Redbud | Case Study

REDBUS CASE STUDY Name: Mithvin Kousthub C M | Email Address: mithvinkous@gmail.com Question 1 Identify at least 3 key metrics for RedBus that you, as a Growth PM, would monitor actively to improve its transactional funnel? Also, provide relevant reasons for considering these metrics.

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

Response

•

ABV – Average Booking Value: This metric will help to understand the average booking value to compare and make the necessary decision like destination wise pricing, inducing a minimum of 2 travellers based on the destination, discounts on the next tour etc.

•

Conversion Rate: Onboarding > Search Results > Filter > Seat Selection > Booking Confirmation.

This metric will help to reduce drop-offs and make the necessary changes which will lead to an increase in the booking.

•

RCR – Repeat Customer Rate: This metric is paramount to increase the repeat bookings by sending the notifications, customized coupons and building repo with existing customers.

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)

Response

•

Demographics: Age between 18 - 35 living in Tier 1, Tier 2 & 3 cities. Working migrants within an income range that may not permit frequent air travel.

•

Psychographic: Working migrants, Tech-savvy users who log in to multiple devices.

Frequent travellers (Once or Twice a Month) Travellers who book only when an offer is available.

•

Behavioural: Travellers who prefer to buy tickets offline but not online or Firsttime bookers. Travellers with an average booking value above Rs.1000. Solo travellers and multi-seat booking customers.

•

Benefit: Travellers who book for last-minute deals. Travel agents or tour planners.

Travellers who add insurance while transacting.

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REDBUS CASE STUDY Question 3

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

(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.)

Response (3A)

Seat Confirmation

Homepage

Travellers Details

Search Bar

Select pickup & drop point

Bus Selection Seat Selection

Response (3B)

• • • • •

New vs. Returning customers – First-time bookers vs. returning customers. redBus can then offer repeat customers benefits to keep them engaged since it will improve their CAC: LTV ratio.

Traffic Channels – Traffic derived from marketing campaigns, paid ads.

Popular payment methods used – Particular payment partner has a higher demand; the option can be placed higher to allow for a seamless checkout process Operating Platforms – Traffic by platforms used – Website, Android and IOS. Marketing Influence Rate – Helps to analyse the percentage of users acquired.

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REDBUS CASE STUDY Question 4

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

(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 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.)

Response (4A)

Features: • •

Drop-off Notification – Allowing the travellers to get down from the bus at the right time of the stop or destination.

Notify People – Allowing the family/friends to invite ongoing journey.

Growth Strategies:

• •

Response (4B)

• • •

Question 5

Pilgrimage Package – A unique tour package with additional advantages can make a separating factor with different contenders acquiring more exchanges.

Customer Loyalty – Introducing a loyalty program to the existing customers and inducing them to travel frequently and can increase customer engagement and retention.

Metrics 1: Notify People – Sessions for tracking bus while in the journey, session duration while tracking bus.

Metrics 2: Customer Loyalty – Onboardings from referral code, Referral tracking, CTA. Metrics 3: Pilgrimage Package – Package purchases, Sessions for landing pages, CTA.

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)

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REDBUS CASE STUDY Response

• India Tier 2 and 3 urban communities a large portion of the transports don't have GPS global positioning frameworks. In this way, Bus following is additionally a test.

• India level 2 and 3 urban areas individuals really like to pay through cash. Business centre urban communities still lean toward cash exchanges. Indeed, even Bus administrators lean towards cash exchange.

• Female Safety is one of the significant difficulties in Tier 2 and 3 urban communities.

• Administrator reluctance and Awareness: Especially in northern India, Eastern Indian for different reasons.

• Individuals in India utilize 3G or much more slow organizations, which bring about individuals taking the conventional courses to book tickets.

• In India Payment Gateway issues, It can be because of low web network or Here and there cash is deducted without the booking.

• In a current circumstance like Covid 19 individuals are not able to travel and financial condition additionally not steady.

Parameters

The weightage Does Not Meet Expectations Meets Expectations (%) Identifying key Fewer than 3 key metrics have At least 3 key metrics have been metrics that with been identified and a relevant Identifying identified correctly. Also, a valid the business 20 explanation to considering Key Metrics explanation for considering these objectives these metrics has not been metrics has been provided 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 cuts you will use 10 provided, without any along with valid reasons for for Cuts 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 and 2 growth strategies have Suggesting strategies that can mentioned, along with a relevant been mentioned, without a New Features help redBus explanation 20 relevant explanation & Growth increase the Strategies number of transactions Criteria

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REDBUS CASE STUDY

Identifying Key Metrics

Identifying Challenges

Mention the key metrics that would you use to measure the success of these features and strategies List down the major challenges that redBus could face

10

Fewer than 3 metrics to measure the success of the suggested features and growth strategies have been identified

At least 3 metrics to measure the success of the suggested features and growth strategies have been identified

15

Fewer than 3 challenges have been listed, without any relevant explanation

At least 3 major challenges have been listed, along with a relevant explanation

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