Royal Enfield, a subsidiary of Eicher Motors, is a 100-year-old motorcycle manufacturer based out of Chennai. They build classic-looking bikes with a larger (150cc+) engine capacity, holding a market-share exceeding 85% in that segment. They pride themselves on making good-quality, long-lasting bikes that appeal to riding enthusiasts but are also accessible to the daily commuter, and position themselves as a luxury/aspirational motorcycling brand.

They have been steadily growing for the past 2 years (>10% annual increase), with Eastern India (>17% increase in FY 23) being the main driver for the incremental sales. Historically, the demand of Enfield was concentrated in Punjab and Haryana, but now they have taken the whole nation (and even started exporting!) by the storm.

Their main motorcycle models:

1. Hunter 350: 350cc engines, lower end model (starting from 1.5L), comfortable to ride in the cities. light + easy to maneuver.
2. Bullet: One of the oldest models- really popular amongst the older, nostalgic customer base.
3. Classic 350: 350cc, Mid-range model (Starting from 1.8L), really versatile- great for daily commute + longer rides, has been the best seller since it launched.
4. Meteor 350: 350cc, Mid-High range Model (Starting from 2.2L), made to be a bit more heavy duty + for being comfortable on longer rides but still serve as commuting bike, more popular amongst slightly more experienced customer base.
5. Himalayan, Guerilla, Thunderbird, Interceptor: 650cc, specialist adventure/riding bikes (off-roading etc.), aimed at customers looking to get into motorbike-riding, High Range model (Rs. 3L+)

Apart from motorbikes, they also have a wide range of apparel (average sale of Rs. 3000/bike) and motorcycle accessories (average sale of Rs. 10,000/bike) which they offer to their customers.

The core differentiator for Royal Enfield is two-fold.

Firstly, their marketing and community-engagement efforts are unmatched. (i.e. each dealership hosts local rides every month; a week-long music and motorcycle festival called Motoverse in Goa every November, "Bullet Meri Jaan" campaign etc).

Secondly, Enfield builds superior products than their competitors- about 50% of people who undertake test-rides of the bike end up purchasing it. The feel of the bike, clubbed with its signature sound and vibrations, makes it an one-of-a-kind product.

Main sources through which customers initiate the process of buying an Enfield are:

1. Walk-In at Dealerships: Enfield has more than 350 dealerships operating in India, with a touch point in most Tier 1,2,3 cities. The most common way for customers to buy Enfield continues to be the traditional walk-in at dealerships and then the sales team closing the sale. (~45%)
2. Telephonic Enquiries: Refers to calls made by customers to official Royal Enfield helpline number/dealerships. The customers are generally offered at-home test-rides post the call. (~25%)
3. Web Enquiries: Refers to enquiries being made through RE website, as well as motorcycle aggregators such as BikeWale. The most common source of enquiry (65% of total enquiries), with the lowest conversion rate (5-7%); (~15%)
4. Field Activities (Demo Vans, Kiosks, Standees @ Malls), along with referrals obtained during rides/service account for the remainder of the sales. (~15%)

A more detailed ICP Breakdown : (I simplified it for the onboarding assignment) https://docs.google.com/spreadsheets/d/1gK1_r8D6hLMwa0mIY__UwrPHFitzJ19MI-fZdVyCnAs/edit?usp=sharing

ICP 1 and 2 are value-conscious customers who account for almost 80% of all the existing customers of Royal Enfield. The onboarding process for both the customers would be pretty similar (want bank for their buck, looking for an "enfield" that they can use in their day-to-day). We will priortise ICP 2, followed by ICP 1.

Note: The user interviews were conducted in person, in the regional language, while the dealership was delivering their new bike and during feedback calls a week after delivery.

In the context of Royal Enfield, onboarding can be defined as all steps undertaken by a user till they purchase their bike. The onboarding process can start both online and offline, with steps 2 to 5 being done mostly offline.

The user journey can be seen through the (poorly) hand-drawn chart below:

The way customers can enquire at Royal Enfield can be boiled down into:

Since the journey of most Royal Enfield customers begins online, let's first analyse the enquiry form/test riding booking form on the website. The detailed teardown of the entire process is linked here: https://tinyurl.com/REOnboardingTeardown

Royal Enfield expects sales executives at their dealerships to call the customer within 30 "working" minutes of the enquiry being placed online. Customer's needs are understood and the right motorcycle model is broadly shortlisted. A time is set for the customer to visit the showroom or a home appointment is made where the sales executive visits the customer's home with a test-ride bike and relevant information. For web enquiries, generally home visits are offered to further reduce the inhibitions. All information about financing options available are also given here if requested.

What is Working?

• The quick TAT in making initial contact helps keep customer interest intact and boosts conversion rate.
• Talking with an agent, generally in the local language, allows a lot of the consumer's questions to be answered- this fills the knowledge gap that previously existed.
• Sales representatives get a feel for the consumer and forms a genuine human connection.
• These calls are recorded, and monitored periodically to ensure that the quality is upheld

What is Not Working?

• Sales executives at dealerships vary in their training and customer interaction. Context: I inquired at three different dealerships with different experiences: the first called within 30 minutes, sent all requested info on WhatsApp, and followed up for a home visit; the second called within an hour but never sent the requested info; the third asked me "what model?", when I asked for help in model selection, they suggested I review the website and get back!

Recommendations:

• Make a script and provide more training to ensure sales representatives are equally trained.
• Add a feedback form that is sent to the customer phone number after the representative call is made.

Option 1:

Customer Visits Showroom > Sales Executive greets him > Shows him different bikes available > Shows colour variants and prices on RE tablet (with all possible info you would need) > Bike Test Ride done > Test Ride Feedback given > Financing Options/Payment discussed.

Option 2:

Sales Executive goes on a home visit with a Test Ride Bike and RE Tablet > Customer/family greets him > briefs about models available/suggests which model would be a good fit > explores on RE tablet > goes on a test ride > Test Ride Feedback given > Financing Options/Payment discussed.

The test ride process is meticulous- multiple checks are done to ensure the customer has a valid driving license, use-and-throw nets are provided under the helmet to ensure sanitation, a well-mapped out test ride path is provided, a Test Ride log-book is maintained and feedback from all users are collected once the test-ride is over.

What is Working?

• Being able to experience the product (bike) in your vicinity (local dealership, or literally home)
• Physically meeting a sales representative = increases trust; gets personalised feedback
• Being guided through the RE tablet ensures all customers have complete access to all information before making the purchase. The sales representative is present to answer any questions
• Info on Financing Options are easily available on request
• Feedback collected from all users to continuously improve the test-ride expereince.

What is Not Working?

• Test Ride bikes are not always regularly serviced and that can make the test-ride experience a lot shakier than the experience of riding a new RE bike.

Recommendations:

• Provide a checklist to ensure that the bikes are serviced at least monthly; provide subsidiaries to dealers to incentivise purchase of new test ride bikes every couple of years

After the test ride, customers decide how to pay: cash or dealership-led bank financing. If financing, sales agents connect them with bank representatives for loan details. For cash, customers pay directly. A refundable ₹5000 deposit is required to book the bike, with balance paid upon delivery, or financed. Bike exchanges are also accepted as down payment.

What is Working?

• Widely prevalent financing makes owning a RE very affordable- as little as 2000/month
• Exchange of old bikes make paying the down-payment easier & removes the need to dispose the older bike.
• Rs. 5000 refundable deposit is a relatively lower-risk commitment to secure the bike.

What is Not Working?

• The lag between booking and delivery becomes more significant than originally estimated, leading to customer dissatisfaction
• With up to 7-8 banks/NBFCs having representatives at the showroom, the process of funding may seem overwhelming - too many choices

Once the bike is booked, the dealership either provides the bike from its stock or requests one from Royal Enfield, which can take from a day to two months depending on model availability. The customer is informed upfront about the expected timeline. On the scheduled delivery day, the bike is prepped, washed, and fitted with accessories. Final payments and financing formalities are completed, and the bike is handed over to the customer in a special delivery ceremony with a red carpet, backdrop, and a key cutout. This moment is celebrated with family and sometimes a cake.

What is Working?

• The delivery experience is a highlight, making the customer feel special and excited about owning a new bike.
• Customers are informed about perks like rides and events, which enhance the excitement.
• The bikes are thoroughly inspected and in excellent condition, with no customer complaints.

What is Not Working?

• The delivery process can take several hours, with customers often waiting for 1-2 hours before receiving their bike.
• Financing issues may arise on delivery day, causing delays and disappointment.
• Long gaps between booking and delivery, sometimes causing customers to cancel despite having paid the ₹5000 deposit.

Recommendations:

• Be upfront about the delivery timeline and manage customer expectations.
• Ensure the bike is perfect before delivery by double-checking its condition.
• Communicate booking-to-delivery timelines clearly and promptly notify customers of any changes to avoid frustration.

Activation Metrics:

1) Test Ride Completion within 3 Days of Initial Contact

• X action: Completing a test ride
• Y time: 3 days after the initial inquiry

This metric measures how effectively the sales team moves customers from inquiry to test ride. A high percentage of test rides completed within 3 days indicates a smooth and fast-moving process, where customers are eager and the dealership is responsive. If fewer customers complete a test ride within this time frame, it could suggest delays or friction in the sales process, prompting a review of response time or availability of bikes for test rides.

2) Sales Executive Response within 30 Minutes of Inquiry

• X action: Sales executive making initial contact
• Y time: 30 minutes after receiving the online inquiry

This metric tracks how quickly the sales team engages with the customer after an inquiry is submitted. A quick response likely increases customer satisfaction and conversion rates, as customers feel their interest is being addressed promptly. Delays in response could lead to a loss of interest or customer frustration, so tracking this helps ensure the sales team is effective and timely in their follow-ups.

3) Test Ride to Booking Conversion within 7 Days

• X action: Customer proceeds with booking the bike
• Y time: 7 days after completing the test ride

This metric tracks the time it takes for a customer to move from the test ride experience to actually booking the bike. A conversion within 7 days indicates a seamless transition, where customers are motivated and the sales team is effectively facilitating the process. This could also reflect the efficiency of payment options, especially financing. If the conversion time exceeds 7 days, it could point to friction in the payment or financing process, or the customer might be experiencing indecision. Tracking this metric will help assess how smooth the post-test ride journey is and whether any hurdles in terms of financing or decision-making need to be addressed.

Parameters to track your activation metrics:

• The distribution of enquiries between Acquisition Sources
• The % of inquiries from each source being provided Test Rides, Bookings
• Average TAT for responding to Web Leads
• Booking Cancellation Rate (No. of people who book bikes but then drop off)
• Feedback from users after Test Ride; Delivery; First Contact
• Bike Reviews post delivery
• Time taken to drop uninterested inquiries; list of overdue inquiries