ACE The CASE Challenge

Team Bazingaa
Purva Ganediwal || Ashwin
Kumar

Executive
Executive
Summary
Summary

Case
Case Overview
Overview

The
The main
main purpose
purpose of
of this
this presentation
presentation is
is
to
design
a
customer
retention
program
to design a customer retention program
for
for PayUMoney
PayUMoney

In the following presentation we

have designed a Pyramid Model for
increasing customer-retention.
The model consist of four major
parts. We have explained the
implementation of each of the
parts along with advantages and
highlighted the implementation for
the same

Kirana
Kirana Store
Store
Model
Model

Billing
Billing Centre
Centre
Model
Model

Restro
Restro Caf
Caf
Model
Model

Other
Other Proposed
Proposed
Initiatives
Initiatives

Executive Summary
A major difference between the digital wallet
system and the real-world wallet is the
liquidity quotient. In the following
presentation we have attempted to make the
digital-wallet of PayUMoney more liquid.

Restro
Caf
model
Kirana
Store
model
Billing
Center
model

The Pyramid model with its four sub-models

will help PayUMoney solves its customer
retention problems as it will increase their
usage offline along with online platforms..
Other
Proposed
initiatives

The pyramid model will help in making PayUMoney a daily used

currency. These models is designed in a manner that it
encourages big-ticket-purchases and also encourages increased
usage of PayUMoney with increased customer retention

Executive
Executive
Summary
Summary

Case
Case Overview
Overview

Kirana
Kirana Store
Store
Model
Model

Dynamic
PayU is a leading brand in the global payments
s
space, with operations in 18 countries

PayU India - leading payments brand in the

country
PayUMoney - consumer facing payments brand of
PayU India
Provides services to both merchants and end
customers
Products offered

B2B Enterprise Payment Gateway

B2B SME Payment Gateway

B2C Checkout Option

B2C Semi-closed wallet

Billing
Billing Centre
Centre
Model
Model

PayUMoney
Partners

Drivers

Restro
Restro Caf
Caf
Model
Model

Other
Other Proposed
Proposed
Initiatives
Initiatives

Concern
Customer Retention Problem:
s vary widely as
Payment behaviour

users access PayUMoney from

diverse range of merchants,
ecommerce, SME merchants,
government and utility merchants
Referral Program Audience:
PayUMoney exposes its referral
program only those users who have
exhibited significant loyalty towards
PayUMoney
Framework for identifying loyal
users of PayUMoney

More than 90,000 merchants across recharge, food,

movies, travel, fashion, shopping, education, utility
bill payments, and restaurants
4 Value Propositions :

Faster checkout with ability to

store card details
Instant Refund to PayUMoney
wallet

Buyer Protection 100%

disputes resolution
Rewards - Instant discount and
PayUMoney loyalty points

Executive
Executive
Summary
Summary

Case
Case Overview
Overview

Proposed
Model

Kirana
Kirana Store
Store
Model
Model

KIRANA Store Model

Introduce a points based payment

system for local retail stores
The PayUMoney user will get PayUMoney
points for every purchase he makes
from the retail stores tied up with
PayUMoney
The customers can also make payment to
the kirana store with the collected
PayUMoney points or from the wallet

The detailed model:

For every purchase valued between INR 150
to 500 the customers PayUMoney wallet will
be credited with points.
Also for every purchase above 500 the user
will get a cash discount of 2% on next
purchase in addition to the PayUMoney
points
This will be main driver to increase
ticket-size of the sales as the
customer would go for higher ticket
purchases to maximise the cash
discount
Customer retention driver for stores
and ultimately for PayUMoney

Billing
Billing Centre
Centre
Model
Model

Restro
Restro Caf
Caf
Model
Model

Other
Other Proposed
Proposed
Initiatives
Initiatives

Target Group
The pilot of this model can be implemented in
Tier I cities (Mumbai, Bangalore,Pune,Delhi
etc)
The rollout will be in 2 phases :
Phase I Metro cities will be the target
Phase II Other Tier I and Tier II and
Tier III cities should be targeted

Points to keeps in mind are:

In a locality try and ensure
to keep the ratio of store
with and without PayUMoney
tie-up at 1:5 E.g. If five
kirana stores are present
then only one of the kirana
stores should have the
PayUmoney payment system
enabled in the initial phase
After initial success, it will
be easy to target other 4
stores
This will help in quantifying
the increase in the users

Executive
Executive
Summary
Summary

Case
Case Overview
Overview

Implementation

Kirana
Kirana Store
Store
Model
Model

Billing
Billing Centre
Centre
Model
Model

Kirana Store Model

The
few
pre-requisites
for
the
implementation to be successful
Active mobile number with the shop
keeper and registered with PayUMoney
SMS verification system, to ensure
verification of transactions
Mobile Application for consumer (not
mandatory)
Normal Purchases:
X can make payments for the purchases either
with cash or PayUmoney
X need to inform PaYUMoney for the amount
and shop code, PayUMoney will confirm the
transaction with the customer
High ticket transactions
Another offering in the above model can be a special offer on
high ticket purchases (Ticket size >500)
When X purchases in excess of INR 500, on his next purchase
hell get a special offer: points in accordance to the amount
of transaction done will be credited to his account
These points can be used as mode of payment for next
purchase

Restro
Restro Caf
Caf
Model
Model

Other
Other Proposed
Proposed
Initiatives
Initiatives

Steps:
1. Consumer(Mr X) associates his mobile
number with PayUMoney account
2. Vendor(Mr Y) has his mobile registered
as client with the PayUMoney and has a
code assigned
3. Whenever X makes a purchase of INR M
from shopkeeper Y, he sends an SMS to
PayUMoney with the Ys code and
amount of purchase
4. Y gets a confirmation SMS, he has to
send a Yes to confirm the transaction
5. Minimum amount of transaction for
PayUMoney points to be credited: Rs 100
(our recommendation based on our
primary research)

Customer Reach
This model will help customers to use the
PayUMoney points offline which were
collected during online purchase
This offline model will help to reach midincome and high- income TGs

Executive
Executive
Summary
Summary

Case
Case Overview
Overview

Proposed
Model
most of the Tier I, II &

In
III cities,
civilians pay electricity bills at other
places than the main electricity bill
collection offices
These places include local stores,
stationary stores, kirana stores, medical
stores etc. who collects bill amounts in
bulk and later pay at the billing office
PayUMoney can tie-up with such bill
boxes medium and enroll them to pay bill
via PayUMoney electricity bill portal.
This model will roll-over pan-India bill
payment gateways using PayUMoney
Gateway for payment of all utility
bills(electricity, gas, mobile etc) can be
provided
This model can be later extended to pay
internet and all other utility bills online
as well
The boards which will be provided
outside such billing points will have
PayUMoney sponsored mentioned. Thus,
giving PayUMoney more visibility

Kirana
Kirana Store
Store
Model
Model

Billing
Billing Centre
Centre
Model
Model

Restro
Restro Caf
Caf
Model
Model

Billing Centre Model

Other
Other Proposed
Proposed
Initiatives
Initiatives

Target Group
The pilot of this model can be
implemented in Tier I and Tier II
cities and later can be extended
to Tier III cities as well
Currently, PayUMoney can focus
with those areas where they have
this electricity bill payment
service activated
The rollout will be in 3 phases :
Phase I Metro cities will
be the target with
department and stationary
stores
Phase II Other Tier I and
Tier II cities should be
targeted with medical
stores as well
Phase III Tier III cities with
kirana stores

These model can be extended for referral program

as to give referral for each new shop included as
bill payment centre with PayUMoney

Executive
Executive
Summary
Summary

Case
Case Overview
Overview

Proposed Model
Introduction of a new payment option at the
Cafs like Nescafe outlets, CCDs, Starbucks,
Costa Coffee, Barista outlets etc
Consumers will be given an option to pay for
the purchases with PayUmoney
They will also get PayUmoney points for
the cash payments
Detailed proposal:
Customers can use the PayUMoney points
collected during online purchase to claim
the rewards during purchase at nearby
Cafs
This model can be extended to even
restaurants after successful pilot at
Cafs
Incremental point system where the
user will be given more points for higher
purchase
In restaurants the user should be given an
option of making half payments via cash
and remaining half with PayUMoney
wallet

Kirana
Kirana Store
Store
Model
Model

Billing
Billing Centre
Centre
Model
Model

Restro
Restro Caf
Caf
Model
Model

Restro-Caf Model
Cafs

Target Group

Restaurants

Other
Other Proposed
Proposed
Initiatives
Initiatives

Main target of this model - Cafs

located in the Tier I & Tier II
cities
The crowd visiting these places
should be make aware with the
points-based payment system
through advertisements
The
restaurants
who
have
computerised billing system will
be able to implement the
PayUMoney model for payment
Model will help target SEC A & B
segments who will

Executive
Executive
Summary
Summary

Case
Case Overview
Overview

Implementatio
n
Prerequisites for the implementation
PayUMoney wallet/points
associated with the customers
mobile number
Cafs and restaurants registered
with PayUMoney as partners

Steps at Cafs:
1. Consider customer as Mr X and
caf as Y
2. X goes to the order counter of Caf
Y and tells his mobile number
3. The billing agent enters the mobile
number in the PayUMoney portal,
he gets Mr Xs profile in front of
him with his photo and wallet or
reward amount.
4. He does a facial verification
manually and proceeds to debit
from his account for the order
(This simplifies the payment process
and helps for faster customer service
and ultimately increases customer
satisfaction)

Kirana
Kirana Store
Store
Model
Model

Billing
Billing Centre
Centre
Model
Model

Restro-Caf Model

Restro
Restro Caf
Caf
Model
Model

Other
Other Proposed
Proposed
Initiatives
Initiatives

Steps at Restaurants:
X visits the restaurant Y.
He orders food and then proceed to make
payments with PayUMoney account
If he does cash payment, he will be
rewarded points/rewards similar to Kirana
Store model
In case, Mr. X has limited balance in his
PayUmoney account (e.g INR 900) and the
bill amount is INR 950
PayUMoney will provide a credit of INR 50
to X so that he can clear the bill
The amount of credit to be provided to a
customer can be determined by history of
usage of that customer and his loyalty

Customer Reach
This model will help customers to use the
PayUMoney points offline as well as online in
day-to-day activities
Students and working professionals can be
easily reached using such model as they are
more tech-savvy

Executive
Executive
Summary
Summary

Case
Case Overview
Overview

Kirana
Kirana Store
Store
Model
Model

Leveraging Other Channels

Billing
Billing Centre
Centre
Model
Model

Restro
Restro Caf
Caf
Model
Model

Other
Other Proposed
Proposed
Initiatives
Initiatives

Leveraging Social
Media
Points transfer System
Introduce points transfer facility
(keep a upper limit of 1000 points that can be transferred in a
day)
This would enable more usage of PayUMoney

Tie-up with
Prepaid Taxis
Customers can use
PayUMoney wallet for
fare exchange where
an SMS will be sent to
taxi driver for
verification.
Prepaid Taxi model is
growing at a
phenomenal rate and
a tie-up with these
players would help
PayUMoney grow to a
large extent.

Extend the
Prepaid Taxi
model to
rickshaws/cabs in
Tier I cities at
pilot level with
the help of SMS
gateway

After sufficient
presence
offline, the
model can be
extended with
travel partners
with tie-ups
with hotels and
taxis

Link PayUMoney accounts with the social media account of

the users.
Introduce a Facebook application for transfer of points on
Social media

Facebook/Twitter/Instagram activattions
Give the patrons an option to share their PayUMoney
transaction/usage on social media.
For every likes/comments i.e engagement on their posts, they
will be rewarded with PayUMoney points

Executive
Executive
Summary
Summary

Case
Case Overview
Overview

Kirana
Kirana Store
Store
Model
Model

Billing
Billing Centre
Centre
Model
Model

Restro
Restro Caf
Caf
Model
Model

Other
Other Proposed
Proposed
Initiatives
Initiatives

Gift Cards
System

Key Business Benefits:

PayU

Enhance sales and revenue

Brand building and Customer
Loyalty
Improved Back office
reconciliation and Reporting
Eliminate cash back
Get New Customers
Faster transaction times
Avoid theft and fraud damages
Secure and Robust Platform

References
* www.payumoney.com
* https://www.payu.in/
* http://www.medianama.com/2014/02/223-payumoney-wallet/
* http://jsr.sagepub.com/
* Economic Times articles