​Step into the future of payments with PhonePe, where your wallet is more than just a place to store money. It’s a gateway to effortless transactions, rewards, and connections. Whether you're grabbing your morning coffee, splitting dinner with friends, or paying for groceries, PhonePe makes it all seamless and secured. No more fumbling for cash or cards; just tap, pay, and go.

But it’s more than just convenience. PhonePe brings people together with features like group payments, bill splitting, and instant money transfers, all wrapped in a sleek, user-friendly app. Plus, with personalized rewards, cashback offers, and smart spend tracking, it’s like having a financial assistant right in your pocket.

Elevate your everyday transactions with PhonePe where your money moves as fast as you do.

PhonePe | Stats which helped me in choosing the product for EnR Project​

CH 1: ENGAGEMENT

Ch 1.1: Let's Understand PhonePe

The Core Value Proposition

ऐसा क्या है PhonePe में? 😈

Current User Experience | CVP

A user today gets to experience one of the CVPs for sure whenever he/she makes a transaction using PhonePe. A user can perform a wide range of activities but let me list down a few important ones:

• When someone makes an online payment through QR scanner
• When someone pays any kind of bill
• When someone receives or sends money from family, friends, peers
• When someone sees PhonePe as top UPI option to make a payment
• When someone receives rewards because of their usage on the platform
• And many more...

​Natural Frequency of PhonePe

This completely depends on the ICP. For this analysis, I am taking all the users who I have interviewed as Casual, Core and Power users.

There are sub products in PhonePe. Let's look at their natural frequency based on my interaction:

Engagement Framework

Let's see which one fits our product:

Why Depth?

1. Immediate Influence on Revenue Growth: By increasing the transaction value, one can boost overall revenue without necessarily acquiring new users. And it focuses on maximizing the potential of existing customers, which is typically more cost-effective than new user acquisition.
2. Sign of Deep User Engagement: It suggests that users are not just interacting with the app but are engaging in meaningful, high-value transactions (such as insurance purchases, mutual fund investments, or large grocery orders). It indicates deeper engagement and trust in the platform, which is a strong predictor of long-term customer loyalty and retention.
3. Cross-Sell and Upsell Opportunities: Helps to identify patterns in user behavior and preferences, providing insights into which products or services can be cross-sold or upsold.

​Ch 1.2: Define User

Who is an Active User?

As per my understanding, the following actions can probably define if a user is active or not:

The sub products can have their own metrics to tell if an user is active or not. Let's see a few examples:

• Anyone applying for personal or business loans and managing loan repayments via the app
• Anyone booking flight, train, or bus tickets, or making hotel reservations through the travel section of the app
• Anyone using PhonePe for public transportation payments (e.g., metro, bus) or ordering food from partner services
• Anyone investing in mutual funds, fixed deposits, or other investment products offered on PhonePe
• And many more...

​What is the natural frequency of PhonePe?

• Casual User: A user who does transaction once in a month
• Core User: A user who does transaction 2-5 times in a month
• Power User: A user who does transaction once in a day

​Ch 1.3: Create Segment

I have a hypothesis in mind. Now to test where does that hypothesis stand, I decided to talk to a few type of personas who believed in using PhonePe. I decided to talk to people across age groups and genders to understand why are they using PhonePe and what is making them stick to the product. I did get a chance to talk to 25+ people (it was easier to find these people 😋). But I wanted to give a glance on three user personas that I think are important for my hypothesis.

For the above ICPs, let's see what is the natural frequency for the features they use:

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​Ch 1.4: Design Campaigns

For PhonePe, the core value proposition on the “demand” or “consumption” side revolves around convenience, speed, and security in financial transactions. The subtle element of scarcity or urgency that can be created is to "Stay ahead with every tap – don't miss out on the next level of seamless payments."

This emphasizes the benefits of using PhonePe (convenience, speed, and innovation) while subtly hinting at the idea that if users aren't actively engaged, they're missing out on a superior, hassle-free financial experience.

Campaign 1:

Campaign 2:

Campaign 3:

Campaign 4:

Campaign 5: ​

CH 2: RETENTION

​Ch 2.1: Understand

Bird's Eye View | Current Retention Rate in terms of Users

The current user retention rate for PhonePe is not explicitly stated in their latest reports, but the platform has over 240+ million monthly active users out of 515+ million registered users as of mid-2024. This indicates a retention rate of approximately ~45%, suggesting a significant portion of registered users actively engage with the platform on a monthly basis.

​Bird's Eye View | Retention Curve Flattening

The retention curve for PhonePe tends to flatten around the 6-month mark, which indicates that users who continue using the app beyond this period are likely to become long-term users. I couldn't find anything on the internet.

Microscopic View | ICPs Driving Retention

For me, the ICP 2 (Core Users) are more likely to retain on the platform. These are the users who will use the platform quite frequently and also try to use the top features. For example, if a 25 year old is using PhonePe today only for some transactions, tomorrow when the user buys a 2 or 4-wheeler, then user might choose to pay for insurance through PhonePe.

Microscopic View | Channels Driving Retention

• In-App Push Notifications
• Referrals

​Microscopic View | Sub Features/Sub Products Drive the Best Retention

• Recharge & Pay Bills: This will drive retention as it is a monthly activity
• Insurance: This also drives retention as users generally don't change their payment methods while paying monthly/yearly amounts

​Ch 2.2: Define

Top Reasons for Churn

Out of the 20-25 people I have talked to, few had churned initially but later came back to the platform. I also did some online research to understand why generally people lose trust on a product and choose an alternative.

There can be various other reasons for churn like change in lifestyle of the user where the dependency on UPI transactions have come down drastically, etc.

​Top Negative Actions

There can be many such actions but let me put across the top 4 that cross my mind now:

1. Increase in support tickets
2. Stopping of subscriptions and auto-pays
3. Low app rating and negative reviews on App Store or Play Store or social media
4. Low CSAT score and NPS

​Ch 2.3: Resurrection Campaigns

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​CONCLUSION

This is the best activity I’ve done in years. Keeping users in B2C requires a good understanding of their habits and issues, along with smart, personalized actions. By addressing specific problems like failed transactions or low engagement, and offering the right incentives at the right times, platforms can build stronger connections with their users. This means knowing when to step in with help or rewards, making users feel valued and understood, and ultimately keeping them engaged and satisfied.

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