Vetic The Monetisation| Pet Care

Who is Vetic, What do they do, and who are their ideal ICPs & understand them in detail

Vetic [Vay-Tik], is in the Business of Pet Care & a stop shop. India’s first tech-driven pet clinic chain powering trusted veterinary care.

Vetic will have 3 different ICPs

1. New Pet parent
2. Family with Multiple pets
3. Professional Pet Breeders and Trainers

Let us start by Understanding Vetic.

What is Vetic Core Value Proposition

What's Vetic's core value proposition - is in the game of revolutionizing the pet care industry by providing comprehensive, tech-driven veterinary care that prioritizes the well-being of pets and the convenience of their owners.

How is through their online platform [Mobile app & Desktop app].

What they offer is

o Routine pet care services,

o Medication & supplies delivery,

o Reminder for the health of your pet

o Professional advice

"In Shorts - Vetic's core value proposition is on leveraging technology expertise, community engagement & providing convenient, comprehensive & trusted veterinary care that eases the lives of the owners & their pets"

Now lets speak about the main point Monetization

Monetization

Monetization is a process of generating revenue or profits from a product, service, or asset provided by an Organization.

Why should Vetic Monetize ?

Vetic is in its growth stage & they have recently received funding twice [amount cannot be disclosed], recently launched in Bangalore & now launching in Chennai, these are physical stores, in Bangalore they have 3 stores.

There are total of 1800 Customer across Vetic where their AOV is 28000 - 32000 [Break up]

Medical - 5000Rs

Grooming - 7000 Rs

Food Purchase - 10,000 Rs

Treatment - 6000 Rs

Their stagnent customer is 30% but over the recent past & month on month Vetic is adding 2000 Customers. The Active users are repeat customers also the VIP customer base is 14000 across which is approx 40% of the total users.

Where Vetic is burning currently is on Capex - where the Hub & spoke model is - Hub 2.5 Crs & Spoke is 1.5 Crs

If Vetic wants to sustain the market they will have to start monetizing or looking at ways on how they should be monetizing – here are few that I think are the reasons

o Sustainability

o Constant Growth

o Quality of Service

o Innovation

o Long-Term Viability

With that being said now let’s start detailing this down to the” T”

Let's start with the Litmus Test

Retention

Retention in general refers to the ability of any company to keep its customers happy over a period of time. The percentage of customers who continue to use the product/service over a specified period.

Now lets talk about Vetic - For Vetic, retention will be a crucial as it directy impacts the customer loyalty, revenue & overall business growth.

If there are high retention rates that means the indication of a satisfied customers who are likely to return for future pet care services.

Now, Vetic will have to focus on retention and by this they can can build long-term relationships with pet owners & improve customer lifetime value & ensure Brand Loyalty.

🧍‍♂️The Users

The total number of customer touch based across Vetic platform till date is 32000 [ all locations] out of this the total active/repeat customer is 18000, with this there are 30% of the customer who are dorment. Now Vetci is adding 2000 customer on a daily basis across all locations

The above chart shows that the graph line is suggesting it’s the right time to monetise and push the subscription program to the users

Deeper Engagement

To understand engagement of the customers, I have categorised our customers into Casual, Core & Power users; here we need to understand where do most of our customers lean towards & how do we do this

Segmentation Analysis - We need to define our users based on the engagement, activity & interactions they with the platform.

Lets break this down further

Casual Users - as mentioned earlier the customer will:-

o have Low frequency of interactions with Vetic's platform & limited engagement with pet care resources and services.

o They will occasional visits to the website or app

o Minimal participation in community events or promotions.

Core Users: These users will:-

o Have moderate to high frequency of interactions with the platform.

o More than Regular engagement with pet care resources and services.

o Regular visits to the website or app & engage themselves in events

Power Users: These users will:-

o High frequency of interactions with the platform

o Deeper engagement with premium/VIP pet care services and features.

o More than frequent visits to the website or app.

o Active involvement with exclusive offers, loyalty programs.

The Assessment:

Total number of users: 18000

The breakdown for each user segment is as follows:

o Casual users: for 4400

o Core users: 7000

o Power users: 5600

o Percentage of highly engaged users[ Core + Power]: (7000/and 5600) * 100 = 60%

Few Top reasons

Reasons:

o The Core & power user showcased higher engagement levels on the platform

o Repeat Usage Patterns: The core & power users frequently return for pet care services - Like grooming, vet care etc

o Brand Loyalty: The core & power show a sense of brand loyalty to Vetic which translates into better engagement.

>50% of users are Core or Power users of Vetic. Hence, monetization can be done.

Willingness to Pay 💯 taka

What is willingness to pay for Product?

The all time favourite

"Willingness to pay" is basically that how much am I as a user willing to pay for a particular product or services; this is all based on the factors loke benefits, quality, features & functionality.

It is very important to understand your customers willingness cause this will help the organization reach an optimal price point that can maximize the revenue & still attract customers

Willingness to pay can be influenced by a variety of factors, including:

o Perceived Value

o Brand Perception

o Demand and Scarcity

o Income and Affordability

o Competitive Pricing

o Product perceived Risk

Now let us answer the 4 magical questions

1. How much will you pay for the product?

2. Would you pay for this only once?

3. Would you pay for it on a recurring basis?

4. What & why would you pay more?

Adding the basic ingredient before the final mix

o Casual Users: these users Interact occasionally with the platform & seldomly utilize pet care solutions

o Core Users: these users are repeat buyers or users & they engage regularly with the Vetic platform for pet care solutions grooming etc.

o Power Users: these users are repeat & also a user’s who are purchased the membership [VIP] and use the platform to the fullest for the discounts that are associated.

Now lets g through the details...

Note 📝 & call out - the table was not being added in my format hence added as screen shots:-

💁 Substitute Pricing

The core problem solved by Vetic

Vetic streamlines pet care for users at all engagement levels [ Casual, Core & Powers users] by catering to dedicated, proactive pet owners with tailored & comprehensive services.

What are Vetic users looking for - The uers are primarily buying into convenience for them which (time) & efficiency which can be the least amount of (effort).

Design Pricing

Now that we have gathered all that we want, now let us answer the final leg.

1. Who to charge
2. When to charge
3. What to charge
4. How much to charge
5. How to show pricing

Who to charge & the answer should be 'Everyone' - but let us dig deeper

RFM grid is as follows:

The users who are likely to pay fall under Champions, Loyalists, and Potential Loyalists. And these are the main users of Vetic & they should be monetized effectively.

When to charge

When the customers comes on to the platform there are always 2 approaches to look at:-

1. The Customer knows what they want & search for the product, services & purchase

2. They are looking for an associated requirement & search the platform to see if their needs are met, if yes - add to cart - purchase & checkout

By looking at process the ideal time to charge the customer or engage the customer would be at the point of purchasing a product on Vetic.

To understand this & in depth, lets take a look at the strong value for purchasing a product or service in Vetic

As per the mentioned above table, the perfect opportunity for Vetic to show the subscription plan module for their users would be at the check-out page for an existing product or service – they can is have a pop up where it mentions that subscribe & save more for this product or service.

What to Charge for - Plans [Basic, Pro, VIP]

Considering and understanding our user segments, which include our core, casual, power, and pro users, we aim to charge for accessing Vetic's platform with premium features.

The base plan would include access to veterinary consultations, pet health records & basic discounts on pet care.

Additionally for pro users, advanced features such as priority appointments, personalized health monitoring & exclusive discounts on a few services, for VIP all access & Major discounts

How much to Charge

Currently Vetic does not have a subscription model, the option they have are members [paid [VIP] & non paid] there are different VIP categories, this creates a challenge “ to be or not to be”.

We can run a pricing that would be as Basis, Pro & VIP. Here in basic they can access everything but no benefits, Pro they can pay a part subscription cost and utilize the features & benefits & VIP – what more to say.

Here is a snap shot on what we can charge:-

AND WE’RE DONE