REDBUS CASE STUDY

Name: Vikrant Jain: Cohort-7 upGrad Product Management Certification

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 : No of users entering Pickup, Destination location.

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

Metric-2: % Users completing checkout process who initiated search.

Why Important

 Percentage of users completing checkout process would mean that users are
convinced about value proposition that red-bus offers. Many times users might be
engaging in search process just to compare prices from other websites but if they
actually make booking through Redbus; it is another important milestone.

Metric-3 : % of Repeat Customers

Why Important :
 It is important the 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)

Segmentation

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 REDBUS CASE STUDY

Response
A) Demographic – Metro, Tier-2 Cities

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

B) Behavioural- Weekend Travellers.

 People working in a different city from native [Example someone working in

Mumbai but native of Nasik] would be travelling between two cities frequently.
 People who go out on weekends to nearby destinations.

Above two customer segment would contribute to repeat business for Redbus and hence
important

C) Psychographic : Pilgrimage Travellers

 This would help in group bookings [Family bookings] , tie up with hotels other
auxiliary businesses and help in economy of scale.

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.)

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 REDBUS CASE STUDY

Steps Involved in Checkout Process

Response 1) User finds Redbus through Google, Ads other means,

(3A) 2) User visits Redbus Homepage, Downloads Redbus App through Play store, App
Store.
3) User engages for first time- enters pickup and destination details for bus
booking.
4) User selects bus seats
5) User confirms booking.
6) User pays for booking.

Cut Parameters

Response 1) Users based on Age.

(3B) [ To get inputs on which age group, target segment need focus ]
2) Users based on Mobile booking, Desktop booking.
[ To understand which method people prefer for booking and thus improve Ux/UI ]
3) Users based on type of device used – iOS, Android.
[ To understand which Platform is getting more users and thus improve Ux/UI ]
4) Users based on Metro cities, Tier-2 Cities
[ To understand demography of customer segment, Improve frequency or services
accordingly ]
5) Users travelling on weekends
[ To understand how many users are frequent travellers, can they be offered some
promotional offers to convert them into Advocates ]
6) User opting for Pilgrimage travel booking.
[ Explore possibility of expansion into other cities, another customer segment ]

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

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 REDBUS CASE STUDY

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 Packages:

Redbus could think about weekend travel packages or long duration travel
Response packages as many bus operators’ offers these services – example Delhi-Kullu
(4A) Manali-Delhi. This would help Redbus to tap Tourism customer segment.

b) Subscription package for weekend travellers

For people who travel frequently; and or every weekend lime Mumbai-Pune,
Coimbatore- Bangalore should have option of taking subscription. This will help
users of searching for buses every time. They can get some discounts on
subscription booking and this would also mean recurring revenue for Redbus.

c) Tie-Ups with International Travel agencies.

For Foreign national Visitors, Redbus could offer services and assurance of
safety. This could be a good revenue earning feature for Redbus.

Response
(4B) a) New users exploring travel packages through Redbus website.

 This would help Redbus Understand Acquisition of new users and effectiveness of
Redbus campaigns promoting new feature.

b) % Users booking new offerings [ Tourism package ]

 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

c) % users taking monthly subscription vs repeat travellers.

 If more users are taking monthly subscription; this means find it convenient to
book through Redbus as a preferred option. 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
Response the travel restrictions will be in place and unless Buses services resume- there will
be no Bookings- means complete halt of business.

2) Post CovID but Covid Impacted. [ 12-24 Months ]

- 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, Red-bus 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

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 REDBUS CASE STUDY

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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