Patience and Strategy Helped Apna Godam Foster Trust with Farmers

When a startup enters the market, gaining the trust of its potential customers or target audience is one of the most critical factors for its success. For a Startup, establishing trust among target customers is crucial not only for retaining initial customers but also for long-term growth and sustainability. Many businesses fail because they struggle to connect with their target audience and understand their needs.

In the early stages, startups should focus on listening to customer issues. Customer feedback provides valuable insights that can show what works and what doesn’t in products or services that startup is providing. By paying attention to customer feedback, startups can identify areas that need improvement and make the necessary changes.

It can be challenging for new businesses to gain the trust of customers, as they offer new ideas and services that may lack credibility initially. However, these are risks that can change the market forever. One such problem was faced by an agri-tech startup, Apna Godam.

How Apna Godam Earned the Trust of Farmers

When Apna Godam launched their mobile application services, their target customers that are farmers didn’t trust them.

Apna Godam is an agritech startup that offers warehousing facilities and online commodity financing to farmers across India. In addition, it provides an online platform for farmers, traders, and buyers to trade commodities. This platform helps farmers and traders discover better prices and enables smooth marketing of their products. Sellers can list their commodities for sale on the Apna Godam portal whenever they choose on "as is where is" basis. This flexibility allows farmers to manage their produce more effectively and connect directly with buyers.

Apna Godam launched its mobile application for online trading of agricultural commodities at the end of 2020. But, they faced a significant challenge after the launch of their new vertical. Their target customers, the farmers, did not trust their application, as it was a new system for them. This approach was unfamiliar and completely different from their traditional way of selling produce through local Agricultural Produce Market Committees (APMCs). When Apna Godam explained that their app would allow farmers to sell their crops directly from the farm without going to the mandis, the farmers were hesitant to use it. Despite the app's purpose of making farmers' lives easier, it took them two and a half months to complete their first transaction through the Apna Godam app.

They recognized the farmers' hesitation and understood why they were skeptical. After all, it was difficult for them to trust something so new. To address this issue, Sanjay Agarwal, the CEO of Apna Godam, came up with plan to build trust among the farmers. He decided to distribute copy of the notification in which government had officially declared their platform, Apna Godam, as an online mandi. They shared several copies of this government notification with the farmers of the villages. Their approach helped farmers feel more secure about using the Apna Godam app.

Farmers verified the legitimacy of the notification with their nearest APMC and local government authorities. This initiative of Apna Godam helped farmers to reassure themselves and gradually build trust in their platform.

Read also - From Uncertainty to Stability: How Apna Godam Transforms Lives of Agricultural Workers

Through this experience, Agarwal realized that regulations can sometimes serve as a growth enabler rather than a hindrance. When a government body regulates an enabler, it adds an element of authenticity that can help gain the trust of potential customers, in their case farmers. Overall, this incident highlighted the importance of trust in building a successful startup, especially in sectors like agriculture where tradition plays a significant role.

To further reassure farmers, the Apna Godam team decided that when they pick up produce from the farmers' locations to deliver it to the buyers, the truck will not leave until the farmer is paid. This policy helped farmers trust Apna Godam’s services more. The team’s initiative allowed them to gain the trust of customers, as farmers who used their services shared their positive experiences with others. This word-of-mouth from their customers helped Apna Godam attract more customers. Their approach not only helped them retain existing clients but also built a strong reputation among farmers. As a result, Apna Godam has become a reliable solution for farmers.

In any business, customer experience is the key factor that determines whether a business will survive in the market. It is important to view customer reviews as helpful feedback rather than negative comments. It is normal for your target customers to be hesitant about trusting your business in the early stages. It takes time for them to try your service, but once they do, you must ensure they understand why they should choose you again. Embracing customer feedback can lead to valuable improvements in your offerings, which will help the startup meet customer expectations more effectively. This focus on improvement not only refines products and services but also builds a stronger relationship with customers, showing that their opinions matter.

Conclusion

This approach worked for Apna Godam. This Jaipur-based startup gradually expanded into six states. This success was possible because they were patient with their customers. Instead of blaming customers for not using their services, they focused on what they could do to earn their trust. This strategy helped them gain and retain customers while also allowing them to launch new verticals of their startup successfully, as they were already seen as a reliable service provider among farmers.

Read also - Apna Godam, Agritech Startup: Strategically Expanding and Making Its Mark in the Industry