What is Acko Insurance?

Acko Insurance is a digital-first insurance platform that offers a range of insurance products, including health, vehicle (car/bike), life, and travel insurance. It operates primarily through a mobile app, emphasizing a paperless, seamless experience for purchasing, managing, and claiming insurance. Acko’s mission is to simplify insurance by leveraging technology, making it accessible, affordable, and hassle-free for users.

Know Your Users

Who Are Acko’s Users?

Acko’s users are primarily tech-savvy individuals seeking affordable, hassle-free insurance solutions through a digital platform. They include:

• Urban professionals needing quick, accessible insurance for health, vehicles, or travel.
• Budget-conscious users looking for cost-effective coverage without compromising on quality.
• First-time insurance buyers who value simplicity and transparency in the process.
• Existing insurance holders seeking better management tools or faster claim settlements.

What Do Users Value Most?

• Speed and Convenience: Users value Acko’s fast, paperless process (e.g., 24-hour claim settlement, app-based management) because it saves time and reduces hassle.
• Affordability: Competitive pricing (e.g., up to 85% off on car insurance) makes insurance accessible, addressing cost concerns.
• Transparency and Trust: A clear, no-hidden-fees approach and trust signals (e.g., 78M+ users, 4.6 rating) build confidence in the platform.
• Immediate Value: Features like zero waiting periods and cashless processes provide instant benefits, meeting users’ need for quick solutions.
• Control and Flexibility: The ability to manage policies, file claims, and explore options directly in the app empowers users, aligning with their desire for control.

Customer Value Proposition (CVP)

• Why It Works: This CVP emphasizes Acko’s core benefits (affordability, speed, simplicity) and addresses user pain points (complexity, delays, trust). It highlights tangible outcomes (24-hour claims, cashless process) and builds credibility with user trust metrics.
• How Do Users Experience the Core Value Proposition?
  Users experience Acko’s CVP through a seamless, app-driven journey that delivers on its promises of simplicity, speed, and affordability:
• • Simple and Paperless: From onboarding to policy management, users encounter a clean, intuitive app interface (e.g., quick account creation in under 2 minutes, as seen in the onboarding teardown) with no paperwork required. For example, purchasing a policy or filing a claim is done entirely in-app, eliminating traditional hassles.
  • Fast (24-Hour Claim Settlements): Users filing claims experience Acko’s speed firsthand, with claims processed within 24 hours, as promised. The onboarding flow (e.g., Step 11 home screen) sets this expectation, and in-app notifications (e.g., “Claim approved in 24 hours!”) reinforce the value during critical moments.
  • Affordable and Cashless: Users see competitive pricing (e.g., up to 85% off on car insurance) during policy exploration, and the 100% cashless process is experienced when they use network hospitals or services, removing the burden of upfront payments.
  • App-Based Management: The app empowers users to manage policies, track claims, and explore new products anytime, aligning with their need for control. Features like policy status checks (highlighted in the engagement framework) make this tangible.
  • Trust: The 78M+ user base and 4.6 Play Store rating, visible from the Play Store (Step 1 of onboarding), build trust early, while consistent delivery on promises (e.g., fast claims) reinforces it over time.

Definition of an Active User

• Active User Definition: A user who engages with the app at least once every 30 days by performing a meaningful action.

The action that makes a user an active user:

• • Checking policy status or premium due dates.
  • Filing or tracking a claim.
  • Exploring or purchasing a new insurance product.
  • Redeeming rewards (e.g., Acko Coins for discounts).
    
• Why This Definition? Insurance apps have a lower natural frequency than daily-use apps (e.g., social media), so a 30-day engagement window aligns with typical user behavior (e.g., monthly policy checks). The actions reflect meaningful engagement that drives value for both the user (e.g., managing insurance) and Acko (e.g., increasing policy purchases).

Natural Frequency

Bifurcation of Natural Frequency by User Type

Acko’s users can be categorized into Casual, Core, and Power Users based on their engagement levels. The table below maps their natural frequency, engagement patterns, and alignment with Acko’s engagement goals.

Which Engagement Framework works best for Acko?

Engagement Framework Table

I know the framework format is bit different, but my rationale was to gauge the framework based on the features.

Recommended Engagement Model: Frequency-Driven Model

• Why Frequency-Driven?
• • Current State: Acko’s natural frequency (monthly to quarterly) is low for an app aiming to improve engagement and retention. Features like claim filing (1-2x/year) and policy exploration (quarterly) don’t drive regular interaction, and even policy management (monthly) falls short of the bi-weekly engagement goal.
  • Opportunity: Increasing frequency to bi-weekly aligns with Acko’s engagement goal (from the “Understand the Product” step) and can improve retention metrics (e.g., D30 retention). The rewards system already shows potential for bi-weekly engagement, and inactive users can be re-engaged monthly with the right triggers.
  • Impact on Retention: More frequent interactions (e.g., bi-weekly policy checks, reward earning) create a habit loop, reducing the likelihood of churn. For example, users who engage bi-weekly are more likely to stay active beyond 30 days, supporting the D30 retention target of 10%.
  • Feasibility: Frequency can be increased through actionable strategies like push notifications, gamified rewards, and re-engagement campaigns, which are already part of Acko’s engagement framework (e.g., “Earn 50 Acko Coins today!” pop-ups).

Why Segment Users?

• Segmentation allows me to understand Acko's distinct user groups, their behaviors, needs, and engagement patterns. This enables tailored strategies to improve engagement (e.g., bi-weekly interactions) and retention (e.g., D1/D7/D30 retention), addressing the low natural frequency of insurance apps (monthly to quarterly).
• Segmentation Goal: By segmenting users, Acko can:
• • Identify high-value users who engage frequently and tailor retention strategies to keep them active.
  • Pinpoint low-engagement users and re-engage them with personalized triggers (e.g., notifications, rewards).
  • Optimize onboarding and engagement frameworks to address segment-specific pain points, increasing overall activation, engagement, and retention.

Segmentation Approach

I’ll segment Acko’s users based on behavioral and demographic traits relevant to engagement and retention, such as frequency of interaction, insurance needs, and tech-savviness. These segments will form the basis for ICPs, which I’ll present in a table with columns: ICP Name, Demographics, Behaviors, Needs/Values, Pain Points, and Engagement Opportunities.

Ideal Customer Profiles (ICPs) for Acko Insurance

User Calls

These calls were conducted leveraging the UD Sir's approach to user research, which helped in understanding the users and aligning them with engagement opportunities! My main questions were aimed at understanding their behaviours, needs & pain points.

Reasoning behind Segments and ICPs

1. Frequent Policy Managers:
2. • Why This Segment? These users align with Acko’s goal of driving habitual engagement (bi-weekly interactions) by regularly managing policies, making them high-value for retention.
   • Engagement Focus: Reinforce their habit with reminders and rewards, ensuring they remain active and loyal.
3. Claim-Focused Users:
4. • Why This Segment? Claim filing is a critical moment of truth for insurance apps. Engaging these users during claims ensures they experience Acko’s 24-hour settlement promise, boosting trust and retention.
   • Engagement Focus: Simplify claim filing and provide real-time updates to keep them engaged during high-need moments.
5. Exploratory New Buyers:
6. • Why This Segment? First-time buyers are key for growth, as they may purchase additional policies if engaged properly. They align with Acko’s goal of increasing policy exploration (quarterly).
   • Engagement Focus: Reduce friction in exploring products with personalized recommendations and clear, affordable options.
7. Reward-Driven Users:
8. • Why This Segment? These users respond well to gamification, helping Acko increase engagement frequency beyond its natural monthly cycle. They’re key for building a habit loop.
   • Engagement Focus: Leverage rewards (e.g., Acko Coins) to drive bi-weekly interactions, making the app experience fun and valuable.
9. Inactive Users:
10. • Why This Segment? Inactive users represent a retention risk. Re-engaging them is crucial to meet retention goals (e.g., D30 retention of 10%) and prevent churn.
    • Engagement Focus: Use targeted campaigns to bring them back, emphasizing the value of staying engaged (e.g., policy benefits, rewards).

Alignment with Acko’s Goals

• Product Goal: Acko aims to simplify insurance with a seamless, affordable, and paperless experience. Segmentation ensures each user group experiences these benefits in a tailored way (e.g., fast claims for Claim-Focused Users, affordability for Exploratory New Buyers).
• Engagement & Retention Goal: The segments align with Acko’s engagement framework (e.g., habitual engagement for Frequent Policy Managers, retention-focused for Inactive Users) and retention targets (e.g., improving D30 retention by re-engaging inactive users). By addressing segment-specific needs, Acko can increase overall engagement frequency (bi-weekly) and retain users long-term.
• Addressing pain points like unclear claims (ICP 1) and delayed processes (ICP 2) reduces churn risks, while re-engaging low-priority users (Rajeev) improves overall D30 retention.

Product Hook for Acko Insurance

• Goal: Increase user engagement frequency from monthly to bi-weekly and improve D30 retention from 8% to 10%, ensuring users experience Acko’s core value proposition (fast, simple, paperless insurance) early and consistently.
• Success Metric: Achieve a bi-weekly engagement frequency (at least 2 sessions per user per month) and a D30 retention rate of 10% within 3 months of implementing the product hook.
• Problem Statement: Indian insurance app users engage infrequently (monthly to quarterly) due to the event-driven nature of insurance (e.g., claims, renewals), leading to high early churn (78% by D1) and low D30 retention (8% vs. 10% target). The delayed “aha” moment during onboarding (not until Step 11) and lack of habit-forming engagement prevent users from experiencing Acko’s core value (e.g., 24-hour claim settlements, paperless process), causing them to disengage or switch to competitors like Policybazaar.

Current Alternative

• Current Alternative: Users rely on traditional insurance providers (e.g., LIC) or aggregator apps (e.g., Policybazaar) for policy purchases and renewals. These alternatives often involve longer claim processes (e.g., 7-15 days vs. Acko’s 24 hours), physical paperwork, and less intuitive app experiences, but they benefit from stronger brand trust and broader offerings, leading users to switch despite Acko’s advantages.

• Product Hook: “Instant Claim Assurance” – Acko guarantees a 24-hour claim settlement, showcased through an interactive demo during onboarding, gamified engagement rewards, and real-time claim updates, ensuring users experience this core value early and frequently, building trust and habit-forming engagement.

Detailed Version with User Flow

The “Instant Claim Assurance” hook integrates into Acko’s app to deliver value early and encourage bi-weekly engagement:

1. Onboarding Demo (Step 7): After name confirmation (Step 7 in onboarding), users see a 30-second interactive demo: “Experience a 24-hour claim settlement – see how Acko settles a sample claim in real-time!” Users tap through a simulated claim process (e.g., file, upload, approved in 24 hours), ending with a CTA: “Start exploring your policy now!”
2. Gamified Engagement: Post-onboarding, users receive a “Claim Ready Challenge”: Complete 3 policy-related actions (e.g., check policy status, add family details) within 7 days to earn 100 Acko Coins (redeemable for premium discounts). This encourages bi-weekly interactions.
3. Real-Time Claim Updates: For users filing claims, Acko sends real-time notifications (e.g., “Claim received! We’ll settle it within 24 hours.”), Reinforcing the hook’s promise and encouraging return visits to track progress.
4. Retention Nudge: Inactive users (no engagement for 14 days) receive a push notification: “Your claim assurance awaits – check your policy and earn rewards!”.

Metrics to Track

Ramp Up Milestones

Engagement Campaigns

The “Instant Claim Assurance” hook ensures users experience Acko’s core value early and frequently. As asked, I’ll design five campaigns to drive engagement, targeting different user segments (Casual, Core, Power Users) and addressing churn reasons.

Campaign 1: Onboarding Booster

Campaign 2: Claim Ready Challenge

Campaign 3: Claim Confidence Push

Campaign 4: Policy Protector Streak

Campaign 5: Inactive User Revival

Retention Design for Acko Insurance

Step 1: Identify the Industry Standard

Industry Standard Retention Rates (Indian Market)

In the Indian insurance market, policy renewals drive high retention, with an average annual retention rate of 88%, as reported by Statista (2024). This reflects Indian customers’ tendency to renew policies due to necessity (e.g., mandatory vehicle insurance) and trust in providers. This 88% annual retention translates to a 12% annual churn rate:

• Annual Retention: 88%.
• Annual Churn: 12%.

For app-based engagement (D1, D7, D30), short-term retention rates are lower due to the infrequent use of insurance apps in India (e.g., Policybazaar, Bajaj Allianz). Using app retention benchmarks for Indian fintech/insurance apps (e.g., AppsFlyer India 2024 Report):

• D1 Retention: 20%—users engage shortly after signup (e.g., to explore policies).
• D7 Retention: 15%—some users return for policy checks, but many drop off.
• D30 Retention: 10%—reflects monthly engagement, aligning with the high annual retention.

Baseline Industry Standard for Acko

Retention Curve Description

• The curve starts at 20% on D1, drops to 15% on D7, and declines to 10% on D30.

This shows a moderate initial drop-off (80% churn by D1) due to infrequent app usage, with a slower decline to D30 as users engage for policy-related actions.

Observations

Moderate Early Churn: 80% churn by D1 is typical for insurance apps, as users don’t engage daily.

1. Gradual Decline: Churn increases to 90% by D30, reflecting the monthly to quarterly frequency.
2. Meets Target: D30 retention (10%) matches Acko’s target, aligning with the industry’s 88% annual retention.

Step 2: Adjust Retention Based on Relevant Factors

I’ll adjust the baseline retention rates for Acko based on factors specific to its context, keeping adjustments minimal to maintain sensibility. These factors, which I've covered, are based on notes given in the doc/brief.

Adjustment Factors

1. Time to Value: Acko offers quick policy purchases, but the delayed “aha” moment (Step 11 in onboarding) impacts early retention. +2% to D1, -1% to D7/D30.
2. • D1: 20% + 2% = 22%
   • D7: 15% - 1% = 14%
   • D30: 10% - 1% = 9%
3. Natural Frequency: Acko’s monthly to quarterly frequency (Casual Users: 1-2x/year, Core Users: monthly) is typical for insurance apps.
4. Competition: The Indian market is competitive (e.g., Policybazaar, LIC), but Acko’s 24-hour claims provide an edge. -1% to D30.
5. • D30: 9% - 1% = 8%
6. Brand Value/WoM: Acko’s 4.6 rating and 78M+ users are strong, so no adjustment.

Adjusted Retention Rates for Acko

Retention Curve Description

• The curve starts at 22% on D1, drops to 14% on D7, and declines to 8% on D30.
• This shows a moderate drop-off, with Acko retaining some users (e.g., Power Users) while losing others due to low frequency.

Observations

1. Improved Early Retention: D1 retention (22%) exceeds the industry standard (20%), due to quick value delivery (e.g., policy purchases).
2. Gradual Churn: Churn increases to 92% by D30, consistent with the industry’s 12% annual churn.
3. Slightly Below Target: D30 retention (8%) is below Acko’s 10% target, indicating room for improvement.

Churn Reasons

Using the adjusted retention rates (D1: 22%, D7: 14%, D30: 8%), I’ll try identify churn reasons, focusing on voluntary and involuntary factors, also drawing from user insights (e.g., Bhakti, Lalit, Harsh, Karan, Rajeev).

Top Reason for Churn

• Number One Reason: Onboarding Friction (Voluntary Churn).
• • Why? The high D1 churn (78%) aligns with onboarding issues (e.g., no social login, intrusive questions), causing users to leave before experiencing value (e.g., 24-hour claims). While competition contributes to the 12% annual churn, onboarding friction drives the steep early drop-off.

Negative Actions

Now that I've understood the whole problem, let's move on to designing retention strategies:

Designing Retention Strategies

To improve retention and reduce churn, I’ll design strategies addressing the top churn reason (onboarding friction) and other key factors (e.g., low perceived value, lack of engagement). Each strategy will target specific user segments (e.g., Casual, Core, Power Users) and align with Acko’s goal of increasing D30 retention from 8% to 10%.

Why These Strategies?

• Onboarding Friction: Streamlining onboarding directly addresses the top churn reason, ensuring users experience value early (e.g., 24-hour claims demo), which boosts D1 retention and sets the stage for long-term engagement.
• Engagement Focus: Strategies like bi-weekly notifications and gamified challenges align with the Frequency-Driven Model (from the engagement framework), targeting Casual and Core Users to increase interaction frequency from monthly to bi-weekly.
• Indian Market Context: Offering loyalty discounts and emphasizing USPs (e.g., 24-hour claims) tackles competition from Policybazaar and LIC, resonating with Indian users who value pricing and trust.

Measure and Iterate

To ensure these retention strategies are effective, I have tried to define key metrics to track their impact and outline an iterative process for continuous improvement.

Metrics to Track

Iterative Process

1. Implement Strategies: Roll out the retention strategies (e.g., streamlined onboarding, bi-weekly notifications) in a phased manner, starting with onboarding improvements to address the top churn reason.
2. Track Metrics: Use app analytics to monitor the metrics above over a 30-day period, comparing pre - and post-implementation data (e.g., D1 retention: 22% to 25%).
3. Analyze Results: Identify which strategies drive the most impact (e.g., did social login increase onboarding completion to 95%?). Highlight underperforming areas (e.g., if D30 retention remains at 8%).
4. Iterate: Adjust strategies based on insights. For example, if engagement frequency doesn’t reach bi-weekly, increase notification frequency or introduce more gamified challenges.
5. Repeat: Continuously monitor metrics monthly, refining strategies to sustain D30 retention at 10% and improve long-term retention beyond 30 days.

Why This Approach?

• Metrics Alignment: The metrics directly measure the impact of each strategy (e.g., onboarding completion for friction, engagement frequency for habit formation), ensuring Acko can track progress toward the 10% D30 retention goal.
• Iterative Improvement: The process allows Acko to test, learn, and refine strategies, addressing the dynamic nature of user behavior in the Indian insurance market.

Summary

Acko’s retention strategies target the top churn reason (onboarding friction) and other factors (e.g., low engagement), aiming to lift D30 retention from 8% to 10%. Streamlining onboarding, enhancing value delivery, and increasing engagement frequency address early and long-term churn, while metrics like D1/D30 retention and engagement frequency ensure measurable progress. The iterative process ensures continuous improvement, aligning with the Indian insurance market’s high retention (88% annually) and Acko’s goals.

Resurrection campaigns aim to re-engage churned or at-risk users, reducing churn and increasing D30 retention from 8% to 10%. These campaigns target specific ICPs, identified in the customer segmentation step, addressing their unique churn reasons. While the campaigns are similar to the engagement campaigns (e.g., using push notifications, rewards), they are tailored for users who have already disengaged (inactive for 14+ days) or are at risk of churning (e.g., showing low engagement). I’ll also monitor risks like being marked as spam, high unsubscribe rates, and potential blocking, ensuring a balanced approach by using my rationale.

Resurrection Campaigns

I will design five resurrection campaigns, each targeting specific segments of inactive users, addressing churn reasons, and encouraging re-engagement through tailored pitches and offers.