Off late, India has been going through a golden period when it comes to investing. 2021-30 is in fact being called the decade of the Indian equity market with the rising evaluations, some big IPOs, and impressive growth in startups. The Indian stock market has turned out to be one of the 5 largest stock markets in the world. It has offered around 19% average return between 1984 and 2022, one of the highest in the world. But did you know, that a large chunk of these unbelievable numbers is only managed by a handful? In fact, to put this in numbers, only0.86% of the Indian population actually invests in the stock market.
But that’s not some thing new, right? Everyone knows that less than 1% of the Indian population invests in the stock market, but the more important question is, whether people who do, are getting profitable?
In this blog, we’ll tell you why the world's second-largest middle-class population is afraid of investing its money in stock markets and how stock brokerage companies can turn this into an opportunity and penetrate deeper into the virgin stock market of India.
According to Angel One, 95% of Indian stock traders lose money. Only a fraction of the ones who invest in stocks is actually building wealth. Here are some of the reasons why most people are failing in their investing journey:
1 - Relying on Unmonitored tips: Friends, relatives, certain stockbrokers, and advisory services can all be sources of bad advice as only a small minority are successful enough themselves to merit investors' consideration. In fact, many people refer to themselves as traders simply because they buy and sell shares. But when questioned about how they analyze the stocks they buy or sell, they claim they read reports in newspapers and on websites, and occasionally look at online charts with their broker.
2 - Improper management of data: Capital markets are as typically generate large volumes of data— be it through trading, transactions, or operations. However, computing efficiencies and cost constraints limited the management of such data in the past. Companies often fail to capture these key moments and the data thus gets leaked and turns into unusable silos. Instead, Using this information, companies could determine and suggest meaningful insights to their customers.
3 - Hitting the panic button: Ace stock market investor Rakesh Jhunjuhunwala once said, “Hastily taken decisions always result in heavy losses. Take your own time before putting money in any stock.” Most investors/traders lose a lot of money simply because they panic in uncomfortable or unforeseen situations.
Building a data wall of trust and companionship
Companies like Zerodha and Groww became successful because they made investing easy, but the next wave of successful businesses will be those, who make investing meaningful and build personalized connections with their customers.
In a virgin market like India’s, where people are afraid of entering the stock markets, brands need to work things out for them and convert this fear of investing into FOMO on investing.
Below are 4 major action points that stockbrokerage brands should do for enhancing customer engagement and drive value for the entire ecosystem:
1. Build superior brand recall with hyper-personalization
73% of consumers engage with a brand that reaches out to them with personalized offerings. Creating a good pool of consumer data and capturing their interests will pay off with a good channel strategy here. All you need to do is club the right channel, with the right messaging and send them at the right time.
2. Use Conversational AI for a better tomorrow
Conversational AI has overturned customer engagement standards for many companies. Companies like Nissan motors, Exide Industries, and healthcare brands like Medanta have benefitted greatly from deploying a virtual assistant. Subject matter experts at ValueFirst suggest that building a virtual assistant that helps your customers, updates them with stock market know-how, and suggests what’s good for them, on a channel where they can reach it, anytime, anywhere, could help build incredible customer experiences.
3. Tap the powers of WhatsApp commerce
WhatsApp has a channel has been an engagement magnet for many Retail and D2C brands. And it can be a game changer for stock brokerage companies as well. With the addition of the product catalog features on WhatsApp, discovering, suggesting, and purchasing the stocks is a cakewalk and can be done in a blink of an eye. Plus, receiving timely updates from the brands and easing out their buying journey will result in more brand loyalty and customer engagement.
4. Invest in E-mail marketing
Emailis one of the most customer-oriented channels out there. 83% of customers prefer to receive important information over email. It also delivers a very high ROI (3600%), the highest among all channels. Brands like Angel One have used Email marketing to boost their lead generation. Read the case study here:
We hope this blog will help you build a more holistic customer engagement strategies. If you need more help: write an email to firstname.lastname@example.org and you’ll feel better.