Onboarding project | Zerodha Kite

ICP

Ideal Customer profile	ICP 1	ICP 2	ICP 3
ICP Name	Jubin	Paul	Harman
Age	33	65	30
Shopping Goals	Maximize or Get better returns on their Investments through the stock market	Diversify the portfolio via deploying a small part of their retirement corpus in the stock markets	Wants to have an alternate source of income via intraday trading
Income Levels	1.5lac	Retd	50K
Gender	M	M	M
Location	Bangalore	Indore	Delhi
Companies	Accenture	-	Freelancer
Marital Status	Single	Married	Single
How do they spend their weekdays	At work, 12 hours/ day(including commute); - Post work on OTT/Social media, - Ed-tech apps(Upskilling himself), - Not very socially active	At home during the day mostly, - reading and watching news etc, - Household chores ; - Evenings are spent to meet friends in and around the locality, - Watches TV, active on facebook	Flexible work timings, schedule depends on assignments received, few days are hectic with 14hour schedules while others aren't, - not a major difference b/w weekdays and weekends, - spends time on youtube and IG to learn & relax, - prefers going to theatres than OTT
How do they spend their weekends	Generally spends time alone going to a mall to shop/watch a movie, Coffee enthusiast so tries to explore new cafes every week, might meet a friend on some occassional weekend	Is actively involved in church activities, hence the weekends are majorly spent around Church and its meetings	Weekdays and weekends are generally similar; might meet a friend for dinner on Sundays
Apps they spends most of their time on	OTT, Instagram, Youtube, Spotify, Online Chess	Facebook, Instagram, Whatsapp, Biblical apps	Instagram, IMDB, youtube, Spotify Bumble
What do they spend most on	Savings (Investments ~50% of the salary), - Food (exploring new cafes) - Rent - Gym membership and dietary supplements	Household expenses	Apparel - Shopping (Online/Offline), - Rent, - Groceries, - Gadgets
Most used features on the app	Checking his portfolio performance (Weekly) Portfolio Analysis/Insights	Portfolio performance	Buying and Selling Futures & Options Search
Frequency of feature usage	1-2 /week	1-2/month	5/week
Willingness to pay	High value of funds to deploy as prioritises savings over everything else - Moderate risk taker so has indexed on equity	Low as wants to deploy ~10%-20% of the portfolio only on stocks	Low - Med as High frequency of transactions in Futures & Options, traders with 20k everyday
Problem Statement	Not happy with the ~12%-14% avg returns YoY hence want to be a more active investor to generate Alpha (Higher than Index benchmark)	Majority of investments are tied up Real estate or FD instruments, wants to diversify to beat inflation	Freelancer, so there's fluctuation in income levels month on month, wants to be able to generate a decent 20K per monoth from trading

JTBD

Goal Priority	Tags	Jubin	Paul	Harman
Primary	Financial	To generate higher than average returns	Wants to grow his retirement corpus than the existing 7-8% returns on FDs	To create an alternate source of income
Secondary	Functional	Very convenient to check his portfolio performance real time - Good view of Reports & Analytics	Easier process to buy/sell stocks as compared to FDs which require visiting the branch etc	Most reliable platform in terms of tech glitches etc
Secondary	Personal	NA	NA	NA
Secondary	Social	NA	NA	NA

Activation Metrics

Considered 2 ICPs for the further analysis

Jubin (ICP1) - Active Investor
Harman (ICP3) - Intraday Trader

Activation Metrics for Jubin; Active Investor

Hypothesis 1: Purchased a particular stock(Qty independent) in 7 days

Rationale: Zerodha's KITE isn't a research/educational app; Purchasing a stock under the long term option within the 1st 7 days indicates that they would have already been done with research and have already zero-ed down on which stock(s) to buy and the corresponding quantity; This also establishes Trust, Quick adoption curve and stickiness to the platform owing to the investment

Hypothesis 2: >=50K funds added to Kite's account in 7 days

Rationale: An ICP with a monthly salary of ~1.5lac and indexed heavily on savings/investments would take larger bets and aim to have a portfolio of ~8-10lacs, hence a 50K amount to be added within the 1st 7 days signals High intent of transaction

Hypothesis 3: >=3 stocks added to the watchlist in 2 days Rationale: Adding stocks to the watchlist implies the user has already researched and shortlisted a handful of stocks, which they want to observe for a couple of days before initiating a transaction

Hypothesis 4: >=3 App opens in the first 5 market open days

Rationale: >=3 app opens would imply that the user is actively tracking few stocks that he/she intends to buy and is awaiting opportunities/dips to buy at the opportune time

Activation Metrics for Harman; Intraday Trader

Hypothesis 5: >=3 trades in the first 5 days

Rationale: This would imply that the user is an active trader and and would organically return to the app due to the use case and being habituated to trading

Hypothesis 6: Loss for the 1st 7 trades each do not exceed 10% of the capital

Rationale: This implies that the trader is skilled, disciplined and has the psychology to not get carried away and lose all of his/her capital. Basically, minimizing one's losses indicates a sound trader, hence would remain active for long and not come across a scenario of losing the entire capital and discontinuing trading

Hypothesis 7 : >=10% realized profit in the first 7 days

Rationale: For users like Harman, who trade with a small capital of ~20K, 10% profit is pretty much achievable in the first 7 days, this ensures the interest levels are high, user would also add more funds to trade. >=10% capital ensures they're enjoying the process

Hypothesis 8: Logged in from >=2 devices within the first 7 days

Rationale: Skilled traders generally use 2 devices(Mobile & Laptop/Tablet) for analysis and to initiate purchase/sale, this would mean the user is a serious trader and mostly users Kite alone, doesn't use multiple apps

Hypothesis 9: Trader goes Long (Buy then Sell) or Short (Sell then buy) in the first 30 days in Futures & Options

Rationale: Going Long in F&O segments is a more riskier medium as compared to Going short, so Traders with a higher LTV are generally the ones going short

Metrics to be Tracked

L1 Metrics

Number of Segments activated (Equity, Futures & Options, Commodity, Debt): The more segments that have been activated signals a moderate to highly active investor/trader
Number of Stocks (# Scrips) purchased in the first 7/15/30 days
Category of stocks purchased (Small/Mid/Large Cap); for instance a user who only buys large cap stock might be a very safe investor and have a 'Buy & Forget' philosophy for long term gains; on the contrary someone buying small caps might be more active and shuffles his/her portfolio regularly
Average transaction value : This could be indicative of share of wallet that Kite would posses as the user already shares Annual Earnings; for instance , a user in the salary range of 7-10lacs and has built an equity portfolio of 2-2.5lacs could be considered as being a single brokerage user or Kite loyalists
Funds added within the first 7/15/30 days : Signals intent and share of wallet as a % of annual earnings
Number of stocks added to the watchlist : Signals familiarity with the platform and high intent to transact as users generally add those stocks to the watch that they wanna observe for a few days before initiating transaction
P&L of an Intraday trader for the first 7/15/30 days : The percentage of realized profit & loss as a ratio of the initial capital deployed is a good indicator of the user's skill and lifetime of the trader; in general a newbie trader exhausts his capital within the first 3-6 months

L2 Metrics

Frequency of App Opens within the first 7/15/30 days : Signals intent levels of the user irrespective of the number/value of transactions, for instance if a user post sign-up
Avg Time spent on the app per usage
Number of Devices Logged-in : Could be an indicator of Kite being the only platform being used, more relevant in the case of a Trader ICP

Onboarding Teardown

Zerodha Kite Onboarding.pdf