PLAYO - Product is Monetizing

LITMUS TEST

We will get in to the specifics of the litmus test with the basis of the ICP user data points obtained while generating user insights

ICP Insights

1. RETENTION

• Playo has grown from 1.5m users in 2022 to 3m users as of 2024. (Source - snapshots attached)
• As per the mobile data trends by Adjust, Sports and Fitness Industry has a D30 retention of about 10%. M3 retention of about 5-8%.

With multiple users using the Playo app for 3 years, and some even 6 years - coupled with the growth in active userbase from 1.5m to 3m recently -

We can conclude that Playo's Retention parameter is successful as part of the Litmus Test

2. ENGAGEMENT

• Playo engages with more than 1mil monthly active users -

From our engagement framework of considering user insights, user experiences and the value prop offered as part of the app, we identify that the Frequency is the primary engagement for Playo. From the sample set, we notice that the Core users form the majority of the percentage of users at 45%, followed by Power users at 25%.
With Playo, the user engagement is above 50% with the core+power user composition, thus making the second litmus test a successful one.

3. WILLINGNESS TO PAY

• Reviewing the intent to pay with a categorical view of casual, core and power users of PLAYO.

Limus test for Willingness to pay is successful because

• Initial ICP qualification done with users reflects intent for using the app to find easy booking.
• Analysis of the core and power user category reveals the satisfaction of users and finding value in the product. The ICPs are happy to pay more if there are improvements in the features of the app.
• Users Time and place sensitive over Money. Users care about the problem being solved for time. Happy to spend money for convenience.

Outcome: ICPs want improvement in features and ability to book seamlessly from previous bookings - willing to stick on and pay more for good feature upgrades.

Thus, Playo qualifies for monetization of the product

Possibilities to explore for Playo to latch on to these insights

• Introduce subscription pass for Core users to play with skilled match ups.
• With Power users showing intent to engagement, host Playo tournaments to improve social community and competitiveness of the players and the venue partners.
• Encourage exploration of more sports for power users - Encourage customers to try other sports in same venue.

Why Customers Choose Playo

1. Ease of Use: Instant booking, real-time availability, and easy navigating app design.
2. Community & Flexibility: Player availability, game hosting and creation, and multi-sport options.
3. Time & Cost Efficiency: No venue-hunting or group coordination hassles, Reasonable pricing

How does Playo Stand out?

Playo offers a plethora of user centric features which are critical for the overall experience of the game / sport.

How does Playo position itself?

Here’s how it distinguishes itself from competitors:

• Competitor Gaps:
• • Hudle: No social features or gamification.
  • Fitso/Cultplay: Focus on fitness hybrids, not sports-first communities.

By focusing on niche sports & related logistics, social engagement, and habit-forming features, Playo carves a distinct identity as the go-to platform for seamless venue discovery, socially driven sports booking experiences and finding the best player or timeslot for playing the sport.

How Playo Stands Out amongst other competitors or substitute products

1. Ease of Use:
2. • Playo: One-tap booking, Location based venue recommendations.
   • Substitutes: Hudle/Fitso lack player networks; Cultplay requires subscriptions.
3. Variety/Flexibility:
4. • Playo: Badminton, cricket, swimming, pickleball, etc. (12+ sports listed on the platform)
   • Substitutes: Cultplay (limited sports), Neighborhood parks (no facilities).
5. Time Availability:
6. • Playo: Real-time slots with dynamic pricing.
   • Substitutes: Social media groups require manual coordination.
7. Pricing:
8. • Playo: Competitive rates + tiered discounts (e.g., off-peak).
   • Substitutes: Direct venues often charge premiums; Cultplay locks users into subscriptions.

Monetization design

RFM Analysis for Playo

User Insights

Power Users

Price sensitivity: Low

Booking Frequency: High

Optimization

• Offer premium subscription, standard rewards/discounts for long term renewal bookings (3 month period).
• Maximize retention by making the experience community driven & incentive driven.

Core Users

Price sensitivity: Moderate

Booking Frequency: Medium-High

Optimization

• Initiate and enable frequent booking through community engagement, players discounts based on active participation.
• Personalize offers based on their games and venue preferences.

Casual Users

Price sensitivity: High

Booking Frequency: Low - Medium

Optimization

• Focus on ads & occasional incentives to convert them into buyers.
• Keep driving offers and Game participation to encourage first-time purchases and experiences.

User segmentation Analysis

Top 4 User Segments to Prioritize for Monetization

Playo Monetization - When to charge

• Casual Users:
• • Happy Moment: Booking a court in <2 minutes.
  • Aha Moment: Discovering nearby venues with real-time availability.
  • Perceived Value: Convenience (saves time in venue discovery vs. calling venues / checking booking availability).
• Core Users:
• • Happy Moment: Finding a skill-matched player/group.
  • Aha Moment: Joining a group, kinding relevant challengers.
  • Perceived Value: Community & Growth (skill improvement + social bonds).
• Power Users:
• • Happy Moment: Maintaining a streak and achieving goals.
  • Aha Moment: Thriving in social community (Leaderboards, group challenges, tournaments etc.)
  • Perceived Value: Streak Status & Exclusivity (Consistency & Recognition).

MICROSCOPIC VIEW OF PERCEIVED VALUE

1. Time Saved ✅
2. Money Saved ❌
3. Improved Efficiency ❌
4. Dopamine ✅

For Playo, we will charge at the time of checkout for users.

a. Power users - Dopamine is the primary perceived value

Why? - We go back to Happy moments - Social community & achieving goals. For power users, price is not a concern, the community and contentment is the priority.

b. Core users & Casual users - Time saved (booking quickly) is primary perceived value and dopamine is secondary value.

Why? - Their Aha moment lies in ability to book quickly, and discovering venues. For core users, building habit and growing skill in a span of time is the priority

What to charge for?

(Identify what you're charging for- the core value and the currency for the product)

PLAYO - WHAT TO CHARGE FOR?

Value Prop - Convenience of booking, Convenience of finding players

Perceived value - Time, Skill Growth

Core value prop of PLAYO is convenience.

If we analyze the users' goals, we can infer the platform currency and then customize the pricing as per need.

What to charge - Standard Convenience fee on every booking, Registration fee for Tournaments.

Implementation Steps for chargeable features:

1. Initiate Segment-Specific Campaigns for all the 3 cohort of users.
2. • Casual: Push off-peak discounts via SMS/push notifications.
   • Core: Promote playing against newer players with skill-based leaderboards.
   • Power: Offer limited-time Elite membership trials at the most preferred venues.
3. Tiered Pricing Page:
4. • Highlight features by personalizing the page for Casual/Core/Power users' and displaying the different pricing accordingly.
   • Showcase Personal Goal for Casual user to nudge them to become core user and showcase Social goal for core user to nudge them to lean towards power user.
5. A/B Testing:
6. • Test pricing tiers for core and power users - booking rates / Tournament fee etc.

Outcome Focus with this implementation / experiements

• Tailored Value: Aligns pricing with what each segment values most (time, skill, community).
• Upsell: Introduce and Convert casual→core→power users through tiered incentives.
• Revenue Diversification: Balances low-margin volume (casual) with high-margin exclusivity (power).

PLAYO - How much to charge?

Let's understand and factor in some of the things to reason how much to charge?

Playo monetizes in two ways - B2C (Direct bookings from users), B2B (Commissions from venue partners, corporates)

a. Time spent vs Time saved while booking through Playo

b. Convenience of finding a good playing partner

c. Ability to find a venue and it's availability at any time

d. Advertisements.

Current monetization

Perceived value = Convenience to book a venue in 2 minutes. Saves time, effort and energy and ability to plan a schedule ahead of time.

Perceived price = 2% convenience fee on the base price of the court.

Pricing Page

(Understand the existing user discovery flow for pricing and try to understand why things are being done they are currently)

Pricing Page Design

(Step 1 - Analyze the existing pricing page objectively)

(Step 2 -Re-design the Pricing Page)

(Step 3- Add reasoning for the same)

PLAYO - PRICING

Current pricing model of Playo

1. Convenience Fee on bookings
2. Revenue from Advertisements
3. Commission from Venue Partners
4. B2B Partnerships
5. Corporate Events

Here is how Playo pricing is for a particular booking transaction.

Analyzing Competitors and evaluating the differentiator of PLAYO

Let's look at System Designs - S1 & S2

System 1 (S1): Fast, Intuitive, Emotion-Driven Pricing

Casual / Core users: High-frequency, low-effort decisions

Features to drive pricing -

• Priming: Highlight real-time venue availability, trending sports, and player counts (example - “3 players nearby want to play badminton in your area!”).
• Nudges: Urgency cues like “Last couple of slots left for this weekend” or “20% off if booked on Thursdays!”
• Anchoring Bias:
• • Show "original price" strikethrough (e.g., ₹600 → ₹400) - Currently not used on the platform
  • Bundle add-ons (example “Book a football court + get a Gatorade drink for ₹50 extra!”). Currently not used on the platform
• Aha! Moment: Instant booking confirmation + “Your game is ON! Invite friends now sharable feature for WhatsApp.
• Aesthetic-Usability Effect: Clean, minimal booking flow with one-tap actions

Why S1 Works for Playo:

• Targets Casual /Core users who prioritize speed and convenience.
• Leverages impulsive decisions (e.g., booking during free time / sudden availability of friends or colleagues).
• Offers help go from Casual to core over time.

Key Changes in Pricing Communication

From Static Pricing → Dynamic, FOMO driven Discounts

1. Change: Introduce AI-driven dynamic pricing with real-time discounts (example: “Save ₹200 if booked in 30 mins!”) + scarcity cues (“3 slots left!”)
2. Why: Counter price sensitivity and drive impulsive bookings.

From Generic Messaging → Hyper-Personalized Triggers

1. Change: Using nudges and geo-targeted offers (example: “Bangalore mornings at 40% off!”)
2. Why: Align pricing with user intent (time, location, past behavior)

System 2 (S2): Slow, Analytical, Logic-Driven Pricing

Power User: High-involvement decisions

Features to drive pricing -

• Detailed Comparisons: Side-by-side venue amenities, coaching packages, and pricing tiers.
• Commitment Drivers:
• • Streaks & Target goals
  • Bulk-booking discounts (e.g., “Book for 2 months, save 30%”).
• Social Proof: Testimonials, Streaks, and user skill ratings.
• Personalization:
• • Skill-based recommendations and cross matching.
  • Budget calculators and cost split features.

Why S2 Works for Playo:

• Targets power users who seek value, skill growth, and community.
• Justifies premium pricing with logic (example: cost savings via subscriptions)

RECOMMENDATIONS for System 2

1. Retain Core/Power Users with System 2 Hybrids:
2. • Post-Booking Dashboard: Show skill stats, league standings, and streak progress.
   • Upsell Path: “Unlock Elite perks for 20% more bookings!”
3. Competitor-Specific Tactics:
4. • Against Hudle: Geo-target ads in Hudle’s weak cities (e.g., Pune, Jaipur).
   • Against Cultplay: Highlight “No gym lock-in. Pure sports, pure fun.”

Key Metrics to Monitor

• Conversion Rate: % of users upgrading from Casual → Core → Power tiers.
• LTV: CAC Ratio: Aim for 3:1 (e.g., ₹3,000 LTV vs. ₹1,000 CAC).
• Churn Rate: Keep <5% monthly for Power Users.