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Company: Setu

Type: B2B

Product: Reverse Penny Drop (RPD)

Onboarding journey: Offline + Online

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Hi There,

This is Priya Bansal from Setu by Pinelabs. I work as a growth and business development associate.

What Setu does?

Founded in 2018, we are an API infra company and build APIs for the fastest onboarding, collections, and underwriting journeys. We were acquired by Pine Labs for around ~$70 Mn in FY23. Our customers find us through a strong network of WOM.

Product picked:

Since we have different product lines, for this project I have picked the product reverse penny drop (RPD). A simple API used for Bank account verification. This product is open only for regulated entities under SEBI and RBI. We have achieved PMF for entities regulated under SEBI and are at a mature scaling stage. We have not reached PMF for entities regulated under RBI. So this project will be focused on entities regulated under SEBI. For simplicity, we have assumed that the Ideal Customer Profile (ICP) is already aware of Setu and has discovered us via SEO following word of mouth (WOM) or referral. We will begin the teardown from the moment a user signs up on our website.

Ideal customer profile:

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JTBD

(I would like to keep my notes on the user calls confidential, the below table is a conclusion of all the calls done under both the ICPs).

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Onboarding Teardown

The onboarding teardown has been divided into 3 journeys:

1. Discovery teardown
2. Sales funnel teardown
3. Onboarding teardown

You can find the Discovery teardown in the below PDF.

Discovery Teardown - RPD (Setu) .pdf​

Sales Funnel Teardown​

This journey is post the sign-up on the website and is until the lead is converted and the agreement is signed to go ahead with the partnership.

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1. Sign up on the website:
   
   As we saw in the onboarding teardown. An auto e-mail is triggered right after they submit the form. The e-mail also communicated that the sales team would be reaching out within 24 hours. This gives flexibility in case the user wants to convey the use case or move fast on the same. They can also request a meeting at the earliest. The 24-hour window creates a curiosity gap for the user in terms of what they know and what they want to know.
   
   Suggestions?
   API documentation can be included in the mail. This uses Cognitive bias, where we provide information to the user to go through in the meantime of the 24 hours with a touch of personalization.
   
2. Sales Demo:
   
   Elevator pitch - We are the market leader (Authoritative bias) in bank account verification, offering Reverse Pennydrop (RPD)—the industry's first solution designed to elevate your verification process. Our clients (Social Proof) experience up to a 30% higher success rate (Goal gradient Effect) in verifying customer bank accounts, and gaining access to crucial details like IFSC codes, Payer VPAs, and more. With RPD's API, you can streamline bank account verification Goal gradient Effect) via UPI, enhancing both accuracy and efficiency in onboarding and compliance processes.
   
   Aha Moment: During the sales call, a live demo showcases the product's capabilities by asking the user to scan a QR code and make a small INR 1 transaction. Within milliseconds, all relevant details, including the user’s bank account information, are displayed on the screen. This creates a significant "Aha moment" as the user experiences the product’s efficiency and effectiveness firsthand. This experience leverages the Endowment Effect, where the user feels a sense of ownership and connection to the product. It also provides a clear preview of what their own customers' experience will be like, enhancing their confidence in the integration and user journey. This gives hands-on experience of the product and flow.
   hands-on
   
   Battle cards of the difference between the methods that are available today and RPD:
   
   This table gives the user a visual effect of the complete features available and how it is different from the existing methods, what they can provide, and what they can't. - This uses the chunking bias.
   
   

3. Sandbox testing:

The sandbox credentials are shared to the user over mail and is given unlimited access. This is also where they experience Aha moment as they can test multiple scenarios and do not have any limitations.

What could have been better?

• We could limit the duration of sandbox access or the amount of credits provided within the sandbox to encourage users to be more proactive in testing, emphasizing that their experience is time-sensitive. This approach aligns with Parkinson's Law, which suggests that work expands to fill the time available for its completion, meaning tasks are often completed more quickly when time is constrained. By creating a sense of urgency, we aim to reduce drop-offs, ensuring users progress through the funnel more efficiently.
• If users haven't taken further steps after their sandbox access expires, we can send an email offering to extend their access for a few more days. This strategy leverages the Variable Reward Bias, where the offer of an unexpected extension acts as a bonus, motivating users to re-engage with the sandbox. This additional time may lead them to experience the "Aha moment" if they haven’t already, enhancing their connection to the product.
  time

4. Commercial Negotiation & Agreement vetting

This stage is completely handled by the sales POC. It is carried out either in person/ on call or over a g-meet. Our team uses the Labor illusion in terms of sharing the commercials as they first ask the user about key metrics and then take some time to reach out with pricing curated specially for them.

The agreement vetting also takes place parallel. In this stage, the user is convinced about the product and is ready to sign an agreement with Setu.

5. Production access & Live:
   The user is satisfied with the CVP of the product and the JTBD. They are 100% sure of the RPD API and are given the RPD access after the onboarding journey on Bridge.
   
   

The onboarding journey on Bridge can be found in the PDF attached below:

Onboarding teardown - RPD (Setu).pdf

Activation Metrics
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Hypothesis 1: Make 1000 successful verification in 10 days.

Reasoning: The Reverse Pennydrop API provides bank account verification and is widely integrated by stock brokers in their onboarding processes. (mostly in an application). Achieving 500 successful verifications will enhance product retention and improve conversion rates in these onboarding journeys. As verification numbers rise, the product’s BAV (Bank Account Verification) success rates will also increase. After completing at least 500 verifications, users will gain a comprehensive understanding of the product's Customer Value Proposition (CVP). This insight will demonstrate the API's effectiveness and value in streamlining account verification.

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​Hypothesis 2: Make ~100 successful verification for the next 30 days.

Reasoning: In this metric, I have taken less number of verifications but more number of days as this will generate stickiness to the product and also see the results we mention on our website and sales pitches. This will also give insights into our reports and analytics, which is a very strong factor our customer looks for. A customer can them also check what is the average time it is taking for a user to complete BAV, what are the error codes, and how to optimize for it.

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​Hypothesis 3: Start transacting within 1 week of the production access shared.

Reasoning: Given the long sales and onboarding cycles, we aim for customers to begin transacting within a week of receiving production credentials. This kick-start is crucial because Setu's revenue is tied to the number of successful verifications performed by customers. Early transactions allow customers to quickly experience the product’s CVP. By initiating transactions soon after onboarding, they can better appreciate the benefits and efficiency of our verification solution.

Hypothesis 4: The more a user checks the reports and analytics, the higher the retention rate will be.

Reasoning: if a user keeps logging in to Bridge and check how many transactions they are doing on a daily basis, the higher the retention rate will be. This also shows the user is exploring the additional features that come along with the product and is performing as expected.

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Hypothesis 5: If they have added any members to their Bridge account.

Reasoning: The more members are added, the more they are using the platform which helps in a higher retention rate. As we have 2 different roles admin or reporter. If a reporter is added that implies a dedicated person has been assigned to check the reports and analytics and track how many verifications have been done on a day-to-day basis.

Metrics I would track for the activation:

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Side note:

I loved working through this project and found meaningful insights in our onboarding journey. I will surely go back and present them my findings and create a significant impact!

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