‘Focus on customers’: Zerodha's Nithin Kamath shares his secret to build a profitable business
Contrary to popular practices of aggressive selling and handing out freebies, Kamath argues that business-to-consumer (B2C) companies can reach profitability by concentrating on what is genuinely in the customer's best interest.
The roadmap to success in the highly competitive startup world may not be as complex as it seems. Nithin Kamath, founder and CEO of Zerodha, India's leading retail brokerage firm, recently offered a compelling perspective. In a LinkedIn post, Kamath highlighted a straightforward, yet often overlooked, business mantra - put the customer first.
“I've always wondered if we were just lucky or if a successful B2C business can be built without freebies, overselling, and spamming,” Kamath wrote on LinkedIn.
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Contrary to popular practices of aggressive selling and handing out freebies, Kamath suggests that business-to-consumer (B2C) companies can reach profitability by concentrating on what is genuinely in the customer's best interest.
Elaborating on his viewpoint Kamath shared the example of Ditto Insurance, which is emerging as a leading player in the Indian insurance space. The firm's founders, Shrehith Karkera, Bhanu Harish Gurram, Pawan Kumar Rai, and Lokesh Gurram, have established a successful venture that echoes Zerodha's philosophy of prioritising the customer.
Customer centric service behind the success of Ditto Insurance
This customer-oriented strategy appears to be a scarce commodity in the insurance sector, yet Ditto Insurance's success story suggests it could be a winning formula. The firm's robust profitability, an outpouring of customer appreciation, and a strong referral base have cemented its status among India's premier insurance platforms.
“They've always done what's right for users from day 1, which is rare in the insurance space. As a result, they are profitable, have an insane amount of love from customers, tons of referrals, and are already among the top insurance platforms in India,” added Kamath.
Customer testimonials further illuminate Ditto Insurance's innovative approach, as Kamath pointed out, sharing a review that read, "The first insurance platform that asked me not to buy a new policy or switch from the existing one because continuing my existing policy is the best option."
This testimony reflects the integrity and transparency Ditto Insurance brings to a sector often marked by aggressive marketing tactics.
Kamath's Rainmatter initiative, a funder and nurturer of Indian fintech startups, also invests in Ditto Insurance. These companies validate the belief that prioritising the customer is a viable and fruitful business strategy.
While Zerodha and Ditto Insurance may represent only a snapshot of the vast landscape of business models, their successes underscore the potency of a customer-first philosophy. Kamath's insights serve as a potent reminder for business leaders: to achieve lasting profitability and success, the focus should always be on the king - the customer.