Weekend Challenge 46

(To be attempted by an individual only or a group of 2 max.)

You’ve joined as the SVP of Product at smallcase. Please install the app from Play Store or
App Store. To know more about the app, you can refer to this video -
https://www.youtube.com/watch?v=3Z8L35lpHzw

Investing has picked up big time in the last year and half, ever since people have become
homebound due to the pandemic.

As the SVP of Product, the task at hand is to improve upon the conversion rate. Recommend 3
Product solutions to solve for the same.

It is recommended that you first define what is conversion for smallcase. Look at how other
companies (e-commerce, ride-hailing, fintech, etc.) define who is a converted user.

Judging Criteria :-
1. Structure of the document/writing skills
2. Problem solving skill
3. Metrics thinking
4. Business Acumen
5. Design Thinking and Neatness of Wireframes

Please submit the assignment to this mail id pmschoolx@gmail.com by 22nd May

12pm (Sunday).

Chance for a mock interview with one of our mentors (Top Assignment). This assignment is
completely hypothetical in nature and is not sponsored by smallcase.
 India`s only thematic
A case study by
investment platform
Devang Gaur
THE PRODUCT 2M+ users 2

What is smallcase? 28 yrs avg. age

2 scases/user
Feature Highlights

smallcases are modern investment products that help you

build a low-cost, long-term & diversified portfolio easily. 1CMS – 1 click, multi stock
In just one click, user can purchase
Created by professionals, each smallcase is a ready-made
multiple stocks in a smallcase
basket of stocks/ETFs that reflects a theme, strategy, or
objective, E.g. – Pharma, Automotive, Energy
Discovery made easy
Founded in 2015 and launched in 2017, user base is around Users get access to pre-built, expert
2M (Sept 2020) and 5000crore transacted in smallcase. designed portfolio of stocks to get
started with their investment journey.

smallcase users need an activated demat account to start SIP Enabled

Customer can enable SIP on any
investing. The product has integrations with all the leading
smallcase and invest recurringly
trading brokerage firms in India, like Zerodha, Upstox,
5Paisa, HDFC, and others.
DIY – Create smallcases
Users are allowed to create their custom
smallcase as well, company has created
~50 but users have created around 40-50K
 THE PROBLEM 3
Problem Statement & GOAL

The data suggests that smallcase seems to be

struggling at converting users. Its recent
conversion rates have been unsatisfactory.

GOAL - As the SVP of Product at smallcase, the goal is to produce

at least three solutions to drive up user conversion at smallcase.

Big question – What is conversion for smallcase?

 THE PROBLEM
Conversion for smallcase
Conversion rate is usually the proportion of users eventually purchasing/subscribing/investing (differs based type) the
product out of the cumulative users.
What is conversion for
smallcase?
At the outset, the conversion for smallcase
would be the proportion of users eventually
buying a particular smallcase among the
cumulative users of smallcase.
but
It is not that lucid in case of smallcase. The
reason being that smallcase DOES NOT have its
own users, it is dependent upon the partner
brokerage firms users to convert them into
smallcase users AND here it causes a set of
initial challenges.
4
The challenges
smallcase has constrained user-onboarding
touchpoints = limited opportunities to get
users on the platform
smallcase could be used as a proxy
advisory app; users can just pick stocks in a
case and invest directly from demat a/c,
resulting in lower conversions.
heavy reliance on brokerage firms; any
platform related issue will directly impact
the conversion of smallcase purchases as
trades happening through partner firms.
 DIGGING DEEPER 5
Key Insights [Customer & Market]

Covid Acceleration Millennial's` impact

Covid accelerated a surge of Majority of the users in the 20% jump
Indians flocking to stock market in 2020, are users between 28-39
and total users swell by ~20% years of age.

Low penetration Risk vulnerability

Only around 2.5% of Indians are With so much trade happening,
formally invested in the Indian the market has become extremely
capital markets (stocks, MFs volatile, making the less informed
etc.) user highly vulnerable

What else? – How about the number of women users in the stock market?
Women users form only 20% of the total users on the stock exchange. In 2020, all major brokerage firms saw a jump
of 30-35% women users, most of them housewives and first-time users on these platforms.
 LATENT ISSUES 6
Customer Persona

Viraaj Soni Ritwik Doshi

25 yr | Bengaluru 41 yr | Mumbai
IT Professional Sales Executive

Old/New
First time user. Have never Have invested in mutual funds but not
(to equity
investing) invested in stocks or mutual funds. active in direct equity markets.

Limited awareness about the overall equity Have a boarder level of market understanding
Awareness
ecosystem and smallcases. but not deep enough for investment.

Long/Short Both. Since a beginner, it is better to start with

Long-term, not looking for early gains.
Term safe investment instruments first.

Yes, noticed a surge in the market, all my

Covid Not much, being a long-term investor, bought a
colleagues, friends started investing during
impact? few uninformed dips last year in the market.
pandemic.
 DIGGING DEEPER 7
High-level Current User-flow

Smallcase integration Stock credit

User can login through After payment, Portfolio
created partner demat updated on smallcase
1 a/c on smallcase and demat account
both.
5
Create demat 3 Research
User needs to User goes through all
different smallcases Order
6
create demat a/c
available
2
with either of the
partner firms Once decided, user
places an order on
smallcase, through
partner brokerage

Add funds
4
User needs to add
funds to the demat
a/c

Potential user
drop-off points
 DERIVING INSIGHTS 8
Hypothesis

Shared Conversion
1
As smallcases` conversion is transitive wrt the brokerage firms` Shared
conversion, driving up the overall conversion in the capital market will Conversion
have a sliding effect on increasing conversion for smallcases.

Discoverability
2
Millennials should be the primary target user to enhance conversion as
Case?
they are risk tolerant and are open to try new investment smallcase?
opportunities like smallcases. But discoverability has been a problem
as smallcase appears an investment instrument for seasoned
investors. If we increase the discoverability of the product among the
millennials with a simplified messaging, conversion will enhance.

Patriarchal growth
3
Women constitute only 20% of the stock market users. If we drive
changes that help in enhancing women participation in stock markets,
it will have a cascading effect on the conversion rate for smallcase.
 9

The Solution
Feature #1 User flow New Screen 10

Pain points (Millennials)

• New users usually Create your Investment

have limited
knowledge financially
persona Approach
• Reliance on tips,
‘friendly’ advice,
resulting in losses

Solution – New user

Smallcase customizes investment Sustainable long-term gains through
• Create a persona options based on your goals, a diversified portfolio or quick kills in
based on-boarding experience, and financial well-being short-term
process.
• Current process is Have you invested Are you ready to
good for informed in Stocks before? invest long-term?
users only
Think if you have ever purchased stocks yourself Ready to be invested long-term or looking to
• New onboarding or through a broker make quick cash
process for new bees,
seasoned traders
• Personalized
smallcase product NO YES NO YES
recommendation

#1 This is the default landing New - These are revamped onboarding screens; idea is to create separate
page for all kinds of users. No personas for target users and recommend personalized smallcases to enhance
personalization is attempted. conversion
Feature #1 User flow New Screen 11

Pain points (Millennials)

Select 3 industries you have
• New users usually
some knowledge about Recommended for you Recommended for you
have limited
knowledge financially Think if you are aware of how the industry is These smallcases are curated for you based on These smallcases are curated for you based on
performing and its future growth potential your equity investing experience, investment
• Reliance on tips, duration, and risk exposure
your equity investing experience, investment
duration, and risk exposure
‘friendly’ advice
resulting in losses
Auto Pharma

Solution – New user Petroleum Chemicals

• Create a persona Buy

based on-boarding
process. SMEs Steel
• Current process is
good for informed
users only Defense
EV
• New onboarding
process for new bees,
seasoned traders
• Personalized Buy
smallcase product
recommendation
Find my smallcase

#3 Data points to check if user has #4 Recommendation system giving #5 Recommendation system giving
exposure to relevant industries, it best smallcase recommendation for best smallcase recommendation for
will help in recommendation Amateur investors Seasoned investors
 EVALUATING FEATURE 12
Metric Analysis – Feature #1

Target Goal Identifier Metric

User downloads the app # of users installing

Adoption # of users purchased x 100
and invests in smallcase and investing in
Total users installed
smallcases

User comes back to re- # of users re-investing # of users purchased

Retention (current month)
invest on smallcases in smallcases x 100
Same users purchased
(last month)

Analyzing these metrics with new on-boarding screens will help us understand the impact on user conversion

Assumptions

• Users are aware of the requirement that demat account is mandatory to trade in stock markets
• User shall have an active demat account with either of the partner brokerage firms integrated
with smallcase now.
Feature #2 User flow Modified screen
(from previous) 13

Pain points

• Having a demat a/c

to use scase.
• User settings, funds
on demat a/c No demat a/c? No problem.
• No demat a/c = no Smallcases can be bought
smallcase purchase w/o demat first and later
can be transferred.

Buy now

Solution – New user

• User should be able
to purchase
smallcases w/o
demat a/c
• Such units will be held
by smallcase for two
weeks.
• User would get the
demat a/c in two
weeks from partner
firm
• Smallcase transfers
the units once a/c is
created

#1 New user landing page, user #1 Now a new user has an option #2 Once user clicks on ‘Buy now’,
only has option to login via to buy smallcase even without a he/she can select from a wide
brokerage firm demat account with brokerage range of available smallcases.
firm
Feature #2 User flow Modified screen
(from previous) 14

Pain points

• Having a demat a/c

to use scase.
• User settings, funds
on demat a/c
• No demat a/c = no
smallcase purchase

Solution – New user

• User should be able
to purchase
smallcases w/o
demat a/c
• Such units will be held
by smallcase for two
weeks.
• User would get the
demat a/c in two
weeks from partner
firm
• Smallcase transfers
the units once a/c is
created

#3 E.g – user selected All #4 E.g. – Unsigned user is #4 Show partial details of
Weather smallcase and moves currently unable to see all the included stocks to the user for
ahead to invest in it. included stocks/ETFs in the details and user can begin to
smallcase. invest in it.
 EVALUATING FEATURE 15
Metric Analysis – Feature #2

Target Goal Identifier Metric

User downloads the app # of users buying 1
Adoption # of users purchased
and invests in smallcase smallcase w/o demat
(w/o login) x 100
w/o logging in demat a/c login # of users purchased
(with login)
2
# of users purchased
(w/o login) in 1 month x 100
Total # of users
purchased in 1 month

The two metrics, one against total users and another against logged-in users will give us how effective is the
new feature of buying smallcases w/o demat account.

Assumptions
• smallcase has a company trading a/c with Zerodha which shall be used for holding the units on
behalf of customer.
• User will get a demat a/c within the stipulated time with only a partner firm and fulfills the
requirements to initiate the stock unit transfer from smallcase.
Feature #3 User flow Modified screen 16

Pain points (costly SIPs)

• Recurring cost on
each SIP is a
hindrance for users.
• If user has weekly SIP,
in 1 month, charges =
4 * (50 + 9) = 236

Solution
• SIP charges are
hidden as while
purchasing, user is
Note: On each SIP transaction, the brokerage will deduct
not notified, and this Rs. 59 (50 + Rs. 9 GST). This fund is used for managing the
makes them believe rebalancing your portfolio.

SIPs are costly. Rebalancing means the stocks in the smallcase are re-
adjusted along with their weight to absorb any underlying
• User should be made change in the overall theme

aware that this cost is

mostly for
rebalancing the
portfolio.
• Greater transparency
will lead to more
conversion

#1 No mention of any extra fee #2 The funds are deducted from the #1 User gets full info now about all extra
levied on the transaction brokerage a/c fund and nowhere charges. Greater understanding of rebalancing
user gets to know that. will help the user appreciate product.
 EVALUATING FEATURE 17
Metric Analysis – Feature #3

Target Goal Identifier Metric

User downloads the app # of users buying 1 3 Change in SIP freq.
Adoption # of users purchased
and invests in smallcase smallcase w/o demat
SIPs current month x 100 # of weekly SIPs
w/o logging in demat a/c login # of users purchased in current month x 100
smallcases # of weekly SIPs
2 last month
Same calculated for
# of users purchased
monthly, quarterly
SIPs in current month x 100
frequency too
Total # of users
bought SIPs last month
#1 & #2 metrics, one against total users who bought SIPs and another against total smallcase purchases will reveal what has been the
impact of this change on the conversion rate for smallcases. #3 will help analyse the effect of the change on SIP frequency (as charges
per SIP transaction were a pain point)

Assumptions
• For purchasing SIP, the user has an active demat account with one of the partner firms.
• User is aware that SIPs are not auto-deducted, rather it is an alert by default. For auto-deduction, user knows about UPI
mandates on smallcase.
Other Feature
18

Monthly smallcase challenge S M T W T F S S M T W T F S

Running monthly case challenge will help increase awareness about 1 2 3 4 5 1 2 3 4 5

equity investing and smallcase. Users can create their own 6 7 8 9 10 11 12 6 7 8 9 10 11 12
smallcases and the best case will be rewarded with a lumpsum
13 14 15 16 17 18 19 13 14 15 16 17 18 19
amount smallcase.
20 21 22 23 24 25 26 20 21 22 23 24 25 26

27 28 29 39 31 27 28 29 39 31
Targeted outreach
The 20% jump in retail stock investor number last year had
majority of millennials. Social media campaigns, Influencer
outreach should be employed to get millennials excited about
equity market & smallcases.

Special campaign for women

Women participation in equity markets is as low as 20% but their
saving potential is higher at 9% than that of men (8.6%). Special
smallcases curating safer products like Gold ETFs, Bonds, Liquid ETFs
can be offered for women that will make them aware about the
capital market and will result in overall growth of the market,
resulting in higher conversion for smallcase as well.
 SOURCES 19
References

E-times : What is smallcase? Founder interview

E-times report on smallcase investing, full report here A comprehensive interview with smallcase founder, Vasanth
Kamath and his vision for the product, full interview here

What if 80Cr Indians invested? Women in Indian markets

Kundan Kishore`s analysis on investment opportunities in India Women in retail equity investing? A great opportunity that lies
and the future, full report here. squandered, full report here.

Millennials piling in stocks smallcase: a review

An insightful report on impact of Covid on retail investment and Stockquantum`s brief review about the potential of smallcase
surge of new-gen investors, full report here. Investing and its future in financial sector, read more.

illustrations credits – smallcase technologies pvt. ltd, upstox

 20

thank you

Devang Gaur
Senior Software Engineer