Zerodha is an Indian financial service company that offers retail and institutional brokering of various financial products. This includes equities, derivatives, mutual funds, bonds, and commodities.
It operates an online trading platform for users to invest in financial markets and become one of the largest discount brokers in India.
Zerodha aims to solve the following problem of traditional financial services providers through their platform:
- Lack of Accessibility and Transparency
- Lack of Digitalization in Indian Financial Market
- High Brokerage Cost
- Complex Trading Platforms
- Lack of Trust
- Limited Investment Options
- Limited Financial Literacy
Zerodha’s vision is to democratize the financial markets by providing a low-cost and user-friendly platform for individuals. This is to invest and trade in various financial instruments, making it accessible to a wider audience
- To become a leading player in the Indian securities and commodities trading industry
- To continuously innovate and improve their trading solutions to meet the evolving needs of their customers.
- To promote financial literacy and help individuals make informed investment decisions.
Zerodha helps in providing following values in the clients through their design and marketing strategies and solutions:
- Affordability
- User-Friendly Platform
- Offers a wide Range of Products
- Technology-Driven
- Strong Customer Support
- Strong Community building
Zerodha is solving the problem by providing a low-cost, user-friendly, transparent and digital platform with a wide range of financial products and services and educational resources and tools. This is to make investing and trading more accessible and informed for a wider range of individuals. They also provide features such as:
- Online Stock Trading
- Mutual Funds
- Tax-Saving Investments
- Derivatives Trading
- Commodities Trading
- Currency Trading
- Direct Equity
- Bonds and NCDs
- Lower Trading Costs
- Increased Accessibility
- Improved Returns
- Real-Time Market Data and Analytics
A discount brokerage platform will have to align itself with a set of values regarding what they can support and what they cannot. We cracked a set of values Zerodha might have aligned themselves with, which includes:
- Low-Cost: Zerodha provides a discount brokerage platform that charges significantly lower fees and commissions than traditional full-service brokerages. This makes trading and investing more affordable for a wider range of individuals.
- Transparency: Zerodha aims to provide a transparent trading experience. This is by providing its customers with real-time market data and detailed trade and account statements
- User-Friendly and Digitalization: Zerodha’s online trading platform is user-friendly and easy to use. They also provide digital platforms like Kite and Coin. That makes the trading and investing process more convenient and efficient for their customers.
- Pressure Selling: Zerodha may avoid using high-pressure sales tactics to force customers into making a purchase.
- Exploitation of Vulnerable Individuals: Zerodha may avoid targeting vulnerable individuals. Such as the elderly or financially disadvantaged, and exploiting them for financial gain.
- Predatory Lending: A financial service company should avoid engaging in predatory lending practices. This includes charging exorbitant interest rates, imposing hidden fees, or targeting vulnerable individuals. This is because it can lead to financial harm for the customer and damage the company’s reputation.
The innovators were the first customers to sign up for the company’s online trading services. These individuals helped to spread awareness of Zerodha’s offerings and provide feedback to the company. It helps the company to continue to improve its services.
Name: Ramesh
Age: 45
Occupation: Small business owner
Location: Suburban
Background: Ramesh is a small business owner who runs a retail store. He is a first generation entrepreneur who has always been interested in the stock market. But he never had the time to invest in it. With the current market scenario, he sees an opportunity to invest some of his profits into the stock market. And he is looking for a platform to make his investments.
Challenges and Pain Points: Ramesh is new to the stock market and is looking for a platform that is user-friendly, easy to navigate, and offers educational resources to help him understand how to make wise investments. He is also looking for a platform that offers low fees and charges.
Goals and Motivations: Ramesh’s goal is to grow his savings by investing in the stock market. He is motivated by the desire to secure his financial future and provide for his family.
User Behaviors: Ramesh is currently researching different investment platforms and comparing their fees and features. He is looking for a platform that is easy to use and offers resources to help him learn about the stock market.
Device and Technology Usage: Ramesh owns a smartphone and a laptop, and uses them regularly to stay connected and access information about new technologies. He is comfortable using the internet to research and make decisions.
The early adopters were the first customers to sign up for the company’s online trading services. These individuals were instrumental in spreading awareness of the company’s offerings through word-of-mouth marketing and customer referrals. By targeting these early adopters and providing them with a positive experience, Zerodha was able to establish itself as a market leader and grow its customer base.
Name: Tyler
Age: 28
Occupation: Freelance Designer
Location: Urban Loft
Background: Tyler is a creative and ambitious freelance designer. He is always looking for ways to improve his work processes and increase efficiency. Tyler has a passion for technology and is constantly exploring new tools and platforms to enhance his work. He is well-versed in project management and has a strong understanding of the needs and challenges faced by freelancers and small teams.
Challenges and Pain Points: Tyler often struggles with finding the right tools to meet the unique needs of his business. He is also frustrated by the lack of integration between different tools and platforms, which can lead to a disjointed and inefficient workflow. Tyler is always on the lookout for a comprehensive and integrated platform that can streamline his work.
Goals and Motivations: Tyler is motivated by a desire to stay ahead of the curve and be at the forefront of innovation in his field. He is always looking for new tools and platforms that can help him work more efficiently and effectively. Tyler is also driven by a desire to grow his business and make a positive impact with his work.
User Behaviors: Tyler is proactive and always seeking out new tools and platforms to enhance his work. He is quick to try out new technologies and is an early adopter of innovative solutions. Tyler is also highly analytical and uses data and research to make informed decisions about which tools to use.
Device and Technology Usage: Tyler uses a variety of devices and technologies, including a laptop, tablet, and smartphone. He is comfortable using a range of software and platforms, including project management tools, communication tools, and other productivity tools. Tyler is always exploring new technologies and is quick to adopt innovative solutions.
The early majority were customers who adopted the company’s online trading services after the innovators but before the majority of the population. These individuals were influenced by the positive experiences and recommendations of the innovators, as well as by the increased visibility and credibility of the product as it gained wider acceptance. By serving the early majority, Zerodha was able to further grow its customer base and establish itself as a leading provider of online trading services in India.
Name: Amanda
Age: 35
Occupation: Small Business Owner
Location: Suburban Home Office
Background: Amanda is a driven and successful small business owner. She runs a growing company and is always looking for ways to improve her processes and increase efficiency. Amanda has a strong understanding of project management and the importance of staying organized, but has limited experience with technology and its applications
Challenges and Pain Points: Amanda struggles with finding the right tools to meet the needs of her business. She is often overwhelmed by the number of options available and unsure of which solutions are best suited to her needs. Amanda also faces challenges in effectively communicating and collaborating with her team, particularly when it comes to managing remote workers.
Goals and Motivations: Amanda is motivated by the desire to grow her business and streamline her work processes. She is constantly seeking out new tools and platforms to help her manage projects and communicate with her team more effectively. Amanda is also motivated by the need to keep pace with the changing business landscape and stay competitive in her industry.
User Behaviors: Amanda is proactive and always seeking out new tools and platforms to help her manage her business. However, she is more cautious than early adopters and tends to rely on research and recommendations before trying out new technologies. Amanda is focused on finding solutions that are practical, easy to use, and that integrate well with her existing work processes.
Device and Technology Usage: Amanda uses a variety of devices, including a laptop and smartphone, for work and personal purposes. She is comfortable with basic software and technology, but is not a power user and often relies on others for support and guidance. Amanda is open to exploring new technologies and is willing to invest time and resources in solutions that can help her business.
The late majority were customers who adopted the company’s online trading services after the majority of the population. These individuals may have been influenced by the increasing popularity and widespread acceptance of online trading, as well as by the positive experiences and recommendations of others who had already adopted the service. By serving the late majority, Zerodha was able to continue to grow its customer base and establish itself as a leading provider of online trading services in India.
Name: Tom
Age: 55
Occupation: Construction Manager
Location: Small Town
Background: Tom is a seasoned construction manager who has spent his career overseeing large-scale building projects. He is experienced in traditional project management methods, but has been slow to adopt new technologies and tools. Tom values practicality and reliability, and tends to stick with what he knows.
Challenges and Pain Points: Tom is resistant to change and can be slow to adopt new technologies and tools. He may lack the technical proficiency to fully utilize digital project management solutions, and may feel overwhelmed by the complexity of new software. Additionally, Tom may be wary of the security of sensitive project information in a digital format.
Goals and Motivations: Tom is motivated by the need to get the job done efficiently and effectively. He values stability and consistency in his work processes and is skeptical of new technologies that may disrupt his established routines. However, Tom is also motivated by the need to keep up with industry trends and stay competitive.
User Behaviors: Tom is a more cautious adopter of new technologies and tends to rely on the recommendations and experiences of others before trying out new solutions. He is slow to embrace change, but once he is comfortable with a new tool or platform, he is quick to incorporate it into his work processes.
Device and Technology Usage: Tom primarily uses a desktop computer for work and has limited experience with mobile devices. He is comfortable with basic software and technology, but may struggle with more advanced digital project management tools. Despite his reluctance to adopt new technologies, Tom is willing to invest the time and resources necessary to learn and use tools that can benefit his business.
The laggards may be individuals who have not yet adopted the company’s online trading services and may continue to use traditional methods for managing their investments. These individuals may be more resistant to change and require more time and information before they are willing to try a new technology. Zerodha may need to invest additional resources to educate and convince the laggards to adopt its services.
Name: Karen
Age: 65
Occupation: Retired Teacher
Location: Rural Community
Background: Karen is a retired teacher who has lived in the same small community for her entire life. She is comfortable with the traditional ways of doing things and has limited experience with technology. Karen values simplicity and stability, and is hesitant to embrace change.
Challenges and Pain Points: Karen is intimidated by new technologies and may struggle to keep up with the fast-paced developments in the digital world. She may lack the technical proficiency to fully utilize digital project management solutions, and may feel overwhelmed by the complexity of new software. Additionally, Karen may be wary of the security of sensitive information in a digital format.
Goals and Motivations: Karen is motivated by the desire to maintain control and security over her work and personal life. She values predictability and stability, and is skeptical of new technologies that may disrupt her established routines. Karen is also motivated by the need to keep up with her professional and personal obligations.
User Behaviors: Karen is a slow adopter of new technologies and tends to avoid them altogether if possible. She relies on familiar methods and is hesitant to embrace change. Karen is not motivated to invest time and resources into learning new technologies unless they are absolutely necessary.
Device and Technology Usage: Karen primarily uses a basic phone and a desktop computer for basic tasks, and has limited experience with more advanced technologies. She may struggle with digital project management tools and may be hesitant to use them due to a lack of familiarity and technical proficiency. Despite these challenges, Karen may be willing to try new solutions if they are recommended by trusted friends or family members.
- User-centered design: Zerodha focuses on creating a platform that is user-friendly and accessible to all levels of investors. Starting from beginner to advanced. The design of the platform prioritizes the needs and preferences of users, making it easier for them to manage their investments and make informed decisions.
- Persuasion Principles: This theory is based on the principles of psychology and seeks to understand how people are influenced by different stimuli and how they make decisions. Zerodha may have used persuasion principles to design its platform in a way that motivates users to take specific actions, such as making investments or using certain features.
- Cognitive Load Theory: The Cognitive Load theory focuses on understanding how the amount of information presented to a user affects their ability to process and understand it. Zerodha may have used cognitive load theory to design its platform in a way that reduces the cognitive load on users and makes it easier for them to understand complex financial concepts.
- Behavior Design: Behavior design is a design theory that focuses on how to influence human behavior through the design of products, services, and environments. Zerodha may have used behavior design to understand how its users interact with its platform and to create a design that motivates them to take certain actions.
Zerodha has been successful in attracting a large user base due to its innovative features and user-centric approach.
Firstly, its user-friendly interface and intuitive navigation have made it easy for users to access and manage their investments, helping to attract a wide range of users, from novice investors to experienced traders.
Secondly, the company offers a range of tools and features, such as real-time market updates and advanced charting. This has made it a popular choice for active traders. Additionally, Zerodha’s commitment to providing low-cost and transparent trading services has helped to attract cost-conscious users, who are looking for an affordable and reliable trading platform.
Furthermore, the company’s robust security measures and 24/7 customer support have helped to build trust among users. It helps in attracting those who value peace of mind and reliable service. In conclusion, Zerodha’s combination of user-friendly features, powerful tools, affordability, and security has made it a popular choice for a wide range of users.
One example of A/B testing done by Zerodha is in the design of their mobile app. They tested two different versions of the app to measure which one was more effective at helping users navigate the platform and complete tasks. The results showed that the A version was more successful, so the company went ahead and implemented the A version as the new mobile app design.
Another example of A/B testing done by Zerodha is in the design of their website. They tested two different versions of the website to measure which one was more effective at converting visitors into paying customers. The results showed that the A version was more successful, so the company went ahead and implemented the A version as the new website design.
For maintaining Transparency, they could have tested different formats of displaying financial information, such as using graphs or tables, to determine which format makes it easiest for users to understand and track their investments. They could also have tested different communication tools, such as alerts or notifications, to determine which tools work best for keeping users informed about the status of their investments.
For User-friendly and digitalization, Zerodha could have tested different versions of their platform’s interface or user experience, and used data and user feedback to determine which version was the most intuitive and effective. Additionally, they likely used data analysis to determine the most efficient and user-friendly digital processes for clients to follow, such as account opening or trading.
