Project : Customer acquisition using QR journey

Can a customer while seating in the waiting area at merchant site explore a zero cost loan ( BNPL) and get limit which he\she can use to pay to merchant as a zero cost ( provide affordability).

Customer BNPL can work as a big business booster for the merchant as they know if customer is paying via zero cost loan and affordability is not an issue , they can upsell or cross sell for a higher limit product

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Fibe is a lending NBFC which provides loan to individual for a small ticket size i.e. 5K to 5 lakh.

• Currently most of the journey is agent assisted in BNPL sector but thats manpower heavy and reach is limited
• Agent does the basic step for customer to do their eligibility check for loan, once approved, customer does the journey
• New QR Journey , customer discover the Fibe on its own and explore the journey themselves without any assistance and get the loan disbursed to the merchant

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Core value of the product

Provide affordability to the customer , get best quality product without any pressure on the pocket to the customer, lifestyle upgrade product

Provide higher conversion rate for the merchant and an opportunity for them ( a tool in his belt) to upsell or cross sell to the customer , increase ticket size or attach product i.e. increase PPC ( product per customer) to more than 1

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Different Pitch of the product:

• Get best quality service at zero cost EMI
• Dont compromise on health due to money constraint
• Upgrade your style with Fibe at no cost
• Convert your worries into zero cost EMI
• Convert your medical bill into zero cost EMI
• Opt for expert care now and pay in easy instalments
• Care now pay later
• treat now pay later

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The whole idea behind the product is that customer gets it at zero cost

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Survey of 5 people

survey of merchant site :

• what is the footfall in the centre ( no of visitor)
• what is the different customer base that you receive \ what are demographic of customer , age, gender, ability to pay, willingness to pay
• how do you sell your product \ upsell your product
• what are the payment option to the customer and how do they choose
• what matter to you when you choose a lender
• what is a repeat rate \ what is a referral rate
• what is your expectation from a lender
• what is 1 thing you love about fibe

ICP

Customer persona to buy the loan

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ICP prioritisation :

Ideal customer to target is Suhana since the customer is

• young ( age 25)
• tech savvy ( easy to navigate between system, OTP , apprval)
• getting onboarded early in age , we can serve for a longer time and have higher LTV from the same customer
• I dont have to spend again to acquire that customer and I earn on a repeated basis

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Second target would be Ramesh since adding to above mentioned features he is more on a need side also where his finances are partly sorted so we can earn a repeat business from him for some time till he is fully sorted

3 competitor analysis

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Define TAM / SAM / SOM

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TAM - market research **

• Current consultation and IPD customer base across India - 150K - 200k cr ( source mentioned below)
• Growing at CAGR of more than 10%
• I will take 150K cr as the TAM for this calculation

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SAM -

• Majority of this sits in Tier1 and Tier 2 which overall with Fibe serviceable area
• supporting Tier 1 & 2 ( 100K cr) i.e. 70% of market by ticket size , by volume it will be 50% only
• Customer like Suhana and Ramesh will be ICP for this case
• If Fibe wants to enter this market , the lending market is expected to be 10 -15% of the same
• Lending (10% penetration - 10K cr)

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SOM -

• Customer in Tier 1-2 ,
• ICP Suaha and ICP Ramesh taking lending from Fibe
• 3-4 Major player in market
• potential of 20-25% market share
• Health bill growing at a rate of approx 10% per annum
• 150 Cr*70%( Tier 1 & 2) * 70% ( ICP) * 25% ( market share)* 10% (growth YOY) = 20K cr SOM

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**Source

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Make 3 experiments - state out hypothesis and present implementation plan

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Channel at PMF stage should be

Cheaper

Faster

Feedback driven

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Find early adopters

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SInce the current product is at product market fit stage - we should be using the channel which are faster , cheaper and feedback driven so that:

• We dont burn a lot of money at this stage
• Adapt as per the feedback on priority basis
• Present the updated product in the market
• Iterations are faster and less costly and quick

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Keeping these factors in mind and looking at all the different options that can work at PMF level , channel that is selected for experiment:

• Offline adds ( merchant centre) ( Low CAC , medium effort - print, deliver and paste at merchant place and low lead time )
• Trades
• referral ( Low CAC, medium flexibility , gives true picture , very low effort)

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Trades

Hypothesis : Trades between partner product and my product where I pitch for partner product at various places and vice versa partner pitch for me at various places ( zest and iphone - no additional cost , part of basic system itself)

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Experiment: Partner starts adding Fibe's promotion as part of their ad campaign or promotions and sell their product using fibe as a service and same way fibe promotes partner brand in their promotions, website, bring traffic to partner platform . We experiment with 2 partner and see the traction for the same accordingly start taking decision to add or reduce depending on lead generated , funnel , customer type and lastly customer feedback

For these type of ads , there is no actual CAC paid by fibe other than running existing ad campaign with partner brand name. The CAC is this case will real estate given by Fibe to its partner on its App, Web or advertisement

Lets understand with an exacmple:

1. Fibe partnership with Madhavbaug . Now whenever customer see Madhavbaug ad via google, meta or any physical ad in newspaper , they publish Fibe name on it as payment partner or zero cost partner vis a vis Fibe integrate madhavbaug health monitor on its app and show the option to pay on Madhavbaug via zero cost EMI

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2. Fibe ties up with toothsi.

Toothsi promotes the teeth aligner

Toothsi : While customer is exploring aligner at toothsi website and checking for product and pricing, Customer can check fibe limit there itself . Customer gets a zero cost EMI and they buy the product there itself

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Fibe : Customer can discover Toothsi on Fibe website and start journey from their itself , Fibe can promotes toothsi in their ad itself that now pay using Fibe on toothsi also

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3. Fibe ties up with invisalign

Invisalign - while customer is buying aligner from invisalign or if partner doctor is selling aligner to customer , they can convert it in EMI using Fibe. Aligner being a high value product where average cost being 1.5 lakh - 2 lakh, providing affordibility to customer can actually increase the sales of the partner by more than 20% and since doctor dont have to give EMI from his setup, it free's up doctors working capital also

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Fibe: Customer can discover Invisalign on Fibe website and start journey from their itself , Fibe can promotes them in their ad itself that now fibe helps you in getting aligner as a discount or at a zero cost EMI

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We can capture the count using UTM or lead generated via this channel

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Offline Advertisement

Hypothesis : customer's attention doing a physical visit at merchant centre can be easily captured by a physical banner at right place

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Experiment : Fibe places a DIY. journey collateral at the VLCC visiting centre to onboard early adopters \ self initiator

Fibe ties up with VLCC

Fibe can place advertisement in merchant centre in the form of table top \ standy \ wall hanging showing QR or miss call to nudge a customer to start journey themselves and get limit in less than 30 seconds. This will be a pure DIY and no help from anyone.

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These will be the customer who will give the best feedback for the journey which can help in iteration of the product and make the loan journey best possible way

image of saroj hospital ( VLCC image is not there

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Referral:

Hypothesis: A good referral program can help onboard a lot of customer with minimal effort

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Experiment : create a referral program for existing customer

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Fibe referral program

This referral program is specially for customer and not for merchant. In terms of referral , the referral and referee should get platform currency so that they have incentive to come back to platform.

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Plan: once a customer has successfully taken a loan from give , Fibe gives a welcome call to customer to explain them the complete process and understand the customer feedback.

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Refer activation point :

• As per customer feedback ,if the customer rating is high , we activate refer for them
• After first loan , if the customer visiting Fibe to take another loan , we can activate refer at that time
• If customer comes to payback the loan before EMI date , we can activate for that customer
• The primary source of referral will be 1 - 1 only
• Referral will be done from the customer profile portal on the web or app page

Refer currency:

• the referral gets the 0.25% ( upto 2000) of the referee's first 5 loan amount as the wallet amount which he\she can use to pay back for the next loan EMI upon successful disbursal of the loan of the referee
• The referee gets upto 2000 ( max 0.25%) of the first loan that they take using the referral code .
• • Pitch will be

why pay full now when you can earn when you pay via Fibe

Pay later, earn now

• The referral will have more incentive to refer to more people . If more than 5 people referred by the referral takes loan from Fibe , The referral will get flat Rs 2500 ( 500 per refer) in the wallet which they can use to pay back the EMI, Rs 500 CAC is very lower as compared to the CAC which Fibe pays so Fibe will be happy to acquire customer at the lower cost and Customer is happy to get 2500 upfront other than share of loan amount ( 0.25% upto 2000) so its an incentive to refer more and more people

SMS from Fibe to referral to bring to the referral page to refer more

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"Now get cash upto 12500 on successfully referring a friend to Fibe! Go to Refer & Earn section on the app or visit https://abc.in/Alok137"

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12500 = 2000* 5 ( 2000 per refer) + 2500 flat referral

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Referral management screen ( existing user - referral)

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Referral SMS content

1. Remind can be a hyper link to remind Alok directly to join

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" Hi Alok, still paying in full , Pay via EMI to earn upto 2000 using Fibe, join now www.fibe.in"

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2. Generic referral SMS

" Hi , still paying in full for health treatment, Pay via EMI to earn upto 2000 using Fibe, join now www.fibe.in"

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Referral screen in profile page ( new user - referee)

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Product integration:

Fibe being a lending place can actually integrate with a lot of apps and at the same time, a lot of app wants to integrate with lending app like fibe since it directly impact their PAT i.e. a direct monetisation if the customer takes a loan, no pending or delayed or recurring flow, 1 time earning.

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Fibe can integrate with Many places like :

ICP 1 : working employee - office HR apps like Keka, GreyTHR , Google , youtube

ICP2 : Google, Meta, health app\web like Toothsi, clove

ICP3: Google, Meta, health app\web like Toothsi, clove, money app like moneycontrol , health clinical ERP also

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Out of all the above mentioned options , the best place or relevant place to start will be Health related places itself where customer is looking to buy health product like toothsi , invislaign , MyHealthCare ( ERP for hospital) or Indira IVF

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We can integrate Fibe with the partner journey itself. We can work with Toothsi backend itself where whatever data they are collecting on their end can be used to underwrite the customer and provide loan than and there itself.

The idea is the customer has given personnel data once , they dont have to share that again, they get loan without taking any separate service. it gives customer comfort and trust since its part of merchant portal which they have trust on. Fibe take that via API from partner portal and as a response give feedback on approval their itself. '

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This way is beneficial for all:

Customer: They get a quick check and dont have to fill data again and again , they get zero cost loan without doing any extra step. Customer win

Merchant : Merchant knows that the customer has a zero cost limit for higher amount than customer are trying to buy, merchant can try to cross sell/ upsell where merchant make more money, merchant win

Fibe : Fibe is able to sell loan to more customer, top of the funnel increasing hence Fibe win