Entrepreneur Vineeta Singh Shares Her Strategy On Growing A Customer Base With Minimal Investment

Vineeta Singh of FAB BAG talks about an interesting strategy on acquiring a loyal base of customers at minimal costs.

Vineeta Singh of FAB BAG talks about an interesting strategy on acquiring a loyal base of customers at minimal costs.

Customer Acquisition or Business Development is the vertical on which an entrepreneur places maximum emphasis, resources and efforts, especially in the initial couple of years. The challenges in this respect are two fold – acquiring new customers and turning them into brand loyalists.

Most e-commerce firms and product based startups earmark a large percentage of their budget for costs associated with customer acquisition. Vineeta Singh thinks otherwise. She is the Co-Founder of FAB BAG, a discovery platform for women to discover cosmetics and personal care products; and has grown her subscriber base from 200 to 20,000 in a relatively short time of 3 years with minimal costs.

Vineeta believes that it is not always necessary to spend money in order to acquire customers. FAB BAG has been very bottom-line focused right from the start, which has given them the scope to leverage the voices of influencers, bloggers and their own customers to bring in new customers. This has been done through a very strong referral program, an extensive affiliate program and a successful blogger partnership program.

In the words of Vineeta Singh, “When the curated sets of FAB BAGs go out into the market every month, more than a hundred bloggers write about it, which is shared widely on social media. Almost another thousand new customers come in through the referral program, leading to the critical realization that customers who are referred into the portal, stick around longer and typically make repeat purchases”.

This organic and viral growth of FAB BAG has only been possible by not giving into the temptation of following traditional means of customer acquisition. Instead, Vineeta knows the value of her product, and she realizes that the pull factor will play a significant role in increasing the size of her business. The goodwill she generates by delivering quality products to her existing base of her customers finds its way back to her in multiple forms.

Watch Vineeta Singh speak here

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What do you think about Vineeta’s strategy? How do you acquire customers? In hindsight, do you think you could have done anything differently? Share your stories with us in the comments below.

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Shruti Parija

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