We will first examine the evolving behavioral changes of consumers and investors and the impact these changes will have on financial markets, particularly the stock markets in 2022.
Personalized Customer Expectations
Customers' expectations regarding ‘experience’ are not only rising but also becoming more personal. The companies no longer use the standardized experience benchmarks they employed earlier.
Rolling out a standard customer experience package across customers does not work today; they have to customize it to satisfy each customer - B2B or B2C - depending on varied parameters like demography, region, language, income, education, etc. The incumbent customers expect products, services, and after-sales support to satisfy their tastes and expectations.
Social commerce has emerged as a considerable force as it connects with customers in a more personalized way. Companies that understand this change can leverage multiple channels to satisfy customers, which can help reduce customer acquisition cost (CAC), increase sales conversion, churn, and repeat rate, and eventually achieve a higher Lifetime Value (LTV).
Financial Literacy of Investors
Retail investors, primarily millennials, who entered the market in the last two years, have had a good run. However, as per a RBI report, a survey conducted in 2019 revealed that 27.18% of the respondents had achieved minimum target score or minimum threshold score in each of the components of financial literacy prescribed by OECD International Network on Financial Education (OECD-INFE). This implies 62.82% of respondents lack financial literacy (which probably includes a large number of investors).
This leads to an inference that many investors did make money in the market last year because of the bull run or advice from social media influencers. But, it will be a different scenario in 2022, a year when they should be far more cautious, and must upgrade their investing skills by taking a course like Secrets of Winning the Stock Market by elearnmarkets for strengthening the fundamental analysis.
The ongoing year may not be as smooth as 2021 for the markets, and there is a significant probability that the new investors may lose money or withdraw from the market.
Startup Fundamentals
We saw many startups turning into unicorns last year, making India home to 85 unicorns with a total valuation of $287.89 billion as of January 28, 2022. There is no doubt that startups with good fundamentals, unit economics, and a strong moat will not find it challenging to get funding in 2022.
Central banks worldwide are tightening their monetary policy; however, investors will be ready to take risks in 2022 with scalable business models which have solid fundamentals. Moreover, the entry of new angel investors and venture funds, along with the fact that 62 startups were funded in 2021, reveals a promising outlook on fundraising.
In a nutshell, customer and investor behavior will substantially influence business growth, profitability, and investing in 2022. Let us now take a closer look at the strategies that investors, particularly retail investors, can leverage to make their investment less risky and more money-making.
We will first examine the evolving behavioral changes of consumers and investors and the impact these changes will have on financial markets, particularly the stock markets in 2022.
Personalized Customer Expectations
Customers' expectations regarding ‘experience’ are not only rising but also becoming more personal. The companies no longer use the standardized experience benchmarks they employed earlier.
Rolling out a standard customer experience package across customers does not work today; they have to customize it to satisfy each customer - B2B or B2C - depending on varied parameters like demography, region, language, income, education, etc. The incumbent customers expect products, services, and after-sales support to satisfy their tastes and expectations.
Social commerce has emerged as a considerable force as it connects with customers in a more personalized way. Companies that understand this change can leverage multiple channels to satisfy customers, which can help reduce customer acquisition cost (CAC), increase sales conversion, churn, and repeat rate, and eventually achieve a higher Lifetime Value (LTV).
Financial Literacy of Investors
Retail investors, primarily millennials, who entered the market in the last two years, have had a good run. However, as per a RBI report, a survey conducted in 2019 revealed that 27.18% of the respondents had achieved minimum target score or minimum threshold score in each of the components of financial literacy prescribed by OECD International Network on Financial Education (OECD-INFE). This implies 62.82% of respondents lack financial literacy (which probably includes a large number of investors).
This leads to an inference that many investors did make money in the market last year because of the bull run or advice from social media influencers. But, it will be a different scenario in 2022, a year when they should be far more cautious, and must upgrade their investing skills by taking a course like Secrets of Winning the Stock Market by elearnmarkets for strengthening the fundamental analysis.
The ongoing year may not be as smooth as 2021 for the markets, and there is a significant probability that the new investors may lose money or withdraw from the market.
Startup Fundamentals
We saw many startups turning into unicorns last year, making India home to 85 unicorns with a total valuation of $287.89 billion as of January 28, 2022. There is no doubt that startups with good fundamentals, unit economics, and a strong moat will not find it challenging to get funding in 2022.
Central banks worldwide are tightening their monetary policy; however, investors will be ready to take risks in 2022 with scalable business models which have solid fundamentals. Moreover, the entry of new angel investors and venture funds, along with the fact that 62 startups were funded in 2021, reveals a promising outlook on fundraising.
In a nutshell, customer and investor behavior will substantially influence business growth, profitability, and investing in 2022. Let us now take a closer look at the strategies that investors, particularly retail investors, can leverage to make their investment less risky and more money-making.