Redseer Consulting has earlier conducted a survey on the impact of customer loyalty and satisfaction on the brand value of a company. The Consulting firm published the study revealing that the e-commerce giant Amazon and ride-hailing app Uber have outshone their rivals, such as Flipkart and Ola, in terms of customer satisfaction and loyalty. But it’s the health and fitness startup CultFit, which has managed to garner attention.
RedSeer Consulting’s white paper studied net promoter scores (NPS) across the industry with a higher rate denoting a rise in customer loyalty and satisfaction.
Home-grown health and fitness brands CureFit and EatFit of CultFit Healthcare Pvt. Ltd. have NPS much higher than that of Amazon and Uber. CureFit is nearly at 60%, which is more than Amazon and Uber combined; EatFit has 40%.
Apart from traditional gyms, Indian market hardly had another form of work out. With this realization of a fitness opportunity in the Indian market, CultFitness was born in May 2016. It focuses on training programmes that use no fancy fitness machines or equipment. It doesn’t recommend the intake of supplements, powders or pills either. However, they ask members to eat clean and follow a decent lifestyle that does not involve a strict diet.
CureFit is followed by the travel booking app Makemytrip with an NPS of more than 50%, Magicbricks of around 45% and EatFit of more than 40%.Not standing far behind are UrbanClap and MobiKwik. While the hyperlocal service has an NPS of more than 40% MobiKwik has nearly 35% NPS.
In the service sector, customer satisfaction and loyalty are based on meeting the minimum expectations of customers and providing add-on services. In a bid to acquire customers Indian startups had been spending over the years on the market share rather than sound business metrics and other crucial aspects such as customer retention that could keep them going in the long run. Retaining an old customer is six times less expensive than wooing a new customer.A blatant ignorance in this aspect has led to subsequent shutdowns of startups in recent time.