Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Companies / Start-ups/  As revenues take a hit, startups shift focus to earning goodwill
BackBack

As revenues take a hit, startups shift focus to earning goodwill

Goodwill can go a long way in attracting new customers, says Anandakuttan Unnithan, professor of marketing and dean (academic affairs and development), IIM-Kozhikode

Photo: iStockPremium
Photo: iStock

For the past five weeks of the lockdown, Ritika Changia hasn’t been able to go for her morning run, so she’s been working out with Cure.fit’s free online classes. The 30-year-old recently learnt that she may soon have to pay for the classes, but she’s more than happy to subscribe.

“I really enjoyed the free classes, so if they charge nominally after the lockdown, I’m fine with it," she says.

Revenues may have crashed and businesses may be fretting about the path ahead, but some startups are viewing the crisis as a way to help people with free services and earn goodwill in the hope of turning them into customers once things return to normal.

Cure.Fit, the startup launched in 2016 by Mukesh Bansal after he exited Myntra, and former Flipkart chief business officer Ankit Nagori, started offering free online classes around the time the lockdown was announced, encouraging people to stay active while at home.

A month ago, its daily user base was 5,000-6,000 people. Today, the online classes draw 400,000 users a day.

The brand has plans to introduce subscriptions once the lockdown is lifted, but it will be cheaper than gym memberships. “We hope some of the new users will become our future members. This initiative is building a lot of brand equity and loyalty," says Naresh Krishnaswamy, growth and business head, Cure.Fit.

Goodwill can go a long way in attracting new customers, says Anandakuttan Unnithan, professor of marketing and dean (academic affairs and development), IIM-Kozhikode. “If customers know a brand helped them in times of crisis, they will reciprocate by being loyal later on."

Flock, the workplace collaboration platform, is offering its Pro service, which costs 199 a month and includes unlimited group calls and messages and tech support, for free till August-end. Its chief technology officer Devashish Sharma says: “Goodwill-building is, of course, there, but we are also making people’s lives easier."

He has another reason to believe their customers will stay with them in future. “Virtual communication will get stronger with time, so people will need our services." He says Flock has seen a more than threefold increase in usage in India, the US and UK in the past few weeks.

Ethnic wear startup AKS Clothing co-founder Nidhi Yadav says a brand’s social consciousness can influence purchasing decisions. Her team is currently making protective coveralls for medical staff. They make 3,000 PPEs a day and have distributed 11,000 for free so far. This also builds loyalty among employees, who feel their brand is socially conscious.


Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 28 Apr 2020, 11:26 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App

Chat with MintGenie