Engagement & Retention project | Big Boy Toyz

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Engagement & Retention project | Big Boy Toyz

Core Value Proposition

Big Boy Toyz’s core value prop is delivering:

trust
quality
luxury

in the pre-owned car market. They offer inspected, certified pre-owned vehicles, BBT ensures that customers experience the prestige of high-end cars just like a new one with a competitive price from the second hand car market.

Their comprehensive 151-point quality checks, transparent vehicle histories, and buy-back guarantees give customers peace of mind. They have a selection of top-tier brands and excellent customer service, BBT is a trusted partner for luxury car enthusiasts seeking reliability and excellence in every purchase.

Core ICP

ICP Attribute	ICP 1: Luxury Car Enthusiast	ICP 2: Business/Corporate Buyer
Demographics	Age: 30-50, High net worth individuals, CEOs, entrepreneurs, car collectors	Age: 35-55, Corporate executives, business owners, car rental services
Income Level	₹50 lakhs and above	₹5 crores and above
Location	Tier 1 cities (Delhi, Mumbai, Bangalore, Hyderabad)	Metro cities and key business hubs in India
Motivation	Passion for luxury cars, exclusive ownership, collection expansion	Business utility, client service enhancement, fleet expansion
Buying Frequency	Once every 2-3 years, or more frequently for collectors	Once a year or as needed for business purposes
Pain Points	Trust and authenticity in pre-owned luxury cars, availability of unique models	High-quality, reliable inventory for client needs, transparency in vehicle history
Key Purchase Drivers	Brand reputation, comprehensive vehicle checks, unique inventory, buy-back guarantee	Quality assurance, bulk purchasing options, dedicated client support
Preferred Communication	Personalized service, VIP events, social media updates, luxury car expos	Business meetings, corporate events, direct sales approach
Customer Engagement	Participates in events, follows automotive news, engages on luxury lifestyle platforms	Prefers direct consultations, participates in trade shows, reads industry reports

Natural Frequency

User Type	Natural Frequency
Casual User	1-2 times a year
Core User	3-4 times a year
Power User	6+ times a year

Definition of an Active User

For BBT an Active User is someone who regularly engages with their curated inventory, inquiries, or events, demonstrating interest in purchasing premium pre-owned luxury cars.

1. Browsing the inventory online

2. Submitting inquiries or requesting more information about specific cars.

3. Attending exclusive events by BBT.

4. Responding to and engaging with email newsletters or push notifications.

5. Initiating contact for test drives or purchase discussions.

6. Consistently interacting with new arrivals or updates on the platform.

Engagement Metrics

Metric	Relevance	Real-Time Example
Website visits	Indicates user interest and repeat engagement levels.	A user visits the Big Boy Toyz website to check new arrivals twice within a month.
Average time spent per visit	Shows how engaging the content is for users.	A user spends an average of 15 minutes browsing car listings and details per visit.
Inquiry	Measures the percentage of users taking further interest.	5% of users who visit the site submit an inquiry about a specific car model.
Engagement with new inventory updates	Highlights how new content impacts user activity.	A user clicks on notifications about new car arrivals and views the listing.
Email or push notification interaction	Shows how effectively updates reach and engage users.	40% of users who receive email notifications about special offers open and engage with the content.

Detailed Customer Segmentation

User Type	Casual	Core	Power
Usage Characteristics	Occasional browsing or showroom visits for aspiration or future planning.	Regular interactions with BBT, monitoring new arrivals and engaging with content or updates.	Frequent engagement, active inquiries, attending events, and potential or repeat buyers.
Recency of use case	Visits the platform/showroom every 6-12 months.	Engages with BBT every 2-3 months.	Weekly or monthly interactions with BBT.
Natural Frequency	1-2 times a year.	3-4 times a year.	6+ times a year or monthly.
Monetary/AOV/Revenue Generated	Minimal revenue; potential leads for future high-value purchases.	Moderate revenue; occasional purchases or serious inquiries.	High revenue; repeat or high-value purchases contributing significantly to total sales.
Pain Points	Trust in pre-owned vehicle quality, transparency, assurance of value.	Availability of exclusive models, ease of process, price comparison.	Access to rare or unique inventory, expedited service, and personalized support.
Valued Features	High-quality, certified pre-owned cars, clear vehicle histories.	Regular inventory updates, personalized notifications, and comprehensive vehicle checks.	Exclusive event access, VIP service, customized purchase experience, and buy-back guarantees.
Core Value Proposition (CVP) being utilised	Quality assurance and transparency in pre-owned luxury cars.	Regular updates and a strong commitment to vehicle quality.	Full spectrum of BBT’s high-touch services, including personalized interactions and premium vehicle selections.
JTBD of the persona	Researching options or browsing for aspiration.	Serious buyer evaluating options for an eventual purchase.	Collecting, investing, or expanding a luxury vehicle fleet for personal or business purposes.
Discovery	Primarily through online search, social media, or word of mouth.	Via email newsletters, showroom visits, or car expos.	Direct invitations to events, exclusive member communications, or personal referrals.
Level of Engagement	Low, intermittent interaction.	Medium, consistent and intentional interaction.	High, frequent and immersive interaction.

Customer Segments for Big Boy Toyz (BBT)

Basic Segmentation:

Segment	Description
Casual Users	Engage occasionally, browsing the inventory for interest or aspiration, visiting the platform once or twice a year.
Core Users	Regularly visit the platform, keeping up with new arrivals and promotions, and inquire about specific vehicles a few times a year.
Power Users	Highly engaged users who frequently explore a variety of car models, attend events, respond to notifications, and are more likely to make purchases or repeat purchases.

Advanced Segmentation:

Segment	Description
Loyalists	Regularly engage with the BBT platform, participate in events, and have a history of purchases or consistent inquiries.
At-Risk Users	Users who have shown a drop in engagement frequency over time, indicating a risk of reduced interaction or churn.
Hibernating Users	Users who previously engaged with BBT but have stopped interacting with the platform for an extended period, yet have not fully churned.

Goal

Drive user engagement by motivating visitors to explore and reserve cars, ultimately leading to test drive bookings.

Success Metrics

Increase in the number of car reservations
Boost Number of Test Drives booked.

Problem Statement

Visitors may explore the website but hesitate to commit to reserving a car due to the lack of direct user engagement and streamlined progression from browsing to test drive.

Current Alternatives

Users may switch to competitor platforms or physical showrooms where the exploration-to-reservation flow feels more intuitive or engaging.

Solution

To achieve the above you let's implement the below changes by following the customer journey.

Metrics to Track

Reservation Completion Rate
User Interaction with CTA "Reserve Now"
Percentage of users who attend the test drive after reserving.

Campaign 1

Exclusive 24-Hour Reserve Pass

Goal: Boost reservations and test drives.

Metric: Increase reservation and test drive bookings.

Problem: Users explore but don’t commit.

Solution: Highlight a 10% deposit offer to reserve any car for 24 hours and access a VIP test drive.

User Flow:

Metrics:

CTR on banners,
Reservation conversion rate
Test drive completions.

Campaign 2

Goal: Foster loyalty and repeat engagement.

Metric: Membership sign-ups and repeat reservations.

Problem: No loyalty incentive.

Solution: Create a program offering perks like early inventory access for members.

User Flow: Reserve car → Join program → Access exclusive perks.

Metrics: Membership rate, reservation frequency, AOV.

In the luxury car rental industry, it’s difficult to find direct comparisons, so we can use retention metrics from industries with similar characteristics (e.g., premium services or niche marketplaces). Assume an industry benchmark of 50% retention on Day 0, with a gradual decline over subsequent days.

Adjust Based on Relevant Factors

1. Time to Value

Adjustment: BBT users see immediate value as they can reserve and test drive cars right after exploring. This can increase the Day 0 retention estimate by +5%.

Rationale: Users quickly experience the primary offering (car exploration and reservation), leading to higher initial engagement.

2. Natural Frequency

Adjustment: Users likely interact with BBT a few times a month to explore and consider test drives, leading to an adjustment of -5% compared to daily-use services.

Rationale: The platform’s use is periodic, not daily, affecting retention beyond Day 7.

3. Competition

Adjustment: There is moderate competition in the luxury car rental space. Since BBT may not have as established a brand as some competitors, we reduce retention by -10%.

Rationale: Competitors with brand recognition could draw away users unless BBT differentiates itself uniquely.

4. Brand Value/Word of Mouth (WoM)

Adjustment: With strong reviews and high-value cars, BBT can rely on moderate WoM, leading to an adjustment of +5%.

Rationale: Positive user experiences shared by word of mouth can help sustain mid-term retention.

Estimated Adjusted Retention Rate

Day 0: 50% (baseline) + 5% (time to value) - 5% (frequency) - 10% (competition) + 5% (WoM) = 45%

Day 7: 30%

Day 30: 20%

Day 90: 15%

ICP Observations:

1. Tech-Savvy Car Enthusiasts (ICP 1)

Higher retention rates due to frequent site exploration, interest in technology, and quick adoption of new features.

Likely to engage with test drive features more often.

2. Occasional Explorers (ICP 2):

Lower retention rates due to infrequent visits and specific needs (e.g., test drives only when purchasing).

Engagement depends on specific high-value offers.

Feature-Based Retention:

High retention features: Car reservation and seamless test drive booking.

Feature combination: Personal reminders (e.g., reservation expiration notifications) paired with exclusive offers to drive repeat engagement.

Retention Insights:

Day 0 to Day 7: Users who make reservations immediately tend to stay longer, indicating the importance of onboarding that encourages quick engagement.

Day 30 Plateau: Users engaged with test drives or exclusive car content show better retention at this stage.

Day 90 and Beyond: Strong WoM and unique features like VIP access or loyalty programs maintain the long-term retention of power users.

Key Points for ICPs and Features:

Tech-savvy users drive better retention due to their natural propensity to explore new offerings and features.

Premium car exploration and reservation reminders as a feature pairing could improve Day 30 retention significantly.

Churn

Churn Reason	Category	User Insights indicating Churn
High reservation deposit cost	Voluntary	Users frequently abandon the reservation process midway due to perceived high upfront costs.
Poor user experience/navigation issues	Voluntary	Users report frustration or leave the site during exploration due to confusing navigation.
Payment processing errors	Involuntary	Users attempt payments but face errors, leading to failed reservations and exits.

Resurrection Campaigns

Resurrection Campaign	Hypothesis	Channel of Distribution	Persona/Type of User	Theme	Target Feature	Pitch and Content	Goal of the campaign	Details	Offer	Frequency and Timing	Success Metrics	Milestones for the campaign
Campaign 1: "Reignite Your Drive"	Users may have disengaged due to high reservation deposit cost; reminding them of exclusive benefits may reignite interest.	Email, push notifications, social media ads	Core users who previously reserved cars	Luxury and exclusive benefits	Car reservation feature	"Come back and enjoy exclusive perks! Test drive your dream car at 50% reduced reservation deposit for this month only."	Convert core users back to power users	Personalized emails showcasing cars they previously viewed, limited-time reduced deposit offer	50% reduced reservation deposit	Bi-weekly reminders, run for 1 month	Return rate, reservation count increase	1st week: email open rates, 2nd week: reservation reactivations
Campaign 2: "Your Journey Awaits"	Users left due to poor navigation; reminding them of site improvements and offering incentives could bring them back.	Email and retargeting ads	Casual users who explored the site but didn’t reserve	Seamless user experience	Website navigation	"Discover the newly revamped BigBoyToyz experience—now smoother and faster. Reserve your car today and get a complimentary test drive!"	Convert casual users to core users	Highlight improved website UX in visuals and videos	Free test drive offer	Weekly updates over 2 months	Increased site re-engagement, test drive reservations	Initial: clicks on the revamped site; End: conversion to reservations
Campaign 3: "VIP Return Pass"	Payment issues deterred potential reservations; addressing this and offering premium incentives could draw them back.	Push notifications, SMS	Users who faced payment errors	Reliable transaction assurance	Payment and checkout	"We’ve resolved payment issues! As a welcome back, enjoy a priority test drive reservation without any deposit for a limited time."	Reassure users and regain trust	Clear communication about resolved technical issues and assurance of smoother checkout	Zero deposit on test drive for returning users	Bi-weekly notifications for 6 weeks	Re-engagement rate, reservation without deposit	Week 1: initial re-engagement rate; Week 4: return users making reservations
Campaign 4: "Luxury Insider Rewards"	Users disengaged due to lack of exclusive value; providing personalized experiences might incentivize their return.	Email newsletter, social media DMs	Core and power users	VIP benefits and exclusivity	Test drive feature	"Reclaim your exclusive access: Reserve your car today and receive an invitation to our luxury car show event."	Enhance user loyalty and excitement	Invite-only event for test drive reservations	VIP event access	Monthly over 3 months	Increase in test drive and reservation rates	Event registration numbers, increased monthly reservations
Campaign 5: "Come Drive Again"	Users need a reason to return; highlighting nostalgic experiences and rewards can motivate them.	Email and app push notifications	Users who test drove but did not complete purchase	Nostalgic and personal experiences	Test drive feature	"We miss you at BigBoyToyz! Reserve your favorite car again and get an exclusive loyalty bonus."	Bring back past users to complete the purchase	Personalized messages with details of previous test drives	Exclusive loyalty discount on purchase	Weekly messages for 1 month	Test drive follow-ups, completed reservations	Midpoint: increased reservations; End: purchases finalized