If your product is already monetizing

Skip the litmus test and create at least 3 experiments for free to paid conversion and cross-selling and up-selling

If the product is not yet monetizing

Define your GTM strategy by identifying the right customer touchpoints and develop the right communications for these touchpoints.

To increase revenue from merchants for Simpl's monetization plan, the focus should be on creating strategies that encourage merchants to convert from free to paid plans, cross-sell additional products or services, and upsell to higher-tier plans. Below are three tailored experiments to drive these outcomes:

Experiment 1: Merchant Tier-Based Free-to-Paid Conversion

Objective: Encourage merchants to upgrade from a free plan to a paid plan by demonstrating the added value of premium features that support growth.

Hypothesis:

Merchants will be more likely to upgrade to a paid plan if they experience the value of premium features directly tied to their business growth.

Experiment Design:

1. Segmentation:
2. • Segment merchants based on their current activity level (e.g., transaction volume, customer engagement, etc.).
   • Offer personalized upgrade incentives based on the merchant's potential growth (e.g., if a merchant has steady sales, present an upgrade to unlock higher transaction limits and premium analytics).
3. Free Trial of Premium Features:
4. • Offer a 30-day free trial of premium features such as enhanced analytics, marketing tools, or advanced customer support.
   • Highlight how these features can help merchants drive more sales, such as showing potential improvements in conversion rates or customer engagement after using premium tools.
5. Incentive to Upgrade:
6. • During the trial period, show key metrics that demonstrate how much the merchant could increase their revenue by moving to a higher-tier plan (e.g., “You could increase your transaction volume by 20% with our Pro Plan”).
   • At the end of the trial, offer a discount on the first 3 months of the paid plan if they convert immediately.
7. Measurement:
8. • Track conversion rates from free to paid plans, especially among merchants who experienced the premium features.
   • Measure changes in transaction volume and engagement for merchants who upgraded to a paid plan.

Expected Outcome:

By showcasing the clear, direct business benefits of the premium features, merchants are likely to upgrade to paid plans, driving increased revenue for Simpl.

Experiment 2: Cross-Sell Merchant Tools and Services

Objective: Increase average revenue per merchant by promoting complementary tools and services that enhance the merchant’s experience.

Hypothesis:

Merchants will be more likely to purchase complementary tools or services that help streamline their operations and boost sales if they are offered at the right moment in their journey.

Experiment Design:

1. Contextual Cross-Selling:
2. • After a merchant completes an important action (such as making their first sale or reaching a sales milestone), trigger an in-app recommendation for complementary tools.
   • For example, if a merchant has made a certain amount of sales, offer cross-selling of marketing tools, customer engagement apps, or integrations with accounting tools.
3. Bundled Offer:
4. • Create bundled offers that combine essential tools (e.g., premium analytics, marketing automation) with the merchant’s current plan at a discounted rate.
   • Present these bundles during onboarding or after the merchant has reached a milestone (e.g., after processing a certain amount of transactions or hitting a sales target).
5. Cross-Sell Discount:
6. • Offer a discount on additional services (e.g., a 20% discount on a marketing tool) if the merchant purchases them along with their current plan.
   • Make the offer time-sensitive (e.g., 72 hours) to create urgency.
7. Measurement:
8. • Track the number of merchants who engage with cross-sell offers and the average revenue per merchant from additional services.
   • Measure the uptake of bundled offers versus individual products/services.

Expected Outcome:

By offering relevant and time-sensitive cross-sell opportunities, merchants are likely to purchase complementary services that will increase their overall spend with Simpl.

Experiment 3: Upsell Using Performance-Based Incentives

Objective: Drive revenue growth by upselling merchants to higher-tier plans using performance-based incentives that clearly demonstrate the benefits of upgrading.

Hypothesis:

Merchants will be more likely to upgrade to higher-tier plans if they can see how specific features (like increased transaction limits, advanced reporting, or prioritized support) will drive their business performance.

Experiment Design:

1. Performance-Based Messaging:
2. • Analyze the merchant’s transaction history and engagement to show them their current performance (e.g., “You’ve processed Rs.X in sales this month. With our Pro Plan, you can process up to 3X that amount”).
   • Use personalized messaging in the merchant dashboard to show the limitations of their current plan and the benefits of upgrading. Include an actionable comparison of their performance vs. what they could achieve with the upgrade.
3. Success Metrics and Trial Upsell:
4. • Offer a 7-day trial of the higher-tier plan with features like advanced analytics, more transaction volume, or premium customer support.
   • During the trial, regularly show merchants how much additional revenue they could potentially earn by fully utilizing these features. For example, if they access advanced reporting tools, show them how that data could help them optimize sales and marketing strategies.
5. Customized Pricing for Upsell:
6. • Provide a customized offer for upgrading based on a merchant’s specific use case or needs. For instance, offer a discount on the first 3 months for upgrading to a Pro or Enterprise plan if their sales volume has grown by a certain percentage.
7. Measurement:
8. • Track the number of merchants who accept the upsell offer and their subsequent revenue growth.
   • Measure the upgrade rate between merchants who were shown performance-based upsell messaging versus those who were not.

Expected Outcome:

By showing merchants how an upgrade can directly enhance their performance, Simpl can drive higher-tier plan conversions, leading to increased merchant revenue.

Substitute Pricing

Work on the following aspects:

1. What are your customers paying for?
2. How does your product stand out?
3. How do you position your product?

Substitute Pricing Model for Merchants of Simpl

To design an effective pricing model for Simpl merchants, we need to understand their core needs and the value Simpl provides. Based on these insights, we can create a pricing structure that aligns with merchant goals and maximizes revenue for Simpl. The new pricing model should clearly outline what merchants are paying for, what makes Simpl stand out, and how to position Simpl in a way that highlights its value proposition.

1. What Are the Merchants Paying For?

Merchants typically pay for services that directly contribute to their business growth, efficiency, and customer satisfaction. The following breakdown shows what merchants are paying for in Simpl’s monetization plan:

a) Payment Processing & Transaction Fees:

• Core Feature: Merchants pay Simpl a small percentage of each transaction processed through the platform (e.g., 1.5% per transaction). This fee covers Simpl's cost for managing and processing payments.
• What Merchants Gain: Simpl allows merchants to accept a wide range of payments (credit/debit cards, UPI, wallets, etc.) seamlessly and securely, ensuring they can provide customers with flexible payment options.

b) Flexible Payment Options (Pay Later, Pay in 3):

• Core Feature: Merchants can offer their customers the flexibility of Pay Later and Pay in 3 options, which Simpl facilitates. Merchants may pay a small processing fee for each installment option they enable.
• What Merchants Gain: Offering flexible payment options improves sales conversion rates, attracts more customers, and boosts average transaction value, while Simpl takes care of the backend.

c) Access to Marketing & Analytics Tools:

• Core Feature: Merchants can access advanced marketing tools (e.g., customer segmentation, email/SMS marketing campaigns, product recommendations) and analytics tools (e.g., sales reports, transaction trends, customer insights).
• What Merchants Gain: These tools help merchants drive targeted marketing efforts, increase customer engagement, optimize sales campaigns, and improve overall business strategy.

d) Customer Support & Merchant Insights:

• Core Feature: Premium plans include prioritized support and deeper business insights through analytics and personalized recommendations based on merchant data.
• What Merchants Gain: Merchants receive ongoing support, ensuring their business operations run smoothly, along with valuable insights to help them grow their customer base and scale effectively.

e) Scalability & Customization:

• Core Feature: Access to customizable features and enhanced scalability as merchants grow (e.g., transaction volume, sales support tools).
• What Merchants Gain: As their business grows, merchants can access more sophisticated features, higher limits, and the ability to cater to a larger customer base, ensuring Simpl grows with them.

2. How Does Simpl Stand Out?

Simpl can differentiate itself from competitors using the following unique selling points (USPs):

a) Seamless Payment Flexibility:

• Simpl’s USP: Simpl allows merchants to offer their customers flexible payment options such as Pay Later and Pay in 3, which aren’t universally available through all payment platforms.
• Why This Matters: This gives merchants a competitive edge by appealing to customers who prefer installment payments, ultimately boosting sales conversion and attracting a larger audience.

b) End-to-End Payment Solutions:

• Simpl’s USP: While many platforms only provide payment processing, Simpl goes beyond by offering a full suite of financial tools, including financing options for both merchants and customers.
• Why This Matters: Simpl acts as a one-stop solution for payments, credit, and marketing, reducing the need for merchants to integrate multiple third-party services.

c) Merchant-Centric Analytics and Growth Tools:

• Simpl’s USP: The combination of intuitive business analytics and data-driven marketing tools gives merchants actionable insights to optimize sales and customer engagement.
• Why This Matters: Merchants can make data-backed decisions that drive growth, from targeted campaigns to understanding consumer behavior.

d) Simple and Transparent Pricing:

• Simpl’s USP: Transparent and predictable pricing based on transaction volume and optional features (e.g., marketing tools, premium support) allows merchants to know exactly what they are paying for.
• Why This Matters: This builds trust with merchants who may be wary of hidden fees or complex pricing models, offering them a clear and fair value proposition.

e) Scalable Solutions for All Merchant Sizes:

• Simpl’s USP: Whether merchants are small startups or large enterprises, Simpl’s scalable plans can grow with their needs. From the basic plan to the expert plan, Simpl accommodates merchants at every stage of business growth.
• Why This Matters: Merchants can start with a simple setup and gradually scale to a more comprehensive offering as their business grows, ensuring long-term flexibility and partnership with Simpl.

3. How Do You Position Simpl?

Positioning Statement:

"Simpl is a complete payment and business growth platform that helps merchants accept payments, offer flexible installment options, and leverage powerful marketing tools to increase conversions, boost customer loyalty, and scale their business—while enjoying transparent pricing and seamless support."

a) For Startups and Small Merchants:

• Positioning: Simpl provides affordable and easy-to-integrate payment solutions with Pay Later options that make it easier for smaller merchants to offer customers flexible payment plans without any upfront cost.
• Key Benefit: Empower small merchants to compete with larger competitors by offering more payment flexibility and robust marketing tools that increase conversions and customer retention.

b) For Growing Merchants:

• Positioning: Simpl allows growing merchants to scale seamlessly with advanced analytics and targeted marketing tools, while offering easy access to financing and additional payment options like Pay in 3.
• Key Benefit: Merchants can optimize sales strategies, manage higher transaction volumes, and expand their customer base with flexible payment models.

c) For Large Enterprises:

• Positioning: Simpl’s Expert Plan provides enterprise-level solutions with customized marketing strategies, advanced analytics, and flexible payment models that support large-scale operations.
• Key Benefit: Larger merchants benefit from a robust, data-driven growth engine, along with customizable pricing options, priority support, and more tools to enhance customer experience and drive revenue growth.

d) For All Merchants (Competitive Edge):

• Positioning: Simpl combines seamless payment processing, flexible financing, and powerful marketing into a single platform, enabling businesses of all sizes to offer payment flexibility, increase sales, and grow without friction.
• Key Benefit: With flexible Pay Later and Pay in 3 options, Simpl helps merchants increase conversion rates by providing payment choices that meet modern consumer expectations.

Pricing Model:

Simpl can offer tiered pricing based on transaction volume and features used, making it suitable for merchants at all stages of growth:

1. Basic Plan (Entry-level for startups and small merchants)

• Pricing: Fixed percentage per transaction (e.g., 1.5% per sale) + optional add-ons (Pay Later, Pay in 3).
• Features: Basic payment processing, transaction history, customer support.

2. Pro Plan (For growing businesses)

• Pricing: Variable percentage based on transaction volume + subscription fee for advanced features (e.g., $30/month for analytics tools, marketing integrations).
• Features: Payment processing, Pay Later and Pay in 3, marketing tools, analytics, prioritized support.

3. Expert Plan (For larger enterprises)

• Pricing: Higher percentage based on larger transaction volumes + custom pricing for high-use merchants.
• Features: Full suite of payment options, custom marketing and support, dedicated account manager, advanced reporting and insights.

Conclusion:

By focusing on flexibility, business growth tools, and scalability, Simpl can position itself as the go-to platform for merchants who want to offer customers easy payment options, grow their business with data-driven marketing, and receive transparent pricing. Simpl stands out by combining payment processing with financing, marketing tools, and advanced analytics in a seamless and scalable package.

Expanded Substitute Comparison Table for Simpl, LazyPay, and Snapmint

Key Takeaways:

1. Transaction Fee/Pricing:

• Simpl offers a competitive transaction fee (around 1.5%) with the option of a subscription model for additional features, making it cost-effective for merchants looking for flexibility in their payment models.
• LazyPay has a slightly higher fee (2-3%), but merchants may find it appealing due to the simplicity of offering Pay Later without setup costs.
• Snapmint has fees similar to LazyPay but specializes in larger-ticket products and offers EMI options, which might be more beneficial for merchants in the high-value goods category.

2. Ease of Integration:

• Simpl, LazyPay, and Snapmint all provide easy integration for major e-commerce platforms like Shopify, WooCommerce, and Magento. However, Simpl stands out with its broader support for multiple merchant types and better integration flexibility.
• Snapmint is also strong in terms of integration, particularly for merchants in the electronics or high-value goods sectors.

3. Payment Cycle:

• Simpl stands out by offering Pay Later and Pay in 3, giving customers more flexibility and merchants the advantage of upfront payment.
• LazyPay focuses on Pay Later, offering merchants quick payments while customers have 14-30 days to pay.
• Snapmint offers a range of EMI options (3 months, 6 months), which can help merchants in industries with high-value transactions.

4. Core Users:

• Simpl is suitable for a diverse range of merchants (small, medium, and large) across industries like e-commerce, subscriptions, and services, looking for flexible payments and customer retention tools.
• LazyPay mainly targets small to mid-sized e-commerce businesses and retailers.
• Snapmint is specifically geared toward merchants in high-ticket markets (e.g., electronics, appliances) who need financing options like EMIs for larger purchases.

5. Flexibility:

• Simpl provides the most flexible payment options, with both Pay Later and Pay in 3, appealing to a broad spectrum of merchants and customers.
• LazyPay offers a basic Pay Later option but is more limited in terms of long-term payment flexibility.
• Snapmint excels with EMI flexibility tailored to higher-ticket products, making it ideal for merchants with higher-value items.

6. Customer Experience:

• Simpl offers a streamlined, personalized checkout experience for customers with options to Pay Later or Pay in 3, ensuring higher customer satisfaction and increased conversions.
• LazyPay provides a simple and quick checkout experience for customers looking for Pay Later options with instant purchase decisions.
• Snapmint creates a smooth purchasing process for high-ticket items, providing EMI options for customers and a positive experience for large purchases.

7. Merchant Support:

• Simpl offers premium support with dedicated account managers and 24/7 assistance for merchants using advanced features.
• LazyPay provides basic support and is best for merchants with straightforward needs.
• Snapmint offers 24/7 support with priority for merchants dealing with larger transactions and high-value products.

8. Customer Financing Options:

• Simpl provides both Pay Later and Pay in 3 as flexible options for customers, increasing the chances of conversion.
• LazyPay offers Pay Later with a limited payment window (14 to 30 days).
• Snapmint focuses on EMI options for customers, ideal for larger-ticket products.

9. Risk & Fraud Management:

• Simpl and Snapmint have robust fraud detection systems, ensuring secure transactions for both merchants and customers.
• LazyPay offers basic fraud checks, which could be sufficient for smaller, low-ticket transactions but may not provide as much protection for larger sales.

10. Market Penetration:

• Simpl has strong market penetration in India and expanding globally, making it a versatile option for merchants worldwide.
• LazyPay is primarily focused on India, with a strong presence in the small and medium-sized merchant space.
• Snapmint is gaining traction in India, especially for merchants selling high-ticket items.

Positioning Summary:

• Simpl: Best for a wide range of merchants (small to large) who need flexible payment options (Pay Later, Pay in 3), powerful marketing tools, and high-level customer support, making it ideal for merchants looking to increase conversion rates and customer loyalty.
• LazyPay: A simple and straightforward solution for small to mid-sized merchants who want to offer Pay Later with minimal setup and lower upfront costs.
• Snapmint: Best suited for merchants dealing with high-value products (electronics, luxury items), offering flexible EMI options and more tailored customer financing for large transactions.

This expanded comparison table should give merchants a clearer idea of the strengths and weaknesses of each platform, helping them choose the best payment solution for their specific needs.

Monetization design

Add an introduction for monetization connecting it to your Litmus Test and User Insights)

Who to charge?

(Conduct an RFM Analysis and identify the users that you are monetizing and think about why them and not others?)

RFM Analysis for Simpl Monetization Strategy

RFM (Recency, Frequency, and Monetary) is a powerful customer segmentation model used to evaluate and categorize merchants based on their purchasing behavior. This model helps businesses target their efforts effectively by identifying high-value customers (merchants, in this case), which allows for more strategic monetization.

The RFM framework is based on three key metrics:

• Recency (R): How recently a merchant has transacted with Simpl.
• Frequency (F): How often the merchant transacts with Simpl within a given period.
• Monetary (M): The total value of the transactions made by the merchant (or the total revenue Simpl generates from that merchant).

By conducting an RFM analysis, Simpl can effectively categorize merchants based on their likelihood to bring in high returns or long-term value.

Steps to Conduct an RFM Analysis for Simpl Merchants

1. Recency:
2. • Definition: How recent was the merchant's last transaction? Merchants who have interacted with Simpl recently are more likely to continue transacting.
   • Data: Analyze the most recent transactions of each merchant. This can be measured in days/weeks since the last transaction.
   • High Recency: Merchants who have transacted in the last 30 days.
   • Low Recency: Merchants who have not transacted in the last 60+ days.
3. Frequency:
4. • Definition: How often does the merchant engage with Simpl (e.g., make transactions or use services)?
   • Data: Track how frequently each merchant uses Simpl’s platform over a specified period (e.g., monthly, quarterly).
   • High Frequency: Merchants who make multiple transactions each month (e.g., 5 or more).
   • Low Frequency: Merchants who make transactions only occasionally, e.g., once every few months.
5. Monetary:
6. • Definition: How much revenue does each merchant generate for Simpl? This includes transaction fees, subscription plans, or other monetization sources.
   • Data: Calculate the total monetary value each merchant contributes to Simpl's revenue over a certain period.
   • High Monetary: Merchants with high revenue generation (e.g., larger-ticket transactions, higher volume of payments).
   • Low Monetary: Merchants with lower revenue contributions.

Segmenting Merchants Based on RFM Scores

Once the data for Recency, Frequency, and Monetary values is collected, merchants can be scored and grouped into segments based on their combined RFM scores.

Potential Merchant Segments:

1. High-Value Merchants (Top Tier - High RFM)
   Why Monetize Them?
2. • Recency: Recently active.
   • Frequency: Regular transactions, perhaps several times a month.
   • Monetary: High revenue generation (higher average transaction amounts or higher volumes of transactions).
3. • These merchants represent your most loyal and profitable customers. They’re likely to continue generating revenue and will benefit from features like pay later, pay in installments, and premium services.
   • They might have larger average transaction values and can offer higher margins on each payment transaction.
   • They are ideal candidates for cross-selling and up-selling services like premium subscription plans or access to marketing tools.
4. Potential Growth Merchants (Mid Tier - Medium RFM)
   Why Monetize Them?
5. • Recency: Recently transacted, but not as frequently.
   • Frequency: Moderate transaction frequency (maybe once or twice a month).
   • Monetary: Moderate transaction value.
6. • These merchants have shown interest in Simpl’s offerings and have the potential for increased engagement.
   • They can be nurtured to increase transaction frequency by promoting pay later and pay in 3 options, especially if these are targeted through personalized marketing campaigns.
   • They may be open to new payment options or enhanced features, which can be monetized via premium tools or advanced analytics.
7. Low-Engagement Merchants (Low Tier - Low RFM)
   Why Not Prioritize Monetizing Them?
8. • Recency: Have not transacted recently or have had a significant gap since their last interaction.
   • Frequency: Rarely transacts (e.g., only once or twice in the past year).
   • Monetary: Low revenue contributions.
9. • These merchants are less engaged and unlikely to generate significant revenue in the short term. It may be worth exploring ways to re-engage them, but they aren't as valuable for immediate monetization.
   • These merchants might require more educational outreach or incentives to return to the platform.
   • Higher churn risk: Their lower engagement signals they are at a higher risk of abandoning the platform.
10. Lapsed Merchants (Re-engagement Potential)
    Why Not Prioritize Monetizing Them?
11. • Recency: Have not interacted with Simpl for a significant period.
    • Frequency: No recent or regular transactions.
    • Monetary: No recent revenue generated.
12. • Lapsed merchants have stopped engaging, so they aren't currently generating revenue.
    • Cost of re-engagement might outweigh the potential immediate returns.
    • However, they may still hold value, and it may be worth implementing re-engagement campaigns (e.g., offering special discounts or personalized offers) to revive their interest.

Why Monetize Certain Merchants and Not Others?

Simpl should prioritize high-value merchants who show strong engagement (high Recency, Frequency, and Monetary). Here's why:

1. Revenue Growth: High-value merchants directly impact Simpl’s revenue, making them the most crucial group to focus on for higher-margin and scalable monetization. These merchants are more likely to be interested in premium features, such as advanced analytics, marketing tools, or exclusive payment plans.
2. Retention: These merchants are more likely to stay loyal to Simpl, which reduces churn. Retaining top-tier merchants typically requires less marketing spend and lower support costs, leading to higher profitability in the long run.
3. Cross-Selling and Up-Selling: These merchants are more likely to see value in additional features. For example, an e-commerce merchant with high transaction volume might be willing to pay for premium reporting tools or advanced payment terms.
4. Word of Mouth and Referrals: High-value merchants often have a broader customer base or network. Their continued success with Simpl can drive referrals or partnerships, bringing in more merchants and expanding Simpl's user base.

Why Not Monetize Low-Value Merchants Right Away?

1. Lower Revenue Potential: Merchants with low Monetary and low Frequency scores don’t provide immediate returns. Focusing on them can be resource-intensive with limited results.
2. High Churn Risk: Merchants who haven't transacted recently are at risk of abandoning the platform altogether, leading to wasted resources in trying to keep them.
3. Cost-Effectiveness: The effort and cost of engaging and educating low-tier merchants may not result in sufficient return on investment, making them less profitable to target compared to high-value merchants.

Strategic Actions Based on RFM Insights

1. For High-Value Merchants (Top RFM Scores):
2. • Focus on up-selling advanced features like marketing tools, pay-in-3, and premium support.
   • Offer tailored incentives and loyalty programs to retain them.
   • Explore opportunities to offer white-label solutions or exclusive deals for large-scale merchants.
3. For Mid-Value Merchants (Mid RFM Scores):
4. • Increase engagement through targeted campaigns, offering benefits like flexible pay later options, or discounts on future transactions.
   • Nurture them to move into higher-frequency and higher-monetary segments.
5. For Low-Value Merchants (Low RFM Scores):
6. • Re-engagement campaigns to attract them back, perhaps through special offers or discounts.
   • Analyze why they have become inactive and address issues such as user experience, integration difficulties, or pricing dissatisfaction.

To define merchant segments based on the RFM (Recency, Frequency, Monetary) analysis, we can create a two-axis plot where:

• X-axis represents Recency (how recent the merchant has transacted).
• Y-axis represents Frequency (how often the merchant transacts).

This allows us to visualize merchant behavior and identify distinct merchant segments based on their engagement with Simpl.

Steps to Define Merchant Segments Using Recency and Frequency

1. Plot Recency (X-axis) and Frequency (Y-axis):
2. • Recency (X-axis): More recent transactions will be plotted towards the right, while merchants who haven't transacted recently will be plotted towards the left.
   • Frequency (Y-axis): Merchants who have high transaction frequency will be plotted towards the top, and low-frequency merchants will be plotted towards the bottom.
3. Categorize Merchants: Based on the position of each merchant on the Recency vs. Frequency plot, we can segment them into specific categories based on their likelihood to generate revenue, loyalty, and need for attention.

Merchant Segments Based on Recency and Frequency:

Let's break down the four main segments that emerge from plotting Recency vs. Frequency.

1. Top-Right Quadrant: "Engaged & Active Merchants"

• Recency: Recently active (Right side of the plot).
• Frequency: High transaction frequency (Top of the plot).
• Description: These merchants are regular users of Simpl’s platform and engage frequently. They are actively transacting, have high retention rates, and contribute significant revenue.
• Monetary Impact: High
• Key Actions:
• • Up-sell and cross-sell additional services, such as premium features (analytics, marketing tools).
  • Focus on retention with exclusive offers, loyalty programs, or customized payment plans.
  • Nurture long-term relationships by continuously offering relevant new features and personalized recommendations.
  • Target for premium plans and advanced payment options like Pay Later and Pay in 3.

2. Top-Left Quadrant: "Lapsed, but Valuable"

• Recency: Not recent (Left side of the plot).
• Frequency: High transaction frequency in the past (Top of the plot).
• Description: These merchants have been high-frequency users in the past but have recently lapsed. They are familiar with Simpl’s offerings and could be re-engaged with the right incentives.
• Monetary Impact: High (when active)
• Key Actions:
• • Re-engagement campaigns: Offer personalized promotions or targeted reactivation offers to get them back on the platform.
  • Analyze reasons for inactivity (e.g., pricing concerns, competition, changing business needs).
  • Reintroduce incentives like discounted plans, or additional payment flexibility to win them back.
  • Retention focus: Move them back to the "Engaged & Active" category.

3. Bottom-Right Quadrant: "New & High Potential"

• Recency: Recently active (Right side of the plot).
• Frequency: Low transaction frequency (Bottom of the plot).
• Description: These merchants are new users or have made a few transactions but are not yet highly engaged. They could become high-value with the right incentives or growth opportunities.
• Monetary Impact: Low to Medium (potential for growth)
• Key Actions:
• • Nurture and engage them with onboarding strategies or personalized offers.
  • Introduce flexible payment terms, such as Pay Later and Pay in 3, to encourage more frequent transactions.
  • Encourage more transactions by promoting exclusive features or providing discounted rates to help them get started.
  • Offer educational resources on the benefits of using Simpl more frequently, emphasizing ease of integration and how Simpl can increase their conversion rates.

4. Bottom-Left Quadrant: "Low Engagement & Low Value"

• Recency: Not recent (Left side of the plot).
• Frequency: Low transaction frequency (Bottom of the plot).
• Description: These merchants are infrequent users who haven’t engaged recently. They likely represent low-value or churning merchants.
• Monetary Impact: Low
• Key Actions:
• • Re-engagement focus: These merchants are at risk of abandoning Simpl, so low-cost re-engagement campaigns can be tested (e.g., limited-time offers).
  • Understand the churn reasons (e.g., satisfaction with Simpl, competitors, financial limitations, or integration issues).
  • Consider offering more flexible payment plans or free trials of premium features to win them back.
  • Monitor closely for churn prevention: Explore why they aren’t transacting frequently and develop targeted strategies to re-engage them.

Merchant Segments in the Recency vs. Frequency Plot:

Visualizing the Plot:

Quadrant Breakdown

1. Low Engagement and High Value Merchants

• Recency: Low (infrequent or recent transactions but not regular).
• Frequency: Low (rare transactions but large transactions when they do engage).
• Description: These merchants don't engage frequently, but when they do, they bring in high value (large transaction size, big ticket sales).
• Monetary Impact: High
• Action:
• • Explore personalized campaigns that offer incentives to increase engagement.
  • Consider targeting with premium payment options, like pay in 3, to enhance convenience for them.
  • They may benefit from custom solutions like flexible financing or priority support to make their experience smoother.

2. Low Engagement and Low Value Merchants

• Recency: Low (haven’t transacted recently).
• Frequency: Low (rare or infrequent transactions).
• Description: These merchants make infrequent and low-value transactions. They are typically at risk of churn or could represent merchants who haven't fully realized the potential of Simpl's features.
• Monetary Impact: Low
• Action:
• • Focus on nurturing these merchants through targeted offers or education about Simpl’s services to boost frequency.
  • Consider re-engagement strategies, such as discounts or special trials, to increase their transaction frequency.
  • They may also benefit from payment flexibility and simpler onboarding.

3. Very Low Engagement and Very Low Value Merchants

• Recency: Very low (almost no activity or never transacted).
• Frequency: Very low (virtually no transactions).
• Description: These merchants have little to no interaction with the platform. They are unlikely to contribute to immediate revenue and are at high risk of abandonment.
• Monetary Impact: Very low
• Action:
• • Focus on re-engagement tactics such as onboarding assistance or limited-time offers.
  • Implement educational content to help them understand the benefits of using Simpl.
  • Consider extending free trials or easy onboarding processes to encourage their first purchase.

4. Lapsed but Valuable Merchants

• Recency: Low (they haven't transacted recently).
• Frequency: High (previously frequent users).
• Description: These merchants were highly engaged in the past but have recently lapsed. They are familiar with Simpl’s platform and could still be valuable with the right incentives.
• Monetary Impact: High (when active).
• Action:
• • Re-engagement strategies are key, such as personalized offers, discounts, or exclusive deals to win them back.
  • Identify reasons for their lapse (e.g., pricing, competition, or service issues) and address those issues.
  • Offer targeted features like pay later options or premium tools to bring them back into the fold.

5. Declining Engagement and Value Merchants

• Recency: Moderate to low (they were once active but have shown signs of reduced activity).
• Frequency: Declining (transactions are becoming less frequent).
• Description: These merchants were previously engaged but are now showing signs of declining activity. Their transaction volume or frequency has dropped.
• Monetary Impact: Moderate to Low (declining).
• Action:
• • Assess the cause of their declining engagement. It may be due to changing business needs, pricing concerns, or better offers from competitors.
  • Re-engagement campaigns can help, such as introducing new payment features or improving the value they receive from Simpl.
  • Implement proactive outreach to keep them engaged and prevent further decline.

6. New Merchants with Low Value

• Recency: High (recently onboarded).
• Frequency: Low (not yet engaging frequently).
• Description: These merchants are newly onboarded and are still getting acquainted with Simpl’s offerings. They haven't generated significant revenue yet, and their transaction frequency is low.
• Monetary Impact: Low (potential to grow).
• Action:
• • Onboarding campaigns and educational support are essential to guide them through the platform.
  • Provide incentives such as discounted fees or free trials to encourage more transactions.
  • Focus on converting them into high-frequency users by showing the value of Simpl's features, like flexible payments.

7. New Merchants with High Potential

• Recency: High (recently onboarded).
• Frequency: Low to moderate (early-stage, but potential to increase).
• Description: These merchants have just started transacting but show strong signs of becoming high-value, frequent users in the future.
• Monetary Impact: Potential to grow.
• Action:
• • Onboarding incentives: Offer discounts or extended pay-later options to encourage frequent use.
  • Focus on nurturing their journey by providing personalized support and emphasizing the value of the platform.
  • Introduce analytics tools, flexible payment options, and other premium features to enhance their experience.

8. Engaged & Active High Engagement, High Value Merchants

• Recency: High (frequent and recent transactions).
• Frequency: High (regular transactions).
• Description: These are top-tier merchants who have a high level of engagement and bring in substantial revenue. They are frequent users of Simpl and generate significant transactions.
• Monetary Impact: High
• Action:
• • Retention and loyalty should be the primary focus. Offer premium services, early access to new features, personalized experiences, and loyalty rewards.
  • Cross-sell and up-sell additional tools, services, or payment flexibility options like custom payment terms, customized analytics, or advanced marketing tools.
  • Explore strategic partnerships or exclusive deals that make them feel valued and deepen their commitment to Simpl.

Summary of Merchant Segments:

By categorizing merchants into these segments, Simpl can tailor its marketing strategies and monetization efforts to maximize revenue and merchant satisfaction, focusing on high-value customers while effectively re-engaging and nurturing low-engagement or new merchants.

When to charge?

(Calculate the Aha Moments and Happy Moments and the Perceived Value attached thereon, try to plot Perceived Value and Perceive Price on a graph )

To calculate Aha Moments, Happy Moments, and Perceived Value for Simpl’s merchants, let's go through the following structured steps:

STEP 1: Identifying Which Aspect Determines Value for SIMPL

To determine the value Simpl provides to its merchants, we need to identify what aspects or features of Simpl impact their success. This value is typically tied to how Simpl addresses pain points or creates significant benefits for merchants.

Key value-driving aspects for Simpl:

1. Payment Flexibility:
2. • Pay Later options, Pay in 3.
   • A key value proposition for Simpl, making it easier for merchants to close sales, increase conversions, and boost average order value (AOV).
3. Ease of Integration:
4. • Quick integration with websites or apps, saving merchants time and development cost.
   • Simple API integration reduces friction.
5. Customer Insights and Analytics:
6. • Access to valuable consumer data, which helps merchants optimize their offerings and marketing strategies.
   • Allows merchants to target the right customers, increasing ROI.
7. Transaction Processing:
8. • Seamless and secure payment processing, helping merchants handle payments without concerns over security or fraud.
9. Customer Support and Service:
10. • Merchants benefit from responsive support to solve issues quickly.
11. Marketing Tools:
12. • Use of Simpl’s platform to drive awareness and promotions among target audiences.

STEP 2: Competitor Benchmarking

To understand how Simpl's offerings compare to competitors (like LazyPay and SnapMint), let’s compare the key value aspects:

STEP 3: Quantify Your Results Ensuring They Align with Your Price

We need to align the perceived value with the actual price merchants pay. The pricing models may include:

• Transaction Fees (percentage of sales or fixed fee per transaction).
• Monthly/Annual Subscription Fees (for access to Simpl’s services).
• Pay-per-use Charges (based on the use of specific features, like analytics or marketing tools).

For each aspect, we can assign a score from 0 to 10, where:

• 10 represents maximum perceived value.
• 0 represents no perceived value.

Here’s how each aspect could be evaluated:

STEP 4: Map Out the Products’ Perceived Value Across the User’s Journey

The user journey for a merchant typically involves several key stages:

1. Onboarding: Merchant first signs up, integrates Simpl into their platform.
2. • Perceived value: High because of easy integration and initial customer support.
   • Perceived price: Lower because they are still exploring and testing.
3. Early Use: The merchant begins using Simpl for payments and insights.
4. • Perceived value: Increases as they see higher conversions and sales through payment flexibility.
   • Perceived price: Starts to increase as they become aware of transaction fees.
5. Expansion & Advanced Use: Merchant utilizes more advanced features, like analytics and marketing tools.
6. • Perceived value: High due to the ability to optimize and grow sales with data insights.
   • Perceived price: Increases as they are now using more features, and fees might rise.
7. Long-Term Use: The merchant has fully integrated Simpl and relies on it heavily.
8. • Perceived value: At its peak because of streamlined operations and continuous revenue growth.
   • Perceived price: At its peak, but now fully justified by the value derived from Simpl’s offerings.

Plotting Perceived Value vs. Perceived Price

To visualize how Perceived Value and Perceived Price change over the user’s journey, we will plot a graph based on the stages above. Here’s a hypothetical graph:

• X-axis: Stages of the User Journey (Onboarding, Early Use, Expansion, Long-Term Use).
• Y-axis: Perceived Value (0-10).
• Y-axis (second axis): Perceived Price (0-10).

Let’s break it down into data points for the perceived value and price at each stage:

What to charge for?

(Identify what you're charging for- the core value and the currency for the product)

To determine the right pricing strategy for Simpl, it's crucial to identify the core value proposition of the product, and how it aligns with the different categories of charging (Time, Output, Access, Shareability). Let's break down each of these categories and map them to Simpl's offerings.

Core Value Proposition of Simpl:

Simpl’s primary value proposition revolves around providing flexible payment options (such as "Pay Later", "Pay in 3") and seamless payment processing for merchants, allowing them to increase conversion rates, reduce cart abandonment, and ultimately boost revenue. Simpl also offers analytics tools and customer insights, which help merchants understand and optimize their sales strategies.

Considering this core value, we need to decide which category of charging best suits Simpl’s business model.

1. Time-Based Pricing:

Definition: Users pay to access the product or service over a specific period (e.g., monthly or yearly subscription).

• Applicability to Simpl:
• • Potential: Simpl could adopt a time-based pricing model for merchants who wish to access the platform for a defined period.
  • Example: Merchants could pay for monthly or yearly subscriptions that provide access to payment options, analytics, and customer support.
  • When to Use: This model works well if Simpl wants to offer a continuous service to merchants that needs regular updates and access to premium features.
  • Why It Fits: Simpl's core value is to enable merchants to continuously process transactions, access payment options, and leverage insights over time to grow their business.

Example:

• Basic Plan: $X/month for access to core features.
• Pro Plan: $Y/year for access to advanced features (like marketing tools, deeper analytics, etc.).

2. Output-Based Pricing:

Definition: Users pay for each unit of service or product they consume, based on usage (e.g., per transaction, per service rendered).

• Applicability to Simpl:
• • Potential: Simpl could charge merchants based on the number of transactions or amount of sales processed. This would be based on output, which is directly tied to the merchant's use of Simpl’s payment system.
  • Example: Simpl charges a percentage of each transaction or a fixed fee per transaction. This aligns with the core value of transaction processing, where the more transactions the merchant processes, the higher the fee.
  • When to Use: This model is ideal when Simpl’s value is derived from how much payment processing is being done through the platform.
  • Why It Fits: As a payment solution provider, Simpl is directly involved in transaction processing. The more a merchant uses Simpl, the higher their fees are, which creates a direct correlation between output and cost.

Example:

• Transaction Fee: 1.5% per transaction processed via Simpl.

3. Access-Based Pricing:

Definition: Users pay for the right to access the service, regardless of how much they actually use it.

• Applicability to Simpl:
• • Potential: Simpl could offer access to the platform, including access to payment flexibility and analytics, with no additional fees for usage or transaction volume. Merchants pay to access these tools at any time.
  • Example: Merchants pay a flat fee for platform access that grants them unlimited use of payment solutions (Pay Later, Pay in 3), data analytics, and customer insights.
  • When to Use: This model is best if Simpl wants to provide all features for a single price, and there is no significant variability in the merchant's transaction volume.
  • Why It Fits: This model works well if Simpl positions itself as a tool that provides continuous access to valuable features for growth, such as analytics and customer support, regardless of whether a merchant uses them daily or sporadically.

Example:

• Platform Access: $X/month for access to Simpl’s services (pay later, payment flexibility, and analytics tools), irrespective of the number of transactions.

4. Shareability-Based Pricing:

Definition: Users pay for the ability to share the product/service, often within a team or organization.

• Applicability to Simpl:
• • Potential: Simpl could introduce shareability pricing if merchants want to extend their use of the platform across multiple users or teams (e.g., finance team, marketing team).
  • Example: Merchants would pay based on the number of users within their organization who have access to Simpl’s platform, such as team members who manage transactions, analyze data, or run marketing campaigns.
  • When to Use: This model works well if Simpl aims to provide a team-based service where multiple users from a single merchant's organization can collaborate on payment solutions or use Simpl's marketing tools.
  • Why It Fits: If Simpl's analytics and payment flexibility tools benefit from being used by teams (e.g., marketing teams sharing promotions, finance teams managing transactions), shareability-based pricing could ensure merchants pay according to the number of team members who are actively using the service.

Example:

• Team Access: $X/month for each additional user or team member added to the platform.

Recommended Pricing Model for Simpl:

Considering Simpl’s core value of enabling seamless transactions and providing actionable insights to merchants, the most appropriate categories of pricing would likely be:

1. Output-Based Pricing:
2. • This is the most direct and aligned with the value Simpl provides. Charging per transaction would ensure that merchants only pay for what they use. As merchants process more transactions and use more payment flexibility options, their costs increase, but they also benefit from higher conversions and sales. This creates a win-win scenario where both Simpl and the merchant scale together.
3. Access-Based Pricing:
4. • For businesses that want unlimited access to the platform and all its features, flat monthly or yearly fees can be applied. This ensures that merchants get full value from the product without worrying about transaction volume. It’s ideal for those who want the security of knowing exactly how much they’ll pay each month.

Graphing Perceived Value vs. Perceived Price for the Pricing Models

To visualize this, let's plot Perceived Value against Perceived Price across these pricing models.

Assumed Perceived Value and Price for Each Model:

How much to charge?

(Do your own math and build 2-3 different pricing strategies and maximize your revenue)

To maximize revenue for Simpl, we can explore a few different pricing strategies that fit the core value propositions of Simpl’s product offering (flexible payment options for merchants, seamless transaction processing, and value-added services like analytics and marketing tools). Since there's no one-size-fits-all approach, we'll model a few strategies based on different pricing approaches.

Pricing Strategy #1: Transaction-Based Pricing (Output-Based)

This model charges merchants based on the volume of transactions processed through Simpl's platform. It directly ties the merchant's cost to the output they generate from Simpl’s services. The more the merchant uses Simpl’s tools, the more they pay.

Breakdown:

Example:

• A merchant processes 1000 transactions in a month, with each transaction being ₹5000.
• Transaction fee (1.5%) = 1000 * ₹5000 * 1.5% = ₹75,000.
• If the merchant wants to use advanced analytics and customer support, they would pay an additional ₹500 + ₹200 = ₹700.
• Total charge for the month: ₹75,700 (transaction fees + monthly service fees).

Pricing Strategy #2: Subscription-Based Pricing (Access-Based)

This model allows merchants to pay a fixed monthly or yearly fee for access to Simpl's platform and all its features, including payment flexibility tools, transaction processing, analytics, and support.

Breakdown:

Example:

• Monthly Subscription: ₹5000 for unlimited access to the core platform.
• Transaction Fee: If the merchant processes ₹5000 per transaction and does 1000 transactions, the charge is ₹5000 * 1% * 1000 = ₹50,000.
• Additional Features: Opting for premium marketing and analytics tools will add ₹1000 + ₹1500 = ₹2500 to the bill.
• Total Charge for the month: ₹5000 (platform access) + ₹50,000 (transaction fees) + ₹2500 (marketing and analytics) = ₹57,500.

Pricing Strategy #3: Tiered Pricing (Time-Based + Output-Based)

This model combines elements of both time-based pricing (fixed subscription fee for access) and output-based pricing (additional charges based on transaction volume). This allows Simpl to capture both consistent revenue and high-volume usage.

Breakdown:

Example:

• Basic Plan (₹3000/month): 1000 transactions processed, each worth ₹5000.
• • Transaction fee (1.2%) = ₹5000 * 1.2% * 1000 = ₹60,000.
  • Total Charge: ₹3000 (platform access) + ₹60,000 (transaction fees) = ₹63,000.
• Pro Plan (₹7000/month): 1000 transactions processed, each worth ₹5000.
• • Transaction fee (1%) = ₹5000 * 1% * 1000 = ₹50,000.
  • Total Charge: ₹7000 (platform access) + ₹50,000 (transaction fees) = ₹57,000.
• Additional Features: If the merchant opts for premium marketing and analytics (₹2000 + ₹1500), the total cost would be higher.

Comparing Revenue Maximization

Final Thoughts and Recommendations:

1. Transaction-Based Pricing: Best for merchants who process a high volume of transactions, allowing Simpl to benefit directly from usage.
2. Subscription-Based Pricing: Best for merchants who prefer predictable, fixed costs each month. It’s a simpler, straightforward approach.
3. Tiered Pricing: This is ideal for businesses with different needs or transaction volumes, offering flexibility for both small and large merchants. It allows Simpl to capture more revenue by providing premium features at a higher price.

For Simpl, a combination of Transaction-Based Pricing and Tiered Pricing would likely yield the best results. This approach provides predictable income from the fixed subscription (platform access) while still capturing additional revenue from transaction volume and premium services (analytics, marketing tools).

Pricing Page

(Understand the existing user discovery flow for pricing and try to understand why things are being done they are currently)

Pricing Page Design

(Step 1 - Analyze the existing pricing page objectively)

(Step 2 -Re-design the Pricing Page)

(Step 3- Add reasoning for the same)

Simpl does not have a pricing page as it negotiates pricing with merchants directly and signs unique contracts.

Suggested Design

Simpl Pricing Landing Page.pdf

Reasoning for the Design

1. Clarity and Simplicity:
2. • The designed pricing page keeps things simple and direct. It removes jargon and complexity, making it easy for users to understand what they get for their money.
   • The comparison table lets users quickly compare each plan’s features, while the simple descriptions and short bullet points focus on the most important aspects of the offering.
3. Effective Visual Hierarchy:
4. • The Pro Plan is highlighted visually using a the middle effect.
   • Each plan is presented in a clear, easy-to-read three-column layout, which minimizes confusion and lets users quickly identify which plan suits their needs.
5. Social Proof and Trust:
6. • Adding case studies from real merchants adds social proof and builds trust, encouraging users to sign up.
   • Users are more likely to convert when they can see other merchants’ success stories with Simpl.
7. Flexible Pricing Model:
8. • Offering a Free Trial for each plan allows users to try out the service without commitment. It lowers the barrier to entry and encourages more users to explore Simpl's offerings.
9. CTAs (Call-to-Actions):
10. • Multiple clear CTAs are included to cater to users at different stages of the decision-making process. For those ready to dive in, the "Start Free Trial" is a clear invitation. For those who want more details, "Slide into our DMs" directs them to a personalized consultation