IIFT Case Study Challenge 2020

CASE BACKGROUND:
Nearbuy.com ​is a hyper-local eCommerce company based out of India. As a business, it allows
customers to discover, buy and save on merchants nearest to them.​ Nearbuy.com​ operates in
all categories of stepping-out for the customer, and functions like an online travel guide.

Only 40% of the close to 450 Million Indian users transact online and a minor 10% of them
search for deals regularly. Recently ​Nearbuy ​has been failing to captivate customers and build
a moat around its business model.

You’ve been onboarded as a product owner for ​Nearbuy​. As a strategic decision maker, you
have to work towards building a USP for your product so as to achieve any one of the following
goals:
• User Acquisition
• User Engagement/Retention

As a product owner, you must come up with changes in the product. List out improvements in
existing features or suggest new features that can be added. Provide a name and a 2-sentence
description for each feature.

Select the highest value feature that you can identify that would help. Describe your chosen
feature and its value proposition both to the user and to the Nearbuy product. Please ensure
that you:

• Provide UI mocks/flow charts and explain the feature in detail

• Identify the goal that you are trying to achieve.
• Describe how this feature facilitates this goal
• Identify metrics that would help you measure whether a feature is achieving its goal or not
• Identify metrics that may be negatively impacted and explain how you would monitor them

Check out: ​Systemix ThinkPM series ​to know about UI mockup /flows
​https://www.linkedin.com/company/systemix-iift
Or ​PMschool Linked ​page to know about different product cases :
https://www.linkedin.com/company/pmschoolx 

Expected Response:
Feature Mockups: Create wireframes/high fidelity mocks using a prototyping tool such as
Balsamiq and export to static images. (Free trials at http://balsamiq.com/)
Feature Descriptions, Metrics and Commentary: A maximum of 7-10 slides in addition to
mockups.
 Problem Statement:
• Only 40% of the close to 450 Million Indian users transact online and a minor 10% of them search for deals
regularly.
• Recently Nearbuy has been failing to captivate customers and build a moat around its business model.

Our Goal:
INCREASE USER ENGAGEMENT/RETENTION

PM School Why are Engagement and Retention important?

IIFT Case Study Engagement Retention
Challenge 2020 1. Affordability : It's 5-25X more expensive to
Companies who have improved engagement: acquire a new customer
2. ROI: A 5% increase in customer retention can
Increase cross-sell by 22% increase company revenue by 25-95%. 80% of
Drive up-sell revenue from 13% to 51% future revenues come from 20% of existing
Team MVP users.
3. Loyalty: Retained customers buy more often
Ananya Nandan Order size increase from 5% to 85% and spend more than newer customers.
They've learned the value of a product or
Munmun Mohanty service and keep coming back
Up to 60% of profits rely on effective
IIFT customer engagement
4. Referrals: Satisfied, loyal customers are more
likely to refer — bringing in new customers,
free of charge.
Source : Smile Blog Source : Hubspot Blog
Target Customer & Target Segment
20% 15%
24-35 Year Olds 40% Beauty & 10% 10%
Travel Movies &
33 Cities in India Restaurants Wellness Shopping
Entertainment

User Persona

Abhijit [24, Recent Purnima Raunaq

college graduate] [28, Connoisseur] [34, Occasional Splurger]

- Aggressively googles for deals - Want good experiences (for social media) - Doesn’t use services much, in general
- Not loyal to one app, goes for the - Not cost conscious - When does, uses deals
cheapest deal - Potential Loyalist - Occasionally go out
- Price conscious - Need to increase transactions

User Journey

Decides to Clicks on different links Compares deals/ Makes purchase

Googles for best deal Look for
look for a deal (Or sometimes, Gets after
redirected to app) recommendations on the consideration
website/app
New Feature 1 : Nearbuy Platina
Wireframe
Feature Description
->Deep Discounts for loyalists will help Nearbuy be the Go
to platform for hunting deals ->Sidebar showcasing Feature
-> Direct to Feature page on
Clicking
Assumption Deal Page
->The main reason for current low retention is constant ->Deal Category Tab
availability of better deals on other platform -> Catalogue Of Deals in Store
Once Unlocked
Strategy
-> Membership program to secure Retention,
-> Unlock Nearbuy Platina after n Deal Unlocks #UNlock_Karo
-> Threshold to build a habit among consumers ->Update on Usage - Threshold
-> Motivation to seek deals on Nearbuy -> Hashtag -> Call To Action
-> Running deals = constant searches for deals 3 redemptions to go

Case-in- Point
• Zomato Gold Launch Added 13000 restaurants Key Performance Indicators
• Zomato Gold Drove 25-30% business Unlocks Per Month Renewal Per Month Redemption Rate
• 60% increase in Dine Out Transactions (UPM) (RPM)

Sources : Livemint Report Hindu Businessline Report

New Feature 2 : Nearbuy Spin-O-Luck
Wireframe
Feature Description
->Gamification improves user engagement on app
Interface
-> Short term campaign to engage users

Assumption
->This strategy will leave an impression of “perceived
-> Intuitive Discount Wheel Pop-up Tool
benefits” by indulging in this action in the mind of the
-> Tempting Deals based on User History
consumer
-> CTA on the centre of the wheel
Strategy
-> Offer Spin Wheel to engage Consumer.
-> DELAYED GRATIFICATION
-> Delayed Gratification Technique to improve retention.
-> Timer to update user to return
-> Improve Word of Mouth through this Feature.
-> Push Notification on timer
-> Boost conversions by Spin to win

Case-in- Point
• Gamified options have been known to turn 2-3%
conversion rates into conversion rates of 30% or Key Performance Indicators
more. Daily Active Users Spins Per User Spin Redemptions
(RPM)
Source - Gamification Drives Conversion
New Feature 3 : Nearbuy Rewards - USP
Wireframe
Feature Description
-> Incentivizing users make them come back to the app regularly.
-> The idea of getting a reward makes user more happy than the
actual reward, thereby increasing customer satisfaction -> Ensuring customer
makes more purchases to
get scratch cards
Assumption
-> Scratch cards with
-> Rewards and Scratch cards will make users to come back, use -> Scratch expiry
the rewards up in their next purchases, leading to more Card asking
transactions the user to -> Variable
come back Rewards
Strategy to check

-> Variable rewards – like a lottery ticket

-> Some cards could only be availed at a later date, making user
come back to check
-> Rewards will also motivate users to make purchases to use up
expiring rewards and Will increase loyalty

Case-in- Point Key Performance Indicators

• Google Pay became 2nd most UPI Based App Card scratched per month Redemption per month

• Scratch cards viewed as a growth hack in India

Improved Feature 1 : Share Your Credit – Improving on Credit Feature
Wireframe
Feature Description Net Promoter
Score template
->Option to Spend when you can’t would be a major driver of To gauge
app stickiness – Giving options where there is none effectiveness
of the feature
Assumption -> Credit History with Validation
-> Click on View to see Remaining history
->Lack of Credits is a major setback for consumers and
prevents them from exploring options

-> Call to Action

Strategy -> Show list of Contact on Nearbuy
How Credit -> Transfer the credits closest to Expiry
-> Allow Nearbuy Credit transfer to friends/peers/family
-> Modelled to share credits when dine out together. Transfer Works -> Explaining User how it works
-> #ShareKaro Campaign on the app with calculations
-> Credits with minimum validity can be transferred

Case-in- Point
Key Performance Indicators
• Transactional intent involves acting in a way that
indicates possible purchase. Easy availability of Net Promoter score Avg contacts synced / user
credits will accentuate the process
Avg credits shared / user New signup through credit / month
Source: Nudging Purchase Intent
Improved Feature 2 : Intuitive Discounts + Bundling
Wireframe
Feature Description
-> Intuitive Discount will increase customer
satisfaction
-> Bundling will increase order value
-> Discounts on -> Suggestions
Assumption the very first on checkout
page of the app -> Easily
-> It will make users get deals of the services they use -> More than 1 addable
the most, will increase customer loyalty discount, easily
scrollable -> Each
-> Bundling will not only sell more deals, but users will
additional
feel they are getting more in less
deal shows
saving
Strategy -> Total
savings will
-> Intuitive discounts to be given on services as per be showed if
previous transactions multiple
-> Bundling of similar deals, at a lower price than the deals added
original price of that similar deal
-> Will also show users how much they’ll be saving when Key Performance Indicators
taking up additional deals
Discount clicks/User Deals purchased /User
Case-in- Point
• 35% of all Amazon purchases come from Bundled deals availed /Userx
bundling, and that have a success rate, of
around 60%.
Improved Feature 3 : Localized Content on Stories
Wireframe
Feature Description
-> Localized content makes user spend more time on app
-> Easily relatable and catches customer’s attention &
interest
-> Relevant Deal at
Assumption the end of the
stories of a
-> Users do not find the current content on stories useful restaurant
-> Localized content will make people end up using those
services
-> Story on a local
restaurant, whose deal is
on Nearbuy
Strategy
-> Button to redirect
-> Content on local spas, restaurants, will interest users, will user directly to the
spend more time on app deal- Call to Action
-> Deals of that particular service at the end of the story
-> Can act as advertisement for those services, and as a
revenue source

Case-in- Point Key Performance Indicators

• 80% of consumers prefer companies that Content Views/month Call to Action/month
provide personalized messaging and offers
• Media Planet’s conversion rate increased by 70%
when their websites were fully localized
Cost Benefit Analysis

Overall KPIs

COST BENEFIT RISK Stickiness

ARPU
->Reward Management ->Retention ->Not enough Sign ups.
Nearbuy Platina ->Support Cost ->Increased Revenue/User ->Low Adoption
->Promotion Cost ->Increased transactions’
Frequency Customer
Nearbuy Spin-O-luck ->Integration with app Cost ->User engagement ->Not enough Retention
->Campaign Cost ->Drives Intent to Purchase incentives – Tough Rate
->Increased DAU Luck Syndrome*
->Design Cost ->Improved NPS ->Rewards not
Nearbuy Rewards ->More referrals
->Development Cost lucrative to audience Purchase
(Scratch Cards) ->Drives Transactions
Frequency
*Tough Luck Syndrome – Explains User fatigue due to inability to get
lucrative rewards from gamification
(Ideated by Team MVP)
Repeat
Purchase Rate