💸 Engagement & Retention project | Smallcase

💸

Engagement & Retention project | Smallcase

Synopsis

What is Smallcase ?

Smallcase.com provides an investing platform where users find ready-to-invest baskets of stocks.

These small cases are created and managed by Professionals(SEBI-Registered); therefore, they are designed according to the specific investment themes, strategies, or objectives.

💸 What is the Core Value Proposition ?

The core value proposition of Smallcase is to democratize investment by offering easy-to-understand, ready-to invest, pre-packaged portfolios curated by experts, allowing investors of all experience levels to effortlessly invest in specific themes and strategies.

How do users experience this CVP ?

A user experiences the core value proposition of Smallcase through the following process:

🗃️ Exploring Themes: Users browse through a wide range of thematic portfolios, each representing different investment strategies, sectors, or market trends.
🪟 Transparent Information: Each Smallcase provides detailed information about its composition, including the individual stocks or ETFs it contains and their respective weights.
👨🏻‍🚀 Effortless Investment: With just a few clicks, users can invest in their chosen smallcases directly through their linked brokerage accounts.
🗓️ Regular Updates and Rebalancing: Smallcase ensures that the portfolios are periodically reviewed and rebalanced to stay aligned with their investment objectives, providing users with a hands-off yet effective investment experience.
📈 Portfolio Tracking: Users can easily track the performance of their investments through the Smallcase platform, receiving updates and insights to make informed decisions.

This simplified, effortless and “ready-to-invest” approach where user is getting his research and maintenance of portfolio done (JTBD) embodies Smallcase's mission to simplify and democratize the investment process.

🫂 User Segmentation and Activation metrics

🎙️ User Interviews

In order to understand the current users of Smallcase, I have reached out to current and past users of smallcase.com through primary survey https://forms.gle/2HqqGBsMugbj27cu5.

	Female	Male		Total
	25 to 35	18 to 25	25 to 35
10 Lakh to 15 Lakh		1	1	2
15 Lakh to 20 Lakh	3	3	4	10
20 Lakh to 30 Lakh			2	2
30 Lakh above			8	8
Career Break			1	1
Total	3	4	16	23

Sample Audience Surveyed - 23, The survey was highly skewed towards gender and income brackets, But as per secondary data sources as well, Investments in India are skewed in similar trend.
A second order understanding was done through finfluencer content available on Youtube and Instagram.
To revalidate and understand user segments for Smallcase. Insights from Semrush were used.

Demographics_smallcase.com_Mar – May 2024_Worldwide_All devices.png

Demographics_smallcase.com_May 2024_Worldwide_All devices.png

Age bracket 25-45 covers more than 50% of total installs, also 85% of the audience is male.

🎭 Identified User Segments

	Casual	Core	Power

Background	Soumya is a 27 year old working in IT sector, all her friends have stock discussions during the office lunch hours apart from here. She discovered small case through a youtube finfluencer, bought the cheapest Smallcase to test but returns were very minuscule as compared to a mutual fund.	Saransh is 26 year old, he is very much interested in stock markets and investment strategies. He unlike many others uses free smallcases for research (check the baskets and invest directly) and pays only strategy based smallcases.	Rishab is 32 years old working for a startup in Bangalore, he spends 12-14 hours a day at work, and still Manages to give time to his family. He wants to retire early from his hectic corporate life and hence invests 30% of his income every month. He is has been using Smallcase for more than a year now. He is happily continuing with Smallcase as he is making decent profits and is not spending as much time to get these returns as compared to friends who invest directly by themselves.
Frequency	Once in 2-3 month	Once a Month	Multiple times a month
Features	Invests once in a while, whenever has money left after his basic expenses and other investments. She has trust issues with investments and hence spend very carefully.	Has E-Mandates setup for 1-2 paid smallcases	Has subscribed to multiple paid and unpaid small cases and has E-Mandates setup. Keep a track of his Mutual Funds, Smallcase and stocks through Smallcase dashboard.
Money Spent	<10K	10-30K	30K +

🏃‍♂️ Define Activation metric

Engaged user is someone who repeatedly performs the key action that aligns closely with your core value proposition.

✔️ In case of Smallcase investing for one time(regardless of amount spent) would be the activation metric.

Rationale

❎ Setting up a account or watch listing a Smallcase do not help experience the core value proposition i.e. simplification of investing.

❎ Setting up mandate or buying a paid Smallcase are the features which come after trust is built.

💙 Engagement Design

🤝 Defining Engagement Framework

Engagement Framework	Key Tracking Metric	Selected	Rationale
Depth	Amount invested through Smallcase in a month.	Primary	The core value prop for a user is to simplify his investments. Investment returns will be a direct function of how frequently how much a user is investing.
Frequency	No of times invested through Smallcase	Secondary	Investment return is a long term activity, discipline around the frequency of investment regardless of investment amount help experience the core value proposition of Smallcase.
Breadth	Number of smallcases subscribed to. Also, Usage of sub-products like Mutual fund tracking and loan against investments	NA	Could be a good engagement framework but also kind of creates a confusion in users mind. Also sub-products are features which can be used as an add-on but do not make a user brag about the CVP.

Engagement

Framework

Key Tracking Metric

Selected

Rationale

Depth

Amount invested

through Smallcase

in a month.

Primary

The core value prop for a

user is to simplify his investments.

Investment returns will be a direct

function of how frequently how

much a user is investing.

Frequency

No of times invested

through Smallcase

Secondary

Investment return is a long term

activity, discipline around the

frequency of investment regardless

of investment amount help

experience the core value

proposition of Smallcase.

Breadth

Number of smallcases

subscribed to. Also,

Usage of sub-products

like Mutual fund

tracking and loan

against investments

Could be a good engagement

framework but also kind of

creates a confusion in users mind.

Also sub-products are features

which can be used as an add-on

but do not make a user brag

about the CVP.

Engagement X User Segments

	Depth	Frequency	Breadth
Casual Users	<10K in a month	Once in 2-3 months. No recurring mandate setup.	Invest in 1 Smallcase with the lowest SIP value.
Core Users	10-30K in a month	Monthly SIP setup. Recurring mandate is setup.	Have acess to only 2-3 free smallcases.
Power Users	30K+ in a month	Multiple times a month. Has mandates setup.	Have acess to paid and free smallcases. Maintain a healthy portfolio as suggested by the AI recommendation bot.

Depth

Frequency

Breadth

Casual Users

<10K in

a month

Once in 2-3 months.

No recurring mandate setup.

Invest in 1 Smallcase

with the lowest SIP value.

Core Users

10-30K

in a month

Monthly SIP setup.

Recurring mandate is setup.

Have acess to only

2-3 free smallcases.

Power Users

30K+

in a month

Multiple times a month.

Has mandates setup.

Have acess to paid

and free smallcases.

Maintain a healthy

portfolio as suggested

by the AI recommendation

bot.

🎯 Engagement Campaign

	Campaign 1	Campaign 2	Campaign 3	Campaign 4	Campaign 5
User Segment	Casual	Casual	Core	Core	Power
Goal	Move to Core. Improving frequency by getting E-Mandate setup for 1 Smallcase.	Move to Core. Improving Depth by engaging them with smallcases with slightly higher first time SIP but better CAGR.	Move to Power. Improving Depth of engagement by getting subscribed to one paid Smallcase.	Move to Power. Improving frequency of engagement	Continue being Power. Improving Depth of engagement by subscribing to other new Smallcases with high fee and high returns.
Success metric	Getting E-Mandate setup for 1 Smallcase.	Buying one paid Smallcase.	Buying one paid Smallcase.	Buying multiple paid Smallcases with mandates setup.	Increase share of investment in Smallcase as compared to MF and stocks. (Being power user, Smallcase already has acess to MF and stock portfolio to show dashboard.
Pitch
Offer	2 months fee waiver if E-Mandate is setup.	1 month free acess to paid Smallcase.	Free Acess to a paid Smallcase.	Free weekly Portfolio Analysis and suggestions	Free weekly Portfolio Analysis and suggestions
Offer Communication Mode	Whatsapp, mail, Push notification	Whatsapp, mail, Push notification	Whatsapp, mail, Push notification	Weekly report on Whatsapp and live visibility on dashboard	Weekly report on Whatsapp and live visibility on dashboard
Offer Communication Frequency	Fortnightly	Fortnightly	Weekly	Weekly	Weekly
Offer Communication Timing	Post 8 PM Evening. (Mandates can be setup throughout the day, Evening hours will be giving more Mindspace to action.)	Prior to 9 AM. (As the action is stock market dependent, early morning notification will help plan the action for the user)	Prior to 9 AM	Prior to 9 AM	Prior to 9 AM

⚰️ Resurrection Design

The resurrection campaign design involves first identifying churned customers through analysis of engagement metrics and inactivity patterns. The next step is launching targeted win-back campaigns, using personalized incentives and re-engagement strategies to entice these user segmenst to return.

📉 Retention Curve

sem small.png

As per Semrush, 75% of the users who visit a Smallcase app/site, leave without interacting with any other pages on the site. This metric is crucial for understanding user engagement and the effectiveness of a website's content in retaining visitors.

💔 Churn

🎙️ User Interview responses

Majority churned user find the fee too high for a smallcase.

Reasons for Churn

Reason	Type
High Joining Fee	Voluntary
Less option of free small cases	Voluntary
Found a better option	Voluntary
Was not making expected profit	Voluntary
Financial loss, stopped investing	Involuntary
Process was complicated	Voluntary
Support was not provided	Voluntary

🚨 Early identification of Negative actions

Unregistered E-Mandate
Not making Profit as compared to previous month.
Start missing monthly SIP
Unsubscribe to a smallcase

🌅 Resurrection Campaign

	Campaign 1	Campaign 2	Campaign 3	Campaign 4
User Segment	Power user	Core User	Casual User	Casual User
Goal	Revamp the engagement with better returns	Create a FOMO to resurrect	Resurrect and experience the core value proposition	Resurrect and Ensure frequency improvement
Offer	Free 2 month subscription to a high CAGR Smallcase	Share Current performance of the best basket they watchlisted/subscribed, With a CTA to re-initiate the SIP.	Fee Waiver for the first transaction done	2 Month Fee waiver for setting up a E-Mandate
Offer Communication Mode	Mail Whatsapp IVR	Mail Whatsapp	Mail Whatsapp	Mail Whatsapp
Offer Frequency	Monthly	Monthly	Fortnightly	Fortnightly
Offer Timing	Post 7 PM	Post 7 PM	Post 7 PM	Post 7 PM
Success metric	% increase in CAGR from last churned our phase	% re-subscriptions	% Second SIPs placed from total resubscribed base	% E-mandates continued in third month.