60 posts tagged with "business"

In a country as diverse and populous as India, ensuring financial inclusion for all citizens has been a significant challenge. However, with the introduction of the Pradhan Mantri Jan-Dhan Yojana (PMJDY) nine years ago, India embarked on a transformative journey towards providing accessible financial services to every corner of the nation. This landmark initiative has not only paved the way for economic empowerment but also spurred development and growth across various sectors.

Importance of Pradhan Mantri Jan-Dhan Yojana​

Launched on August 28, 2014, by Prime Minister Narendra Modi, the Pradhan Mantri Jan-Dhan Yojana aimed to address the issue of financial untouchability and bridge the gap between the rich and the marginalized. The scheme targeted the unbanked and underbanked sections of society, providing them with access to banking facilities, insurance, credit, and pension services.

This initiative holds paramount importance in India's socio-economic landscape. With almost 50 crore bank accounts opened under the scheme totalling deposits of over Rs 2 lakh crores (average balance of ~ Rs 4,000), PMJDY has significantly reduced the number of households without access to formal financial services. The program has also been instrumental in promoting direct benefit transfers, thereby eliminating intermediaries and minimizing leakages.

Rupay: Revolutionizing Debit Card Issuance​

A total of ~34 crore debit cards have issued under the scheme. Issuing debit cards to such a massive number of beneficiaries was a logistical challenge that the government addressed effectively through the utilization of the Rupay payment system. Rupay, India's indigenous card payment network, played a pivotal role in this endeavor by offering a cost-effective solution for issuing debit cards. This not only streamlined the process but also promoted financial inclusion in rural and remote areas.

The adoption of Rupay has been instrumental in reducing the dependency on international card networks, resulting in cost savings for the government. The system's security features and compatibility with various digital payment platforms have also encouraged the uptake of cashless transactions among Jan-Dhan account holders.

Impact and Future Prospects​

The Pradhan Mantri Jan-Dhan Yojana has brought about a sea change in the financial landscape of India. It has empowered women, farmers, and the economically weaker sections by enabling them to access formal credit and savings mechanisms. Additionally, it has facilitated the dissemination of government subsidies, pensions, and relief funds directly to beneficiaries, thus reducing corruption and leakages.

Growth in PMJDY​

• PMJDY stands at 50 crore accounts with balance of Rs 2 lakh crore => average balance of Rs 4000.
• As of 31 Jan 2015, it stood at 12.5 crore accounts with balance of Rs 10k crore => average balance of Rs 800. So from 2015 till 2023, the balance has grown 5 folds.
• The top 4 participants in PMJDY - i.e. State Bank of India, Punjab National Bank, Bank of Baroda, Bank of India - account for 70% of the accounts and deposits.
• Monthly average balance is crucial in banking for profitability. Major private banks stand out in PMJDY accounts with average balance of Rs 42k and Rs 30k respectively. It is indeed clear that they have found a way to make PMJDY as profitable as possible.

On another note, I have my banking relationship with HDFC and Axis only - wonder how profitable am I as a client to them? As they say - If you owe the bank $100 that's your problem. If you owe the bank $100 million, that's the bank's problem.

Looking ahead, the program's success story is a testament to the Indian government's commitment to inclusive growth. As technology continues to play a pivotal role, leveraging digital solutions for banking services is expected to drive the next phase of this initiative. The continued integration of Rupay into the digital ecosystem will further expand financial services to the remotest corners of the country.

In the new customer-centric world, businesses strive to build trust and loyalty by delivering exceptional products and services. However, some companies resort to passing on their responsibilities to vendors or service providers, leading to a breach of trust for the customer. The detrimental effects of shifting the blame are severe on customer satisfaction and brand reputation. I can vouch for it drawing upon my recent personal experiences with Urban Ladder and Birkenstock.

Right or wrong, the customer is always right.​

The Breach of Trust: A Customer's Perspective​

When a customer chooses a particular brand, they expect a seamless experience from start to finish. However, businesses that shift their responsibilities onto vendors or service providers create a disjointed and frustrating experience for customers. I recently encountered two such incidents that left me disappointed and questioning the integrity of these brands.

Urban Ladder's Sheesham Bed Saga​

During my quest for a queen-size sheesham bed, I placed an order with Urban Ladder, a renowned furniture brand. However, the delivery process was marred with delays, miscommunication, and lack of coordination between Urban Ladder and their logistics partner. When I reached out to Urban Ladder's customer service for assistance, they shifted the blame to the logistics company, absolving themselves of any responsibility. This experience left me feeling frustrated and betrayed as a customer.

Birkenstock's E-Gift Card Mishap​

In another instance, I decided to gift my friend an e-gift card from Birkenstock, a popular footwear brand. Unfortunately, the e-gift card was not delivered on time, causing inconvenience and disappointment to both my friend and me. When I contacted Birkenstock's customer support, they also deflected responsibility by stating that the issue lay with their third-party service provider. This experience not only tarnished Birkenstock's reputation but also affected my perception of their brand.

The Negative Impact on Brand Reputation​

Passing on responsibility to service providers not only breaks the trust of customers but also dilutes the brand's reputation. Customers associate their experiences with the brand itself, regardless of the involvement of vendors or service providers. When businesses fail to take ownership and resolve issues promptly, customers may perceive the brand as untrustworthy, unreliable, and indifferent to their concerns. This erosion of reputation can result in a loss of customers and damage to long-term brand loyalty.

Thank your customer for complaining and mean it. Most will never bother to complain. They’ll just walk away.​

Learnings for Customer-Facing Businesses​

1. Take Ownership of the Customer Experience: As a business, it is vital to take full responsibility for the end-to-end customer journey. Customers expect transparency, accountability, and timely resolutions when issues arise. Avoid shifting blame to vendors or service providers, and instead proactively address customer concerns.
2. Ensure Effective Vendor Management: While working with vendors or service providers, establish clear expectations, communication channels, and performance metrics. Regularly evaluate their performance to maintain quality standards and ensure a consistent customer experience.
3. Communicate Openly and Transparently: Effective communication is key to maintaining customer trust. Be honest and transparent with customers about any challenges or issues, and provide regular updates on their resolution. By demonstrating transparency, businesses can minimize the impact of potential disruptions.

Customer service shouldn’t just be a department, it should be the entire company.​

Passing on responsibility to vendors or service providers will have severe repercussions for businesses. It erodes customer trust, damages brand reputation, and leads to dissatisfaction among consumers. The personal experiences I had with Urban Ladder and Birkenstock highlight the importance of taking ownership and prioritizing the customer experience. By learning from these examples and implementing effective vendor management, businesses can build stronger customer relationships and foster a positive brand image.

Life has a way of reminding us of its unpredictable nature, and sometimes, it delivers heartbreaking news that leaves us shaken. Recently, I received the devastating news of the demise of a dear batchmate from IIM Bangalore. I want to pay homage to the departed soul, express condolences to their family and also reflect on the fragility of life. Moments like these serve as a poignant reminder to cherish our blessings, express gratitude, and make a positive impact on the world while we can.

Honoring a Life Lost​

Losing a batchmate is not just a personal loss but also a loss to the entire community. Virendra was a bright, talented, and vibrant individual who touched the lives of many during their time at IIM Bangalore. Their enthusiasm, intellect, and warm presence will be deeply missed. Let me take a moment to remember and honor his life, the contributions he made, and the positive impact he left us behind with.

Embracing Life's Fragility​

The passing of some you know serves as a stark reminder of life's fragility. It is a humbling realization that none of us are exempt from the transient nature of our existence. It is a reminder that every day is a gift, and we must make the most of the time we have. This news is a wake-up call, urging us to evaluate our priorities, appreciate the present moment, and live with intention.

Being Present with Loved Ones​

The demise also compels me to reflect on the importance of nurturing relationships and being present with our loved ones. Life's uncertainties make it imperative to cherish the moments we share with family, friends, and those who bring meaning to our lives. Take the time to connect, listen, and create memories together. Let us strive to deepen our bonds, for these connections are what truly enrich our lives.

The loss of a beloved batchmate from IIM Bangalore serves as a solemn reminder of life's fragility and the importance of gratitude, cherishing loved ones, and making a positive impact. My heart goes out to the family and friends of the departed soul, and I offer my deepest condolences and strength during these difficult times.

May we all strive to live with gratitude, love, and purpose, creating a meaningful existence and leaving behind a world that is better.​

Today, I was trying to close a business deal with one of the biggest coaching institutes in India for design-related courses. I was prepared for a challenging negotiation process as the founder is sharp and tough, who is known for his Gujarati shrewdness and skilled negotiation tactics. While it may seem daunting, understanding the founder's negotiation style and employing effective strategies will hopefully lead to a successful agreement. Additionally, I note down the importance of maintaining professionalism and providing exceptional service in the face of tough negotiations.

The Founder: A Sharp Gujarati and a Tough Negotiator​

The founder of this prominent coaching institute is widely recognized for his sharp business acumen and tough negotiation skills. Being a Gujarati, known for their astute entrepreneurial spirit, he approaches negotiations with a strategic mindset and a strong focus on maximizing his interests. He skillfully layers his negotiation tactics, continuously threatening to jeopardize the deal if his conditions are not met. It is crucial to be well-prepared and equipped with effective negotiation strategies to navigate through his tough negotiating style.

Strategies for Successful Negotiation​

Focus on Mutual Benefits​

I tried to emphasize how the proposed partnership will benefit both parties. Demonstrating a win-win situation is crucial for a successful negotiation in service based deals.

Prepare for Counterarguments​

I tried to anticipate the founder's negotiation tactics and objections. I tried to give well-researched responses and was prepared to justify my terms and conditions.

Be Firm, Yet Polite​

Standing my ground on important aspects of the negotiation was crucial, but I always tried to maintain a polite and respectful tone. I hope this help preserve the relationship and foster a more collaborative environment.

Negotiating a business deal with one of the biggest coaching institutes in India can be a daunting task, particularly when faced with a sharp Gujarati founder known for his tough negotiation style. Remember, negotiation is an art, and practicing effective strategies will help us secure a favorable outcome while preserving a healthy business relationship. If it worked, only time will tell.

During shopping for shifting houses, I had an unfortunate encounter with Wooden Street, specifically with the store located in Golf Course Road, Gurgaon. With their upfront payment policy and promised delivery within 2 to 6 weeks, I was hopping to furnish my home with their stylish bed side tables and crisper chairs. However, my experience quickly turned sour when I faced consistent ghosting from their sales team and encountered frustrating customer support and archaic refund policies.

Ghosting by the Sales Team​

Upon placing my order, I expected some level of communication from Wooden Street to keep me informed about the progress of my purchase. Unfortunately, this was not the case. The sales team seemed to disappear completely after they had made the sale. Phone calls and emails went unanswered, and the promises of timely updates were broken. This lack of communication and transparency left me feeling frustrated and neglected as a customer. It is essential for any business to maintain consistent and open communication with their customers to build trust and ensure customer satisfaction.

Poor Customer Support​

When I finally managed to get in touch with Wooden Street's customer support team, I encountered further disappointment. The representatives appeared untrained and ill-equipped to handle customer queries effectively. They seemed unaware of the status of my order and failed to provide any concrete information. It was disheartening to realize that even after spending money, I was left to navigate through a maze of inefficient customer support. A prompt and knowledgeable customer support team is crucial in resolving customer issues and providing a positive shopping experience.

Refund Policies​

In addition to the lack of communication and poor customer support, Wooden Street's refund policies left much to be desired. Despite the delayed delivery of my items, the company was reluctant to provide a refund or any form of compensation for the inconvenience caused. This rigid approach to refunds is not customer-centric and fails to acknowledge the impact of their poor service on the customers. A more flexible and empathetic refund policy would go a long way in resolving customer grievances and maintaining a positive brand image.

My shopping experience at Wooden Street Golf Course Road Gurgaon was a disappointing one, marred by ghosting from the sales team, poor customer support, and unsatisfactory refund policies. As a customer, I believe that it is essential for businesses to prioritize effective communication, prompt support, and flexible refund policies. These factors play a significant role in building customer trust and loyalty.

I would really not like to buy anything from Wooden Street again due to this poor experience.​

B2B business with SMBs​

In the complex world of B2B business in India, there are several challenges that companies face, one of them being ghosting and difficulties in collections. Ghosting refers to the sudden disappearance or unresponsiveness of customers, leaving businesses in a state of uncertainty. This phenomenon can significantly impact cash flow and hinder business growth. Moreover, the collection process from small and medium-sized businesses (SMBs) comes with its own set of challenges, making it crucial for companies to navigate these issues effectively.

Ghosting in B2B​

Ghosting can be a frustrating and all-too-common occurrence in the B2B landscape. It often happens when a customer abruptly ceases communication, leaving businesses unsure of the status of a deal or pending payment. This behavior can be attributed to various reasons, such as financial troubles, internal issues, or even communication breakdowns. Regardless of the cause, ghosting can have a detrimental effect on a company's financial health and overall operations.

Collections from SMBs​

Dealing with SMB collections can be particularly challenging due to a variety of factors.

Lack of Financial Resources​

Many SMBs operate on tight budgets and may struggle to pay their invoices promptly. Limited financial resources and cash flow issues can result in delayed or missed payments.

Inefficient Payment Processes​

SMBs often lack well-established accounting systems and standardized payment procedures. This can lead to delays, errors, and confusion in the collection process, making it harder for businesses to track and receive payments on time.

Communication Barriers​

Effective communication is crucial for successful collections, but language barriers and miscommunication can hinder the process when dealing with SMBs. Cultural differences and varying business practices also play a role, further complicating the collection efforts.

Today, I realized that we got ghosted by one of the long term customers of Exambazaar (Director of Trishul Defence Academy). He was communicating with us but kept on lying about the financial troubles, health issues in family and finally went cold. Obviously it doesn't feel great to waste time, energy and resources.

Hence, I have kept a principle of saying no very quickly to all sales and business development teams. With that clarity, any further efforts from them are purely their choice and investment of time & resources.

Moving to a new city is an adventure that often entails furnishing a new living space. Seeking convenience and flexibility, I opted for the Furlenco Unlmtd plan upon shifting to Gurgaon in 2021. Today, I am sharing my experience with Furlenco's customer support, their unfair refund practices, and the persistent technological challenges that plagued their app and website. As an early adopter of the Furlenco Unlmtd plan, my hopes were dashed as I encountered numerous obstacles along the way.

The Promise of Furlenco Unlmtd​

When I first subscribed to the Furlenco Unlmtd plan, I was enticed by its unlimited furniture rental option, providing the flexibility to change and upgrade my furniture as needed. The convenience of hassle-free renting, combined with a curated selection of furniture, seemed like the perfect solution for my furnishing needs.

Technological Mishaps​

Furlenco's technological infrastructure proved to be unreliable. Their app and website frequently encountered glitches and errors, making it a cumbersome experience to manage my subscription, schedule deliveries, or even browse through their furniture catalog. The persistent issues with their technology undermined the convenience they promised and left me feeling helpless in my attempts to resolve any issues.

Customer support woes​

Perhaps the most exasperating aspect of my experience was dealing with Furlenco's customer support. Upon reaching out for assistance, I encountered long wait times, unresponsive representatives, and a lack of empathy towards my concerns. The inability of their customer support team to effectively address my grievances only added to my growing frustration.

My experience with Furlenco's Unlmtd plan, customer support, and technological mishaps has been a challenging one. From encountering unfair refund practices upon cancellation to grappling with persistent glitches in their app and website, my hopes for a seamless and convenient furniture rental experience were shattered. As an early adopter, I expected better treatment and a smoother journey. Through this ordeal, I urge others to approach such services with caution, conducting thorough research and weighing all aspects before making a commitment. Transparency, fairness, and robust technological infrastructure are vital components of a reliable and customer-centric service, and sadly, Furlenco fell short in these areas.

Frankfinn Institute of Air Hostess Training​

Today, I met the business team of Frankfinn Institute of Air Hostess Training and enjoyed the conversation with them. Frankfinn is the World's No. 1 Air Hostess Training Institute and offers courses in the field of Aviation, Hospitality, Travel and Customer Service. You might have seen Alia Bhatt in one of Frankfinn ads.

At its core, Frankfinn offers a comprehensive range of certificates courses to students aspiring for a career in the Aviation, Hospitality, Travel and Customer Service sectors. They offer placement assistance but do not guarantee placements.

Scale of business​

Some of the stats shared were mind boggling and are worth double-clicking. I am enumerating them below:

• Frankfinn has an in-house student counselling team of 1000 callers
• Online to offline flow of student leads is: unqualified lead -> 3 connects within 24 hours -> 5 connects within 48 hours -> Appointment for Center Visit
• They have appetite to consume 6 Lakh leads a month. Let's pause for a minute and think about the magnitude of that.
• They get around 4500-6000 admissions a month i.e. a conversation rate of 0.75%.
• The courses vary between Rs 1,20,000 to Rs 1,65,000
• Estimated annual revenue is ~ Rs 800 crore

Monopoly player​

Frankfinn does not face a lot of competition in the market. It is one of the few players who operate in this niche. Being founded in 1990s, Frankfinn bring 30 years of experience in the domain with network connections. But such profit pools are tough to defend. Especially with the disruption in Edtech, I will try to deepdive about it in another post.

Residential retail broker model​

The residential brokers (individual or brokerage firms) act as intermediaries between tenants and owners in the residential real estate market. These brokers facilitate the entire home renting process, starting from property search and evaluation to negotiations, documentation, and closure of the deal. They provide personalized assistance, guidance, and expertise to buyers, helping them make informed decisions based on their preferences, budget, and market trends.

Nobroker doesn't work​

Nobroker came up with a novel concept of connecting the tenants and owners with the use of technology. Unfortunately, it is failing in delivering the said value. The primary reason is that it operates on a very thin value proposition of no-brokerage.

Consider a rental scenario in Gurgaon as below:

Apartment: 2 BHK Rent per month: Rs 50,000 Brokerage per party: Rs 25,000

The challenge is the number of visits involved and mutual agreement. Following observations hold true:

• The owners are usually affluent, occupied in work and less interested in showing the apartment to the tenants. Owners prefer outsourcing.
• Owners talk to each other on Whatsapp Groups and mutually decide the minimal rental and resale value of the apartment. This sets a floor on apartment rental and resale value and is inefficient.
• The tenants also optimize for travel time, cost, lifestyle and shift date of tenancy. Tenants look at annualized cost.
• Brokers bring in convenience and primarily convince the tenant to accept the rental offer. They usually have no bargaining power with the owners.

Efficiencies in rental market​

As a tenant, it is at times a nightmare to find an apartment. The following tips might help:

1. Optimize for your needs and do not forget your needs in the process of reviewing flats.
2. Make your broker work: find a good broker who understands your need and works out a set of options for you.
3. Save time by clubbing the viewings in a day or half day. Act fast if something fits your needs.
4. Keep a price band of rent in mind instead of only a budget. Work on both sides, for eg if your society does not have a good club, go for a Cult Fit membership instead.
5. If you like a society, find a way to get access to the MyGate/Apna Complex app feed of the society. Many a times owners and brokers post them in the group.

Despite challenges posed by digital platforms, traditional brokers have adapted and remain relevant by leveraging technology and focusing on fleet on street. As the real estate market evolves, residential retail brokers continue to be a crucial link between buyers and sellers, empowering individuals and families in their quest for a dream home.

Audible usage stats​

I have been a member of Audible Premium Plus since March 2019 i.e. 1500+ days or a bit over 51 months. Except a few months, Jan-Feb 2021 and Oct-Dec 2021, I have continued the membership.

I have listened to a total of 29 audio books i.e. only 65% of the credits. I have listed them below monthwise.

Audible membership model​

Subscriptions are the only business model that is entirely based on the happiness of your customers. Think about it—when your customers are happy, then they’re using more of your service, and telling their friends, and you’re growing.

Most membership models are structure that the light-users subsidize the power-users. Be it your gym, club of the society or cult fit membership. Audible is no different and structures it via its policies.

Reading through the Audible India Service Conditions of Use, you will realize that:

• Credit Rollover Limit: Customers can roll over a maximum of 5 credits i.e. next month's credits = max (previous month's credits + 1 - credits used, 6)
• Any unused credits remaining on your account at the time of cancelation, or when your prepaid period ends, will be lost. We recommend using them first, as any audiobooks you purchase are yours to keep.

My Audible habits​

I have observed the following about my usage of Audible:

• Listening to a book is best done along with a long walk. I can walk for an hour and listen to a book and retain most of it.
• In Nov 2022, Apple introduced fee on in-app purchases. Post that, you cannot buy books from the Audible iPhone app. It is really painful and annoying.
• I only use the Audible App on my iPhone and have not tried it out on the TV, Windows (I use the Spotify Desktop app a lot).

Listening to a book is not only just as good as reading it. Sometimes, perhaps even often, it’s better.​