management system CMS. That’s basically what they are. SaaS knowledge base user interfaces are deliberately designed this way so users are familiar with their environment and can get started right away.
Gain Valuable Insights
Creating a comprehensive knowledge database can be incredibly insightful for your team. If you can measure and view which kinds of articles are getting the most attention, you can increase your customer support success by creating more similar content. Or, you can improve what’s already there. Freshdesk’s reporting and analytics features make it easy to view similar insights.
Freshdesk’s dashboard
Competitive advantage
Your SaaS solution will be up-and-running right away. Building a custom in-house software demands a development period. If you have time to spare, then great. Otherwise, your new knowledge base may not get completed in the time you’d like. If your engineers have to split their time between your company’s flagship product and an internal tool, the external product is probably going to win.
You might not have time to wait for a solution to be developed, in which case SaaS is your best option. The typical on-boarding time for SaaS knowledge bases is minutes. Since it’s hosted on the cloud, you don’t need to install the software on any systems or set up any security measures. All that is done for you by the SaaS solution provider.
Boost your SEO
You probably already know that blog posts help boost your SEO. But did you know that knowledge base posts can do the same thing? They have huge potential for helping you grow your audience organically, while also serving up the kind of content search engines love.
SEMrush
Knowledge-rich articles are full of fresh content that you can pack full of keywords and long-tail phrases. This can skyrocket your rankings. With some more effort, you can optimize each post to its maximum potential. And you don’t even have to be an SEO expert to do it. Identify the keywords that best help you reach your SaaS goals for each piece by using SEMrush knowledge base like tool to find keyword suggestions.
More cost-effective
The great thing about dedicated knowledge base solutions is they are usually leaner than full-stack help desk solution – thus making them cheaper. A SaaS knowledge base is also cheaper than self-hosting because you are renting the software from another provider. The provider takes care of all the servers, hardware, software and deployment behind the scenes. If you develop it yourself, you also risk wasting time on features you later find you don’t actually need.
Improve Employee Productivity and Encourage Collaboration
Research shows that 20 percent of employees’ time is spent searching for information they need but can’t find. That means that employees spend one-fifth of their workday searching through cluttered inboxes. By giving agents a shared platform, you can help them centralize all of this knowledge instead and make it searchable. That way, they aren’t stuck combing through inboxes and thousands of tickets to find the one piece of information they need.
Freshdesk’s collaboration feature
Knowledge bases can also give your agents a platform to collaborate on issues, ask questions, tag one another, or leave comments, which can give productivity a huge boost. The collaboration features in Freshdesk make it possible for your employees to collaborate with one another whether they’re across the world or right next to each other.
Made by the experts
SaaS knowledge base companies have dedicated their entire business to this one particular type of software, so it’s likely they are the experts. As good as your IT team may be, you may not have this type of expertise in-house. This will take time for your staff to acquire.
The key to success with SaaS is to choose a solution that has a product roadmap in line with your company vision. Go through the product’s documentation or ask the company’s sales team. If their answers don’t fill you with confidence, that will be another reason to choose a different product.
Continuously improved
SaaS knowledge bases are based on best practices from other industries and crowd-sourced from a dedicated customer base. By aggregating feedback, a SaaS knowledge base will be better than one you could develop yourself. SaaS knowledge base companies will always be working on adding new features. Competition forces them to continuously iterate. If a new industry standard emerges, you can bet your SaaS solution is focused on integrating it into their software.
A knowledge base software can take your SaaS customer support to the next level. Focus on building a comprehensive knowledge base that will continually satisfy your customers, all while providing tons of unexpected benefits like customer insights, improved SEO, and more.
Your ideal product is SaaS knowledge base solutions if you want a solution that can help your customers self-serve. They do exactly what they say. They’ll get you up and running straight away and are easy for your employees to learn. There’s no messing about with code or development cycles. You can focus on running your business. Now there are many affordable, dedicated SaaS knowledge base solutions. These are perfect for your startup’s budget and mission.
A knowledge base is a technology used to store complex structured and unstructured information used by a computer system.
What does knowledge base consist of?
The knowledge base may include FAQs, manuals, troubleshooting guides, runbooks, and other information your team may want or need to know. Many knowledge bases are structured around artificial intelligence that can interact and respond to user input. Others are simply indexed encyclopedias.
How do you build a knowledge base?
Steps to build a knowledge base:-
Step 1: Review your data before building a knowledge base.
UAE can be considered as one of the best places to set up a new business or to expand your existing business internationally. The country’s economy is the fourth largest in the middle east and has a GDP of USD 421 billion. There are few steps you would have to follow in order to set up a business in UAE.
1. Select the Right Jurisdiction for your Business in UAE
The most important step of any business is to select the business activity and that should be your first step. But for setting up a business in the UAE you should have a basic idea of the different jurisdictions first and accordingly move forward with the rest of the steps.
The UAE market is divided into different economic zones. The different zones in the UAE are Mainland, Free zone and Offshore. These economic zones are jurisdictions and each jurisdiction has a different set of rules and regulations.
Mainland
A business that is set up in the Mainland of UAE will be able to do business anywhere in the UAE market. This means that the company will be able to do business in both inside and outside the UAE market. It is mandatory to have a physical office space with a minimum requirement of 140 sq. ft.
Free Zone
A business that is set up in the Free zone of UAE has certain restrictions in doing the business. They will only be able to conduct the business in the jurisdiction of the Free zone and outside the UAE. It is not mandatory to have a physical office space and a virtual office space would do.
Offshore
Offshore companies are business entities that will be registered in the UAE in order to conduct the business outside the country or outside the jurisdiction. The offshore companies are allowed to set up multi-currency accounts in UAE and to carry out the business internationally. An important point you should notice is Offshore companies are tax free in UAE.
2. Choose the Type of Business you want to Setup in UAE
The first step would be to choose the type of business activity you would want to set up in the UAE. For example, certain Free zones would allow only a specific type of activity in their area and it is wise to set up a business in the zone where it is closely related to your activity.
If your business is concentrated on import and export it would be better if the business is set up near the port or an airport. However, choosing the business activity will be the major step in setting up your company in the UAE.
3. Select a Name for your Business in UAE
The next step would be to choose the name of the company for your business activity. In UAE there are certain restrictions in regards to the name of the company. You will not be able to use any religious names that are referred to Allah, Him or anything related to the religion.
You will also be restricted from using the names of various political groups such as the FBI or Mafia and if you choose to register the business under a person’s name then he or she should be registered as a partner for the business.
4. Paperwork for your Business in UAE
You will have to finish the paperwork after selecting the activity and the name of your business. You will have to fill an application with the activity and the name you have chosen for your company. You will also have to submit a copy of the passports of shareholders to the government authorities.
It is to be noted that certain Free zones will require additional papers and documents such as a business plan or a NOC (Non-objection certificate) which is a letter from the current sponsor that they don’t have any issues to set up another business in UAE.
If you seek an expert help then it wouldn’t be so complicated as they would take care of the major challenges and advise you on the paperwork and help you in completing it.
5. Obtain a License for your Business in UAE
The easiest and the most important step is receiving your license. After all the steps you will receive a license from the government after checking all the applications and the documents submitted.
You will also have to apply and receive a trade license which is also called as the business license. There are different types of business licenses in the UAE such as Professional License, Industrial License, Tourism License and Commercial License.
These licenses are important for UAE Mainland companies but for Free zone company it would defer according to the business activity and the jurisdiction.
The next important step is to open a bank account in UAE. The country has a lot of banks both local and international ones. Some of the local bank accounts in the country are Emirates NBD, Abu Dhabi Commercial Bank and many more. The major global names are Citi Bank, HSBC and Barclays.
You can choose any bank and approach them or the business set up partner you have approached will try arranging a meeting with the bank of your choice and this may help you understand the policies of the bank and then make a decision.
7. Submit an Application for your Visa in UAE
This is the final step of setting up your business in the UAE. You will have to submit the application for processing your visa, according to the economic zone you select it will let you process the visa for your dependents and employees as well.
The Visa processing will consist of 5 simple stages such as Entry Permit, Status Adjustment, Medical Test, Emirates ID registration and Visa Stamping.
FAQ
Which is the best business in UAE?
E-Commerce Solutions, Travel and Tourism, Real Estate Agency, and Health Sector are some of the best business you should consider in UAE.
Is UAE good for business?
Low tax rates, low import duties, free trade agreements, a competitive economy, strategic location, state of the art infrastructure, are some of the benefits that make United Arab Emirates (UAE) one of the best places in the world for business.
Which business is best in Dubai?
Restaurant, Construction, Health and wellbeing, Transport, Freight and cargo, Real estate, and Cleaning services are some of the best business you can start in Dubai.
Conclusion
The UAE Free zone is more common in between the foreign entrepreneurs than the Mainland and offshore economic zone. The company formation in UAE is easier and they have a speedy process with strong incentives which makes it one of the favourite location for the foreign entrepreneurs.
CEAT is an Indian based Tyre manufacturing company. The company is owned by the RPG group. The CEAT company was founded in Italy in the year 1924. The company has its headquarters in Mumbai, India. CEAT is considered to be the leading tyre manufacturer in the country with a global presence.
CEAT manufactures tyres for trucks, busses, passenger cars, two wheelers, earth movers, light commercial vehicles, tractors, auto rickshaws and trailers. Let’s look at the reason behind the growth of the company’s profit even though the driving and riding of vehicles in the country has reduced.
On 4 May 2021, CEAT Ltd which is a company under RPG group had announced that the company has achieved a net profit of INR 132.34 crore during the Q3 which was ended on 31 December 2020. The net profit has been reduced to around 27.35 % when compared to the previous quarter of the same fiscal year.
The company had achieved a net profit of INR 182.8 crore in the Q2 of this fiscal year. CEAT Ltd has seen an increase in its revenue from operations for the Q3 of this fiscal year of INR 2,221 crore when compared to the Q2 of the fiscal year which was INR 1,978 crore.
When compared to a year-on-year basis the profit of CEAT tyres has seen an increase by INR 152.07 % compared to the previous year’s quarter’s INR 52.5 crore. The revenue from operations has also seen an increase on the year-on-year basis of around 26.08 %. The revenue from operations in the previous year was INR 1,761.77 crore.
Kumar Subbiah who is the CFO of CEAT Limited conveyed that the Tyre manufacturing industry is facing an increased demand with a robust demand in the replacement market. He added that the growth of the company in the last quarter of this fiscal year will largely be because of the demand by the replacement market.
He added that the company despite having a not so good quarter has grown the most in past nine months when compared to the same period during the last year. Compared to last year, the quarter 2 of this fiscal year has seen a growth of around 14 % and around 27 % in quarter 3 compared to the last year’s quarter 3 growth.
Kumar Subbiah said that for the Q4 the company is expected the demand to increase in most of the categories. He added that in the OEM sector the demand for some categories has come down after the festival season.
The company wants its growth to be driven largely by the replacement market which should be followed by the OEM. He said that around 15 % of the company’s revenue comes from exports, around 60 % through the replacement market and around 30 – 35 % from the OEM sector.
The company said that going forward it would be looking to focus on the passenger sector which will be completely on the passenger car and two-wheeler tyres.
He said that the company’s investment in Chennai and Nagpur factories is completely concentrated and directed towards the passenger segment.
Focus Markets of CEAT
The company said that it would focus on the North American and the European market in the coming years. The CFO added that the company’s presence in the European market has been increasing and the company is working towards increasing its presence in North America.
He added that there are a lot of queries from different countries that are looking to reduce Chinese manufacturers and enquiring whether India could start producing it locally and supply the required tyres to them. He added that, India is in a great position to take the advantage of the situation.
FAQ
Where are CEAT Tyres made?
Ceat tyres currently has 4 manufacturing facilities at Bhandup Nashik Nagpur and Halol and is setting up a new facility near Chennai.
When did RPG acquire Ceat?
RPG group acquired CEAT Tyres of India in 1981.
Who is Radha Goenka?
Radha Goenka is the Director at RPG Foundation.
Conclusion
CEAT had planned to invest around INR 800-900 crore this fiscal year but due to the global pandemic and the slowdown of the economy they had to cut it down to INR 550 – 600 crore. The company is planning to spend more in the next fiscal year as there is some traction and the sales are expected to increase this year.
So you have launched your startup, it’s a dream come true and you are definitely excited about it. You may have found some customers as well, but the most difficult part is to have enough customers so that you can sustain your business in market and drive profit as well in future. Invest wisely in your sales team, as they will play a major role in this trajectory. There is no direct formula like invest X amount of money and you will get Y number of customers, if there was, it would be much easier and less challenging. Alas, this is not the case. There is a lot of competition in the market today and there are thousands of ways to market your business but you will need a unique one if you want to be ahead of everyone.
According to a report, More than 1,200 startups came up in 2018. In this competitive world, where all companies are competing for being at the top in their industry against their rivals are enlarging their users or customers by doing best marketing strategies, So it will be very difficult for any startup to stand out among this competition. We know, that going for the startup is not a cup of tea and it is important to utilize monetary resource effectively at the right place. People believe that spending more monetary resources on marketing can help them gain an ample amount of users or customers. But, that’s not true! It all relies on the creativity that you lay in your marketing approaches. Every company follows a similar type of marketing strategy but if you want to stand out you need some unique approaches that can able to boost up your growth in terms of users or clients. Rand Fishkin, CEO of SEOmoz and a renowned leader of the digital world, says marketing after creating your product wastes energy, time and money. Marketing firs ensures a loyal and active audience so that when you do debut your product you will be able to get feedback right away.
In 2018, it is safe to assume that your target group is bombed with messages, notifications, spams and click ads all the time. The trick to arrest their attention for more than 10 seconds and make a room in their memory to be recalled at the right time is a combined effort of your authentic intentions and creative methods.
Wasting time along with your another promoting guide? Why? You already recognize the fundamentals. And you’ve in all probability detected the recommendation 1,000,000 times; produce a mission statement, notice your audience, produce awe-inspiring content and promote. whereas there’s undoubtedly additional to that than that, you get the gist. What your startup extremely desires area unit some innovative promoting ideas which will set you except for competitors and build customers come back to you. which will sound easier aforesaid than done, however you’ll be off and running when you re-examine these five uncommon promoting ideas for startups. Here are some uncommon ways startups can conquer the mountain and be on their way to growing like never before.
Reach out to a specific community
Community – Startup Marketing
If you want to build a user base fast, you need to have a clear understanding of what your ideal customer looks like. You need to have a fundamental understanding of your product and the community you’re targeting. Youth is the biggest user of just everything. Companies dig into the most creative ways possible to sell their products and make it a trend. You can then create a piece of content creatively and specifically for this community and can find huge and quick success. The basic idea lies in how well your product connects with the community at the target. Relevancy is the key here.
Use your product for the social cause
If you’re looking for something highly creative that will skyrocket your brand to success, consider using the product itself for a social cause. People these days love to see how a person is towards everyone else, there was a time when business was purely an act of selfishness. Its 21st century and people need to have trust in your brand and that can be built easily by doing something good. People take pride if they’re told about the product or service they use to contribute to human or wildlife funds. It does make them feel good about the product they use and the brand they’re associated within an indirect way.
Create a video that simplifies your product or service
Create Videos – Startup Marketing
Creating a video that explains your product in the most simplified way is one of the fastest ways of growing your fan base. Making a creative humorous, video that gets into the head of the viewer. The video shouldn’t be a regular advertising one then it’ll be pointless to call it a self-explanatory video. However, this can be a modified form of advertising and publishing your product.
Trust always works!
This is definitely the oldest and purest form of promoting and advertising used by businesses since the world began. While it may bring slower results than radio or television, it still works very well and solidifies customer for life. Because people are becoming increasingly suspicious of paid advertising, this old method becomes the most reliable way to market down product. I still think this remains one of the most trusted methods in the world today. When a customer is happy and satisfied with a product or service, there’s a natural human tendency that they are likely to share this experience with people in their circle of trust and influence – family, friends, colleagues, neighbours and sometimes, strangers.
How to attract customers?? The satisfied customer is one of the most effective marketing and advertising tools a small business can ever have. Satisfied customers become foot soldiers, evangelists and advocates for your business. It is amazing how many of your satisfied customers will go to great lengths to promote, convince, protect and defend your business outside. This is so effective and powerful that many successful businesses rely solely on this method to advertise and market their products and services. One of the biggest business empires like the TATA group. is the best example here. So, how exactly can your small business grow an army of passionate customers, who will advertise your product free of cost? The first and most important step is to sell a product or service that really works and provides great value to anybody who uses them. If a product or service delivers on its promise and does more than what it says, it’s a winner! Most people buy products or services to solve a problem or satisfy a need. Nothing will make a customer happier and more satisfied than getting a product that makes a very challenging problem go away. They’ll scream your name from the Everest top. Most times, it doesn’t really matter how large or deep-pocketed your competition is you can grow a successful business with great customer service. People like to buy products and services from businesses that treat them with respect. People love to be given attention and treated well and will always return to enjoy that beautiful experience again. Don’t forget, customers spend their hard-earned money on your products. Don’t you think they deserve a big “Thank you’ with a wide smile on your face? People hardly forget a great customer experience and will happily tell other people about it.
Give your customers a reason to advertise and market your business but sometimes this doesn’t come automatically, you have to encourage, motivate or incentivize your customers to do it for you, so that brings me to my last but not the least effective way to market your startup.
The more people they refer to you, the more free products, services and discounts they will enjoy. Referral codes and links are used a lot these days to attract customers. We all come across these kinds of codes and links and we do refer it to our WhatsApp contacts and others. It’s a very rapid way of growing business these days but this one is completely based on the quality of your product and service. One more method which is very popular is
Creating contests and lucky draws
The reward should be large enough to trigger their interest and make them take action. It’s a win-win method that always works. Everybody loves to win. It’s not just always about the prize you win, it’s the thrill of getting lucky or beating other people. Call it ‘ego’ or whatever you like, but it always works. Let’s also say you start an interesting contest, to spread it you can use various social media platforms like Facebook, Twitter, Instagram etc. Even though many of them will not win the grand prize, they will still be interested in finding out more about your products and services. But make sure you can comfortably afford the prize you plan to give out. Draw out a reasonable budget and stick to it. It makes no sense if the money you make from selling your products during the contest cannot cover the cost of running it.
Be as much as creative as you can with your Business Card
A business card represents your firm and is one of the most effective ways to reflect your business. Most of the startups mainly focus on the flyers and other advertising material; instead, investment time, cost, and builds a unique card. Mostly, we can see very popular templates business cards, which are less attractive and will not give an impression on first site, instead choose the best as you do not know when someone will share your card to a prospective client.
Give group specific discounts
Generally, what we see is a business offering huge discount, but did we thought that these discounts benefits all or only some group. Therefore, throw a sale focused more on different groups instead of a regular one. This will help your client feel privileged and boost your sales. Advertise the incentives and let them know you have plans for all of them not just for a few. Focus on quality instead of just the quantity.
Bring people to your platform
Advertise, but do it in a way that one is forced to try your business once. For example, advertise in newspapers, but add a line, try your luck with spin wheel, you may get discount up to 100%. One will never deny to try it out and this is the way that customer grows. If you are a startup that provides services, give your client to try their luck, you may offer to provide a next service at a discounted price according to the offer they get. Something is always better than nothing, this quote may be old but is one of the effective ways today also.
Host a contest and give away free stickers and t-shirts
Everybody loves that. Host a contest and distribute t-shirts and stickers, this will also cover up the word of mouth marketing, never underestimate the power of this marketing. This is a free referral program that will build trust among the users and bring more customers together to your platform. Once they are on your platform, bribe them with cash, and give them free cash in their accounts for new customers. They can’t deny a platform built on trust and offering them discounts.
Send handwritten notes to your customers
Talking with your customers directly is very effective and can bring you more customers on board. Everybody likes to talk about him or herself and when you send a hand-written note to them with their order, they will feel privileged and will be willing to use your service for next time also. They will also praise your business for being special to them.
Show up unexpectedly!
Find out where your audience is and show up when they are not expecting. The show up could be of the product itself, a merchandise branding the startup, or a business card. ‘Accidentally’ leaving behind a pen with your FinTech company details at the banks, putting up Bumper stickers around the city, commissioning a graffiti to grab the eyeballs are just some creative ways to reach out. Find the ways suitable to your startup by asking people in your industry what grabbed their attention recently and work around the themes. Look deeply to understand where you customer is investing the time. Don’t feel shy about this and get your name out there in as many ways as possible. Literally, be everywhere!
Collaborations, Collaborations, Collaborations!
Collaboration – Startup Marketing
From Nike x Kanye West Yeezy to Uber x Spotify, collaborations are the new age formula to expand and impact. Identify the ways you can partner to create exciting campaigns or offers, run small samples to see which is getting active results, align it with the company’s vision and shoot! Nothing gets people more excited to see two forces coming together to their rescue.
Don’t underestimate the power of Social Media
Social Media – Startup Marketing
Although you must have a digital presence through your own website, Facebook page, Instagram page, Twitter handle, but so do all your competitors. Once again, identify where your customers spend time online and make a way to show up there. Partnering with a well-known expert with an influential following on Facebook, collaborating with an e-commerce to automatically add your product’s mini pack on every purchase are just some ways you can gain traffic on your page. Digital world is a mad jungle with unimaginable potential, so put your creative hat on and tap the popularity of already established ‘influencers’ and brands to draw your own success and build trust with the new audience!
Show that you care
An individual is more likely to trust a new service provider or product if it is suggested by a friend, relative or co-worker. Find a way to these conversations that your buyers can have with potential new buyers and mention you in appreciation. Referral programs are a huge hit for the obvious benefits but think beyond the gain. A brief follow up call to your customer to inquire their satisfaction with the service, a thank you text with a reassurance that you are available to them in the future, a birthday/anniversary email with a small incentive on the next immediate purchase can take your brand goodwill a long way.
Associate yourself with a good social or environmental cause
The new age customers are very sensitive to their impact and showing that you care about your impact can leave a great impression on them and build a caring, trusting relationship between the two. Be aware of any big events that happen such as a natural disaster and ensure the customer that each business you get will also convert into an act of help. This can make others see you in a great light, and bring more people to associate with your business! Once your business grows, you will experience greater freedom to spend big on marketing campaigns but don’t lose sight of the unconventional ways of impacting people to stand apart in the crowd.
Trade shows For the marketing of your startup
You need to attend the trade shows and conference which will help you to get connected with the people and interact with them and talk about your product. you can able to build large community with them. There are many companies which follow this strategy such as Google itself is an example of this strategy. Every year Google organize programs for the developers and not only that they also invite the young developers around the globe.
Relate your product with some social work
This is the best way to promote your startup at first when you include your product in the some of the engaging social work. One of the examples of this is Paytm when demonetization was implemented in India the one application that was used the most for the digital transfer of the currency was the Paytm and it gives the huge boost to the Paytm company in terms of the users. Apart from this during the critical time, they also give cashback offers.
Yes, instead of paying to the other sources for getting new users for your product you can directly pay to the new user directly when they sign up in your site you can give them the reward of $10 or 100 rs. The best example of this is Paytm and Paypal during the demonetization also Paytm was giving money for signing up and also if you invite your friend and relatives through your referral code they will also get the reward and you will also get a reward. Even Paypal also use this approach to get an ample amount of users in their earlier days and this strategy really worked for them.
Hosting contest
Hosting a contest on your site or website can get you users as while participating you can ask them to sign up for your website first and then participate in this contest. This brings a lot of audiences example for Hypster application which uses this strategy in which people can participate in the contest by signing up and making videos and according to this you can easily able collect flames and this flames you can easily convert in the money and thus this application have increased the number of user in short time period. All in all, there are many techniques which you can use for the marketing online and offline both approaches are available but to stand out from your rivals you should use the approaches which is used rarely. Marketing strategy should be creative and out of the box, thinking should be used so that your startup can boost as well as stand out and can able to set an example for the other marketing strategy makers and rivals and also to your users or clients.
Build a weird Bedfellow
You’ve in all probability detected that after upon a time M&M’s were offered a major role in E.T. The provide was turned down, that the film went with Reese’s items instead. whereas that hiccup didn’t take away M&M’s from grocery shelves, it did facilitate build Reese’s items a particularly standard candy. The idea here is that it’s not about to hurt your startup by teaming up with associate surprising partner or place to market it. It may be one thing as straightforward as showing off your product in a very video – suppose Snoop Dogg carrying Tommy Hilfiger within the 90s’ – to delivering brewage to fans at the OppiKoppi competition in Republic of South Africa via drones. In either case, you’ll be sound into a special audience.
Be all over
This doesn’t mean simply blogging or being active on social media – that you must be doing anyways. It virtually suggests that to be all over. you would like to be that complete that folks notice once they’re walking down the streets. Even if they don’t recognize what your startup will, they’ll acknowledge your name. Some examples would be commission a mural on building and covering the streets with chalk, paint or displays. you’ll conjointly make-up bumper stickers and t-shirts and provides them to workers or as freebies at events. they’ll not be the foremost uncommon, however an ingenious shirt not solely lets individuals have the prospect to diverge, it’ll build others wish to leap on board – suppose Zaarly shirts floating round the Bay space. In short, don’t be invisible. Get your name out there the maximum amount as potential.
Be a Hero and Save The Day
At some purpose you’ve scan that a business ought to be donating cash or sponsoring a charity. It simply makes your startup look sensible. And whereas that’s all well and sensible, you’ll continuously take that to subsequent level by being a hero to your community. For example, there was a brewage gate campaign during which individuals may get their train ride with empty brewage cans following Carnival. However, the cans had to be from Ambev‘s Antarctica brewage World Health Organization saw the simplest way to spark a utilization program. One more cool example from Brazil was the Rescue Drive campaign. killer Chevrolet drove around searching for normal driver and so offered them a free take a look at drive so they may build it to figure, home or where they needed to travel. Over in Asian nation, billboards were used as shelters for the homeless within the “Other Side” project.
Show Some SkinWell, not virtually
Unless that’s the type of attention you’re searching for. we have a tendency to meant metaphorically. this suggests giving your startup a temperament. think about dollar Shave Club. The startup launched a beta version in Apr 2011, however it wasn’t till March 2012 once everybody noticed the razor-blade subscription service. A risible ad that includes co-founder and CEO archangel Durbin took off leading to 12,000 orders within the 1st two days and also the company’s web site blinking inside the primary hour. The ad was funny, however conjointly introduced individuals to the corporate and also the man World Health Organization contains a love for shaving at an inexpensive value.
While paying attention to and interesting your customers area unit important techniques in every and each of your promoting campaigns, you actually wish to boost the bar and build them desire a region of the team. That’s what the Karl Lagerfeld Store in capital of The Netherlands achieved in 2013. The store equipped dressing rooms with iPads and a wall-mounted touchscreen and camera. the concept was to own customers to share their new appearance with social media and email contacts. there have been conjointly Instagram-style filters that would be accustomed produce a lookbook. It absolutely was fun and interesting and an excellent thanks to promoting the complete. And it achieved that by creating the shoppers desire they were a region of one thing larger.
Conclusion
In this digital era, there is a huge competition in every industry. Thus you can’t rely on just traditional marketing and advertising, rather you should think out of the box. It’s not about spending too much money for marketing, it’s about to identify your target audience and run optimum marketing campaigns. Hope above startup marketing ideas will help you to craft your marketing strategies. Share your thoughts on the comment section.
FAQs
What are some of the best marketing practices for startups?
This is the 21st century. You cannot expect a good profit unless customers think about you. Although there is nothing like negative marketing, you still have to make people think about you. It can be anything. They just have to think about your brand. And all this comes under the term “brand positioning”.
Brand positioning refers to the reason for people buying your product. Or how your brand is different from your competitors. 89% of B2B marketers say brand awareness and positioning is the most important goal, followed by sales and lead generation. To describe brand positioning, let’s look at some examples. Patanjali is known for organic products, even though they are literally in every product line. Mercedez is known for its class and luxury whereas BMW has its power and performance. If you think brand positioning is important for your brand, then these are some ideas to position your brand in the market.
Helps in making creating decisions more effective.
Targets a specific market.
Creates a well market differentiation.
Things To Remember For Brand Positioning
Uniqueness
To position your brand in the market, make sure you have something unique to deliver. If you are doing the same thing as everyone is doing, then you will be just “another” brand in the market. You don’t want to be that “another” brand in the market, you have to be that “wow” brand in the market. Even though you are not selling something new, add something which will make it unique. If there is nothing unique in your product, then you can make people think it is unique, like just give it a unique look. Remember that people should need your “unique” feature. Because no one needed a juicer which runs while connected to wi-fi. Millions were spent on marketing and launching this juicer. But the investors faced a very big loss. So, don’t solve the problems which are not there.
Brand strategy
Brand Strategy
The brand strategy or the tagline you use for your product should be relevant to your product. If the customer has your tagline in his/her head but doesn’t remember your brand, then how can they even buy your product.
Make It Clear
Your slogan or tagline should always be clear and easy to understand. If the customers had to think too much to understand your brand, then there is a strong possibility that they are going for another brand, even for that brand which has no slogan at all. Just make it easy to understand, thinking that all your customers are stupid.
Differentiable
Point out the difference between your brand and the competitor’s one. Your customer should be able to make his/her decision quickly. They should not need to do a deep research to decide the brand they want. Focus on your selected category, and of course, your strength.
It Should Be Recognizable
You have to make your brand recognizable. Create an amazing logo. Add awesome features to your product which scream for attention. People should quickly remind of your slogan and your advertisement as soon as they see your logo anywhere. Make people think of your brand again and again.
Create A Buzz
Create an advertisement which can be controversial. Not in a negative way, but something like funny or which can touch people’s emotions. Just make sure people talk about it. Giant companies do not advertise to show their product, but all they want is to create a buzz among people. It is strongly possible that Patanjali’s messenger app, “Kimbho” was launched just to create a buzz. When people talk about a brand, they get attracted to that brand. For instance, imagine you go to the market to buy a chocolate, in the days when “kimbho” messenger launched.
You might ask for Patanjali’s chocolate. Why? Because you want to talk about that buzz. You will subconsciously try to show off your general knowledge and your humor. Be Updated Keep analyzing the new trends on social media. Create something which is very popular among millennials. It is more or less similar to creating buzz. As of these days, you can focus on creating memes. Try to make it funny, because if you can make them smile, you can make them buy.
Being funny does not mean you make fun of your customers. If anything makes your brand creepy, customers may talk about you a lot, but will never come to you. The following image says it all.
Re-frame The Market
Use the brand to re-frame the market to what it actually looks like , by being creative and solving a problem which the product is not fulfilling. This will give the product more visibility than the other products, making it more on the shelves or more on the talks.
5 Ways to Get Your Customers to Actively Promote Your Brand
Entrepreneurs are fanatical with their creation. They time and again set out new goals for themselves and then make sure that those are achieved. In the start-up arena, there are some doctrine principles which are responsible for the overall success. Entrepreneurs today understand the value of their brand. Entrepreneurs are perusing something called as branding strategy, which till now was completely neglected. Companies today are spending with deep pockets on marketing, advertising, public relations and more. The best way to promote your brand is to let your customers do it for you – and the only way to do that is by addressing the pain points of the customer by giving them a practical solution to their pain points. Once this is done by anyone, the customer will go on his rooftop and do nothing but will shout your name.
Differentiate your brand
Anyone and everyone want his or her brand to be different and stand out. Brands say that they want to be different and distinctive in the eyes of their customers, but in reality, the brands just want to align themselves with their competition. To differentiate from others, the enterprise can depict themselves as an enterprise away from its competition or rival. Over a period of time, if the same continues combined with disciplined efforts, the brand can be marked different. Standing out from the competition is not making them enemies. But, with persistence, the consumer can make out the difference noticeable.
Focus on loyalty
A customer or a consumer telling about you to someone is in the Last leg of his experience. It starts with brand familiarity coupled with loyalty. The sky-scraping cost of bringing in fresh business compared to retaining existing clients is unquestionable. Increasing the customer retention can extensively heighten the profit bar. Customer loyalty schemes are an effective way to improve your customer retention levels. If you want to build a loyal clientele – the trick is simple, keep the customer satisfied. Apart from that, the customer needs to be rewarded. A loyalty scheme can be used to incentivise and delight the customers.
Create a community
Build Community – Brand Positioning
Having a customer community built offers the customers a hub to interact and support one another. Customer communities are platforms for customers to unreservedly exchange opinion, reactions and pose questions about products and services. A highly busy customer community helps to improve customer retention and encourage acts of advocating. These customers community acts as a news source about products and company and a place to gather tips from the users. Customer communities also breed ideas to improve products or services. Giving the customers a say on a product or service gives them a deeper connection with the company. These days the community can be online. This increases preservation rate and overall profitability.
Incorporate Feedbacks
Getting and generating feedback from clients is the most important thing for a business builder. It helps the company at all levels of brand building and management. It helps in knowing the existing position of the business in the market and also helps in the future prospects of the business. Feedback helps clients and entrepreneurs to communicate with each other. Most of the feedback is to draw the data about the sales, performance, drawbacks about products and services. Owing to thriving technology and internet, the importance of feedback has been highly soared. Internet has become the principal instrument for promoting business and branding. It plays a pivotal role in reaching to the mass and endorsing products beyond the international boundaries.
Make it easy to be an evangelist
Consumers have a hell lot of things to do. The last thing they would do is to be an evangelist. Even if they become, they won’t go out of their way to evangelize or promote your brand. So it has to be an easy task for them to do it. The easiest way to promote evangelist is to give as many as opportunities. The same can be done with contests, discussion opportunities on the social media channels of the brand. The participant has to be rewarded in some or the other way.
These tips are not the only way to make the customers work for you. But these tips will equip your startup by starting the community of brand evangelists. Also, it is important to understand that every customer you make cannot be your brand evangelist. However, with efforts in the right direction, a community of brand evangelists is certainly to make a huge difference and would be certainly effective on the profitability.
The soul of every business is their customers. Your customers can make you or break you. Even though the inflow and outflow of the customers are the basis of business but having loyal customers is also essential. Loyal customers are the reason a business or a brand becomes what it is. So, here are a few small but highly impactful ways in which you can make customers loyal to your brand.
Making personal relations
Treating your customers like your family is the way to get them to like you and your services. Getting to know your customer will give you an idea about their likes and dislikes which will eventually help you in serving them better. It has been found in a recent study that the customer remembers the first and the last part of your conversation. So it is very important for you to strike a conversation on a happy cheerful note and also end it in a happy goodbye. Send them greetings on their special days. Or if you find out anything they like, mail it to them. This will only take a little effort on your side but will have a big impact on your customer.
Know your customer
If you have a blog or a site or any other social media account of your business, make a note of what kind of customers does your business or brand attract. Get to know about their likes and dislikes and then post content on your sites according to that. If you are a beauty brand, posting easy tutorials and looks with your products can be good. Similarly, if you are a clothing brand, styling tips etc. can be done. Also keep posting about the various offers so that your customers are not left uninformed. Also, communicate with the customer in a way they prefer. If your customer wants to communicate through email do it. If they prefer social media attend to their queries there. Keep all your options open.
Invest in your customer
Invest in your Customer
If you have a regular customer that visits you or uses your services, try knowing theirs likes and dislikes. Research about them and then do things that they least expect like send them small gifts as a thank you for their loyalty. Or give them a free upgrade if you have a customer upgrade program. You could even give them small goodies or small things like hand written notes with every purchase. This will not only make your customer fond of you but this will also help you gain more customers. If you do not want to invest in giving them anything, you can always provide your customers with special services like the first preview to your latest collection, or bend some of your policies for them if they have a genuine issue.
Take customer advice and feedback seriously
Feedback – Brand Positioning
It is very important to take customer feedback on your services. But it is even more important to implement those feedback in improving your services. Also, having a FAQs section on your websites or blogs where customers can resolve their queries and give you feedback is very helpful. If you have employees who take care of the customers, ask them to be on proper behavior and solve customer issues without creating any problems.
Maintain quality
The most important part of keeping your customers loyal is maintaining the quality of your product. Many companies sell good quality products at the start of their business and then degradation the quality to earn profits. This only helps in making short term profits. Because your customer keeps leaving you and in the end, you have no customer to earn profits. So it is very important to maintain the quality of your product throughout so that people want to buy it again and again.
Conclusion
These were some roads to brand positioning. You can use some of them, or all of them, it depends on your business. Digital marketing is the ultimate tool for brand positioning. Although, these were some ideas from our side, you can also comment on your one below. And also, keep exploring new ways to position your brand. Brand positioning helps you to reach the potential customer. And also remember, being at number 2 is not very bad. But, keep trying to come in 1st position. If there is too much competition in the category of your product, then create your own subcategory and position your brand.
With these little changes in your public dealing methods, you will have a strong loyal customer base in no time. If you know any hack to make customers loyal to your brand please comment down below!
FAQs
What is customer loyalty?
Customer loyalty is the act of choosing one company’s products and services consistently over their competitors. When a customer is loyal to one company, they aren’t easily swayed by price or availability.
Why is customer loyalty important?
Loyalty can stem from many things, but in general, a loyal customer will associate favourable experiences with a brand, therefore, increasing their likelihood to make repeat purchases with that business. Loyal customers spend 67% more on products and services than new customers.
How to gain customer loyalty?
Ways to Increase Customer Loyalty
Make customer service a priority
Reward your customers
Ask for advice and listen to it
Offer conveniences
Don’t just ask for money
How to maintain customer loyalty?
Provide outstanding customer service
Reward customers with special offers and discounts
On 23 April 2021, the Reserve Bank of India had barred American Express and Diners Club International Limited from onboarding new customers to their platform. The ban is expected to come into effect from May 1. Let’s look at why both the payment system operators American Express and Diners Club International Limited were banned by RBI from adding new customers.
The Reserve Bank of India had initiated a ban for the payment system operators from onboarding new customers into their network as they were not able to follow the norms with the data storage put forth by the RBI.
The Reserve Bank of India in a statement said that both the entities have been found to be non-compliant in respect to the directions on storage of data of the payment systems. The RBI has added that the action towards both the entities was taken based on the powers which are under Section 17 of the PSS Act.
American Express Banking Corp and Diners Club International Ltd are payment system operators in the country who has the authorization to operate card networks in India under PSS Act (Payment and Settlement Systems Act), 2007.
American Express Banking Corp is a multinational company that focuses on financial services. It is located in New York, the United States. The company was founded in the year 1850. American Express is considered to be the 23rd most valuable brand in the world according to the Forbes 2017 list.
Some of the products offered by the company are Charge Cards, Traveler’s cheque, Credit Cards, corporate banking, etc. In India according to a report by Financial Express, American Express has a market share of around 2.53 % of the total market with around 15.6 lakh credit cards outstanding.
Diners Club International Ltd
Diners Club International is also known as DCI is a charge card company. It is a finance-based company that has its headquarters in the United States. The company was founded in the year 1950. Diner Club International was the first payment card company in the world.
The company is owned by Discover Financial Services. Some of the products of Diner Club International are charge cards and credit cards. In India, Diners Club International distributes its cards exclusively through HDFC Bank and the exact number of active users is unknown.
Why did RBI restricted American Express, Diners Club from adding more customers
In the year 2018, in a notification, the Reserve Bank of India had noticed that all the payment system providers did not stored the data of the payments in the country. The notification said that there was a significant growth witnessed by India in the payment ecosystem and such systems depend completely on technology.
The notification added that such an ecosystem has a necessity for a continuous measure of safety and security that were best in class.
The Reserve Bank of India had then directed all the system providers to ensure that the entire data which are related to payment systems should be stored in a system that is only in India.
The data which are stored should include the full end-to-end transaction details, information, carried, collected, and processed as part of the message or payment instruction. This was mentioned by RBI in its notification.
If there is any foreign transaction, those data can be stored in the foreign country if it is required. The compliances with the new rules were supposed to be followed by the system providers within 6 months and they had to report the same to the Reserve Bank of India.
In addition to this, they were also required to submit a report which should be approved by the board a System Audit Report (SAR). It should be conducted by the CERT-In empanelled auditor within the time duration that is specified.
The ban of American Express Banking Corp and Diners Club International Ltd by RBI is because they have failed to follow the statement given by RBI in regards to storing the data which was issued two years ago.
In India, American Express offers a full range of travel, financial and network service products.
What type of credit card is Diners Club?
Diners Club is an International Credit Card.
Who owns RBI?
RBI has been fully owned by the Government of India since its nationalisation in 1949.
Conclusion
The ban on both the entities would not affect the existing customers. The Reserve Bank of India had clarified in a statement that the ban will have no impact on the customers of both the companies.
