Engagement & Retention project | Fibe.India (Formerly EarlySalary)

Pretext (let's get done with the usual):

1. Journey on multiple platforms seems identical & allows for similar experience.
2. Experience on the other hand, as an overall entity, is definitely a mixed bag. There are some harsh reviews as well around, multiple platforms (Google, youtube, mouthshut, etc). Whereas, there are a lot of overwhelmingly happy reviews as well! (Quora especially showed that people find us a one of the best in the industry.)
3. Consumers of financial tools are not quite up to date with industry practises which also leads to confusion >> Bad reviews

What we have already covered in previous projects that we will need in current one:

1. ICPs:

Two major ICPs that have come out through research are: Cash Crunched (Harsh, 90% base) & the Wise Opportunists (Ajay)

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Jobs to be done:

For these customers starkly different - Leading to two strong use cases for the same product

Note:

1. Ajay, a BNPL user, is using our product to fund purchase of another product (From a different organisation) - Primary goal of that product might impact the personal/social goal for our product
2. Harsh is a heavy credit user who is trying to get access to credit lines from multiple places to serve to their needs and requirements

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Core Value Proposition of Fibe (Hired?)

1. What is the core value prop?

The core value proposition of Fibe is to provide cash (money) whenever the customer is in need due to financial distress. This could be:

2. 1. He has money but needs more to get the goal he/she is wishing to achieve: Medical Bills, Construction, Education, etc
   2. It could also be that they have reached a situation of being broke and need some money urgently to aid to their day-to-day expenses
   3. It could also be that they have other debts, regulated or non-regulated, or just the usual (Credit Card) bills that they wish to cater to

2. How do users currently experience that core value prop repeatedly?

To experience the CVP repeatedly, the customer has to be part of a cycle. Get a Credit Limit and the cycle begins

Take a loan of desired amount >> Repay it on time >> Close the loan by ensuring you have paid the whole amount >> Become eligible to take another loan >> Take ANOTHER loan of desired amount

In the middle of all of this, the customer can try and increase the amount of the credit limit allocated by providing additional details about their bank balances, income, etc

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Defining Frequency

1. What makes a customer active @ Fibe?

Currently, a transacting user is defined as an active user. (MONEY)

What does this mean? Anyone who is either borrowing money from the platform or repaying it. With addition of more upcoming financial products where the customer may be using the platform to purchase items, the definition would still be around customers transacting on the platform

2. What is the natural frequency?

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Customers, on an average, take 2-3 loans a year based on their loan's tenure. This is driven by the fact that these loans are Short Term Personal Loans (STPL) that cater to immediate & urgent needs by aren't very high in ticket size (As compared to LTPL - Housing, Car, Education, etc)

3. Other sub products? Their natural frequency?

Currently, there are no sub products that are different from a personal loan. However, there are variations of personal loans @ Fibe

Time Vs Money - Answering the Active Customer Definition

An active customer definition:

Someone who transacts with Fibe at least once every 60 days

To dive deeper >>

We define our active customer as following:

1. Someone who has an active loan with us (Either has disbursed in the current month or has been repaying their EMI month-on-month)
2. Is currently holding an active Credit Limit with Fibe and is not blocked from disbursing money. If the customer is blocked, they are not to be part of the retention funnel
3. Has closed their loan and has taken another loan within 60 days. If they do not, they are considered as churn & are supposed to be part of resurrection campaigns

Segmenting to know more:

1. Power, Core, & Casual users:

• • Power users: These are folks who foreclose a loan to take another loan. They take upto 4-5 loans a year
  • Core users: These are folks who repeat 2-3 times a year. They may or may not foreclose a loan to take another loan
  • Casual users: Ends up taking one loan and not disbursing another loan once the first one is closed

2. The use case based users:

• • ICP 1 (Harsh): He repeats more often & has a requirement for churning money through a lender to keep up with certain expenses & lifestyle choices
  • ICP 2 (Ajay): He has chosen to take the personal loan to fund a purchase and doesn't intend to repeat on taking another loan unless there is a requirement of another purchase or sudden financial requirement

3. Scorecard based: Credit users are generally given a credit score by financial institutes and bureaus based on their usage of credit - Fibe has access to both bureau reports and it's internal scoring

• • Excellent Scores - Is a conscious user of credit product and only takes a personal loan at a time of extreme need
  • Good Scores - Has been performing good overall even though they have been using multiple credit lines and have too many ongoing commitments
  • Low Scores - Someone who is actively seeking too many credit lines and will be defaulting if exposed too much to credit

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Hooked?

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What is it that get's the customer to be hooked? MONEY! Our customer is a cost conscious customer and is looking to appease their financial stress by doing the following

• Getting more into their wallets - Taking credit to serve to their current needs
• Finding cheaper alternatives or discounts for what they want

Money! Money! Moneeeyyy!!

And hence the customer can be hooked on the platform by providing multiple options to keep sustaining the lifestyle choices & the expenses that come with it. For the sake of the project, we will we be taking up two examples:

1. Top-up loans: Getting more money once you have repaid more than half of the current loan without the need for entirely closing the current loan
2. Discounts through gift voucher purchases or coupon code purchases (Fibe Hub)

Top-up Loans

1. Goal: The customer wishes to have more money with them to utilise
2. Success Metric: Disbursal of another loan
3. Problem Statement: Currently the customer hasn't closed the first loan for them to be eligible for another loan with Fibe
4. Current Alternative: The customer is either forced to foreclose the loan (Pre-closure of loan) or look for other alternative
5. Solution: Allow the customer who has repaid more than 65% of their loan amount to get a top-up loan of the remaining credit limit that is not utilised as of now
6. Metrics to Track:
   - Foreclosures impacted by customers who are eligible for top-up
   - Disbursals of Top-up loans
   - Repeat rates (Increased or not)

Campaign Details:

1. Segmentation: Following customer segment are to be considered
   - ICP 1 (Harsh)
   - Core Users & Casual Users - For this particular campaign, we will take casual users as the audience
   - Excellent Score holders
2. Goal of Campaign: Goal of campaign is to get the user acquainted with the ability of taking another loan for the limit that is available & get them to repeat through top-up loan :)
3. Pitch: More Money & Same EMI - Take top-up loan now with no impact on your EMI amount
4. Offer: We will restructure your EMIs & loan tenures to ensure the financial pressure doesn't increase
5. Frequency & timing: The customer is to be informed about it twice a month (around repayment & mid-month or could be their last loan disbursal date) POST they have paid over 65% of their current active loan amount
6. Success Metric: Disbursal of Top-up loans by at least 25% of the base that is eligible for top-up loan

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Fibe Hub

1. Goal: To save money without compromising too much on lifestyle
2. Success Metric: Customer purchasing gift vouchers at a discount or purchasing discount coupon codes from Fibe Hub
3. Problem Statement: Currently customers are burdened by expenses and are always looking for alternatives that help them save money or delay the purchase expense (Like paying through Credit Card)
4. Current Alternative: Customer pays through Credit Card / BNPL - ends up paying some more extra charges for it
5. Solution: Allowing customers to buy discount codes using Fibe Coins - Internal currency OR get gift voucher at a discount using internal currency
6. Metrics to Track:
   - Purchase through Fibe Hub
   - Spends of Internal Currency on Fibe Hub
   - Repeat purchases of Fibe Hub users

Campaign Details:

1. Segmentation: Following customer segment are to be considered
   - ICP 2 (Ajay)
   - Power Users
   - Good to Low Score holders, for the purpose of this campaign we will go with low score holders
2. Goal of Campaign: To get the customer acquainted with the benefit of Fibe Hub & the savings that the customer can have when they utilise it well
3. Pitch: SAVINGS ALERT! Get up to 8% extra discount on your Favourite Brands!!
4. Offer: Up to 8% extra discount using Fibe Coins
5. Frequency & timing: Frequency: Weekly reminders to customer (Preferably on Fridays since most folks end up purchasing more over the weekend) - Timing: Evenings would be preferable as customers usually shop in the evening or explore other brands during that time
6. Success Metric: First Purchase through Fibe Hub

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Retained!!

Retention for a personal loan product is a bit more complicated than others - Since active customers are defined using loan status, repayment status, blocked or active limit, repeats, etc - This was looked at elaborately when we were discussing active customer definition.

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At Fibe, Retention is looked at over a 15 month window - with current retention in this window being ~73%

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Let's dive deeper to understand the behaviour of the customer & how retention is driven by it:

1. ICPs: ICP 1 (Harsh) has a higher retention rate once the customer has repaid the loan as the user wasn't acquired through merchants like in the case of ICP 2 (Ajay) where the use case was very singular (Pay for a high ticket purchase; Subsidised by merchant). This makes ICP 1 more driven towards the product than ICP 2 - Someone who is looking at Fibe as a secondary product while the purchase is a primary product for them
2. Acquisition Channels: Organic & Google customers are more driven to take a loan and be retained as they are searching for a solution to their current problem. Merchant customers are pitched No-cost EMI solutions to increase conversion - Real solution there is purchase of the product, lower chances of customers being retained on the platform
3. Sub features that drive retention: Users who use part pre-payment of loan amount or foreclose their loans are generally driven to take another loan - They foreclose their loan so that they become eligible to take another loan of a larger amount than their current pending amount (Loan due) - These customers stay retained to the platform as they are more in need of money & and are constantly looking for a stable solution for it - Fibe's Credit Limit being one of them

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With this understanding in place, let's look into the reasons for churn & bifurcating them into voluntary & involuntary

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Let's Resurrect - The Lazarus Pit Campaigns :)

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Campaign: Got a credit card

1. Segmentation: ICP 1 (Harsh) - Core User - Good to Excellent Score Holder
2. Pitch: 46% P.A. Vs 30% P.A. - We offer your a much more relaxed interest rate
3. Offer: 0 Foreclosure charges | 2.5% interest rate per month | Anytime Disbursals
4. Frequency and timing: Once a month at the time of Credit Card bill due dates - First Week of every month - To remind customers that they have another credit line that they can consume
5. Success Metric: Disbursal of a new loan

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Campaign: Got another credit limit from competition that has more limit

1. Segmentation: ICP 1 (Harsh) - Core User - Good to Low Score Holder
2. Pitch: Same Rates, More Limit!! Get a higher credit limit it with 2 simple steps :) - Limit enhancement feature to be pitched to the customer where they are to help with their bank statement for getting a higher limit
3. Offer: Limit enhancement with the best rates that we already offer to the customer - Most competition would charge a higher rate to them
4. Frequency and timing: Once a month around 20th to 25th. A time when the customer is generally looking for money till they get their salary credited
5. Success Metric: Successful upload of bank statement or providing permission to us for fetching it using Bank Systems

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Campaign: Got another credit limit that has lower interest rates or charges

1. Segmentation: ICP 1 (Harsh) - Core/Casual User - Excellent Score Holder - Customer Eligible for our premium bucket where rates are lower
2. Pitch: You've been upgraded to Prime+! Now you get the benefit of lowered interest rate starting from 9% P.A. - Explore more now
3. Offer: Lower interest rate from 9% P.A. | Lowered Processing Fee
4. Frequency and timing: Once a week till 3 weeks - Once customer has been made eligible for Prime+
5. Success Metric: Customer visiting app and exploring promotional screens for Prime+

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Campaign: Was not allowed to take more than 1 loan at a time - ended up with a loan from competition

1. Segmentation: ICP 1 (Harsh) - Power User - Excellent Score Holder - Customer Eligible for top-up loans
2. Pitch: More Money - Less Hassle | Now get top-up loan from the limit that is not utilised by you!
3. Offer: Non-utilised limit can be taken up by customer whenever they have paid 65% of the loan amount - faster disbursement of loan
4. Frequency and timing: Once during the middle of the month
5. Success Metric: Disbursal of loan

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​Campaign: Was not allowed to take more than 1 loan at a time - ended up with a loan from competition

1. Segmentation: ICP 1 (Harsh) - Power User - Excellent Score Holder - Customer Eligible for top-up loans
2. Pitch: Consolidate all your loans into 1 - Use your Fibe limit now & save with us :)
3. Offer: Ask users to make multiple loans into one by taking a loan from us and closing other loans by pre-paying
4. Frequency and timing: Once during the start of the month
5. Success Metric: Disbursal of loan

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