Ola - Engagement and Retention

Ola started off as and is still largely known for being a "commute" partner. It is largely used for booking instant rides (cab/ auto/ bikes) from point A to point B.

Ola has also ventured into other verticals - food delivery, cloud kitchen, electric vehicles, parcel services.

Product

• Core Value Prop? How are users currently experiencing it repeatedly?
  For most users, they are experiencing Ola’s core value prop via rides: Smooth fulfilment of the instantly booked ride that takes the customer from point A to point B at an affordable rate. Not so frequent: Ola Parcel, ONDC Food - fulfilment of the instantly booked parcel/ food order.
• • Mobility at their fingertips. This includes:
    Booking and fulfilment of rides to take customers from point A to point B. This can be a ride within the city/ town between 2 fixed points OR A ride covering multiple points within a defined time frame OR An inter-city ride from point A to point B
  • It’s basically mobility - of people, goods - instantly booked and consistently fulfilled
• Natural Frequency (Ola Daily): Casual Users: 2-3 times a month Core Users: 1-2 times a week Power users: 4-10 times a day
• Sub products and natural frequency:
  Below is the natural frequency for each of Ola’s sub-product. The user segment - Casual, Core and Power is with respect to that respective Sub-product.

• Best Engagement framework:
  For Casual users (to move to Core) → Frequency:
  The assumption here is that around 80% of these casual users have a need to travel atleast 1-2 times a week. We will aim to solve for these 80% users. With more frequent usage of the “Ola Daily”, we will attempt to create a habit and a higher recall value of the product. This will lead to a more intrinsic trigger and hence an increase and consistency in bookings via Ola.
  
  For Core Users (to move to Power) → Frequency:
  The assumption here is that around 80% of these core users have a need to travel atleast 1-2 times a day. We will aim to solve for these 80% users.
  With more frequent usage of the “Ola Daily”, we will attempt to integrate in their day-to-day life, create a more intimidate habit (part of their daily to-dos) and naturally to a higher recall value. We will aim to create Ola a part of their everyday travel life, leading to a consistent increased usage.
  
  For Power User (better realisation of value prop) → Breadth:
  The assumption here is that around 80% of these power users are already using Ola cabs for all their travel ride needs and their behavioural max frequency is exhausted. For these users, we will create a synergy by exposing them to other products that will add value to the existing value prop of booking a ride for these users (eg. Ola Money, Rentals, Outstation)
  
  Secondary Engagement on the Brand Name:
  To cement the association of Ola as a “Mobility Partner”, we can also promote Ola Electric. The trust and existing recall value of Ola will support this strategy. By buying and using Ola Electric, their identification with Ola will be further strengthened, leading to increased usage of Ola services.

Define

1. Action that makes someone an active user

• Completing atleast 1 Ola ride per month

2. Natural Frequency

• Same as discussed in the previous section
  

User Segmentation

With the goal of engagement and retention (E&R) in mind, we will segment the users into Casual, Core and Power users. This will help us identify the most relevant and customised levers to drive E&R for Ola.

Casual Users:

These are the users who mainly use the Daily rides feature 1-2 times/ month. These users have a low recall of Ola and very frequently use other competitor apps/ other means of fulfilling their mobility needs.

Core Users:

These are users who use the Daily rides feature 1-2 times/ week. They have used atleast one of the other parallel features (Ola Money/ Rentals/ Outstation) more than once. They have a moderate recall of Ola and are at times open to other competitor apps/ other means of fulfilling their mobility needs as well.

Power Users:

These are users who use the Daily rides feature 4-10 times/ week. They are also likely a regular user of Ola Money for paying for their rides. They have a high recall of Ola and prefer Ola to other competitor apps.

Engagement:

Product Hook

The product hook will be designed around the key insight that making a payment is a significant friction point for users using any mobility app. We will leverage Ola Money to drastically enhance the ride payment experience for Ola rides - by not having to bother to pay!

Goal:

To increase the frequency of rides booked per user.

Success Metrics:

Increase the ride booking and completion frequency of the cohort by 30%. The average ride rating should not decrease.

Problem Statement:

On reaching the destination, making payment for the ride is a point of potential friction. This involves the driver ending the ride, asking the customer to pay as per the amount shown on the screen. At times, this amount is dynamic and hence the user might also be inclined to cross check the amount shown on his/ her application. On verifying that the amounts are matching, the user would pay. There might also be a preference for cash payment by the driver, which the user might now have. The payments initiated via digital modes (UPI, wallet, etc) might also fail/ get stuck. In case of cash payments, availability of exact change might also be an issue.

After a smooth ride booking and riding experience, this last step has the potential to ruin the experience for the customer.

Current alternative:

If not for Ola Money, the current alternative to do the payment is either via an active online mode (UPI/ wallet/ card) or via Cash

Solution:

Subtly nudge the user to try cashless experience using Ola Money. Once activated, set it as the default payment option for ride booking for all their rides, unless they complete a ride using some other payment option.

Metrics to track:

• Increase in the frequency of rides booked
• Changes/ upgradation of user segments (How many users migrated from Inactive to Causal to Core to Power and vice versa)
• Total transaction via Ola Money
• Average transaction value via Ola Money
• Revenue share via Ola Money vs Other payment means
• Ride ratings, app rating
• #customer service tickets
• Types of queries raised to customer support

Ramp up milestones:

We will ramp up this exercise if:

Atleast 10% users try Ola Money to pay for their rides AND

Atleast 30% of these users show a 20% improvement in the ride completion frequency because of OlaMoney

Engagement Campaigns

Campaign 1: OlaMoney Product Hook - Cashless ride

This campaign will work in tandem with the OlaMoney Product Hook. We will encourage users to try out the OlaMoney ride completion experience

Segmentation type of the user: All active users

Goal of campaign: To increase the frequency of rides booked using OlaMoney as a payment option

Pitch/ Content: “Your Ola experience just got a lot better! Try the transaction-less booking experience with Ola Money”

Offer: 20% off on your first ride using OlaMoney

Frequency and Timing: We will send this campaign to users twice a week, 10 mins before their usual ride booking timings (based on past ride booking trends)

Success Metrics: Increase in the use of the product hook (Rides paid via Ola Money) by 20% in 1 month

Campaign 2: Daily Office ride

We will try to move the causal and core users to be power users

Segmentation type of the user: Casual and Core

Goal of campaign: To increase the frequency of rides booked

Pitch/ Content: “Glide smoothly into your workday with Ola’s hassle-free travel experience”

Inactive Users: Experience a transaction-less ride with Ola. Also get a 20% off on your next ride using OlaMoney.

Offer: 20% off on your next 3 rides

Frequency and Timing: Twice a week for 2 month - On Mondays and Thursdays morning

Success Metrics: 20% increase in rides booked by this cohort in 2 months

Campaign 3: Ditch your car

We will attempt to plant seeds of a core behaviour change - using comfortable cabs instead of your cars to commute

Segmentation type of the user: Casual and Core

Goal of campaign: To increase the frequency of rides booked

Pitch/ Content: “Extend your productive time, reduce your ‘travel time’ - as our best drivers take you to office”

Offer: 20% off on next 3 Prime Sedan rides

Frequency and Timing: Twice a week - On Mondays and Thursdays morning

Success Metrics: 10% users in the cohort booking 4 Prime Sedan rides in a month

Campaign 4: Experience the rest of Ola

Aimed at Power users - to experience Ola Rentals and Outstation

Segmentation type of the user: Power

Goal of campaign: To drive adoption of Ola Rentals and Outstation

Pitch/ Content: “Take Ola with you on your weekend trips!”

Offer: 20% off on 1st Ola rental/ outstation

Frequency and Timing: Twice a week - Friday evening and Saturday morning

Success Metrics: 10% users in the cohort booking 1 rental/ outstation ride in a month

Campaign 5: Ola Electric - Brand Strengthening campaign

Aimed at all active users - to build on Ola’s trust and brand recall and to cement the association of Ola as a “Mobility Partner” by becoming a more integral part of their lives

Segmentation type of the user: Active User

Goal of campaign: To drive adoption of Ola Electric bikes

Pitch/ Content: “Experience the marvel of the engineering team at Ola”

Offer: 10% off for next 3 months. Book a free demo now!

Frequency and Timing: Twice a month for 3 months

Success Metrics: 5% users book a free demo/ show interest in buying

Retention

Bird’s eye view:

Current retention rate:

Extrapolating the insights gathered via user understanding and based on anecdotal evidences, the current retention rate of Ola will be around 40%.

The curve flattens after around a month.

Microscopic view:

Which ICPs drive the best retention?

The power users have the lowest churn rate and the hightest retention rate.

Which channels drive the best retention?

Engagement via in-app communication of features and push notification to communicate offers seem to be driving the best retention

What sub-feature or sub-product drives the best retention?

Based on user feedback, competitive and reliable pricing of rides, availability of multiple ride options in all budget ranges and availability of OlaMoney has a major contribution to retention

Churn

Negative actions/ occurences:

We can monitor a few negative actions by the users or occurances as a direct or a proxy measure of chances to churn:

• Giving a low rating to a cab ride
• Decreasing frequency of ride completion (moving slowly towards the risk zone)
• Frequently entering a pick-up and drop location but not booking the ride (finds the pricing higher)
• Multiple/ frequent ride cancellations by either the user of the driver
• Occurance of “No rides available” multiple times when the user searches
• Low rating to customer support chat
• Multiple tickets raised
• Ride taking longer to arrive/ complete than promised
• Multiple failed payments

Resurrection Campaigns

Our churned users experienced the core value prop of Ola and yet decided to quit. Based on the actions the user performed on the app, the data-points we might have, we will associate a “probable reason of dropping off” with each of these users. For reasons that we can now can solve for better, we will make them a “Sorry and a promise” pitch. For reasons we have not solved for yet, we will make them a “We know we have led you down. We are working on it and we look forward to your support and encouragement” pitch. In order to not abuse the channel frequency, we will not send out campaigns to users who we have no clue why they dropped off.

Campaign 1: Bad ride experience

User segment: Users who have given a low rating to rides before churning OR User who raised support tickets post ride and then churned

Pitch: “We are sorry to have let you down. We are constantly improving and training our team and would request you to give us one more chance. As a token of promise, avail a 20% off on your next 5 rides with us”

Offer: 20% off on next 5 rides

Frequency and timing: Once every 3 months but only twice. Send based on customised user data of best time to book a ride for that user else default to standard best times (afternoon during/ post lunch, before morning and evening commute/ weekends late evening or afternoons)

Success Metrics: Number of users in this cohort who booked their 1st ride again

Campaign 2: High Pricing

User segment: Users who possibly churned because of high pricing (Basic data points - User checked the pricing multiple times but never booked, asked for a refund/ chargeback to customer support, etc)

Pitch: “We are constantly aspiring to better the lives of our riders and also keep the pricing competitive. As a token of appreciation for your support, we are extending a special offer for you. Get a 20% off on your next 5 rides”

Offer: 20% off on next 5 rides

Frequency and timing: Once every 3 months but only twice. Send based on customised user data of best time to book a ride for that user else default to standard best times (afternoon during/ post lunch, before morning and evening commute/ weekends late evening or afternoons)

Success Metrics: Number of users in this cohort who booked more than 5 rides in the next 3 months

Campaign 3: Bad payment experience

User segment: Users who possibly churned because of bad payment experience (Basic data points - Payment failures/ tickets raised to support on being charged more in cash etc)

Pitch: “Now travel cash-free with Ola Money”

Offer: 20% off on 1st ride payment using OlaMoney

Frequency and timing: Once every 2 weeks for 2 months. Send based on customised user data of best time to book a ride for that user else default to standard best times (afternoon during/ post lunch, before morning and evening commute/ weekends late evening or afternoons)

Success Metrics: Number of users in this cohort who completed their 1st ride using Ola Money

Campaign 4: Ride took longer to arrive/ to reach destination/ cancellations by driver

User segment: Users who possibly churned because of their rides arriving late OR reaching late OR driver cancelled

Pitch: “Book a ride now with the Ola guarantee”

Offer: Guaranteed ride within 10 mins else get a variable discount coupon on next ride

Frequency and timing: Once every weeks for 1 month. Send based on customised user data of best time to book a ride for that user else default to standard best times (afternoon during/ post lunch, before morning and evening commute/ weekends late evening or afternoons)

Success Metrics: Number of users in this cohort who completed their 1st ride without any issues/ delays

Campaign 5: Gradual Drop off

User segment: Users who were quite active on the app but slowly dropped off over time

Pitch: “We miss you. Get 20% off on your next 5 rides”

Offer: 20% off on next 5 rides

Frequency and timing: Once every weeks for 1 month. Send based on customised user data of best time to book a ride for that user else default to standard best times (afternoon during/ post lunch, before morning and evening commute/ weekends late evening or afternoons)

Success Metrics: Number of users in this cohort who completed their 1st ride