Paytm

Understand the Product

About Paytm

Paytm is a one-stop personalized payment app that streamlines the entire process of money transfers, bill payments, recharges, booking movie and travel tickets, and other transactions.

Today, more than 20 million merchants & businesses are powered by Paytm to accept payments digitally. This is because more than 300 million Indians use Paytm to pay at their stores.

Core Value Proposition

Paytm’s value proposition is built around simplifying digital payments and providing a comprehensive financial services platform for its customers. Key elements of Paytm’s value proposition include:

• Convenience: Paytm enables users to make seamless transactions, eliminating the need for physical cash or cards. With its QR code-based payment system, both customers and merchants can quickly complete transactions.
• Security: Paytm follows stringent security protocols, ensuring that user data and financial transactions are protected. The platform employs two-factor authentication, encryption, and periodic security audits to maintain a high level of security.
• One-stop solution: Paytm offers a wide range of financial services, including mobile recharges, bill payments, insurance, loans, and investments. Users can access these services through a single platform, simplifying their financial management.
• Cashbacks and rewards: Paytm incentivises users with cashbacks and rewards for transactions made on the platform, encouraging repeat usage and customer loyalty.

How do users experience CVP repeatedly?

This is done by successfully completing a transaction.

Natural frequency of the product

Power Users: 1-2 times a day

Core Uses: 2-5 times a week

Casual Users: <5 times a month

Other sub products and their natural frequency

Apart from money transfers, Paytm enables the following -

1. Bill payments - once a month

2. Recharge - once/twice a month

3. Loans - once in 5 years

4. Ticket booking - 2-10 times a month

5. Investment - 2-5 times a week

6. Insurance & gold - once a year

Engagement Framework Analysis

The Engagement Framework has been selected as per the data points generated from user research.

1. Breadth

When users try out broader categories of transactions. For example - paying bills, shopping, ticket booking, recharge, investments etc, they are more likely to stick to the product and engage more often. The core value prop of Paytm increases.

Metrics -

• No of transactions made in different categories
• Wallet share of the user to Paytm increasing every month
• Number of new categories unlocked
• Returning users for the new categories

Focus for the project - Yes

2. Depth

The amount of time or money spent will not matter here for engaging users better. Since this is a transactional app, users come here to complete a transaction for a particular need and drop off. They don't usually spend time on it otherwise and they don't typically spend more money for a gain. It's based on the need.

Focus for the project - No

3. Frequency

The no. of transactions done in a particular time frame by the user is highly valuable and it directly determines how engaged the user is with the product.

Metrics -

• Number of transactions made in a given time frame

Focus for the project - Yes

Define

Active user

User who completes a transaction using Paytm

Actions that make someone an active user

1. Sending/receiving money

Natural frequency

Casual: once in 2 weeks

Core: 2-3 times a week

Power: At least once a day

2. Linking their Paytm to frequently used apps

Natural frequency

Casual: Within 3 months of using Paytm

Core: In the first month of using Paytm

Power: In the first week of using Paytm

3. Completing a transaction in any of the categories

Natural frequency

Casual: Once a month

Core: Once in 15 days

Power: 1-2 times a week

4. Tops up Paytm wallet

Natural frequency

Casual: Once in 2 months

Core: Once a month

Power: Every week

Segment

Persona Based Segmentation

Inferences from User Interview

• Most users are used to using competitor apps like Gpay and use Paytm as a secondary app. Better engagement strategies need to be deployed to increase top of mind awareness and stickiness to the product.
• Almost all users find Paytm UI to be cluttered and overwhelming. Fixing this will majorly improve usage.
• Most users are not aware of all the features that Paytm offers and use multiple apps to fulfil those needs. Features need to be positioned better to the TA without overwhelming them.
• Even though users having been using the app for >5-6 years, the engagement is very low. Better communication strategies have to be worked on to increase TOMA, better discounts & cashbacks can be given too to bring back customers who have switched to another app as a primary product and then build habits from there.
• Users hardly use 1/2 features. Increasing the breadth of engagement will help them stick to the product
• Some users don't find the payment process to be seamless. For example Paytm always requests an OTP for every small transaction. Second - The ability to use wallet money while scanning a QR code is not available in some cases. This experience needs to be made frictionless.

Usage Based Segmentation

Key user actions

1. Wallet top up
2. QR code scan to merchants
3. Money transfer to friends & family
4. Linking wallet to other apps

Engagement

Casual to core: Campaign 1

Problem statement:

According to the user research, users usually don't use Paytm for transactions at stores, restaurants or Uber/Ola because they are used to competitor products like Gpay

Segment:

Users who only use competitor products and choose Paytm as their last option at local stores and restaurants

Goal:

To increase top of mind awareness and the frequency of transactions.

Idea:

Since many merchants use the Paytm machine, 'Paytm payment streaks' can be highlighted on the machine to drive TOMA for users.

Pitch:

Wohoo..you just have 4 more transactions to go! We're estimating a cashback of Rs 350 based on your current streak :) You got this! Valid till Dec 8th.

Note: The cashback amount depends on how soon the streak was completed and the total amount transacted throughout the streak

Offer:

X amount of cashback for every 6 transactions. The cashback amount depends on the speed and the amount of money transacted

Frequency:

2-3 times a week (reminders to transact)

Channel:

Push notification, streak highlighted on the homepage top banner, email, on the app after every transaction

Success metric:

No of transactions made in y days.

Core to Power: Campaign 2

Problem statement:

Most users only use 1-2 features, hence they don't realise the core value proposition and do not stick to the product

Segment:

Users who only use UPI and wallet money, but do not use Paytm for bill payments and recharges

Goal:

To increase top of mind awareness and the number of users who use Paytm for bill payments and recharges

Idea:

For every bill payment using Paytm there will be reward points given to the user and these reward points can be used to get a discount on the next bill payment. Applies to recharges as well.

Pitch:

Electricity bill paid. Congratulations, you just earned 240 reward points!

Redeem them in your next bill payment / mobile recharge.

Offer:

Reward points for every bill payment/ recharge made that can be redeemed in the next payment

Frequency:

2 times a month

Channel:

Push notifications, reward points highlighted on the app, email, Whatsapp

Success metric:

Increase in users who make bill payments/recharges using Paytm

Casual to Core: Campaign 3

Problem statement:

Users usually don't top up their wallet more than 5000. This reduces their commitment to the app

Segment:

Users who don't top up their Paytm wallets and if they do, it's usually very small amounts.

Goal:

To increase their wallet amounts, making them stick to the app

Idea:

We can offer reward milestones for every Rs 5000 added to the wallet. Eg. If the user tops up for Rs 5000, they get a 1+1 on the next movie ticket booking. If they top up for Rs 10000, they get a 20% discount on their dining bills at partner restaurants. If they top up for Rs 15000, they get discounts on their next 3 grocery bills on Paytm.

Pitch:

Everyone loves a full wallet. What if you could get more with a full wallet?

Top up your Paytm wallet today and get discounts or your next movie ticket, dining bills, groceries and more!

Offer:

1+1 on movie tickets, offers on dining bills and groceries

Frequency:

once in 15 days

Channel:

Push notification, email, Whatsapp

Success metric:

Increase in wallet top up amounts

Increase in usage of other features like - movie ticket booking, dining offers, groceries

Core to Power: Campaign 4

Problem statement:

Users who frequently use Paytm for transactions and bill payments, don't use Paytm for travel ticket booking. They usually go to other major players like IRCTC, MakeMyTrip etc

Segment:

Users who users other features but do not use the travel ticket booking feature

Goal:

To increase the usage of the travel ticket booking feature on Paytm since it has a huge user base

Idea:

For every travel ticket booked for destinations within India, Paytm offers discounts on dining bills at top restaurants in the city the user is travelling to.

Pitch:

What's your next destination? You pick the city, we'll sort your meal plans while you're there!

Avail flat 15% discount from top restaurants and have a great trip!

Offer:

Dining discounts from partner restaurants

Frequency:

Once in 2 months

Channel:

Push notification, email

Success metric:

Increase in travel tickets booked through Paytm

Casual to Core: Campaign 5

Problem statement:

Users generally don't link their Paytm on the other apps they use. This highly reduces their engagement and commitment to Paytm.

Segment:

Users who transact using Paytm but have not linked their Paytm to other apps

Goal:

To increase the number of Paytm accounts linked to other apps

Pitch:

Make checkouts easy in your favourite apps. Link your Paytm and make payments a breeze!

Offer:

For every transaction made from linking Paytm on other platforms, Paytm offers cashbacks on the wallet

Frequency:

Once a month till the user links their Paytm

Channel:

Push notification

Success metric:

Number of platforms with Paytm account linked for a user

Retention

Understand

Bird's-eye view:

What is the current retention rate in terms of users?

Approximately 31%

Paytm has 93 million monthly active users and 300 million+ total registered users.

Retention rate for Paytm = 93/300 *100 = 31%

source:

https://www.paytmbank.com/about

https://economictimes.indiatimes.com/tech/startups/paytm-monthly-users-increase-by-19-to-9-3-crore/articleshow/102402148.cms

Paytm was launched by Vijay Shekhar Sharma in 2010 as a prepaid mobile recharge facility, and later in 2014, the Paytm wallet was launched. Aimed at a cashless and digital economy, Paytm tasted success during post demonetisation in 2016 when Rs. 500 and Rs. 1000 notes were disbanded in India.

Paytm was the first to introduce mobile wallet transactions and they were a hit. But for UPI transactions, competitors like GPay and PhonePe have a higher share

source: https://inc42.com/buzz/phonepe-google-pay-paytm-process-94-of-upi-transactions-march-2023/

Paytm slowly started to lose active users due to one or more of the following reasons -

• Entry of major players like GPay, PhonePe, CRED
• Too many offerings from Paytm that users started to find it overwhelming
• Better cashback and rewards on competitor products
• UI started to seem very cluttered and hence the ease of transaction reduced

At what time period does the retention curve flatten?

Around 6-9 months

Microscopic View:

Which ICPs drive the best retention?

Core and power users drive the best retention.

Core users - They use more than a single feature of Paytm and are used to it and do not look at other products to solve the same problem

Power users - They again use multiple features and use it very frequently and always grab cashbacks and offers. They are extremely happy with it

What channels drive the best retention?

1. Organic
2. Payment integration at third party applications
3. Push Notifications: Push notification create regular engagement with the user
4. Email

What sub-features or sub products drive the best retention?

1. Paytm wallet - Users like to have their bank statements clean and hence prefer wallet transactions on a day to day to basis
2. Scan & pay - Most merchants use Paytm driving TOMA for the users. It's also very easy to use
3. Bill payments - Paytm acts as one stop shop for various bill payments, making it very easy to use for the users rather than going to multiple apps
4. Cashbacks - Paytm offers good cashbacks that users retain because of it

Define

Top reasons for churn

Definition: Churned users are those who were once active ( have completed transactions using the app ) but are not transacting anymore.

There can be various reasons for churn. Some of them are identified here -

Negative Actions Indicated by Churning User

1. Increase in support queries
2. Taking the issue to social media
3. Negative reviews of the app
4. Lower CSATs
5. Muting push/WhatsApp notifications
6. App uninstalled
7. Reduced frequency of app usage
8. Moving their wallet balance back to their bank account
9. Stopped paying bills they were previously paying using Paytm
10. Unlinking Paytm from other apps
11. Unlinking their card from Paytm

Retention Campaigns

Campaign 1

Problem statement:

Users have moved to competitor (eg CRED) products for their recurring bill payments

Segment:

Users who previously used Paytm for bill payments but no longer transact

Goal:

Increase app engagement and reduce churn for bill payments from Paytm

Pitch:

Long time, no see. We hope you're paying your bills on time!

Get notified before deadline. Set personalised reminders on Paytm

And win rewards/cashbacks for your next bill

Offer:

Personalised reminders for bill payment

Rewards/Cashback after each bill payment

Frequency:

2 times a month

Channel:

Push notifications, email, Whatsapp

Success metric:

Number of returning users for bill payments using Paytm

Campaign 2

Problem statement:

Users are not aware of most of the features that Paytm offers and go to competitor products for the same. They only end up using just 1-2 features putting them at churn risk.

Segment:

Users who use multiple apps for use cases that Paytm offers on a single platform. Very low usage of Paytm

Goal:

Increase the breadth of engagement for users using 1-2 features on Paytm as they are not aware of the other features

Idea:

We can run a campaign called "What's on Paytm?" where Paytm promotes one particular feature for specific duration; for eg. movie ticket booking showcasing how it's done with so much ease. It can be influencer campaigns with offers running for a month or two depending on the category. This will throw light on the features that users are not aware of and the duration of the offers will be kept long so that users get used to it and stick to it even the campaign is over.

Pitch:

"What's on Paytm" is BACK! You can now book your tickets using Paytm and get 2+1 offers. Offer valid for the next 4 weeks. Get on your movie marathon!

Offer:

Relevant offers for respective categories

Learn how to use new features

Frequency:

Twice a week during "What's on Paytm"

Channel:

Push notifications, email, Whatsapp, Homepage banner

Success metric:

Number of transactions for that specific category

Campaign 3

Problem statement:

Increase in support tickets from users

Segment:

Users who have raised 1+ support tickets on Paytm due to payments getting stuck/rejected

Goal:

Increase customer satisfaction and reduce negative review

Pitch:

We value your money as much as you do! We will get this sorted right away and credit it back to your account in the next 24 hrs. Please accept a 10% discount on your next bill payment as a token of apology!

Offer:

Relevant offers for features that the user usually uses

Frequency:

one-time campaign

Channel:

email, Whatsapp, sms

Success metric:

User uses the discount

Campaign 4

Problem statement:

Moved to a competitor product for better cashbacks. They still use Paytm but with very low frequency

Segment:

Users who used Paytm previously but moved to competitor product for better cashbacks

Goal:

Re-engage user with Paytm

Pitch:

Enough of the long distance, come back already! Avail guaranteed cashbacks on your next 5 transactions

Offer:

Guaranteed cashbacks for the next 5 transactions

Frequency:

Twice a month for the next 3 months

Channel:

Push notifications, email, whatsapp

Success metric:

Increase in WAU

Campaign 5

Problem statement:

Low frequency users tend to forget they have the Paytm app

Segment:

Users who have the app but don't use it often. Last transaction was made more than 3 months back

Goal:

Increase their usage by letting them know about exciting events that they were not aware of otherwise. Eventually making them explore Paytm when they're bored

Pitch:

• Kenny is coming to your city! Book your tickets now and get cashbacks upto 200. Don't miss out!
• Exciting events lined up in your city! Check them out now before it gets sold out

Offer:

Keep users updated on trending events so they eventually start browsing Paytm even while not actively transacting

Frequency:

1-2 times a month in the beginning of the month

Channel:

Push notifications, email, whatsapp

Success metric:

More engaged users

User books events through Paytm

FIN.

Thank you!