Monetization project | Broomees
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Monetization project | Broomees

Product is not monetizing- The litmus test


Defining the ICP


Parameter

ICP 1: Working Professionals

ICP 2: New Parents

ICP 3: Families with Elderly Members

ICP 4: High-Income Families

ICP 5: Students & Young Singles

Age

25-45

28-40

40-70+

30-50

20-30

Demographics

Living in nuclear families in cities like Delhi, Noida, Bangalore

Urban parents with demanding schedules in similar locations

Joint or nuclear families in serviceable locations

Families in Tier 1 cities serviced by Broomees

Students/professionals in serviced metro cities

Occupation

Mid-to-senior-level corporate employees

Corporate professionals, entrepreneurs

Homemakers or retired professionals

Business owners, C-suite executives

Students or entry-level professionals

Income

₹8-20 LPA

₹15-25 LPA

₹10-20 LPA

₹25 LPA+

₹4-8 LPA or student budgets

Dependents

May or may not have dependents

Infants and toddlers

Elderly parents or relatives

Children and/or elderly dependents

None

Where do they spend time?

- LinkedIn for networking and career growth, Instagram and YouTube, Productivity tools (Google Calendar, Notion), Fitness apps

- Parenting forums, blogs, and YouTube, WhatsApp, Instagram for parenting influencers, E-commerce platforms for baby products.

- WhatsApp groups, Healthcare blogs, online pharmacies, and devotional websites, News apps (e.g., Inshorts), YouTube for elder care and home remedies.

- LinkedIn, Instagram and Twitter, Online MasterClasses and other platforms for learning, Pinterest for home decor ideas.

- Instagram, YouTube for entertainment, Netflix, gaming platforms, and Reddit, Spotify, Coursera or Udemy for upskilling.

Where do they spend money?

- Cleaning services, food delivery apps, and fitness memberships, travel apps, online shopping

- Online shopping for self and newborn, Nanny or babysitting services, Parenting workshops and healthcare services

- Healthcare services (consultations, medicines), Nutritional supplements and medical devices, House maintenance services

- Premium home services, Luxury dining, branded goods, and exclusive clubs, High-end travel, fitness equipment, and personal trainers.

- Affordable gadgets, online shopping, Food delivery, Streaming subscriptions, budget-friendly travel

Need or the "Why" behind using Broomees

Lack of time for cleaning, cooking, and household tasks

Need trusted and experienced nannies for child safety

Dependable elder care and companionship

Hassle-free, premium-quality household management

Need for quick, affordable help for chores

How did they discover Broomees?

Social media ads, word-of-mouth referrals

Parenting communities, social media ads

Recommendations from family

Referrals, social media ads

Social media, peer recommendations

Features they value most

Verified staff, time efficiency, reliable services

Child safety, trustworthiness, experienced caretakers

Compassionate, reliable elder care

High-quality, seamless coordination of household tasks

Affordability, reliability, easy booking process

Broomees Services

Housemaids, Cooking Maids, All-Rounders

Baby Caretakers/Babysitters, Housemaids

Elderly/Patient Care Services, All-Rounders

24/7 Live-In Helpers, Cooking Maids, Housemaids

Housemaids, Cooks

Pain Points

Unreliable and inconsistent service providers

Finding trustworthy and experienced nannies

Ensuring proper care and attention for elderly members

Managing multiple staff and ensuring premium service

Limited time and budget for managing chores

Solution

Professional and verified helpers for daily tasks

Experienced babysitters for safe and reliable childcare

Trained caregivers to provide elder care and support

Seamless, high-quality 24-hour live-in services

Affordable and efficient household support

Perceived Value of product

Saves time and hassle while ensuring a clean, managed home

Peace of mind and safety for their children

Improved quality of life and well-being for elderly

Hassle-free, premium household support

Convenience and cost-effectiveness

Value Accessibility to product

Mid-range affordability

Low price sensitivity

Price-sensitive for ongoing care needs

High willingness to pay for premium quality

Price-sensitive with a focus on affordability

JTBD

Primary (Functional): Efficiently manage household tasks while focusing on career.
Secondary (Personal): Ensure reliable, high-quality service for peace of mind.

Primary (Functional): Ensure safe, reliable childcare while balancing work.
Secondary (Personal): Gain peace of mind and feel confident about their child’s safety.

Primary (Functional): Provide compassionate elder care that maintains their dignity and well-being.
Secondary (Personal): Ensure the family feels supported in caring for aging loved ones.

Primary (Functional): Seamlessly manage household tasks with premium quality services.
Secondary (Social): Maintain a well-managed household to reflect a high standard of living.

Primary (Functional): Get affordable help for household chores to free up time for other priorities.
Secondary (Personal): Save time and reduce stress while focusing on career or studies.

Monetization litmus test

Retention Graph

The retention graph for Broomees is calculated based on a combination of industry benchmarks, competitor analysis, and user behaviour patterns typical of gig economy platforms offering domestic help services. The methodology includes:

  1. Industry Benchmarks:
    • Urban Company: Public insights indicate retention stabilizing at 20-25% within 6 months, driven by recurring service users like cleaning, cooking, and beauty.
    • ChefKart: Focused on recurring cooking services, their retention curve is estimated to stabilize at ~25% by Day 180, with a sharper churn in casual users.
    • Gig Economy Studies: Platforms like Swiggy/Zomato report initial churn rates of 10-20% within the first week, with retention stabilizing at 15-30% over 3-6 months.
  2. User Segmentation:
    • Based on Casual, Core, and Power User types, retention rates are tailored to Broomees’ service offerings (e.g., housemaids, babysitting, elder care).
    • Casual users show high early churn, while core and power users retain longer due to recurring needs.
  3. Retention Curve Context:
    • Services like elder care or live-in helpers retain users for extended periods due to dependency and trust.
    • One-time services like cleaning or babysitting see higher churn rates within the first 30 days.


Retention Table for Broomees


Day

Retention Rate (%)

Reasoning

Day 0

100%

All users onboard, motivated by immediate needs (e.g., cleaning, cooking, babysitting).

Day 1

70%

Some casual users churn after exploring alternatives or deciding the service isn’t a fit.

Day 7

50%

Significant drop-off as one-time or trial users disengage after fulfilling their short-term needs.

Day 30

30%

Retention stabilizes as core users (e.g., families needing recurring services) continue using Broomees.

Day 90

25%

Churn among core users due to budget concerns, service dissatisfaction, or exploring competitors.

Day 180

20%

Retention flattens as power users (e.g., long-term elder care, live-in helpers) form the loyal base.

image

Reasoning Behind Retention Graph

  1. Day 0-7 (Casual User Drop-Off):
    • Why: One-time users resolve their needs (e.g., cleaning for an event or emergency babysitting).
    • Industry Comparison: Casual users on platforms like UrbanCompany and ChefKart show similar rapid churn rates.
  2. Day 7-30 (Core User Stabilization):
    • Why: Families or individuals requiring regular housekeeping, cooking, or babysitting find value and stay engaged.
    • Retention Factors: Convenience, verified staff, and consistency.
  3. Day 30-90 (Core User Churn):
    • Why: Budget constraints, inconsistent service quality, or switching to other alternatives.
    • Retention Strategies: Loyalty programs, service guarantees, and personalized follow-ups.
  4. Day 90-180 (Power User Stability):
    • Why: Power users, such as families with elder care needs or those relying on live-in helpers, remain highly dependent.
    • Retention Factors: Trust, reliability, and long-term dependency.


Understanding Natural Frequency of Broomees


User Type

Frequency of Usage

Primary Features Used

Reason for Engagement

Benefits Experienced

Casual Users

- One-time usage

- Japa services, babysitting, or on-demand cleaning services

- Immediate short-term needs, such as events, emergencies, or ad-hoc requirements

- Quick resolution of specific problems, convenience

- Saves time and effort for temporary needs

Core Users

- Regular use for a few months

- Housemaids, babysitting, or recurring cleaning services

- Routine household management or childcare for a fixed period

- Work-life balance or until finding a better alternative

- Engagement lasts 2-6 months

- Reliable support for consistent daily or weekly tasks

- Reduces household workload and stress

Power Users

- Continuous long-term usage

- 24/7 live-in helpers, elder care, or comprehensive household management

- Dependency on trusted, long-term solutions

- Need for premium, ongoing support for family or lifestyle

- Engagement lasts 6+ months"

- Seamless household management, high trust, and consistency

- Stability and peace of mind through reliable services

In conclusion, understanding Broomees' natural frequency i.e Casual, Core, and Power is crucial to designing tailored retention strategies and improving customer satisfaction. Casual users, with their one-time engagement, present an opportunity for upselling and converting them into recurring users. Core users, who rely on services for a few months, require consistent quality and incentives to prevent churn. Meanwhile, Power users, as the most loyal and long-term segment, highlight the importance of trust, premium support, and personalized service. By addressing the distinct needs and pain points of each group, Broomees can enhance retention, boost customer lifetime value, and create a sustainable growth model.



Depth of Engagement

Depth of engagement measures how deeply users interact with a product or service by evaluating the time or money they spend on core and additional features. Here are some observations:


Parameter

Data from Observations/Estimates

Insights

Service Continuity

~30% of core users use Broomees services for 3-6 months; 15% extend beyond 6-9 months.

Longer usage duration correlates with greater engagement and dependency on Broomees services

Spending on Services

Casual users spend ₹3,000-₹5,000 per booking, while core users spend ₹15,000-₹25,000 monthly.

Higher spending, especially on recurring services, reflects deeper engagement and reliance.

Service Diversity

40% of power users bundle services (e.g., cooking + housemaid + baby care).

Users engaging with multiple services show stronger loyalty and deeper integration.

Retention-Driven Metrics

~20% of users use premium live-in helper services for more than 12 months.

Premium services indicate the highest depth of engagement due to trust and dependency.


Depth of engagement for Broomees is driven by the amount spent and the core services used.


User Type

Monthly Spending (₹)

Core Services Used

Casual Users

₹3,000-₹5,000

House cleaning, cooks

Core Users

₹15,000-₹25,000

Housemaids, cooks, Baby caretaker, Japa

Power Users

₹30,000+

Live-in helpers, All-rounders

Power users who utilize premium and bundled services for extended periods demonstrate the deepest engagement, while core users contribute consistent revenue with recurring services.

Casual users, though low in engagement, represent an upselling opportunity. By focusing on service diversity, retention, and impactful benefits, Broomees can deepen user engagement and maximize lifetime value.



Willingness to Pay

In the beginning of this section, we defined the 5 ICPs for Broomees, based on their demographic, occupational, and behavioral traits. These ICPs represent the core audience segments Broomees caters to, ranging from working professionals to high-income families. By analyzing their willingness to pay, we can better understand their specific needs, concerns, and potential price sensitivity. Below, we detail the qualifying ICPs and their associated problems in structured tables.


ICP

Qualifies?

Why They Qualify

Key Problems

Working Professionals

Yes

High reliance on recurring services like housekeeping and cooking due to time constraints and busy work schedules.

Time inefficiencies: Struggle to balance work and household tasks.

Service inconsistency: Concerns over staff punctuality and reliability.

New Parents

Yes

Moderate reliance on babysitting or childcare services, with a focus on safety and reliability.

Trustworthiness: Anxiety about leaving children in the care of others.

Lack of flexibility: Babysitting services may not align with unpredictable schedules.

Families with Elderly Members

Yes

Need dependable elder care services to ensure well-being and dignity for elderly family members.

Untrained caregivers: Concern about inadequate skills to handle elder-specific needs.

Long-term reliability: Difficulty finding consistent and dependable care providers.

High-Income Families

Yes

Willing to pay a premium for seamless, high-quality services like live-in helpers or all-rounders.

Managing multiple staff: Complexity in coordinating between cooks, housemaids, and babysitters.

Premium quality expectations: Expect flawless service delivery.

Students & Young Singles

Limited

Low budgets restrict their ability to adopt recurring or premium services, but they qualify for basic offerings like cleaning or cooking.

Budget constraints: Struggle to afford recurring services on limited income.

Limited availability: Difficulty finding reliable help for basic chores.

Test the Hypothesis

Goal: To test different pricing strategies and offerings tailored to each qualifying ICP to determine their willingness to pay.


ICP

Hypothesis to Test

Approach/Examples

Working Professionals

Bundled services (e.g., housekeeping + cooking) will increase perceived value and drive higher engagement.

- Offer discounted packages for bundled services starting at ₹10,000/month.

- Example: ₹5,000 for one service, ₹10,000 for three services.

Flexible plans (7 or 15 days usage options as trials) will attract price-sensitive users.

- Introduce weekly plans for ₹500-₹1,000 or daily plans for ₹200/day.

- Test adoption for short-term flexibility.

New Parents

Discounted long-term plans will incentivize trust in babysitting services.

- Offer trial babysitting sessions (₹500/session) to build trust.

- Provide 10% off for 3-month contracts priced at ₹15,000/month.

Highlight verified caregivers to justify premium pricing.

- Test personalized caregiver matching for ₹20,000/month.

- Upsell add-ons like emergency availability at ₹2,000 extra/month.

Families with Elderly Members

Trained elder care services will justify higher prices for this segment.

- Test elder care packages starting at ₹20,000/month.

- Include add-ons like companionship or medical support for ₹3,000/month.

Offering loyalty benefits for long-term users will drive retention.

- Provide 5-10% discounts for contracts exceeding 6 months.

High-Income Families

Premium-tier services (e.g., live-in helpers) will attract this segment despite higher prices.

- Test pricing at ₹20,000-₹30,000/month for premium services.

- Offer exclusive benefits like priority support or additional hours.

Loyalty rewards and personalized support will encourage long-term commitments.

- Provide perks like free deep cleaning for annual contracts.

Scale Your Sample Set

Goal: To expand tested pricing strategies to a larger audience, ensuring adoption and scalability across different regions.


Step

Execution Plan

Pilot Testing

- Conduct pilot tests with a small group of users from Tier 1 cities (e.g., Delhi NCR, Bangalore).

- Focus on high-demand areas like working professionals and families with elderly members.

Data Collection and Analysis

- Gather user feedback on pricing, service quality, and satisfaction levels.

- Use analytics to measure adoption, retention, and upselling rates across ICPs.

Adjust Pricing Models

- Refine pricing for each ICP based on feedback.

- For example: Increase discounts for price-sensitive users or introduce premium add-ons for high-income families.

Full Rollout

- Expand successful pricing strategies to other cities (e.g., Chennai, Hyderabad).

- Focus on scaling bundled services and premium offerings to increase revenue.

Ongoing Optimization

- Continuously evaluate pricing performance and user satisfaction.

- Introduce seasonal offers (e.g., festival packages) to engage churned users.


In conclusion, the analysis demonstrates a clear willingness to pay among the four qualifying ICPs, with each segment showing strong engagement when offered tailored pricing models and value-driven solutions.












Product is monetizing

GTM Communication Strategy for Broomees

1. What Broomees is?

Broomees is a one-stop platform for trusted, verified, and professional household help, including housemaids, cooks, babysitters, japa, and live-in helpers. It simplifies household management by connecting families with reliable and trained professionals.


2. How does it build trust among users?

  • Verified Workforce: All professionals undergo rigorous background checks and training before being onboarded.
  • Transparent Communication: Clear service agreements, detailed professional profiles, and user reviews create transparency.
  • Customer Support: Call, email & WhatsApp assistance ensures immediate resolution of user concerns.

3. Why should the customer choose Broomees?

  1. Convenience: A user-friendly platform to effortlessly find and book household help, including maids, cooks, babysitters, and elder care services, saving time and effort.
  2. Trust and Reliability: All professionals are thoroughly verified, background-checked, and trained, ensuring consistent service quality and the safety of your household.
  3. Service Options: Monthly service plans tailored to meet recurring household needs without requiring long-term commitments.



4. How to best use Broomees?

  1. Explore Services: Navigate through the website's service categories (e.g., maids, cooks, babysitters, Live-in) to identify the specific help you need.
  2. Book with Ease: Select your city, browse available options, and complete the booking process seamlessly through the platform.
  3. Provide Feedback: Share feedback on your experience to help Broomees improve its services and ensure customer satisfaction.
  4. Leverage Support: Reach out to Broomees’ customer service team for any assistance or to make adjustments to your service as needed.



Customer Touchpoints

  1. Website and App:
    • Use engaging landing pages explaining Broomees’ services and benefits.
    • Offer an intuitive booking experience with clear service descriptions and pricing.
  2. Email Marketing:
    • Personalized emails highlighting user-specific services (e.g., offers for mother and child care to families with new borns).
    • Share onboarding guides and success stories to build trust.
  3. Social Media Campaigns:
    • Showcase video testimonials from satisfied customers and case studies of families who benefited from Broomees.
    • Highlight key USPs like verified professionals and transparent pricing.
  4. In-App Notifications:
    • Notify users about exclusive offers, reactivation discounts, or service upgrades (e.g., bundles or premium plans).
    • Share tips for making the most out of services (e.g., pairing cooking and babysitting).
  5. Customer Support Channels:
    • Actively engage with user queries via chat, phone, and email.
    • Promote Broomees' responsiveness to demonstrate care and reliability.

Key Messaging

Product Value:

“Transform household management with trusted professionals tailored to your needs.”

Trust Building:

  • Showcase customer testimonials, professional background verification processes, and rigorous training standards.
  • Promote a "100% Satisfaction Guarantee" policy for first-time users.

Differentiation:

  • Emphasize unique features like bundled service packages, verified staff, and premium live-in helper options.
  • Position Broomees as the only platform offering comprehensive, end-to-end household solutions.

Educational Content:

  • Blog/Video Content: Create step-by-step guides on choosing household help or managing staff effectively.
  • Social Campaigns: Share tips for a better work-life balance with Broomees' services.
  • Webinars: Host live Q&A sessions with Broomees’ team to address user concerns and educate them about the platform.

Example Messaging in Action

  • In-App Notification:
    “Time to simplify your life! Book a verified housemaid today and experience hassle-free household management.”
  • Email Campaign:
    “Struggling to balance work and home? Let Broomees take care of your household needs. Try us now with an exclusive 10% off on your first booking.”
  • Social Media Post:
    “Meet Meera, a busy mom who reclaimed her time with Broomees. Read her story of trust and convenience: [link].”

This GTM strategy aligns with Broomees' target ICPs and effectively communicates product value, builds trust, and drives engagement through strategic touchpoints.









Substitute pricing

Substitute Pricing


1. Customer Value Proposition: What Are They Paying For?

Customers pay for verified and reliable household help services, specifically:

  1. Housemaids:
    Reliable support for daily cleaning and maintenance tasks.
  2. Cooks:
    Customized meal preparation based on family preferences and dietary needs.
  3. Babysitters/Japa:
    Professional childcare services to take care of new born babies and mothers and help with food, bathing, massages, etc.
  4. All-Rounders:
    Multi-skilled professionals who handle cleaning, cooking, and other household chores.
  5. Live-In Helpers:
    Comprehensive 24/7 household support for families with long-term requirements.


2. Differentiation: How Does Broomees Stand Out?

Broomees distinguishes itself with:

  1. Verified Professionals:
    Thorough background checks and training ensure trust and high-quality service.
  2. Specialized Focus:
    Unlike broader platforms, Broomees specializes in household services like maids, cooks, and babysitters.
  3. Seamless App Features:
    Functional app offering service browsing, bookings management, attendance tracking, and customer profiles.
  4. Transparent Monthly Plans:
    Simplified monthly pricing eliminates the hassle of hourly or ad-hoc bookings.
  5. Metro-Focused Reach:
    Targets urban regions like Delhi NCR, Pune, and Bangalore, catering to families' specific needs in these cities.


3. Brand Positioning: Why Should Customers Choose Broomees?

  1. Verification & Assessment:
    Broomees ensures the highest quality of service providers by employing rigorous physical and telephonic verification processes enhanced with AI. Customers can trust that all staff members are thoroughly vetted and assessed to meet their household needs safely and professionally.
  2. Transparent Pricing:
    With Broomees, customers know exactly what they are paying for. The platform offers clear, upfront pricing with no hidden costs, along with added benefits like a replacement guarantee, COVID-19 test reports, and verification documents to ensure peace of mind.
  3. Reliable Customer Support:
    Dedicated executives are available to promptly address any concerns or issues. Whether it’s resolving a problem or providing guidance, Broomees’ customer support team ensures a smooth and hassle-free experience for all users.


4. Improvements Needed to Justify Higher Pricing


Area

Current State

Improvements Needed

Digital Experience

Functional app and website with browsing, bookings, attendance tracking, and profiles.

Add advanced features like Real-time updates on when the maid is on the way or has arrived, Past Performance Feedback, In-App Feedback Submission, Automated Renewal Reminders

Pricing Flexibility

Fixed monthly plans with no short-term options for casual users.

Introduce entry-level packages (e.g., "light services" with fewer hours/weeks) to target price-sensitive users.

Customer Onboarding

Basic onboarding process via app/website.

Offer onboarding guides (e.g., video tutorials or FAQs) to help first-time users understand service benefits and expectations.

Transparency in Service Delivery

Verified professionals are allocated, but customers may not fully understand the vetting process.

Highlight the vetting and training processes in marketing materials to build customer trust and justify pricing.

Customer Support

Responsive but mostly reactive (focused on resolving issues after they occur).

Build a proactive support system that checks in with users periodically to gather feedback and address concerns early.

Staff Continuity

Professional continuity depends on staff availability, leading to potential replacements.

Ensure continuity of service with long-term staff assignments and transparent communication in case of unavoidable changes.

Loyalty and Retention

No visible loyalty rewards for long-term users or referrals.

Introduce loyalty programs (e.g., discounts after 6 months of service) and referral incentives to retain existing customers and attract new ones.

5. Competitor Analysis: Broomees vs UrbanCompany vs ChefKart


Parameter

Broomees

UrbanCompany

ChefKart

Core Services Offered

Verified household services: maids, cooks, babysitters, live-in helpers, and all-rounders.

Ad-hoc and recurring services: cleaning, beauty, pest control, appliance repairs.

Specialized cooking services focused on personalized meal preparation.

Target Audience

Urban families seeking recurring and trusted household help for daily needs.

Broad audience requiring on-demand home & beauty services.

Families requiring regular & occasional cooking assistance.

Pricing Model

Monthly fixed plans: ₹10,000-₹15,000 based on service type.

Flexible pricing: ₹2,000-₹10,000 for ad-hoc services, higher for recurring plans.

₹4,000-₹20,000 based on service customization.

Customization Options

Limited: Food preferences (veg/non-veg), flexible cleaning schedules, and multi-tasking staff.

Limited: Standardized ad-hoc services with predefined offerings.

High: Customizable meal plans based on dietary and timing needs.

Professional Verification

Verified via rigorous physical, telephonic checks, and AI-enhanced processes.

Verified professionals for select services

Verified chefs trained in personalized cooking.

Service Coverage

Delhi NCR, Bangalore, Pune, and other metro cities.

Pan-India coverage, focusing on metro and Tier 1 cities.

Delhi, Bangalore & Gurgaon

Flexibility to use

Difficult since monthly commitment is there

Easy

Very easy

Scheduling Flexibility

Monthly plans only; no hourly or weekly options.

Highly flexible: ad-hoc, hourly, and monthly plans available.

One time & party cooks available

Differentiator

Focused on recurring household needs with verified staff and transparent pricing.

Wide-ranging ad-hoc services for occasional and diverse home needs.

Niche cooking expertise with high meal customization for families.


Broomees stands out as a trusted platform for recurring household services, offering verified professionals, transparent pricing, and reliable customer support.

With its customer-centric approach, Broomees is poised to establish itself as the preferred platform for household management in metro cities.



Whom to charge?

Step 1: Baseline Scenario

Key Assumptions
  • Total Users:
    Broomees operates in metro cities like Delhi NCR, Bangalore, and Pune, targeting urban families. Assume 1,200 total users, including both revenue-generating and non-revenue generating users.
    • Non-Revenue Generating Users (people who have signed up for the app or interacted with Broomees in some way (e.g., inquiries, app installs)): 800 users (~66%).
    • Revenue-Generating Users: 400 users (~33%).
  • Conversion Rates:
    Assume a conversion rate of 40% for non-revenue users to paid plans at ₹10,000/month.
    • Paid Users After Conversion:
      40% × 800 = 320 new paying users.
  • Baseline Revenue Post Conversion:
    (Existing Paid Users + New Conversions) × Price per Month =
    (400 + 320) × ₹10,000 = ₹72,00,000/month.


Step 2: Test Elasticity Using RFM Analysis

User Segmentation

Broomees users are divided into Casual, Core, and Power Users based on their engagement, loyalty, and value contribution.


Segment

Recency

Frequency

Monetary Value

Churn Rate

Revenue Gain

Insights

Casual Users

Low

Yearly: Used only once

Low: ₹5,000-₹7,000/month.

High (~40%-50%).

Minimal.

Casual users are price-sensitive and churn if the price-value ratio doesn’t match expectations.

Core Users

Medium: Use services consistently (3-6 months)

Monthly: Until they find a better alternative

Medium: ₹10,000-₹15,000/month.

Moderate (~20%-25%).

Moderate.

Core users value service quality and will pay for consistency and reliability.

Power Users

High: Long-term consistent loyal users (6+ months).

Daily: For longer duration

High: ₹20,000-₹25,000+/month.

Low (~5%-10%).

Significant.

Power users are highly loyal, price-inelastic, and offer the highest revenue potential.


Elasticity Scenarios and Impact


Segment

Pricing Strategy Tested

Churn Rate

Revenue Gain

Insights

Casual Users

Pay-Per-Service Plan: Introduce a one-time payment option (₹5,000-₹7,000/month) with limited services to encourage adoption without long-term commitment.

~30%-40% churn

Moderate: ₹6,000 × retained users.

This pricing reduces the barrier for new users, letting them try services with minimal commitment while encouraging repeat usage.

Core Users

Loyalty Discount Plan: Offer 10%-15% discounts for users who opt for 3-month or 6-month plans (₹10,000-₹13,000/month).

~15%-20% churn

High: ₹12,000 × retained users.

This strategy rewards loyalty, reduces churn, and increases retention among users seeking consistency and reliability.

Power Users

Premium Membership Plan: Introduce a ₹25,000/month plan with added benefits like priority service, free replacements, and dedicated support.

~5%-8% churn

Significant: ₹25,000 × retained users.

Power users appreciate exclusive perks, making them willing to pay more for premium, uninterrupted, and high-quality service.


Reasoning behind these Improved Strategies
  1. Casual Users:
    • Why this works: Casual users are price-sensitive and hesitant to commit long-term. A pay-per-service option with a low entry barrier entices them to experience the service without upfront commitment.
    • Expected Revenue Impact: Reduced churn and increased likelihood of conversion into Core Users.
  2. Core Users:
    • Why this works: Core users value consistency and affordability. Offering loyalty discounts on extended plans strengthens their commitment and improves retention.
    • Expected Revenue Impact: Lower churn and steady revenue growth through long-term users.
  3. Power Users:
    • Why this works: Power users are loyal and willing to pay for added benefits. A premium membership provides exclusivity, ensuring high retention and maximizing revenue.
    • Expected Revenue Impact: Minimal churn and significant revenue boost due to price inelasticity.


User segmentation basis the RFM analysis


Category

Definition

Examples of User Behavior

Champions

Users consistently availing services (e.g., live-in helpers or all-rounders) for 6+ months.

Loyal power users who depend on Broomees for daily household management and recommend services to others.

Loyalists

Users regularly using services (e.g., housemaids, cooks) for 3-6 months.

Families on recurring monthly plans showing consistent engagement and providing positive feedback.

Potential Loyalists

Recently converted users using services (e.g., babysitters, cooks) for 2-3 months.

New adopters increasing their usage frequency and exploring bundled services.

Promising

Users trying a single service (e.g., cleaning or cooking) for 1-2 months with positive feedback.

First-time customers showing satisfaction and potential for transitioning into Core or Loyalist segments.

Need Attention

Users with reduced engagement after 1-2 months of service use.

Families on monthly plans who stop regular usage or delay feedback submissions.

About to Sleep

Users booking services but skipping engagement after initial use.

Casual users booking a housemaid or babysitter once and not continuing the service.

At Risk

Previous users who reduce usage significantly within a month.

Families discontinuing services due to pricing concerns or bad experience.

Hibernating

Users who booked services but didn’t proceed with active usage.

Users engaging in the booking process (e.g., for a trial) but not continuing due to hesitation or unmet expectations.

New Users

First-time customers using services for <1 month.

Recent users exploring basic offerings (e.g., a babysitter or cleaner for a one-time need).


Step 3: Defining Price Points


Segment

Price Point (₹)

Rationale

Casual Users

₹5,000-₹7,000/month

Encourages trial and adoption among price-sensitive users without requiring a long-term commitment.

Core Users

₹10,000-₹13,000/month

Increases retention by rewarding loyalty and perceived value for consistent users.

Power Users

₹25,000+/month

Maximizes revenue by leveraging loyalty and dependency on services, providing exclusive benefits.

Rationale for Price Points
  1. Casual Users: Low-cost entry plans reduce the barrier to onboarding and allow users to explore Broomees’ services without heavy financial commitment. This builds trust and drives future engagement.
  2. Core Users: Bundled discounts incentivize longer-term commitments, ensuring stable revenue and reducing churn for customers seeking consistent, reliable services.
  3. Power Users: Premium pricing leverages their willingness to pay for exclusive, high-quality services and added perks, capitalizing on their loyalty and dependency.

This tiered pricing model ensures that each segment is addressed effectively while optimizing revenue potential and minimizing churn.


Updated Revenue Impact Calculation


Scenario

Number of Users Retained

Average Price (₹)

Monthly Revenue (₹)

Churn Impact

Casual Users

360 (40% churn)

6,000

360 × ₹6,000 = ₹21,60,000

Moderate churn; increased first-time conversions.

Core Users

408 (15% churn)

12,000

408 × ₹12,000 = ₹48,96,000

Lower churn; strong retention from loyalty discounts.

Power Users

114 (5% churn)

25,000

114 × ₹25,000 = ₹28,50,000

Minimal churn; high revenue from premium users.

Total Monthly Revenue Post-Pricing: ₹99,06,000.



When to charge?

When to Charge for Broomees?

Broomees’ charging model involves three key components:

  1. Helper’s Salary: Paid directly to the helper for services rendered.
  2. Booking Fees: Charged at the time of placing a booking order.
  3. Subscription Fees: Charged before arranging a helper, ensuring a commitment to Broomees’ platform.

By breaking this structure into perceived value milestones and user journeys, we can better define when and how to implement or adjust pricing.


Identifying What Determines Value

For Broomees, value is tied to four primary benefits:

  1. Time Saved:
    • Customers save 3-5 hours daily (~60-120 hours/month) by delegating chores like cleaning, cooking, and childcare.
    • Example: A working professional benefits from a streamlined household workflow, reducing personal involvement.
  2. Convenience:
    • Users experience an effortless booking process, with verified professionals provided based on their needs.
    • Example: Families receive pre-vetted helpers without additional hiring or training efforts.
  3. Reliability and Trust:
    • Rigorous background checks ensure families feel secure with helpers.
    • Example: Replacement guarantees and verified staff minimize risks.
  4. Hassle-Free Payments:
    • Transparent pricing (Helper’s Salary + Booking Fees + Subscription Fees) simplifies household management expenses.


Aha Moments for Broomees Users

  1. The Day a Maid is Replaced Without Hassle:
    • A user experiences Broomees’ replacement guarantee when their maid doesn’t show up, and a substitute is arranged seamlessly within the next few days.
    • Why it’s impactful: It builds trust and reduces stress, showing users they can rely on Broomees for continuity without personal intervention.
  2. The First Time a Babysitter Wins the Child’s Trust:
    • A babysitter provided by Broomees bonds with the child, giving parents the confidence to step out for an evening without worry.
    • Why it’s impactful: It highlights the quality of training and vetting Broomees conducts, addressing a major pain point for parents.
  3. A Cook Serves a Perfect Meal Aligned with Dietary Preferences:
    • A user realizes they no longer need to give repeated instructions after the cook consistently prepares meals to the family’s exact preferences.
    • Why it’s impactful: This moment demonstrates Broomees’ ability to deliver personalized services that adapt to unique household needs.
  4. The Relief of Booking Without Negotiation:
    • A user successfully books a helper through the app without needing to negotiate salaries or conditions, which is traditionally stressful.
    • Why it’s impactful: It eliminates a common friction point in hiring domestic help and reinforces Broomees’ value in streamlining the process.
  5. The First Monthly Fee is Paid Without Stress:
    • A user completes the payment for Booking Fees and Subscription Fees seamlessly through the app and sees a transparent breakdown of charges.
    • Why it’s impactful: It reinforces Broomees’ professionalism and ensures users feel in control of their financial commitments.
  6. The Moment Staff Punctuality Becomes the Norm:
    • A maid or cook consistently arrives on time every day without supervision, reducing the user’s need to follow up or manage schedules.
    • Why it’s impactful: It emphasizes reliability and efficiency, two critical factors for busy urban families.


Metrics to Quantify the Value-Add Parameters


Value-Add Parameter

Metrics to Quantify

Rationale/Impact

Time Saved

- Average reduction in hours spent managing household chores: 2-4 hours/day (~60-120 hours/month).

Reflects the core benefit for users delegating cleaning, cooking, and childcare tasks to professionals.

- Time to find and hire helpers reduced by ~80% compared to manual searches.

Demonstrates Broomees’ efficiency in matching users with verified professionals.

- Time to resolve service issues (replacement or rescheduling): <24 hours.

Highlights Broomees’ reliability and fast response to disruptions.

Convenience and Reliability

- % of users who successfully book a helper within 3 days of request.

Measures the ease of onboarding and availability of helpers.

- % of repeat users renewing services for 3+ months.

Indicates consistent satisfaction with the platform’s reliability and convenience.

- Helper replacement rate resolved under 24 hours: >90%.

Quantifies the impact of Broomees’ replacement guarantees on user trust and retention.

Safety and Trust

- % of users who cite safety as their primary reason for choosing Broomees (user surveys).

Demonstrates how verified professionals meet a critical need for trust in household management.

- Zero incidents reported in households using Broomees’ verified staff (over a defined period).

Validates Broomees’ rigorous verification process as a key differentiator.

Stress Reduction

- % of users reporting reduced stress levels in user surveys (e.g., NPS or satisfaction scores).

Correlates Broomees’ services with improved user well-being and work-life balance.

- Feedback logs showing reduced household management complaints (monthly trends).

Reflects how dependable services alleviate stress from daily chore management.

Transparent Costs

- % of users satisfied with pricing clarity (user feedback).

Evaluates the success of Broomees’ clear breakdown of fees (Helper’s Salary, Booking Fees, Subscription Fees).

- Reduced instances of negotiation compared to traditional hiring methods (user surveys).

Highlights how Broomees simplifies the payment process, reducing friction.

Perceived Value Over a Period of Time


Week

Perceived Value (0-100)

User Journey Stage

Key Aha Moments and Experience

W0

5

Exploration

User signs up, reviews service offerings, and understands transparent pricing.

W3

30

First Booking Completed

Helper arrives on time, service quality matches expectations, and user experiences reduced chore management.

W5

65

Habit Formation

User consistently engages helpers for tasks, saving time and experiencing convenience regularly.

W10

70

Plateau

User experiences slight fatigue or routine dependency on services, but reliability keeps them engaged.

W20

90

Long-Term Value Realization

User fully integrates Broomees into daily life, appreciates trust, safety, and time savings as indispensable.

image

Broomees current Charging Pattern

  1. Booking Fee: Charged upfront when a user places a booking order.
  2. Subscription Fee: Charged upfront before arranging a helper.
  3. Helper’s Salary: Paid monthly by the user directly to the helper, separate from Broomees' fees.
  4. Non-Refundable Payments: Booking Fees and Subscription Fees are final and non-refundable.

Proposed Charging Pattern:

  1. Booking Fee:
    • No Change. It is still charged upfront at the time of booking.
  2. Subscription Fee:
    • Timing Change: Charge the Subscription Fee only after the user has completed their first successful service interaction (Week 3).
    • Why this Change?
      • Waiting until the first service builds trust and shows value before asking for a financial commitment.
      • Reduces the likelihood of drop-offs due to upfront fees.
  3. Helper’s Salary:
    • No Change. Continue allowing direct monthly payment to the helper.

Key Differences:


AspectCurrent ModelProposed Model

Timing of Subscription Fee

Upfront, before any service is rendered.

After the first successful service (Week 3).

Risk of User Drop-Off

High, as users are asked to pay before seeing any value.

Lower, as users pay only after experiencing the service.

User Trust Building

May feel transactional due to upfront payments.

Builds trust by showcasing value before charging.


Conclusion: What’s New?

The proposed model delays the Subscription Fee until the user experiences their first service (Week 3). While this is a subtle shift, it is critical for improving user trust, reducing drop-offs, and ensuring monetization aligns with perceived value.

This slight adjustment ensures Broomees retains financial commitment while better addressing the psychological barriers to conversion


What to charge for?

Primary Metric: Output

  • Charge for the specific outcome of the service provided, i.e., the helper arranged for a user.
    Example: A Booking Fee charged at the time of hiring a cook, cleaner, or babysitter ensures that users pay for what they consume.
    Structure:
    • Broomees’ core value lies in delivering verified and trained professionals for household tasks like cleaning, cooking, or babysitting.
    • Users are charged per successful booking and the service provided.
    • ₹1,500-₹2,500 per service/task (e.g., one-time booking for a babysitter or Japa).

Secondary Metric: Time

  • Charge for the right to access Broomees’ services over a specific period, regardless of how much they are used.
    Example: A Subscription Fee to access Broomees’ ecosystem on a monthly, quarterly, or yearly basis.
    Structure:
    • This aligns with Broomees' subscription model, where users pay to retain access to a pool of verified professionals, timely replacements, and reliable support.
    • ₹2,000-₹3,000/month for regular household help (cleaning, cooking).
    • Premium plans at ₹5,000+/month for exclusive benefits like live-in helpers, faster replacements, or dedicated support.




How much to charge?

To calculate Broomees' pricing, we will align the math with its core value propositions, focusing on time saved, trust/reliability, and stress reduction.

Parameter 1: Time Saved in Household Management

Time Value of Reduced Chore Management:
  1. Broomees saves ~2-4 hours/day (~60-120 hours/month)
  2. Average value of time for urban professionals: ₹500/hour.
  3. Value Saved: ₹500 × 60 = ₹30,000/month (minimum).
Hiring and Managing Staff:
  • Broomees eliminates ~6-8 hours/month spent on interviewing, hiring, and negotiating with staff.
  • Value: ₹500 × 6 = ₹3,000/month.

Parameter 2: Trust, Reliability, and Safety

Background Verification Savings:
  1. Average cost of conducting independent background checks for staff: ₹2,000/check.
  2. Broomees ensures verified professionals, saving these costs.
  3. Value Saved: ₹2,000/month.
Replacement Guarantee:
  1. Independent replacement efforts cost ~₹1,000 per instance (hiring, training, and inconvenience).
  2. Broomees offers replacements within 1-10 days.
  3. Value Saved: ₹1,000/month.

Parameter 3: Stress Reduction and Convenience

Effortless Staff Management

  • Pain Point Solved:
    Traditionally, hiring and managing household staff involves repetitive and time-consuming tasks like interviewing, training, and constant follow-ups.
    • Broomees Solution:
      • Verified and pre-trained professionals eliminate the need for interviews and background checks.
      • The platform handles staff replacements, so users don’t have to start from scratch in case of disruptions.
    • Quantified Value:
      • Time saved: ~6-8 hours/month previously spent managing staff.
      • Monetary equivalent: ₹500/hour × 6 hours = ₹3,000/month saved in effort.


Seamless Booking and Transparent Pricing

  • Pain Point Solved:
    Users often struggle with opaque salary structures, negotiating terms, or dealing with unexpected costs with direct hires.
    • Broomees Solution:
      • The platform provides a clear breakdown of fees, including Helper’s Salary, Booking Fees, and Subscription Fees.
      • No need for salary negotiations or unplanned expenses.
    • Quantified Value:
      • Reduced stress: Users avoid at least 1-2 frustrating salary negotiation instances/month.
      • Monetary equivalent: Estimated value of ₹1,000/month for eliminating this hassle.

Improved Work-Life Balance

  • Pain Point Solved:
    Juggling household chores alongside professional and personal commitments is a significant stressor for urban families.
    • Broomees Solution:
      • By outsourcing tasks like cleaning, cooking, and childcare, users gain more personal time and energy for family, hobbies, or work.
    • Quantified Value:
      • Families report a ~50% reduction in stress, equating to priceless improvement in mental well-being.


Total Perceived Value for Broomees:


Parameter

Value Saved (₹/Month)

Time Saved (Chore Management)

₹30,000

Time Saved (Hiring/Management)

₹3,000

Background Verification

₹2,000

Replacement Guarantee

₹1,000

Effortless Staff Management

₹3,000

Seemless booking

₹1,000

Total Perceived Value

₹40,000

Pricing Recommendations

1. Primary Metric: Subscription Fee (Time-Based)

  • Price Point: ₹5,000-₹7,000/month (Basic Plan)
  • Reasoning:
    • Affordable Access to High Perceived Value: Users experience tangible benefits like time savings (₹30,000+) and stress reduction (~₹3,000-₹5,000), which far outweigh the proposed price.
    • Core Value Proposition: This fee ensures consistent access to Broomees’ verified professionals, seamless booking, and hassle-free replacements.
  • Premium Plan: ₹10,000+/month
    • For users requiring live-in helpers, multiple services, or priority support, the premium plan taps into users who value exclusivity and reliability.
    • Justification: Trust and reliability (₹3,000+) and enhanced convenience for critical services justify the higher tier.

2. Secondary Metric: Booking Fee (Output-Based)

  • Price Point: ₹500-₹1,500/service
  • Reasoning:
    • Users pay for each booking, ensuring fairness and flexibility for one-time or casual users.
    • Example Use Case: Babysitters for occasional needs, festival cleaning, or wedding time cooks.
    • Justification: The pricing is competitive and matches the perceived effort Broomees puts into sourcing verified, reliable staff.

3. Add-On Services:

  • Replacement Guarantee Fee: ₹1,000-₹2,000 for expedited replacements.
    • Justification: Covers logistical costs and ensures rapid service recovery, adding value for Core and Power Users.
  • Family Plans: ₹2,000-₹3,000/month as an add-on to share access across multiple households or members.
    • Justification: Creates incremental revenue while expanding accessibility.


Conclusion

Broomees should implement a tiered pricing model, starting at ₹5,000/month for basic subscriptions, scaling to ₹10,000+/month for premium plans, with ₹500-₹1,500 Booking Fees for casual users. This structure ensures accessibility, scalability, and maximum revenue potential while aligning with the perceived value delivered to users.



Pricing page

Broomees Existing Pricing Page (included just 3 services here)

Screenshot 2025-01-14 at 5.59.43 PM.pngScreenshot 2025-01-14 at 5.59.55 PM.pngScreenshot 2025-01-14 at 6.00.24 PM.pngScreenshot 2025-01-14 at 6.00.54 PM.png

Observations

  1. Information Clarity:
    • The current pricing page provides a detailed breakdown of discounts (e.g., “Pay for 10 months, get 2 months free”) and mentions worker replacements and uniform costs, which are helpful.
    • However, key details like what is included in the membership fee (besides replacements) and worker salary breakdown are unclear, creating confusion for new users.
    • GST exclusivity is mentioned, but this can be overlooked easily.
  2. Navigation and User Flow:
    • The pricing page is segmented by service types (e.g., Babysitter, Cooks, Domestic Help), making it easy to explore different options.
    • The lack of a comparative table for pricing across services could make decision-making harder for users.
    • Pricing per service isn’t visible upfront and requires several clicks, which may deter potential buyers.
  3. Visual Appeal and User Experience:
    • The design uses clear blocks for each service with visuals, but it lacks interactive elements like FAQs or user testimonials to build trust in pricing.
    • The pricing discount highlights (“Best Seller,” “Super Saver”) are prominent and helpful.


Re-design the Pricing Page

Proposed Structure

  1. Introduction Section:
    • Add a value proposition statement at the top, such as:
      “Affordable and transparent household help services tailored for your needs. Choose the plan that works best for you!”
  2. Comparative Pricing Table:
    • Include a table showcasing side-by-side comparison of different services and plans.
    • Example:
ServiceMonthly Cost (₹)DiscountMembership BenefitsFree ReplacementsGST Applicability

Babysitter

₹1,407

35%

Verified workers, uniform costs

3 replacements

Extra

Domestic Help

₹987

55%

Priority replacements

3 replacements

Extra

24-Hour Live-In

₹2,696

25%

All-inclusive

3 replacements

Extra

  1. Service-Specific Details:
    • Below the table, add clickable tabs or sections for each service type (Babysitter, Cooks, etc.), showcasing:
      • Key features
      • Pricing tiers
      • User testimonials
      • Video walkthroughs of how Broomees ensures quality.
  2. FAQs and CTA:
    • Add a dedicated FAQ section addressing questions like:
      • “What does the membership fee cover?”
      • “Can I cancel my plan midway?”
    • Prominently display Call-to-Action (CTA) buttons:
      “Choose Your Plan” or “Calculate Your Savings.”


Reasoning for the Re-design

  1. Why Comparative Table?
    • Helps users understand the differences between plans and decide quickly.
    • Reduces drop-off rates due to confusion about pricing or benefits.
  2. Why Service-Specific Tabs?
    • Personalizes the experience for users looking for specific services.
    • Highlights Broomees’ trust, reliability, and flexibility, aligning with its value proposition.
  3. Why FAQs and Visual Elements?
    • Builds trust by addressing common concerns upfront.
    • Visuals (e.g., testimonials, explainer videos) humanize the service, making it more relatable and credible.
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