Experiment

The Test ride booking needs to be increased by 10%

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Overview

Royal Enfield aims to boost sales by increasing test rides by 10%, a critical step in converting potential buyers. Test rides offer a firsthand experience of the bike’s performance and features, driving engagement and interest at the top of the sales funnel.

Key Impacts on Sales

1. Enhanced Engagement: Test rides capture the attention of potential customers, transforming initial interest into desire through direct experience.
2. Addressing Concerns: Experiencing the bike firsthand helps resolve potential buyers' doubts, moving them closer to purchase.
3. Higher Conversion Rates: Positive test ride experiences increase the likelihood of purchase, directly boosting sales.
4. Valuable Customer Insights: Interactions during test rides provide insights into customer preferences, informing targeted marketing efforts.
5. Increased Word-of-mouth: Satisfied test riders will likely share their experiences, attracting more potential buyers.

By increasing test rides, Royal Enfield can effectively enhance the sales funnel, leading to a 5% increase in sales as more potential customers move from interest to purchase.

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Hypothesis

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Goal

The primary goal is to increase the number of test rides by 10%. This increase in test rides is expected to lead to a corresponding increase in sales, aligning with Royal Enfield's business objective of driving revenue growth by converting more potential customers into buyers.

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Success Metric

CTA/Test ride booked: 33k per month

• Worst Case: 31K
• Best Case: 33k

Vehicle delivery

• Worst case: 20.3 K
• Best case: 21K

Experimentation Design

a. What are you testing?

We are testing the impact of immediate WhatsApp confirmation messages on the number of test ride bookings and completions.

b. Variation Design

• Control Group: Leads follow the current process for test ride bookings without any automated WhatsApp messages.
• Test Group: Leads receive an automated WhatsApp message immediately after entering the Royal Enfield ecosystem, confirming their test ride booking.

c. Audience & Sample Sizing

• Audience: New leads entering the Royal Enfield ecosystem.
• Sample Size: A statistically significant sample size will be determined based on average daily lead volume, expected effect size, and required statistical power.
• • South Zone
  • • Leads per month - 10k
    • Test ride booking - 3k

d. Implementation & A/A Test

• Implementation:
• • Integrate Yellowai with Leadsqaure to trigger test ride booking WhatsApp messages to a specific source
  • Build different CTA and options as per the Variation design User Flow
  • CRE to call customers for regular follow-ups
• A/A Test: Before the actual experiment, conduct an A/A test by splitting leads into two groups with identical experiences to validate the experimental setup and data collection processes.

Post Experiment

a. Experiment Result

Analyze the data to compare the number of test rides booked and completed in the control and test groups. Evaluate statistical significance and effect size.

b. Release Decision

If the test group shows a statistically significant increase in test ride bookings and completions, proceed with the full rollout of the WhatsApp message confirmation system.

c. Learnings

Document insights on lead behaviour and preferences. Assess the effectiveness of instant messaging in improving engagement and conversion rates.

d. Next Steps

Based on the results, plan further enhancements to the lead engagement process, potentially exploring additional communication channels or personalized messaging strategies.

Stakeholder Management

Key Stakeholders:

• Product Team: Responsible for implementing the WhatsApp messaging system and monitoring the experiment.
• Data Science Team: Ensures the experimental design is statistically sound and analyzes the results.
• Marketing Team: Provides input on message content and engagement strategies.
• Sales Team: Engages with leads post-test ride to drive conversions.
• Executive Team: Reviews experiment outcomes and approves broader rollout if successful.

Communication Plan:

• Initial Briefing: Present the experiment plan, including the hypothesis, goals, and design, to all stakeholders.
• Regular Updates: Provide weekly updates on the experiment's progress, including any preliminary findings from the A/A test.
• Final Presentation: After the experiment concludes, present the results, insights, and recommendations to the executive team and key stakeholders.

By implementing this structured approach, Royal Enfield aims to enhance lead engagement, increase test ride bookings, and drive higher sales through a data-led growth strategy.