Engagement & Retention project | Groww

Core Value Proposition

Core Value: Democratize and simplify investment for all type of investors (early, intermediate and pro) through their highly user-friendly app and web interface. Groww offers a wide range of digital first investment options like mutual funds, stocks and digital gold along with related analytics and latest educational resources ensuring safety and transparency of financial information for all.
User Experience of Core Value Prop
- Easy onboarding process and simple registration
- Straightforward and intuitive app and website interface that makes investment exploration and portfolio management simple
- Transparent fees with Zero hidden charges enabling users to maximize their returns
- Investment, payments and credit options (including Stocks, Mutual funds, credit and UPI) all under one roof
Natural frequency:
- Casual users - 1-2 times per month (Monthly)
- Core users - 1-2 times times per week (Weekly)
- Power users - 1-2 times per day (Daily)

Defining an active user at Groww

Groww's active user is someone who has a opened a Demat account (with Groww) and invests, divests and diversify their investments (on their mobile app or website) on a monthly/weekly basis leveraging all the investment options, analysis and informational resources offered by them.

Action(s) that makes someone an active user for Groww

Managing their portfolio of investment by either investing/divesting of stocks once or twice a month or having monthly SIP at various mutual funds

Natural frequency

Casual - Invests/Manages portfolio 1-2 times in a month

Core - Invests/Manages portfolio 1-2 times in a week

Power - Invests/Manages portfolio 1-2 times daily

ICP based User Segmentation

ICP Name	Early Investor	Intermediate Investor	Pro Investor
Name	Rahul	Mahima	Sanjay
Age	20-25	25 - 40	40 - 70
User Goals	To save money for Travel, iPhone, etc To have backup money for emergencies	To make more so that they can keep up with Inflation To save money for Retirement	To save money for Retirement To build a corpus for Child’s education
Income levels	5 LPA - 20 LPA	20 LPA - 40 LPA	40 LPA - 1 Cr+
Location	Tier 1 cities in India. Eg: Mumbai, New Delhi, Bengaluru, and Chennai.	Tier 1 cities in India. Eg: Mumbai, New Delhi, Bengaluru, and Chennai.	Tier 1 cities in India. Eg: Mumbai, New Delhi, Bengaluru, and Chennai.
Companies	New Age Startups, Technology-Driven Companies, Banking, Consulting, Entrepreneurs.	New Age Startups, Technology-Driven Companies, Banking, Consulting, Entrepreneurs.	New Age Startups, Technology-Driven Companies, Banking, Consulting, Entrepreneurs.
Marital Status	Unmarried	Married/UnMarried	Married/UnMarried
Where do they spend time?	Youtube/Insta, OTT platforms (TV/Laptop), Music (Spotify/Apple/Wynk), Work	Social media (YouTube/Insta), OTT platforms (Netflix/Prime), News (Inshorts/YouTube), Travel (Airbnb, Agoda, MMT), Work, Fitness (Cult)	Work, Travel, Fitness, Youtube, OTT
Pain points	Want Easy to Invest Platform in Stocks and MF with low/zero charges	Want a Diverse list of MFs (Other platforms have too much jargon so not easy to use) Current MF investments are segregated across different places	High Brokerage & AMC charges from other platforms Current MF investments are segregated across different places
Current solution	Used Zerodha's Coin Earlier, Used Paytm Money, Used Upstox Earlier. Now use Groww for MF's	Used Motilal Oswal before, but now use Groww for both MF and Stocks.	Used offline brokers & Motilal Oswal, now uses Groww for MFs primarily. Use Groww as a secondary app to Zerodha

Casual/Core/Power based User Segmentation

User Type	Casual (Rahul)	Core (Mahima)	Power (Sanjay)
Usage Characteristics	Logs in once a month to complete monthly SIP and to monitor their portfolio Does not invest in Stocks and other asset classes Rarely interacts with educational resources present on the platform	Logs in Weekly to make new investment/manage existing portfolio Invests in both Stocks and MFs Often reads through information content on the app to keep themselves updated	Logs in daily for intraday trading. Hold a wide range of asset classes Relies on in app information and market trends to make informed investment decision
Recency of use case	1-2 times per month	1-2 times in a week	1-2 times in a day
Natural Frequency	Monthly	Weekly	Daily
Monetary/AOV/Revenue Generated	Low	Medium	High
Pain Points	Finds it difficult to choose one financial asset and risk associated with them Finds it overwhelming to diversify investment basis market fluctuations Makes marginal returns due to limited investment and hence is less motivated to spend much time exploring the app	Finds it easy to invest in MFs/ does SIP for a portfolio of mutual funds Missing out on exploring stock trading as they think investing in stocks and other asset class is bigger time and money commitment than they can afford Makes good returns through MF investments and is motivated to manage and diversify portfolio on a weekly basis	Has high understanding of trading and enjoys doing intraday trading of Stocks as well as other asset classes like F&O and MFs Want to maximize returns hence keeps going through analytical information provided on the platform to make informed decisons Sees high ROI and is motivated to do trading on a daily basis
Valued Features	Monthly SIP in MFs	Monthly SIP in MFs Gold ETF, Index ETF	Stocks, MFs and F&O
Core Value Proposition (CVP) being utilised	1-2 investment activity in a month	1-2 investment activity in a week Consumes Groww's content on market trends	1-2 investment activity in a day Consumes Groww's content on market trends Uses various analysis on platform for making investment decision
JTBD of the persona	Personal Goal	Financial Goal	Financial Goal
Discovery	WOM, Social Media	WOM, Social Media, Youtube/Google Ads, referrals	WOM, Social Media, Youtube/Google Ads, Organic Search, referrals
Level of Engagement	Low	Medium	High

Defining and Understanding which EnR Metrics to track

	Key Tracking Metric	Selected	Rationale
Frequency	Trading Frequency: No. of investments/divestments made by users in stocks/mutual funds per month.	Primary	The number of trades or investments made by users, indicating their level of activity and reliance on the platform for financial growth.
Depth	Portfolio Check in rate: No. of times users log in to check or manage their portfolio per month.	Secondary	This metric shows how actively they monitor their investments.
Breadth	Feature Usage Rate: Engagement with specific features, like educational content, stock or mutual fund analysis tools, or goal-setting options per month.	Tertiary	This metric will help gauge the effectiveness of engagement features in retaining users and enhancing their investment knowledge.

Key Tracking Metric

Selected

Rationale

Frequency

Trading Frequency: No. of investments/divestments made by users in stocks/mutual funds per month.

Primary

The number of trades or investments made by users, indicating their level of activity and reliance on the platform for financial growth.

Depth

Portfolio Check in rate: No. of times users log in to check or manage their portfolio per month.

Secondary

This metric shows how actively they monitor their investments.

Breadth

Feature Usage Rate: Engagement with specific features, like educational content, stock or mutual fund analysis tools, or goal-setting options per month.

Tertiary

This metric will help gauge the effectiveness of engagement features in retaining users and enhancing their investment knowledge.

Engagement Campaigns

Campaign to convert Casual > Core

Segment: Casual Users - These users have less motivation to invest because,

- they lack awareness of their financial goals
- find investment confusing and are confused where to put money
- in early career stage and have less access to money for investment

	Campaign (Casual to Core)
Goal	Increase app engagement to weekly by sharing bite size weekly educational content.
Campaign Channel	Email, WhatsApp, Push Notification
Pitch	'Make your money Groww' - Weekly Digest
Campaign Details	Create a weekly summary of users existing portfolio performance reminding them that their investment is doing well and they should invest more to get more returns Include a quick list of high performing funds encouraging with return % and min. SIP amount encouraging casual users to invest more
Frequency & Timing	Frequency - Weekly (preferably a specific weekday) Timing - After Market Opens (around 10am)
Success Metrics	Open rate of Push Notifications: Measures how many users opened the app after receiving the notification. A high open rate indicates that the content resonates with users. CTR: Shows how many users clicked to learn more or explore linked resources (like a blog or video) from the notification. WAU Increase: Tracks any lift in weekly active users, showing that notifications drive users to open and interact with the app more consistently. Unsubscribe/ Disable rate (negative metric): Tracks how many users opt out of receiving notifications, which helps gauge whether the frequency or content of the tips is well-received.

Segment: Core Users - These users have a habit of investment but the natural frequency is low because,

- they don't have time to make informed decision for new/diversified investment
- are investing through multiple stock brokers and use Groww as secondary account

	Campaign (Core to Power)
Goal	To deepen engagement with core users by encouraging them to explore new features, broaden their investment portfolios, and enhance their financial literacy through interactive challenges.
Campaign Channel	Push Notification, WhatsApp, Email
Pitch	'Groww your Strategy' - Advanced Investment Challenges
Campaign Details	Release a unique challenge each week for Core users to participate with the aim of encouraging them to diversity their investment. Sample Challenges: 'Optimize your Portfolio' - encouraging them to explore analytics features and re-balance their assets 'Set a SIP Boost' - encourage users to increase their SIP by a small % 'Explore New Asset Class ' - Prompt users to invest in new asset class. Monthly rewards for users who successfully complete all challenges Send Investment community insights encouraging rest of the users to participate more and earn more
Frequency & Timing	Frequency - Weekly (preferably on a week days) Timing - Afternoon/evening when its leisure time for users.
Success Metrics	Feature Usage rate: Trac specific feature usage (e.g., SIP increases, portfolio analytics usage) to see if users are exploring new app features. Portfolio Diversification rate: Track any increase in the number of asset classes or diversification within user portfolios. A shift here suggests users are taking steps to broaden their investing strategy.

High level Stats

As of May 2024, Monthly active user for Groww was 1Cr, making it the biggest stock broking company in India (Source)
As per Statista, Fintech apps have a daily retention rate of 30.3% that goes down to 17.6% and 30 day retention benchmark is 11.6%. (Source)
Adjusting this benchmark according to factors relevant for Groww (mentioned below), I would like to add 5% to the industry average , making Groww's Monthly retention rate somewhere around 15%-16%
- Factors relevant for Groww's increased retention rate are,
- - Largest stock broker in India as of May 2024
  - Due to its user-friendly interface and 0 account opening charges it is rated the best Indian stock broker app for beginners (Source)
  - Since it's popularity is high among beginners and also it has the largest MAU, we can conclude that Groww will have above average retention rate than industry benchmark.

Plotting Retention Rate

As per research on Industry standards as well as Groww's recent performance, below mentioned are estimated MoM retention rate of Groww,

Reasons for Churn

Involuntary reasons :
- Market Volatility - Users are afraid of incurring losses due to market fluctuations and hence restrict their investment to only once or twice a year
- Changes in financial situation - Many times due to unforeseen circumstances users tend to withdraw their investments to cater to personal needs
- Govt and regulatory restrictions - SEBI levies capital gains tax which acts as a negative reinforcement for many users when it comes to trading
- Influence of friends and family - Many users leave the platform or go to offline brokers or a competitor stock broker simply because it's more trusted and popular among FnF
Voluntary reasons :
- Lack of Educational resources for new investors - Groww does not have in-app bite size educational content for users to learn from.
- Complexity of advanced features - Many users get discouraged to invest as they are usually intimated by the analytics and metrics shown on the platform
- Limited personalized insights and User engagement - Users might loose interest from Groww's platform since they don't receive any personalized advice or guidance from the app which often is not the case with offline stock brokers
- Poor customer support experience: Poor or delayed grievance resolution can lead to churn of users

Negative Actions

Lows NPS or CSAT: Low NPS signifies dissatisfaction with Groww's performance which in turns affects CSAT score and business growth
Decrease in order frequency of user: Low activity by users signifies less interest and intent towards Groww
Declining user rating on Google/App store: User rating decline is an indicator of user dissatisfaction and lesser intent

Resurrection Campaign

	Campaign 1	Campaign 2	Campaign 3	Campaign 4	Campaign 5
Goal	Bring back users churned out to competitor apps	Simplify transition of portfolio for users from other apps	Increase investment awareness among young and new investors	Increase awareness of Groww's in app features	Bring back intrigue in users by sharing engaging/interesting insights
Campaign Channel	Push Notification, WhatsApp, Email	Email, WhatsApp, Push Notification	Email, WhatsApp, Push Notification	Social Media	Email, Whatsapp
Pitch/ Content	Maximize returns with zero brokerage	Move your portfolio in 3 simple steps	Groww with the Experts : Live Webinar and Q&A	Investing with Groww 101	Restart your financial growth journey with Groww
Campaign Details	Offer zero brokerage on the first 5 trades when they return to Groww, creating a low-risk incentive for re-engagement	If users have holdings in Zerodha, simplify the portfolio transfer process with direct support from Groww’s customer service team. An email campaign can highlight the ease and benefits of consolidating assets back into Groww.	Host exclusive sessions with investment experts on topics like portfolio diversification, technical analysis, and wealth-building strategies, aimed at educating and engaging experienced investors.	Create a bunch of bite size social media informational content emphasizing on making feature usage and how can these features help investors in making informed choices	Use a personalized newsletter sharing success stories and encouraging user journey and reviews to re-new interest in users
Frequency and Timing	Frequency - Monthly (for 3 months) Timing - End of the Month	Frequency - Monthly (for 6 months) Timing - End of the Month	Frequency - Quarterly (once in 3 months) Timing - Mid Month	Frequency - Weekly Timing - on any week day	Frequency - Monthly (for 6 months) Timing - End of the Month
Success Metrics	App Install rate Increase in WAU/MAU	CTR Increase in Migration feature usage	Registration and participation rate Return rate	Engagement Rate CTR	Open rate CTR Conversion rate