Monetisation Project

Haqdarshak Empowerment Solutions Pvt. Ltd. is a for-profit social enterprise which provides end-to-end government scheme delivery services to create social impact at the last mile. For my monetisation project I have chosen to work on Haqdarshak App which is available on the Play Store for the people of India to learn about, apply for and receive benefit of government schemes.

LITMUS TEST-

Let us check for 3 core signals to arrive at monetisation readiness.

1. Retention-Cohort Based Chart - Retention cohorts.pdfBased on the cohort based chart of users retained in past one year, it has been found that the curve isn't flattening out or has a smile curve.
   
2. Deeper Engagement-
   Dividing Haqdarshak App's existing customers into casual, core and power users-
3. 1. Casual Users- This would include users who have availed scheme application services from Haqdarshak under CSR Projects (B2B Channel)
   2. Core Users- This would include users who had availed some scheme application services from Haqdarshak under CSR projects and are currently using the Haqdarshak App.
   3. Power Users- This would include Haqdarshak app users who have Yojana Card as well.
      
      Since, Haqdarshak's 98% of revenue comes via B2B channel wherein they deliver scheme application services under CSR projects, more than 50% of their users fall under the category of casual users.
      
4. Willingness to Pay-
   

   	User Type	How much would you pay for the product?	Would you pay for this just once?	Would you pay for this on a recurring basis?	What would make you pay more?
   1	Casual	Rs. 0	No	No	-
   2	Core	Rs. 50	Yes	No	Better app features and support
   3	Power	Rs. 100	Yes	Yes	Enhanced Services
   4	Casual	Rs. 0	No	No	-
   5	Core	Rs. 30	Yes	No	Improved look of the app
   6	Power	Rs. 150	Yes	Yes	Exclusive benefits for YC holders
   7	Casual	Rs. 0	No	No	-
   8	Core	Rs. 40	Yes	No	Improved App. It looks bad
   9	Casual	Rs. 0	No	No	-
   10	Core	Rs. 50	Yes	No	Better customer service
   11	Power	Rs. 130	Yes	Yes	Feature to apply for yojana card on app
   12	Casual	Rs. 0	No	No	-
   13	Core	Rs. 60	Yes	No	Streamlined/easier Process of booking on the app
   14	Power	Rs. 140	Yes	Yes	Tailored assistance for Yojana Card users
   15	Casual	RS. 0	No	No	-
   16	Core	Rs. 45	Yes	No	Faster response time and application process
   17	Power	Rs. 110	Yes	Yes	Exclusive perks
   18	Casual	Rs. 0	No	No	-
   19	Core	Rs. 35	Yes	No	Better integration
   20	Power	Rs. 125	Yes	Yes	Personalised support
   21	Casual	Rs. 0	No	No	-
   22	Core	Rs. 55	Yes	No	Payment Options via App
   23	Power	Rs. 135	Yes	Yes	Enhanced security of documents and credentials shared
   24	Casual	Rs. 0	No	No	-
   25	Core	Rs. 70	Yes	No	Faster documentation process for easy scheme application
   26	Power	Rs. 145	Yes	Yes	Early access to new scheme related updates
   27	Casual	Rs. 0	No	No	-
   28	Core	Rs. 80	Yes	No	Improved user support
   29	Power	Rs. 150	Yes	Yes	Customised schemes under suggested schemes section
   30	Power	Rs. 120	Yes	Yes	Additional resources like Digital Financial Learning, MSME etc.

   As many users are 'Willingness to Pay', Haqdarshak App is ready to monetised.
   
   SUBSTITUTE PRICING-
   
   Let us check the 3 core signals to arrive at pricing for Haqdarshak App-
   
   1. What core problem does your product solve?
   Use Case- The core problem that the Haqdarshak App solves is facilitating access to government schemes and services for individuals who might not have easy access to information or resources to avail themselves of these programs.
   
   2. What are the other ways to fulfil the same user case?
   Substitutes-
5. 1. Applying for schemes themselves via government websites/portals
   2. Applying via MyScheme website
      
      

      Substitute way	Flexibility to use	Needs physical effort?	Pricing	Core users
      Haqdarshak	Easy	Low	Rs. 110	Farmers, Workers and MSMEs
      Government Websites/ Portals	Very Difficult	High	Rs. 55	Farmers, Workers, Students, MSMEs, Job Seekers, Citizens seeking benefits
      MyScheme Website	Difficult	Medium	Rs. 100	Farmers, Students, Business Owners

      3. Haqdarshak App users are paying-
   3. 1. For value of time- Haqdarshak's scheme screening process and scheme application services via their App would make it faster for the users to apply.
      2. For low physical needs- Haqdarshak Agents would make the scheme application service more convenient for the users.
         
         PRICING DESIGN-
         Who to Charge?The users who are likely to pay, fall under Champions, Loyalists and Potential Loyalists. And these are the users which Haqdarshak should monetise effectively. A quick snapshot of these users is as given below-
         1. Champions- These are power users who have placed three or more bookings within a span of month.
         2. Loyalists- These are core users who are placing two bookings in a month and can place more bookings in future.
         3. Potential Loyalists- These are also core users who are currently placing 1 booking in a month but with the right nudges, they can upgrade to two or more bookings in a month.
         
         When to Charge?
         For this we will have to know the perceived value of Haqdarshak-
         1. Efficiency: Haqdarshak App would make your scheme search efficient through their dynamic and efficient scheme screening process. This ensures that the user gets to know about the schemes they are eligible for and hence apply accordingly which saves their time of learning about eligibility, documents and process of multiple schemes.
         2. Money: While the user has to pay for agent's service of scheme application, Haqdarshak App can help users save money that they might have to spend on conveyance to go to government offices and getting pre-requisite documents made for applications.
         3. Time: Haqdarshak App would help users save their time as the scheme applications are done by trained agents of Haqdarshak who are well aware of application process of several schemes.Hence, the inflection point is somewhere between 1-1.5 months. This is the time when user has used the Haqdarshak App completely and has successfully solved for problems of- Efficiency, Money and Time stated above.
         What to charge for?The Haqdarshak App can charge for the following-1. Output-1. The Haqdarshak App can charge a service fee per booking.2. The Haqdarshak App can charge a fee for screening service that the user performs to know all the schemes he/she is eligible for.2. Sharability-1. Haqdarshak App can charge a user for creating new profiles within their existing profile. This feature would help the user perform screening for their friends, family and even their house help and in turn help them apply for schemes they are eligible for.Hence, monetisation has to be on the basis of a combination of output and sharability.How much to charge?Perceived value and perceived price for major ICPs is as follows-

         	ICP 1 (Farmers)	ICP 2 (Workers)	ICP 3 (MSMEs)
         Name	Ram Prasad	Ghanshyam Lal	SitaRam Store
         Age	40	35	NA
         Gender	Male	Male	NA
         Goals	Wants to come to formal economy	Wants social security	Wants formal financial services
         Location	Bahraich, UP	Raipur, Chhatisgarh	Jaipur, Rajasthan
         Marital Status	Married	Unmarried	NA
         Pain Points	Faces crop failure every other season	Unable to manage enough finances to support family	Unable to find loan from the bank for the business
         Current Solution	Request to government officials for help	Work extra hours	Borrows money from friends/family
         Income/ month	10k	30k	1-1.5 lakh
         Time saved/ month because of Haqdarshak	150 hours/ month	60 hours/ month	30 hours/ month
         Total savings/ month	Rs. 6250	Rs. 6666	Rs. 12,500
         Application Fee/Scheme	~ Rs. 110	~ Rs. 110	~ Rs. 110
         Perceived Value	57 times	61 times	114 times
         Perceived Price	2-3 times (for 2-3 bookings)	2-3 times (for 2-3 bookings)	2-3 times (for 2-3 bookings)

         SYSTEM 1 & 2 DESIGN-
         
         Since the fees of scheme application services on Haqdarshak App is ~ Rs. 110 / application, System 1 Design would suit the Haqdarshak App best.

1. Does your product require a quick buying experience?
   No, Haqdarshak App doesn't require quick buying experience. On the Haqdarshak App, the user can majorly-
2. 1. Search for schemes and check eligibility by answering scheme specific questions.
   2. Perform screening process and find all schemes he/she is eligible for.

In either of the two scenarios, the user is required to answer the questions attentively which can take a lot of time. Therefore, be it screening process or placing a booking for a service on the App, the user isn't provided with a quick buying experience.

2. Should the experience for a first time buying vs repeat buy look different?
   Yes, the first time experience will be different from a repeat buy.
   The first time experience on Haqdarshak App will be about the following-
   After getting onboarded on the Haqdarshak App successfully, the user will have to either-
3. 1. 1. Screen & Book- This would include performing a Screening Process and finding a set of eligible schemes. The user can then place a booking for a scheme of his/her choice on the App. In this option, the user will pay for the screening process and then later for the service after it is delivered.
      2. Search & Book- This would include searching a scheme on the App and checking eligibility for that particular scheme and then place a booking if he/she is found eligible for it. In this option, the user will pay later for the service after it is delivered.
         

The repeat experience on Haqdarshak App will be about either of the following-

1. 1. Pick & Book- If the user has performed a mini screening the first time they used the app, they do not need to perform it the next time. The second time they can just pick a scheme from the list of eligible schemes and place a booking directly. In this option, the user will pay later for the service after it is delivered only.
   2. Search & Book- This option will be similar for both first time and repeat users. If the user hasn't checked eligibility for a scheme, he/she will have to check it first and then apply for it. In this option, the user will pay later for the service after it is delivered.

3. What is the natural behaviour a user exhibits for a particular flow?
   The behavior of users on the Haqdarshak App can vary depending on their needs and objectives. However, some common natural behaviors exhibited by users on the Haqdarshak App might include:
   
   1. Exploring Services: Users may browse the app to search various documents and schemes available on the App.
   
   2. Checking Eligibility for a Scheme: Users might use the app to check their eligibility for different government schemes or services. They may input relevant information such as income, family size, location, and other criteria to determine which schemes they qualify for.
   
   3. Screening for Schemes: Users might perform mini and full screening on the Customer App by answering a set of questions in a dynamic questionnaire and then learn about all the schemes they are eligible for.
   
4. Applying for Schemes: Once users identify the schemes or services they are eligible for, they may use the app to initiate the application process. This would involve placing a booking on the app. Post this an agent is assigned to deliver the service to the user.
   
5. Tracking Applications: Users may track the status of their applications through the Haqdarshak App. This allows them to stay informed about the progress of their applications and any updates or actions required on their part.
   
6. Request for Yojana Card- The user can also learn about Yojana Card from the App and also request for a yojana card application via the App.
   
7. Link/Add Profile- A Haqdarshak App user can also create/add profile within their own profile. This would help the user to screen their near and dear ones and place bookings on their behalf. This feature is extremely important for people who do not own smart phones and are not that etch savvy to use digital products.
   
8. Seeking Assistance: Users might seek assistance and support from Haqdarshak representatives or volunteers through the contact number available on the app. They may have questions about eligibility criteria, required documentation, or the application process itself.
   
   Overall, the natural behavior of users on the Haqdarshak App revolves around accessing information about government schemes and services, determining eligibility, applying for benefits, and seeking assistance throughout the process. The app aims to streamline access to government services and benefits for individuals who may face barriers in navigating the system independently.
   
   PRICING MODEL SELECTION FRAMEWORK-
   1. Need>> Want?
   Need- Government schemes are launched for the rural and marginalised communities of our nation who need the benefits of these schemes to improve their lifestyle, run a business, get better education, etc.
   
   2. What's the 1st purchase ticket size?
   Low- The first purchase for a user is the screening process and the ticket size is small to encourage users to perform the screening process fully and apply for eligible schemes thereafter.
   
   3. How long is the product discovery to purchase?
   Longer- After discovering the Haqdarshak App, the user needs to get onboarded, screen for a scheme/perform overall screening and then place a booking. Hence the journey from product discovery to purchase is longer.
   
   4. Is there a post purchase instant gratification?
   No- The user doesn't feel gratification instantly because scheme application is a lengthy process and final benefits are received by the user only after the entire scheme application is completed by the agent on user's behalf.
   
   5. Is it a high frequency use case product?
   No- As government launches schemes once in a year and as users do not apply for schemes that often, the Haqdarshak App is not a high frequency use case product.
   
   6. Do you need a longer purchase commitment?
   No- As the frequency of scheme application per user is low, longer purchase commitment is not possible for Haqdarshak App.
   
   7. Does that user have an appetite to pay upfront?
   Low- Since most of the users of Haqdarshak App include farmers and workers, who are financially not that sound, the appetite to pay upfront is low.