The Marketing mix of FreeCharge analyses the 7Ps of FreeCharge, which includes the Product, Price, Place, Promotion, People, Physical Evidence, and Process of FreeCharge. FreeCharge is a private company of Indian origin. It is an e-commerce portal and is associated with the Internet industry. The company was launched in August 2010 by its founders, Sandeep Tandon and Kunal Shah. In 2015, on April 8, FreeCharge was acquired by another web portal, and now it is a part of its parent company Snapdeal. Freecharge aims to create a larger footprint to deepen consumer engagement while scaling its value chain.
The company aims to make itself a comprehensive, open, and secure digital financial services platform where consumers can easily access the services. It caters to the mobile-first generation across tiers, based on the insight that this generation wants to do more meaningful things in life rather than mundane tasks like paying bills and recharging. FreeCharge has targeted internet users and people aged 18-34 as its target audience and potential customers. Some of its competitors are as follows-
- Type: Digital wallet and financial services company
- Industry: Financial technology
- Founded: May 12, 2010
- Founder: Kunal Shah
- Headquarters: Gurgaon, Haryana, India
- Area served: India
- Key people: Siddharth Mehta (CEO)
- Number of employees: 1,000+
Table of Contents
Freecharge Product Strategy
FreeCharge is an online portal that offers online services for recharging postpaid mobile applications, prepaid mobile phones, Data Cards, and DTH. Recently, it has provided online payment options for bills relating to Mahanagar Gas for residents of Mumbai. The company works on a unique business model that transforms the tedious but necessary task of recharging into a fulfilling, convenient, and advantageous experience for consumers. With each recharge, a user is compensated with several incentives in the value chain and coupons of the same value, making it easy to choose a complimentary recharge option.
For instance, on a recharge of Rs 200, a coupon of the same value for another outlet or website like Barista is offered at no cost, making it a free investment. Numerous brands, agencies, and retailers use this facility to disburse coupons to potential customers. FreeCharge provides the smoothest and fastest recharge option to its customers. Recently, a new product called Delights was launched by FreeCharge. It also acts on its fundamental principle of offering rewards, but it is provided for a convenient shopping spree in the e-commerce arena.
- Mobile Recharge and Bill Payments: Freecharge allows users to recharge prepaid mobile phones, pay postpaid mobile bills, and pay utility bills such as electricity, gas, water, and landline bills.
- DTH Recharge: Users could also recharge their Direct-to-Home (DTH) television subscriptions through Freecharge.
- Metro Card Recharge: Some Indian cities have metro rail systems, and Freecharge provides the option to recharge metro intelligent cards.
- Online and Offline Payments: Freecharge offered a digital wallet service that allowed users to store money and make online and offline payments at various merchants, including retail stores, restaurants, and more.
- UPI Payments: Freecharge likely supported UPI (Unified Payments Interface) transactions, allowing users to send and receive money directly from their bank accounts.
- Prepaid and Postpaid Data Card Recharge: Users could recharge data cards for internet services.
- Google Play Recharge: Freecharge allows users to purchase Google Play recharge codes or make in-app purchases for apps and games on the Google Play Store.
- Gift Cards and Vouchers: They may have offered gift cards and vouchers for various brands and online retailers.
- Cashback and Discounts: Freecharge often provides cashback offers and discounts on various transactions, making it an attractive option for users.
Freecharge Pricing Strategy
FreeCharge has been launched to become a mobile first-generation of the most recognized portals in the Indian and finance markets. It has decided to penetrate the ever-growing untapped market for recharge by offering virtually free usage. The company has been following penetration and economic trends and pricing policies to create more for its products.
Its services are nearly free, and recharge value is balanced with coupon payback options. FreeCharge earns revenues by commissioning telecom operators. It also makes several retailers interested in marketing their products by the consumers paying bills and disbursing money through coupons from the ready platform provided by FreeCharge. FreeCharge has a low margin in its business model, but its high volumes are the reason for its excellent revenue generation figures.
Here’s an analysis of Freecharge’s price strategy:
- Competitive Pricing: Freecharge understands the importance of offering competitive transaction fees and processing charges. The company attracts users seeking cost-effective digital payment solutions by ensuring its pricing remains aligned with or below industry standards.
- Cashback and Rewards: A hallmark of Freecharge’s pricing strategy is using cashback and rewards programs. By providing users with cashback offers, discounts, and incentives on various transactions, the company enhances the perceived value of its services.
- Tiered Membership Levels: Freecharge may employ tiered membership levels or loyalty programs where users who engage in more transactions or higher-value transactions are rewarded with premium benefits.
- Promotions and Partnerships: Collaborations with banks, retailers, and service providers enable Freecharge to offer exclusive discounts and promotions to its users. These strategic partnerships expand the reach of Freecharge’s services and provide customers with cost-saving opportunities, reinforcing the company’s value proposition.
- Transparent Fee Structure: Price transparency is a key element of Freecharge’s strategy. Users appreciate knowing the exact charges associated with their transactions, ensuring no hidden fees. This trust-building approach contributes to long-term customer relationships.
Freecharge Place Strategy
FreeCharge is an Indian company that has spread its business model and presence throughout the country. Its world headquarters are in Mumbai, Maharashtra. The recharge market in India is enormous, as nearly eighty million recharges happen daily for prepaid mobile connections. Comparatively, the online option is a tiny percentage of the market, but the business has grown steadily in recent years.
According to a recent survey, FreeCharge has nearly twelve million customers and 5 million downloads for mobile apps. It has one of the world’s fastest growth rates in the recharge sector. FreeCharge has partnered with commercial portals, agencies, and brands like MakeMyTrip, Flipkart, and Amazon. Users who transact through the just-launched FreeCharge app on these sites are offered access to FreeCharge Credits. The distribution network of FreeCharge includes online channels and users’ credit and debit cards for payment.
Here are five key points that outline its new campaign in place and marketing new campaign and strategy:
- Mobile App Presence: Freecharge primarily operated through its mobile app, ensuring its services were easily accessible to smartphone users. The app was available for download on Android and iOS platforms, making it convenient for customers to manage their finances and pay on the go.
- Online and Offline Acceptance: Freecharge aimed to expand its reach by partnering with a diverse online and offline merchant network. This strategy allowed users to make payments using Freecharge at various retail stores, restaurants, and service providers, in addition to online transactions.
- Bill Payment Centers: Freecharge may have established partnerships with bill payment centers and service providers, allowing users to pay their utility bills, mobile bills, and other expenses conveniently through these physical locations.
- Integration with E-commerce Platforms: The platform may have integrated with popular e-commerce websites and apps, enabling users to use Freecharge as a payment option when making online purchases. This integration facilitated seamless and secure transactions for online shoppers.
- Strategic Alliances: Freecharge may have entered into strategic alliances with banks, financial institutions, and other businesses to expand its reach and accessibility. Such partnerships could involve offering co-branded services, special promotions, or user incentives.
Freecharge Promotion Strategy
FreeCharge has rewarding and excellent products to its name, and its objective is to make this company a household brand; to achieve this, it has undertaken several promotional schemes and advertisements. It has set up its business model on innovative ideas for products or marketing campaigns. Television is an important advertising medium in India, with a large audience and colossal viewership. FreeCharge has used this electronic medium to launch its campaigns at the national level. Coupons have been a noteworthy differentiator for FreeCharge as they aim to provide exclusive options that cannot be found elsewhere.
The company’s business objective also relies, to a great extent, on word-of-mouth publicity campaigns, as its customers are its brand ambassadors. To make internet users their loyal customers, FreeCharge has also used social sites and videos like YouTube as its marketing channel. It wants videos to make FreeCharge synonymous with recharge in every Indian household.
- Cashback Offers: Regular cashback incentives on transactions to attract and retain users.
- Strategic Partnerships: Collaborations with merchants and banks to offer exclusive discounts and promotions.
- User Referral Program: Encouraging users to refer others through incentives, expanding their customer base.
Some Recent Video ads and Print ads of Freecharge are:
Freecharge People Strategy
The “People” component of the Service Marketing Mix is crucial for service-based companies like Freecharge, as it encompasses all the human actors who play a part in service delivery and influence the customer’s and consumers’ perceptions and experiences. This target audience includes the company’s employees, customers, and other stakeholders. Here are some key points regarding the “People” aspect of the Freecharge business model:
- Customer Support Team: Freecharge’s customer support team ensures customer satisfaction by promptly and efficiently resolving queries and issues. This includes support provided via email, phone, and social media platforms.
- Technical Staff: Given that Freecharge is a fintech company, its technical staff, including software developers, IT professionals, and security experts, are crucial for the smooth operation of its platform. They ensure the app and website are user-friendly, secure, and up-to-date.
- Marketing and Sales Team: The people involved in marketing and sales help promote Freecharge’s services, create brand awareness, and engage with customers through various channels. This team is crucial for driving user acquisition and retention.
- Training and Development: Freecharge invests in training and development programs for its employees to keep them updated with the latest technological advancements and customer service practices. This ensures the team is well-equipped to meet customer needs and enhance the service experience.
- Management and Leadership: The leadership team at Freecharge, including its founders, top executives, and managers, set the strategic direction for the company. Their decisions impact the company’s service offerings, customer experience, and workplace culture.
- User Community: The people who use Freecharge form a significant part of its ecosystem. Their feedback, loyalty, and advocacy are essential for the service’s improvement and growth. Engaging with the user community through forums, feedback surveys, and social media also helps understand their needs and preferences.
- Partners and Affiliates: Freecharge collaborates with various partners, including merchants, banks, and financial institutions. These relationships are vital to expanding its service offerings and adding customer value.
- Corporate Social Responsibility (CSR) Initiatives: The involvement of Freecharge in CSR activities and community service projects also reflects on its brand image and the values it stands for. This can influence customer perceptions and loyalty.
Freecharge Process Strategy
The “Process” element of the Service Marketing Mix refers to the procedures, mechanisms, and flow of activities by which services are consumed. For Freecharge, a leading digital payments platform, the process and marketing strategy is crucial for delivering a seamless, efficient, and user-friendly consumer engagement experience. Here’s how the process aspect of Freecharge’s digital and marketing strategy can be broken down:
- User Registration and Onboarding: Users sign up by providing necessary details such as their name, phone number, and email address; Verification of the user’s details through OTP (One Time Password) or email verification to ensure security and authenticity.
- User Interface (UI) and User Experience (UX) Design: A simple, intuitive, and easy-to-navigate app and website interface that allows users to perform transactions effortlessly; Continuous updates and improvements based on user feedback and behavior analysis.
- Transaction Process: Selection of service (mobile recharge, bill payments, ticket booking, etc.); Entering the requisite details for the transaction (e.g., mobile number, amount, consumer number for bills); Selection of payment method (credit/debit card, net banking, UPI, Freecharge wallet); Transaction confirmation and completion with real-time notification to the user about the transaction status.
- Security Measures: Implement robust security protocols such as SSL encryption, two-factor authentication, and regular security audits to protect user data and prevent fraud; Transparent privacy policies to inform users how their information is used and protected.
- Customer Support and Grievance Redressal: Providing multiple channels for customer support, including email, phone, and social media; A structured process for handling complaints and queries, with a ticketing system to track the resolution process.
- Feedback and Continuous Improvement: Collecting user feedback through surveys, app reviews, and social media; Analyzing feedback and usage data to identify areas for improvement and implement changes in the service process.
- Refunds and Cancellations: Clear policies and processes for handling refunds and cancellations, ensuring transparency and trust; Automated systems for quick processing of valid refund requests.
- Partnerships and Integrations: Collaborating with various service providers, merchants, and financial institutions to broaden the range of services offered; Seamless integration with partner systems ensures smooth user transactions.
- Promotions and Loyalty Programs: Implementing promotional offers and discounts within the app to encourage usage and retention; Loyalty programs that reward users for frequent transactions or referrals.
- Compliance and Regulatory Adherence: Ensuring all processes comply with the regulatory requirements of the financial industry; Regular updates to processes in response to changes in laws and regulations.
Freecharge Physical Evidence Strategy
The “Physical Evidence” component in the Service Marketing Mix refers to the tangible and intangible elements that help customers evaluate the service before purchasing it and the environment in which it is delivered. For digital services like Freecharge, physical evidence of digital marketing might not involve access to traditional physical spaces, but it encompasses the elements that make the brand tangible to users. Here are key points regarding the physical evidence of the digital and marketing strategy for Freecharge:
- Website and Mobile Application: The design, functionality, and user experience of the Freecharge website and mobile app serve as primary physical evidence. This includes the logo, color scheme, layout, and platform responsiveness.
- Brand Logo and Color Scheme: The Freecharge logo and its distinctive color scheme are visual elements that customers recognize and associate with the brand, contributing to its identity and recall value.
- User Interface (UI) and User Experience (UX): A clean, intuitive, and user-friendly interface that facilitates easy navigation and transaction processes. The UI/UX design embodies the service quality and brand ethos of Freecharge.
- Transaction Receipts and Confirmations: Email confirmations, SMS alerts, and in-app notifications serve as proof of transactions, providing customers with assurance and records of their activities.
- Security Certifications and Badges: Display security certifications (like PCI DSS) and badges on the website and app to reassure users about the safety and security of their data and transactions.
- Customer Testimonials and Reviews: Testimonials and reviews featured on the website, app stores, and social media platforms act as social proof, enhancing credibility and trust among potential and existing users.
- Marketing Materials: Advertisements, brochures, and promotional videos that feature the Freecharge app and its services contribute to the physical evidence by showcasing the brand’s offerings and value propositions.
- Customer Service and Support Channels: The visibility and accessibility of customer support options (like help desks, chat support, and customer care numbers) offer tangible evidence of the brand’s commitment to customer satisfaction.
- Social Media Presence: Freecharge’s activity on social media platforms (Facebook, Twitter, Instagram, etc.), including posts, interactions, and campaigns, helps build a tangible brand presence and community engagement.
- Partnership and Merchant Logos: The display of logos of partner companies, merchants, and service providers on the Freecharge platform adds to the credibility and ecosystem that Freecharge operates within.
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