Fibe EMIS | E&R project

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Fibe EMIS | E&R project

Context

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).

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 that is manpower heavy and its reach is limited
Agent does the basic steps for customer to do customer eligibility check for loan, once approved, customer does the journey
New QR Journey where a customer can discover Fibe on his own, explore the journey without any assistance and get the loan amount disbursed to the merchant right then right there.

The Core value prop is to provide affordability

Customer has the flexibility to convert their payment into zero cost EMI
Customer get this option across huge base of merchant across India
It takes less than 10 min to get the loan disburse with no paperwork
Higher limit i.e. 10 Lakh without any documentation with zero cost EMI at low\no processing cost

How do user currently experience Core value prop

Customer can start their journey anywhere anytime and is a fully digital journey
Customer can split his expenses as per their convienence, partly paying via Fibe and rest themselves
Customer gets option to choose the EMI tenure
With relaxed approval criteria, more than 85% customer being approved

Active User :

A customer who has taken a loan and has done atleast 4 transaction in 180 days ( including repayment)

Natural frequency of your product

Casual User - 4 transaction in 180 days
Core user - 5-8 transaction in 180 days
Power user. - 10-15 Transaction in 180 days

**Transaction include both Loan taken and EMI paid by self by coming on my platform, purchase credit card on the app, pay credit card bill on app

Other sub products & their natural frequency

Fibe sell a few other product :

Cash loan

- Casual - 3 transaction in 180 days
- Core - 4-6 transaction in 180 days
- Power user - 7-10 Transaction in 180 days

BNPL loan like

- insurance premium financing
- - Casual User - 4 transaction in 180 days
  - Core user. - 5-8 transaction in 180 days
  - Power user. - 10-15 Transaction in 180 days
- Education loan,
- - Casual User - 4 transaction in 180 days
  - Core user. - 5-8 transaction in 180 days
  - Power user. - 10-15 Transaction in 180 days

Credit card

- Casual User - 3 transaction in 180 days
- Core user. - 4-6 transaction in 180 days
- Power user. - 7+ Transaction in 180 days

Currently on an average customer transact 3-4 times in 180 days period

The customer who is taking a cash loan has 1.8 product per customer due to high repeat rate ( repeat could be other product) where a customer buying FIBE EMIS has around 1.15 product per customer

Engagement Framework

Engagement Framework	Key Tracking Metric	Selected	Rationale
Frequency	No of times a customer is doing a transaction at the Fibe portal, minimum is the 3rd loan where it becomes profitable for fibe	Primary	The higher the frequency of the customer, the higher is the possiblity of the customer sticking to the fibe and making money from that customer
Depth	The total transaction amount that the customer does with the fibe	NA	Taking a big loan initially will not make money for fibe as ideally depth is a function of frequency * value so focus on frequency and depth will come accordingly
Breadth	The different products of the fibe that a customer can take, health loan, cash loan, insurance premium fianncing, education loan	Secondary	the higher the variation of the product customer buys from Fibe, higher is the probabilty of customer sticking back with Fibe

For a product like FIBE EMIS , frequency is most important since it is only on repeat loan that Fibe makes money and to keep having the repeat , we need breadth so that customer has a lot of option to take different type of loan

Customer segmentation:

Customer segmentation can be done in many ways , we will focus on the below methods of identifying the customer:

ICP

	ICP1	ICP2	ICP3
name	Dinesh ( Age 45)	Suhana ( Age 25)	Ramesh ( Age 35)
goal	Aligner for Kid ( 1.5 Lakh)	improve looks	Medical treatment
Income level	150000 \ month	30000\month	90000\month
Gender	Male	Female	Male
Location	Tier 1,2	Tier 1,2	Tier 1 , 2 or 3
company	Private sector	Private sector	govt company , private low pay job
Spend money on	Family need, medical, education , saving	outing , self lifestyle upgradation	Family need , outing , saving
Frequency	Low since already has a habit to manage expenses within budget	High since salary is low and lifestyle upgrade is priority for her	Medium since already has a habit to manage expenses within budget but outlying expenses need to be managed
Revenue generated	Big ticket size loan in a single go but not a repeat customer	Multiple loan , repeat user , High LTV	Multiple loan , Repeat user, high LTV
Why Fibe	To get affordability	To get access to money	to get access to money
Feature of fibe they like the most	Preference would be to have simple journey, dont have to explain a lot to someone, get done with quickly Upfront highlighting the interest\pf to be paid Self starting option to upload document	Spending 15-20 min for something which gives affordability to buy those looks will not be an issue for her Someone is there to explain things on call if I m confused all the digital option are there	Ok to spend 15-20 min to get a loan if he gets good quality service and doesnt have to worry about finances also at this time everything is auto fetched , KYC, AA, Upfront highlighting the interest\pf to be paid
How often do they use fibe	once in 2 months	more than once in every month	once a month
What feature they dont really use	Limit enhancement	learn section	Offer section
what is annoying you	Constant email	Constant notification about taking loan	Constant email & notification
What additional feature can be added	option to load different KYC document in the journey	quick KYC processing and option to add more than 1 KYC document	quick KYC processing and option to add more than 1 KYC document

Acquisition channel	Acquired via clinical doctor reference	referral	acquired via hospital doctor reference
Time or money spent on product	will not be interested in spending money on app, spend time to understand loan cycle and repayment	Spend money on app, repeat customer	medium spend on app for repeat loan
Adoption curve	Easy to understand and adopt since aware of the financial instrument and but might not be that tech savvy	Fastest to understand, ready to explore something new since already aware of wallets like simpl, lazypay and quickly get onboarded	Easy to understand and adopt since aware of the financial instrument and but might not be that tech savvy
ICP Type	Casual	Power	Core

RFM model

	Casual	Core	Power
Depth	50K loan taken	80-120K loan taken	130-250K loan taken
Frequency	4 transaction in 180 days	5 - 8 transaction in 180 days	10-15 transaction in 180 days
Breadth	Health loan	health loan , insurance loan	Health loan , insurance premium financing , cash loan
Relationship time with Fibe	1-6 months	1 - 12 months	3 - 24 Months
Revenue contribution \ Monetisation	Negligible	Medium	High
Recency	Last used once in 2 months	used 1 time in a month	used every 15 days

Engagement Product hook: (habit forming product)

Goal

Customer uses Fibe app for every BNPL transaction.

Success Metric

Customer using Fibe at least 1 time in 2 days for any transaction.

Problem statement

Currently customer transact once in 30-40 days, it’s difficult to hook a customer, brand recall is less and even at places where they can use Fibe, they are not using.

Current Alternate

Currently we are using CIR (Customer bureau Information report) to engage the customer.

Solution – solution & detailed version of a user flow

We bring different payments option to the customer on the fibe App. As mentioned above, currently customer uses fibe when they need to take a big-ticket size BNPL but for day to day or small BNPL ticket size, customer are not using it.

So if Fibe starts supporting small ticket size payment whether UPI or BNPL, we can increase the customer interaction on the app where customer can use Fibe for any ticket size transaction and it gives us a space to build habit \ Hook.

Fibe brings UPI payment (TPAP) on its platform and at the same time bring small credit line taken from some partner like simpl to give more reason to hook to fibe. It should be 1 click checkout for the customer including any type of payment to the merchant.

Using different campaign (explained Below) which creates trigger in the customer mind to open Fibe app to make payment (action) as a default payment option, we can try to make a customer come, repeat transact on our app.

In terms of making payment, it must be as less effort as possible, so it is easy for customer to transact and make it a habit (behaviour)

Doing transaction via Fibe is beneficial for the customer as they get access to the money and that too with minimum effort (getting affordability or zero cost loan with minimum effort is a reward)

Once a habit is formed , it means frequency is already there for transaction , and depth will follow accordingly i.e. frequency * transaction value

Metric to track related to FIBE EMIS

1. Customer login

2. Customer account creation \ onboarding

3. Customer taking 1^st disbursal.

4. Time for 10^th transaction

5. Time for 100^th Transaction

6. Breakdown between different transaction (fibe loan, UPI payment or Simpl payment)

7. D7, D30, D90 and D180 transaction

8. User login session

Ramp up milestones.

1. Defining the jump from casual to core to power

2. Switch between payment option - Core of Fibe EMIS start making UPI payment and simpl payment or vice versa. Casual,Core or power of 1 segment needs to migrate to other segment and tracking transaction in other segment i.e.

a. 1^st Milestone : customer doing 10 transaction in every segment ( 4 for FIBE EMIS)

b. 2^nd Milestone: Customer doing 100 transaction in UPI , 10 Transaction in FIBE EMIS, 25 in Simpl

3. From 10 transaction in 180 days to

a. 10 transactions in 90 days

b. 10 transactions in 30 days

c. 10 transactions in 20 days

Engagement Campaigns:

Few Engagement campaign that we can run for the customer : 8 Campaign

S.No	1	2	3
Campaign	Reward on every transaction , better reward on every 5th Transaction	Loyalty Program	Personalisation on the app
Segment	This will be for all type of customer but majorly focussing on the casual type of customer	This campaign will be majorly for Power user of loan segment and push core customer to loyalty program	Core and Power user
Goal	The goal of this engagement is that the customer start using the Fibe payment option as much as possible , customer is trying to reach a milestone and get a reward . We want customer to migrate 1 level higher in the segment from casual to core , core to power	The goal of this engagement is to retain the power user as much as possible and push more user to power state	Customer get personalised experience , a special experience depending on whether they are casual ( Silver), Core (Gold) or power(Diamond) user
Pitch	Earn everytime to pay, every big everytime you pay 5 times in a week	Feel like a boss when pay via Fibe : - Fibe can get you priroity slots, Books appointment for you, Get best deals for you	Exclusive benefits only for special member like you - we focus on what you focus
Offer	On every payment , customer get some cash to burn on partner EMI payment i.e. 50 Fibe cash that they can use when paying on partner platform via lending, respectively 250 on every 5th payment	Book 5 loan from Fibe to get free Dedicated conceissuer service for helping at merchant sire , advance booking at merchant site , dedicated slots for appointment	Prefer to start the app from the page which customer most uses
Frequency & Timing	It will be an ongoing ccampaign for the customer base. In terms of nudging a customer , it will be once a day between 12 - 6 PM where majority of my current customer does their spending	Since this is a power user , idea will be to nudge them minimum to remind them the option but not over so that they get irritated or under so that they forget Once every week on start of weekend	Everytime a core or power user comes to the app , show them their most preferred tools which they like on the app
Success metrics	20% of MAU base has reached atleast 10 transaction smaller milestone: 1% in 1 month time, 5% in 3 month time, 10% in 6 month time and 20% in 9 month	Number of customer using Fibe services to book appontment and getting discount coupon for the services	Customer stickyness is increasing by 10% - DAU by MAU ratio is increasing by 10%

S.No	4	5
Campaign	Within App engagement	Reward for switching payment mode - Loan to UPI
Segment	All segments , different communication for customer at different level	This campaign will be focussed where 80% or more payment is based on Fibe loan
Goal	informing the customer about the different functionality in the app and nudge them to use and increase the transaction count on different payment mode	Goal will be to increase the breadth of the product so that customer start using different products and have higher retention as comapred to retention of 1 single product
Pitch	Different pitch depending on the different product Fibe want the customer to migrate to UPI - Pay now and earn big Fibe loan - convert to zero cost EMI Small loan - why pay now when you can pay later	Now pay via self or fibe via fibe- difficult to choose Fibe loan to UPI: Pay now and earn big
Offer	UPI - reward on every transaction for first 5 transaction Fibe loan - Dedicated conseissuer service for 1st month complimentary from fibe	2. Fibe loan to UPI Get big rewards on your first 5 payment ( normally on every 5th payment)
Frequency & Timing	Everytime a customer comes to app and browsing for more than 30 seconds	1. Timing: only after customer complete any 1 type of payment and the timeing will be just after completing the payment 2. Frequency : Everytime a customer completes a transaction of any mode
Success metrics	Customer doing the first loan transaction or first 5 UPI transaction or first 2 small ticket loan	Customer segment was 80% or 1 payment type , keeping the same volume transaction , the segment weitage comes to 60% , i.e. other segment has grown to 40% will be a success

S.No	6	7	8
Campaign	Reward for switching payment mode - small ticket to other mode	Reward for switching payment mode- UPI to other mode	Referral plan
Segment	This campaign will be focussed where 80% or more payment is based on Small ticket	This campaign will be focussed where 80% or more payment is based on UPI	This campaign will be focussed on casual, core or power user
Goal	Goal will be to increase the breadth of the product so that customer start using different products and have higher retention as comapred to retention of 1 single product	Goal will be to increase the breadth of the product so that customer start using different products and have higher retention as comapred to retention of 1 single product	To increase the transaction frequency on the app
Pitch	Now pay via self or fibe via fibe- difficult to choose Small Ticket to UPI: Pay now and earn big Small Ticket to Big ticket: Pay in 9 months at no cost EMI	Now pay via self or fibe via fibe- difficult to choose UPI to Loan: Don’t compromise due to cash, care now pay later ( affordability product)	Refer your friend and get upto 2000 when your friend join
Offer	UPI - reward on every transaction for first 5 transaction Fibe loan - Dedicated conseissuer service for 1st month complimentary from fibe	1. UPI to loan Dedicated conseissuer service for 1st month complimentary from Fibe ( normally chargeable for 200 for 1 year)	when a customer refer , the referral join and transact, both get referral money whcih can be used on next loan
Frequency & Timing	1. Timing: only after customer complete any 1 type of payment and the timeing will be just after completing the payment 2. Frequency : Everytime a customer completes a transaction of any mode	1. Timing: only after customer complete any 1 type of payment and the timeing will be just after completing the payment 2. Frequency : Everytime a customer completes a transaction of any mode	Timing: When the customer opens the app Frequency: when the customer open the app for a period of 15 days and dont do this for 3 months
Success metrics	Customer segment was 80% or 1 payment type , keeping the same volume transaction , the segment weitage comes to 60% , i.e. other segment has grown to 40% will be a success	Customer segment was 80% or 1 payment type , keeping the same volume transaction , the segment weitage comes to 60% , i.e. other segment has grown to 40% will be a success	Customer gets 2 referral successful loan booked

Retention Design

The current retention data:

**The below data is for the customer who has taken loan from fibe, normal loan disbursal rate is approx 23% for fibe, so below data starts from 23% loan taken customer only

the major dip in the curve comes in the first month itself

D3: First 3 days customer comes and check app, check loan documents

D7: Checking document , looking for other products

D30: first repayment

D90 : few repayment on app, few preclosure

D180: few repayment on app, preclosure, repeat loan hence number goes up

D360 : loan closure , repeat loan

What ICP drives the retention best :

ICP like Suhana and Ramesh are the best ICP since they are more tech savy , likes to do the repayment on their own , takes another loan as repeat loan customer

what acquisition channel drives the best retention :

Customer acquired via clinical and hospital source are best retained since all the best features were in detail explained to them by doctor to promote their sale ( their own personnel motive)

what sub feature or sub product drives the retention best:

Different option to upload document - offline and online
Real time calling support if required by the customer

Reason of Churn

The reason of churn can be divided into 2 main segments

Reason for Churn
Voluntary	Involuntary
No more loan required	Product not available at the merchant
Not happy with post loan process	Merchant where BNPL loan was taking is not there anymore
Higher cost of loan	Moved to a different place where Fibe is not available
	Faster checkout available
Have enough cash, not required	Policy didnt capture complete bill amount
It seemed like too much hassle	Merchant has exclusive tie-up with other partner
Lack of product awareness

Negative action to look for:

Drop in visit on app - Decrease in frequency of visting the app or website
drop in reading notification - not even reading the notification sent via different channel i.e watsapp, SMS , notification
App uninstall
High volume of support tickets ( not happy with the loan , repayment charges issue, delay default charges)
Drop in average time on app ( using the app less and less and compared to earlier
Checking the remove bank account detail flow ( raising query to remove personnel details like bank account , or checking flow on remove this)
CSAT score ( bad score on the survey - constantly starting coming bad)

Resurrection campaign

Basis the different churn reason , we can start some campaign to recover the voluntary churn customer who are currently at risk and might drop off soon

7 campaign that can help in bringing back the at risk customer or almost churned customer

S.No	1	2	3
Campaign	Pay via EMI to earn more	challenge to pay back double if found cheaper cost	Personel concierge service
Segment	Not happy with post loan process - incorrectly charged late fee	Higher cost of loan	Have enough cash, not required / No more loan required
Customer type	Casual, Core , Power - complaints about incorrect charges,	Casual,core, power	Casual,core, power
Target type	Casual, Core , Power	Casual,core, power	Casual,core, power
Pitch	Pay via no cost EMI and earn money	Get a zero cost loan from fibe, no cost no PF	Get a personnel assistant to book service for you
Offer	If customer pays all EMI on time or before time , they earn 500	Get a zero cost loan from fibe, no cost no PF and if still found cheaper , we will refund the double of difference	Fibe will assign an agent to book session on merchant place, dedicated slot, extra complimentary services
Frequency & Timing	Timing : Just after the customer has paid late charges or other bounce charges Frequency : Every 5 days for next 30 days or till they are converted	Timing : Customer coming to take the loan and drop off at the payment and charges page Frequency : Every alternate for next 7 days of customer dropping off froom the charges page	Timing : Customer dropping off due to number of steps, clicks , asking too much details Frequency: Every 2-3 days after dropping off from journey for next 15 days
Success metrics	Customer taking a loan and repaying on time	Customer coming back to the app and taking a loan	Customer using concierge service to book a session and eventually booking a loan

S.No	4	5
Campaign	Earn while you pay via EMI	Earn while you pay via EMI
Segment	It seemed like too much hassle	Lack of product awareness
Customer type	Casual, core	Casual
Target type	Core, power	Casual- core
Pitch	why pay now when you can pay later and earn at the same time	why pay now when you can pay later and earn at the same time
Offer	Get 1000 cashback in your account when you take 2 no cost EMI via Fibe	Get 1000 cashback in your account when you take 2 no cost EMI via Fibe
Frequency & Timing	Timing : customer not coming back after closure of 1st loan Frequency : Every Friday evening\Saturday morning since most transaction happen on weekend	Timing : a new user who just took the loan but not coming on app \ website Frequency : once in 2-3 days , first 60 days after taking the loan
Success metrics	Customer coming back to fibe and taking 2 BNPL loan	Customer installing the app back and taking 2 BNPL loan

S.No	6	7
Campaign	Earn while you pay via EMI	No Cancellation charges
Segment	One time use case	False promises
Customer type	Casual	Casual, Core , Power - complaints about treatment different than expected
Target type	Casual- core	Casual, Core , Power
Pitch	why pay now when you can pay later and earn at the same time	Cancel anytime you want if you are not satisfied with the product , no cancellation charges
Offer	Get 1000 cashback in your account when you take 2 no cost EMI via Fibe	Remove any cancellation charges and refund if any charges taken
Frequency & Timing	Timing : a new user who just took the loan but not coming on app \ website Frequency : once in 2-3 days , 60 days before the last date of the loan so build a brand recall	Timing : First loan about to be closed or just closed and not evening visiting fibe to take another loan
Success metrics	Customer installing the app back and taking 2 BNPL loan	Customer taking the next loan from Fibe and no complaint , tickets raised

Identifying the reason for a customer to churn by using the negative signs that customer starts leaving (which at time customer themselves dont know) and taking actions according to them , campaign based on negative action of at risk customer, we can bring them back , although the journey will be again similiar to onboarding journey ( it cant be that the rechurn campaign success metric is achieved and they are done, they are just activated). We need to again take them through complete onboarding journey and take them back to what state they were or higher i.e. casual, core or power. Its a repeat process which will keep on going ever and ever.

Alok Jain

Gx19