Engagement & Retention project | Kuku FM

In 2018, three IIT Jodhpur graduates—Lal Chand Bisu, Vinod Meena, and Vikas Goyal—launched Kuku FM after realizing the audio content gap for India’s regional language speakers.

Kuku FM aims to build an audio-first storytelling platform for India's underserved regional audiences and Bharat users - from Tier 2+ cities, in a market dominated by English language players and Western style podcasts.

Kuku FM has raised a Series C funding of $25M in September 2023, and boasts of over 3.3 million paid subscribers and over 10 million active listeners on the platform.

Kuku FM solves the problem of finding off-screen, engaging content that is catered to regional audiences. It provides content in the form of audiobooks, podcasts and audio stories across a wide range of categories. It complements short-format entertaining stories with long-form educational and self-help content, making it localized and suited to the taste of Bharat users.

For Listeners:

1. Regional Content: Offers content in multiple regional languages, catering to local preferences.

2. Passive Listening: Enables users to consume content while multitasking, ideal for busy schedules.

3. Engaging Content: Provides a mix of entertainment, education, and storytelling to keep listeners hooked.

4. Accessibility and Affordability: Mobile-first platform with options to unlock episodes with microtransactions, it makes content accessible and affordable.

For Content Creators:

1. Distribution: Provides reach to large audiences with wide range of content preferences.
2. Monetization: Providing a platform for small, independent creators to monetize their work, without the need for expensive equipment or editing expertise required by platforms like YouTube.
3. Feedback Loop: Users can provide ratings and reviews to shows and episodes, providing creators with valuable feedback on their work.

Engaging Features

1. Daily Listening Goals: To keep you on track, Kuku FM sets daily listening goals, encouraging you to stay consistent with your content.

2. Kuku Coins: You can earn Kuku Coins by listening regularly or completing tasks. These coins let you unlock premium episodes and content.

3. Referral Program: Invite your friends to join the app and get Kuku Coins for each successful referral, making it easier to access exclusive content.

4. Listening Streaks: Keep track of how many days in a row you’ve been listening, and earn rewards for staying consistent.

Personalized Experience

1. Custom Playlists: Make your own playlists of your favorite episodes or books

2. Bookmarking: Save interesting for later with the bookmarking feature.

Convenience and Accessibility

​1. Offline Downloads You can download content and listen offline.

2. Playback Control: You can adjust the playback speed to suit your pace.

3. Sleep Timer: Set a timer so your content stops playing after a certain time.

4. Multi-Device Sync: Keep your progress synced across all your devices.

Motivation

1. Achievements: Unlock badges and rewards for hitting milestones, like completing your first audiobook or hitting a listening streak.

2. Leaderboard: See how you stack up against other listeners in terms of engagement, adding a bit of friendly competition.

For Screenshots, refer: https://drive.google.com/drive/u/0/my-drive?fbclid=IwAR10FS3QAZTGLB1nxJcCiL7LPPYk6ZvrtBzxQrULCi4xjZN8YpjvmoR77jQ

• For individuals in smaller cities and towns who want access to regional language content for education and entertainment, Kuku FM app is an audio platform that provides engaging and accessible audio content in local languages, giving users an enriching, inclusive experience that’s tailored to their needs.
• For working professionals who need to stay updated with industry trends and career growth tips, Kuku FM app is a knowledge-sharing platform that delivers concise, actionable, and insightful audio content to help users enhance their professional skills during commutes or downtime.
• For creators in the self-help, education, and lifestyle niche who want to connect with a wide audience for personal growth, Kuku FM platform supports creators in growing their brands and generating income by delivering knowledge-based, inspiring content to listeners.

Users experience the core value prop of Kuku FM by going to the app, finding a podcast or audiobook of their choice, and listening to an episode of it.

(Brainstorming for Reasoning)

An active user repeatedly performs a core action for a period of time.

Core action for Kuku FM -> listening to a podcast episode

As per industry metrics, users for audio platforms are generally tracked with weekly/monthly active usage.

Weekly active usage makes sense to define active usage. Podcasts episodes on Kuku FM generally have a duration about 15-25 mins. Average duration would be about 20 mins. [Source]

Subscribed users can also be considered active, since they are performing transactions actively on the app.

Therefore,

Active User

"An active user for Kuku FM is someone who either listens to at least one podcast episode or audiobook, or spends 20 mins on the app, at least once a week or someone who has an active subscription to Kuku FM Premium."

(Brainstorming)

• Casual Users would tune in to the app, at least once a month. (3-4 times a month at best)
• Core Users would tune in to the app, at least once a week. (2-3 times a week at best)
• Power Users would tune in to the app on a daily-basis at least. (>5 times a week)

Overall, the natural frequency should revolve around a few times a week.

Natural Frequency -> 3 listening sessions per week (Each session at least 15-20 mins)

I have mentioned in the previous section that Depth of Engagement is the primary framework for engagement chosen for Kuku FM.

Exploring User Characteristics based segmentation.

User Characteristics Based Segmentation

Exploring ICPs Further

ICP 1: Sunita, the Homemaker

Sunita is a 37-year-old woman from Agra, Uttar Pradesh. She manages a household of 6 members and 3 school going children. Her typical days are hectic with week days spent in taking care of kids and household chores. In her limited free time, she consumes engaging content from YouTube and OTTs like Hotstar on her mobile and also enjoys shopping online from Meesho or Myntra. She also enjoys soap operas on TV, but her busy schedule does not permit her to have a constant screen time. Her weekends are spent with family and occassional gatherings with other friends who are also primarily homemakers and/or self-employed.

ICP 2: Aditya, the IT Guy

Aditya is a 28-year-old Systems Engineer working at Infosys in Kochi, Kerala, living in a 3 BHK apartment shared with flatmates. He spends about 2 hours everyday on commute to and from office, via bus. Watches OTTs like Hotstar in free time or during commute. Browses through Instagram or Facebook as well. Typical day consists of work, commute and watching OTT. He goes out with his friends during weekends and spends time playing football or meeting family. He aspires to relocate to Bangalore and find a better job. But his busy schedule makes it difficult to find time for upskilling. He is also a Malayalam speaker.

ICP 3: Arun, the Delivery Rider

Arun is a 31-year-old delivery rider for Zomato in Gurugram. He has been in the delivery space for about 5 years, earlier working at eKart. Most of his day is spent on the road fulfilling orders. He rides his bike and uses Google Maps for navigation. In his free time, he browses through Facebook and watches OTT platforms like MX Player or Hotstar. He aspires to pick up new skills and find better opportunities. Being a delivery partner, weekends are peak business hours for him. He hardly finds time for himself through the week.

ICP 4: Ramesh, the Govt Exam Aspirant

Ramesh is a 25-year-old guy from Jamshedpur, Jharkhand. He works as an assistant at a local HDFC bank branch. He is preparing for UPSC exams and pursues coaching alongside work. His weekdays are spend are spent at work or coaching, or on commute. He watches some YouTube and plays BGMI with his friends for relaxation. His weekends are also spent in coaching or studying at home. This is his 3rd UPSC attempt and he struggles in general to keep himself motivated.

Based on the ICP Prioritzation Table

We can prioritize ICP 2 and ICP 1, as they seem to be the most valuable users who have a good adoption, high appetite to pay, high TAM and good distribution potential.

That can help to craft curated engagement campaigns for specific ICPs, notifying them of new titles released in their most preferred choice of genres.

However, not all genres of content may have the same stickiness.

Studies have shown that more value-driven content(self-help, knowledge) have much higher retention rates than entertainment and drama, which are good as hooks to acquire users.

Campaigns can be based on nudging users to try different genres too, offering them free episodes of a new genre show. Users trying out a few free episodes of a different genre might spend their money and time to explore it further, increasing core value prop for them.

Casual/Core/Power Users

Metrics tracked for Depth of Engagement

1. Hours of listening time per week.
2. Unique shows/episodes consumed per week.

Sources:

https://finvalresearch.in/insight/wp-content/uploads/2023/10/Indian-Audio-OTT-Analysis-2023.pdf

Will cover Product Hooks later.

(Brainstorming)

Broadly listing user goals for each user segment

Casual User -> Solve for motivation, get them to engage more with the app, explore more content, convert them to Core Users

Core User -> Solve for content discovery, habit formation. Get them to explore other genres, build streaks, refer others, provide reviews. Higher engagement and habit formation will eventually convert them to Power Users.

Power Users -> They are already convinced of the usefulness of the app. They should be nudged towards subscribing to premium if they haven't already. Nudging them to provide app reviews, episode reviews and feedback will make them feel important and they will likely spread strong WoM. Keeping them engaged with better content, telling them to explore other lesser-known features of the app like Drive Mode and Notes.

Engagement Campaigns

Campaign #1

Segmentation: Casual Users

Goal: Drive in-app purchases and engagement with Kuku Coins.

Pitch: “Flash Sale! Get 3x Kuku Coins for every in-app purchase made today only.”

Offer: 3x Kuku Coins for all in-app purchases.

Frequency and Timing: 24-hour campaign during off-peak hours.

Channel: Push Notification & SMS/WhatsApp

Reasoning: Push notifications encourage immediate action, and SMS reaches users who might miss or have disabled app-based notifications, driving more purchases during the flash sale.

Success Metrics:

• Number of in-app purchases.
• Total Kuku Coins purchased.
• % of casual users participating.

Campaign #2

Segmentation: All User Types (focus on core + power users)

Goal: Add new users and engage existing once through referrals.

Pitch: “Double the fun, double the rewards! Invite friends and earn 2x Kuku Coins for every successful referral.”

Offer: 2x Kuku Coins for referrals during the campaign period.

Frequency and Timing: Month-long campaign with reminders every 3 days.

Channel: WhatsApp & Push Notification

Reasoning: WhatsApp is effective for personal, conversational engagement and can encourage social sharing of the referral offer, while push notifications increase visibility and remind users to refer. Also, the WhatsApp campaign message can contain the referral link, so that it can be directly forwarded to friends and family.

Success Metrics:

• Number of new sign-ups via referrals.
• Total Kuku Coins earned through the campaign.

Campaign #3

Segmentation: Power Users

Goal: Upsell premium subscriptions to Power users who have not yet subscribed.

Pitch: “Your passion for learning deserves more! Enjoy an exclusive 2 days of premium access for free with us, and a 20% off on annual subscriptions"

Offer: Free 2-day premium access for non-premium users and a 20% discount on annual subscriptions for non-premium/existing premium users.

Channel: WhatsApp & Push Notification

Frequency and Timing: Limited-time campaign (1 week), with daily reminders at 9 AM and 8 PM.

Reasoning: Power Users who haven't yet subscribed to premium, may not have done so due to price reasons. Get them to experience it for 2 days, and offer a discount on annual subscriptions. Also, WhatsApp and Push Notification are the best channels for reasons mentioned above already, WhatsApp message can even bear the payment link if they choose to subcribe with discount.

Success Metrics:

• Conversion rate to premium subscriptions.
• Increase in daily listening duration for power users.
• Retention rate improvement post-campaign.

Campaign #4

Segmentation: Casual Users

Goal: Broaden content exploration and drive usage in off-hours like weekends.

Pitch/Content: “Your weekend just got better! Explore 3 new shows this weekend and get rewarded with 50 Kuku Coins.”

Offer: 50 Kuku Coins for listening to three unique episodes over the weekend.

Frequency and Timing: Active only on weekends; notifications sent Friday evening and Sunday morning.

Channel: Push Notification + SMS

Reasoning:

Casual users still haven't build the habit or explored the content as much. Incentivising them to complete 3 different episodes from different shows helps with exploration and can likely lead to higher engagement.

Success Metrics:

• % of casual users participating.
• Number of unique content types consumed.
• Weekend sessions increase compared to pre-campaign.

Campaign #5

Segmentation: Core Users

Goal: Increase frequency of sessions and form habits.

Pitch/Content: “Level up your learning journey with the Daily Listening Goals! Complete 15 minutes of listening every day to unlock exclusive rewards.”

Offer: Earn bonus Kuku Coins (100 Kuku Coins) and access a free premium episode upon completing a 7-day streak.

Frequency and Timing: Run for a month; send reminders every evening at 7 PM (prime listening time).

Channel: Push Notification

• Reasoning: Push notifications are effective for active user engagement, providing timely reminders and nudges. Core users should be nudged toward habit formation and streaks are the best way to target that.

Success Metrics:

• Increase in average listening duration per day.
• Completion rate of 7-day streaks.
• D30 Retention rates at the end of the campaign.

We can compare it with Music Apps, which are the closest match. But I will be highlighting where the difference might be in retention rates. [Source]

Music Apps:

• Higher D1 retention (20.4%) due to frequent and habitual usage (e.g., casual music streaming).
• Significant drop by D7 and D30 as users switch apps or prefer variety.

Podcast Apps:

• Lower D1 retention (15.2%) because podcasts cater to a niche audience, requiring deliberate engagement.
• Gradual decline, reflecting content-driven engagement rather than habitual use.

Kuku FM can address early drop-offs by promoting personalized recommendations or streak-based rewards to increase D1-D7 retention.

• Secondary Apps/Alternatives: Users may show preference to alterative apps for listening to podcasts and audiobooks.
• Price Sensitivity: Prices may be too unaffordable for some users.
• Unappealing Premium Benefits: Premium benefits may not be enough to justify the cost, and users may choose to not renew subscriptions.
• Overwhelming Content Choices: Too many options for content, without proper cataloguing or organization may be causing users to disengage and discover better content.
• Low Awareness of Features: Users may not fully understand all features, such as offline mode or daily listening goals, reducing engagement.
• Limited Free Content Access: Free users may feel overly restricted, and not be able to test the waters, prior to commiting to monetary transactions.
• Misunderstood Value Proposition: People are not clear with the core value prop, and how Kuku FM can help them.

Campaign #1

Target Segment: Long-time premium subscribers who churned after a price increase. (Users who have not renewed subscription)

Problem to Solve: Perceived lack of value for the higher subscription cost.

Goal: Convince users of the value of the premium subscription and bring them back.

Pitch: “We miss having you here! Enjoy a special discount and access to our newest exclusive content.”

Offer: 20% off on the next 3-month subscription, along with access to early-bird releases for premium shows.

Channel: WhatsApp for quick and direct engagement, Push Notification too.

Frequency: Sent once, with a follow-up after 7 days if there’s no response.

Success Metrics:

Number of re-subscriptions.

Revenue from returning users.

Campaign #2

Target Users: Users interested in regional or vernacular content who churned due to lack of updates.

Problem to Solve: Perceived lack of regional content offerings.

Goals: Highlight newly added regional content to attract these users back.

Pitch: “New stories in your language are here! Explore the latest [Tamil/Marathi/Bengali] audiobooks today!”

Offer: Free 100 Kuku Coins to access regional shows

Channel: Push Notifications and SMS for vernacular language users.

Frequency: Notifications every 5 days for 2 weeks after regional content updates.

Success Metrics:

% Churned users performing core action within 7 days.

Campaign #3

Target User: Users who primarily consumed audiobooks but churned due to incomplete series or lack of variety.

Problem to Solve: Users disengaged because of gaps in audiobook content or limited updates.

Goals: Highlight new audiobook releases and series updates to re-engage users.

Pitch: “The wait is over! Your favorite series has new chapters—start listening today!”

Offer: Free 100 coins to spend on audiobooks.

Notify users immediately after a new audiobook or series update is added.

Success Metric:

Number of replays, completion rates of new releases, and retention over 30 days post reactivation.