REDBUS CASE STUDY

Name: Harsha Handu

Identify at least 3 key metrics for RedBus that you, as a Growth PM, would monitor actively
in order to improve its transactional funnel? Also, provide relevant reasons for considering
Question 1 these metrics.

(Instructions: Review their app and website thoroughly to be able to come up with relevant
metrics.)

Metric 1- Number of users entering pick up, destination location

Why important:

Response Many first time users would come on Website and just enter details to check options
available and their price. While this may not result into a transaction but would be a great
milestone in user engagement.

Metric 2- percentage of users completing checkout process who initiated search.

Why important:

Percentage of users completing checkout process would mean users are convinced about
the value proposition that red bus offers. Many time users just engage in search process to
merely compare prices with other websites but if they actually make a booking through
RedBus, then it is another important milestone.

Metric 3- percentage of repeat customers

Why important:

It is important that users find it convenient to book through RedBus. More the number of
repeat and returning customers, greater predictability of sustainable revenue.

Question 2 Which of the 3 user segments could be the most valuable for achieving your business
objective? Explain your reasons behind selecting these segments.

(Instructions: Explore the behavioural, demographic and technical segmentation

categories, which you learnt about earlier)

1. Demographic- Metro Tier 2 cities

Response

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 REDBUS CASE STUDY

 Considering the population in metros and number of users travelling from one city
to another-user from metro cities are expected to be the biggest revenue
contributors.

2. Behavioural- weekend travellers

 People working in different city from native (someone from Rohtak working in
Gurgaon) would be travelling frequently between 2 cities.
 People who go out on weekends to nearby destinations.

3. Psychographic- Pilgrimage Travellers

 This would help in group bookings (family bookings), tie up with hotels other and
other auxiliary businesses help in to scale up the economy.

A. Write down the steps involved in the checkout funnel for RedBus?
B. Which 4-5 cuts or parameters would you use in order to monitor this funnel on a
Question 3 daily basis?

(Hint: For instance, you could consider the usage across Android, iOS, web and mobile web.
This would be a cut or a parameter by ‘platform’. You must identify and mention other
such parameters.)

Steps involved in the checkout process are:

1) User find RedBus through Google Ads or other means

2) User visits RedBus homepage, downloads RedBus app through play store, app
Response store.
(3A) 3) User engages for first time, enters pickup and destination location for booking
4) User selects bus seats
5) User confirms booking
6) User pays for booking

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 REDBUS CASE STUDY

Cut parameters

1) User based on age

(to get inputs on which age group, target segment needs focus)

Response 2) User based on mobile bookings, desktop booking

(3B) (To understand which method people prefer for booking thus improve UX/UI)

3) User based in which device used-iOS, Android

(To understand which platform is getting more users thus improve UX/UI)

4) Users based on Metro cities, Tier-2 cities

(To understand the demography of customer segment, improve frequency or
services accordingly.)

5) Users travelling on weekends

(To understand how many users are frequent travellers, can they offered some
promotional offers to convert them into advocates)

6) User opting for pilgrimage travel booking.

(explore possibilities of expansion into other cities, another customer segment)

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 REDBUS CASE STUDY

A. Suggest at least 2 new features and 2 growth strategies that can help RedBus
increase the number of transactions?

Question 4
(Hint: Focus on increasing customer engagement and retention, as the key
business objective is to increase the number of transactions without increasing the
customer acquisition cost.)

B. What are the metrics that you would use in order to measure the success of these
features and strategies? Also, provide reasons behind choosing these metrics.

(Note: Mention at least 3 key metrics, along with valid reasons for considering
them.)

New features

a) Travel Package:

RedBus could think of weekend travel package or long distance travel package as
Response many bus operators offer many services-for example- Delhi-Jammu-Srinagar-Delhi.
(4A) This will help to tap the tourism customer segment

b) Subscription package for weekend traveller

For people who travel frequently and or on every weekend shoul have option of
taking subscription like, Delhi- Chandigarh, Delhi –Agra. This will save users time for
searching buses every time. They can even get some discount coupons which in
turn would mean recurring revenue.

c) Tie-ups with international agencies

For foreign national visitors, RedBus could offer services and assurance of safety.
This could be good revenue earning feature.

1) New users exploring travel packages through RedBus website

Response
(4B) This would help acquisition of new users and effectiveness of RedBus campaigns
promoting new features.

2) % of users booking new offerings

Users have multiple options of making travel package booking; (make my trip, yatra
etc), this metric will help RedBus understand whether users are booking tourism
packages through RedBus or not.

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 REDBUS CASE STUDY

3) Number of users taking monthly subscription vs repeat travellers

If more users are taking monthly subscription, which means users find it
convenient to book through RedBus and is preferred. This would help in retention
and referral as well.

Question 5 According to you, what are the major challenges that RedBus could face in the next 12-24
months?

(Note: Mention at least 3 major challenges, along with valid reasons)

1) COVID

The most obvious challenge for next 12 months is going to be COVID. With COVID
the travel restrictions will be in place and unless bus service resume- there will be
no bookings-means complete halt of business.
Response
2) Post COVID but covid impacted. (12-24 hours)

It would take some time before the business can be resumed as normal. People
may not immediately start travel or even if they do; would expect social distancing
in buses. This would mean unoccupied seats. If bus ticket prices are raised, people
may move to other modes of transport.

3) Employee retention, meeting operating expenses.

With business impact and lesser revenue, RedBus may find challenges with respect
to meeting operating expenses, retaining employees.

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 REDBUS CASE STUDY

Parameters Weightage
Criteria Does Not Meet Expectations Meets Expectations
(%)
Identifying key Fewer than 3 key metrics have
At least 3 key metrics have been
metrics that are in been identified and a relevant
Identifying identified correctly. Also, a valid
accordance with 20 explanation to considering
Key Metrics explanation for considering these
the business these metrics has not been
metrics has been provided
objectives provided
Defining user Fewer than 3 user segments At least 3 user segments have been
segments based have been mentioned, and mentioned, and these user segments
Defining User on different they are not classified based on have been classified based on
15
Segments segmentation demographics, demographics,
techniques behavioural/psychographic and behavioural/psychographic and
technical categories technical categories
Identifying the
All the important steps of the All the important steps of the
Funnel steps involved in
10 checkout process have not checkout process have been
Analysis the checkout
been mentioned correctly mentioned correctly
process
Mentioning the
Listing parameters for the Fewer than 4 cuts have been At least 4 cuts have been provided,
Parameters that cuts you will 10 provided, without any along with valid reasons for
for Cuts use to monitor the explanation considering these cuts
funnel
Suggest new At least 2 new features and 2
Fewer than 2 new features
features and growth strategies have been
Suggesting and 2 growth strategies have
strategies that can mentioned, along with a relevant
New Features mentioned, without a relevant
help redBus 20 explanation
& Growth explanation
increase the
Strategies
number of
transactions
Mention the key
metrics that would
Fewer than 3 metrics to At least 3 metrics to measure the
you use to
Identifying measure the success of the success of the suggested features
measure the 10
Key Metrics suggested features and growth and growth strategies have been
success of these
strategies have been identified identified
features and
strategies
List down the
Fewer than 3 challenges have At least 3 major challenges have
Identifying major challenges
15 been listed, without any been listed, along with a relevant
Challenges that redBus could
relevant explanation explanation
face

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 REDBUS CASE STUDY
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