Engagement & Retention project | Gensol
Product Hook:
Question: What product hook needs to be built to move the customer from Casual > Core > Power?
Answer: A loyalty program, tailor made for each segments of users to move each segment to the higher segment
Goal:
Serial Number | Goal |
|---|---|
1 | Increase the Wallet Share of the customers in each bucket |
2 | Incremental shift in the customers from the lower bucket to the higher one |
Success Metric:
Serial Number | Metric |
|---|---|
1 | Increase in Wallet Share (overall) |
2 | Wallet Share change across Casual, Core and Power Users - MoM |
The success metric (North Star Metric) that we would be tracking is increase in the wallet share of the active customers
Problem Statement:
We want to increase the Wallet Share of the customers in a given month. As per the user calls, the current WS on the app is way lower than the potential of the customers in each of the segments: Casual; Core; Power
Current Monthly Wallet Share: 2.1
Target Monthly Wallet Share: 2.3
Current Alternative:
Currently, there is no loyalty program, which helps in progressively move the customers from one segment to another.
We try to circumvent this through the following process:
- Step-1: Manually segment customers as the previous performances across casual, core and power
- Step-2: Set up discount campaigns for these customers manually - segment doesn't change incrementally
- Setp-3: Schedule communications for each of the campaigns manually - as segments don't change dynamically
Major Drawbacks of the existing process:
- Operationally time consuming: As dynamic segmentation of customers isn't there, setting up the segments is highly time consuming
- No option to monetize: There is an option of giving discounts for a manual segment, but we are not able to monetize these segments
Solution:
For this we have created 4 user segments: These are:
- New User: The user who has placed their first order in the current month
- Casual User: Who has booked 1-2 orders in the previous month
- Core Users: Who has booked 3-4 orders in the previous month
- Power Users: Who has booked >=5 orders in the previous month
The above segments would be dynamically refreshed every 4 weeks (rationale for 4 weeks is the demand cycle of a user in logistics)
The initial plans that would be offered are as follows:
Plan | Target Segment | Plan Construct |
|---|---|---|
P1 | Casual |
|
P2 | Core |
|
P3 | Power |
|
User flow would be as follows:
For a new user (acquired in the same month):
For an old user (retained user):
Where will this be shown?
This section will cover where all the proposed plans would be shown in the order lifecycle journey.
The justifications and how will it be adopted is mentioned in the following screenshots:
Home Screen:
Fare Review Screen:
Booking Review Screen:
Other potential areas:
Metrics to track:
Serial Number | Metric |
|---|---|
1 | Total Completed Orders/Total active customers (>=1 order) |
2 | WS change across the following customer segments: |
3 | Number of absolute change in customers active across the three segments - Casual; Core; Power |
4 | % contribution of Casual; Core; Power to the active customers |
5 | Number of customers subscribing to P1 Plan |
6 | Revenue generated from P1 Plan |
7 | Number of customers subscribing to P2 Plan |
8 | Revenue generated from P2 Plan |
9 | Number of customers subscribing to P3 Plan |
10 | Revenue generated from P3 Plan |
Campaigns:
A detailed view of the campaigns for the loyalty program here
Retention Campaigns:
The campaigns and trigger points where the communication can happen are as follows:
Trigger point | Details | End Goal? |
|---|---|---|
Home screen drop off | Users who didn't take any action and dropped off from the home screen |
|
Pickup screen drop off | Users putting/selecting the pickup location and then dropping off |
|
Drop screen drop off | Users putting/selecting the drop location and then dropping off |
|
Price Review Screen drop off | The screen where the pricing of each of the vehicle categories is visible |
|
Driver allocation screen drop off | The screen where the vehicle searching takes place |
|
A detailed view of the retention campaigns can be found here
Understand:
Bird's eye view:
The current retention rate for customers is as follows:
Note: This is the median retention curves for the all the previous months
No clear flattening of the retention curve can be seen in the above users, hence more months data would be required to look at this. Flattening might happen later
Even though this is the median data, the more recent trends can't be visible from this data to draw some actionable insights. Hence, it would be beneficial to look at the MoM retention for different types of users.
Casual Users:
Core Users:
Power Users:
Observations and Insights
- Retention rates (M1 to M6) has been showing a decreasing trend across the months. Some observations for the decrease in the rates is as follows:
- Change of focus for the BD team: Initially, during the launch of the application, the BD team had an incentives on the number of orders rather than acquiring new customers. This was because we were focusing on getting some critical mass of orders. Now, the focus is on getting more new customers/day, which has led to lesser focus on the retention of customers. BD team is the major source of acquisition for us (~70% of the active customers being acquired by the BD team)
Steps Taken: We have rejigged the incentive structure, with the sales executive focusing on acquisition and his team leader focusing on getting repeat orders from his customers
- Customer handholding journey: We didn't have a robust customer handholding journey in place, which has led to a decrease in the touch with the application
Steps Taken: We have set up KAMs to be in touch with the Power users and ensure that their orders don't drop. Apart from that, we have set up prepared a robust handholding journey, with repeated communications pushing our CVP
- Fulfilment issues: We were fulfilment issues, where our FF was pretty low. Now, we have improved it drastically, leading to better repeat usage of the users
Steps Taken: Our driver acquisition and behavior has improved significantly, leading to better fulfilment
- Lack of vehicle options: We weren't across each vehicle category, which most of the ICPs require us for. This was also a reason for poor retention
Steps Taken: We have launched all vehicle categories, catering to all the use cases of the users
- Lack of serviceability across the city: Due to supply constraints, we weren't serviceable across the entire city, with customers not able to book orders from some key market
Steps Taken: We are serviceable across the city, thereby giving the option to book from anywhere, anytime
Microscopic view:
Which ICPs drive best retention?
Typically, ICP 1 drives the best retention, closely followed by ICP 2
Among the ICP 1, as seen from the above data, Power users drive the best retention
Which acquisition channels drive best retention?
- BD Team: This is a face-to-face interaction, which helps in better recall and driving acquisition
- Referral: We found that ~27% of the active power users every month were referred by an existing user
Which sub-features drive best retention?
- Vehicle availability
- Vehicle assortment
- Types of orders - Multi-stop, Intercity
Define:
Who are churned users?
Churned User definition: Any user who has not placed a gross order (this means tried placing an order but it not get completed due to any reason) for the last 30 days since his last completed order.
This definition is common across all the segments - Casual; Core; Power
Reasons for churn?
Voluntary Reasons:
Top Reasons | Details | Contribution to overall churn |
|---|---|---|
Vehicle Availability | He couldn't find a vehicle, even after placing multiple orders | Very High |
Vehicle Assortment | He required 8ft category, but that wasn't launched as yet | Very High |
Serviceable Region | We weren't serviceable across the city at that point in time, leading to churn | Very High |
Multiple use cases | He requires our platform for multiple use cases: | High |
Driver Behavior | Various sub headings under this: | High |
Pricing | Found a better price on competition (Naka/Porter) | Low |
Involuntary Reasons:
Top Reasons | Details | Contribution to overall churn |
|---|---|---|
Change of manufacturing unit | He has changed his manufacturing unit to the outskirts of the city, where we are not serviceable yet | Very Low |
Negative actions to look for:
(a) Decrease in frequency/buckets
Two things to primarily look out for in this:
- Decrease in Wallet Share - if the wallet share of the customers has started decreasing
- Movement from Power >> Core >> Casual - If the contribution and absolute users in the higher buckets start decreasing
Start raising alarms if this is happening for two consecutive weeks
(b) Decrease in the number of sessions on the application
If we see a decrease in the number of sessions in each of the user buckets. This is a leading indicator
(c) Number of support tickets
(d) Weekly NPS
Brand focused courses
Great brands aren't built on clicks. They're built on trust. Craft narratives that resonate, campaigns that stand out, and brands that last.
All courses
Master every lever of growth — from acquisition to retention, data to events. Pick a course, go deep, and apply it to your business right away.
Explore foundations by GrowthX
Built by Leaders From Amazon, CRED, Zepto, Hindustan Unilever, Flipkart, paytm & more
Crack a new job or a promotion with the Career Centre
Designed for mid-senior & leadership roles across growth, product, marketing, strategy & business
Learning Resources
Browse 500+ case studies, articles & resources the learning resources that you won't find on the internet.
Patience—you’re about to be impressed.