Kamath wrote on X (formerly Twitter), “When we started Xerod, we didn’t have the money to advertise, not that he would work.” “So the only way we grow was by Mo Mouth and the customer references. Possible is the only way that would talk about products and services.”
When started in 2010, Xerod introduced his customer referral program. Over the years, the incentives under the program have undergone many changes due to the development of SEBI rules. Kamath pointed to 2018-19 as a phase when the Referrals declined significantly after the Securities and Exchange Board India F India rejected the cash -based referral incentives.
Also Read: Youngsters want to be Nikhil or Nithin Kamath but don’t want to use Xerod: Ankur Variku
“We started our referral program when we started in 2010, and then, the incentives have changed numerous times due to the rules. An excellent example of drowning in 2018/19, when regulatory change does not allow us to pay the referral incentive,” Kamath said.
Living events
Despite these obstacles, referrals have continued to play a significant role in Zero Consumer acquisition. According to Kamath, even after the company stopped giving referral incentives together, the contribution of referrals to the open has remained stable.
“Today, we do not encourage any, and despite that, referrals have been more or less flat,” he noted. He further added that indirect referrals, which are not captured in visible data, represent a large portion of new customers, underline the depth of joy and loyalty through the platform.
Kamath summarized that customer love is a real superpower for Zerosh, a fintech player who has scaled India’s largest stock brokerage without spending heavy spending on traditional advertising or customer acquisition.
“Besides, this image does not occupy a significant portion of indirect referrals, and customer love is a real superpower for us,” he concluded.
Kamath also recently published how the discount broker is struggling with Demet Market Share Loss, yet the management under management (AUM) is increasing. The company is addressing the issue by making materials, though it remains inaccurate about its impact so far.
Read more: Xerod’s demat market share is shrinking, says Founder Nithin Kamath. How is it confronted?
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