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  • Writer's pictureJasaro In

How to Improve Your Marketing Funnel?

Source: Jagadeesh J.

The acquisition funnel of a ride share brand 7 years back was like this:

  • 100 users install the app

  • 35 users signups with phone no. & email

  • 8 users book a ride on the app successfully

This was a lousy acquisition funnel, here's why:

  • The Cost Per Install (CPI) for the ride share industry used to be $0.5 (₹40.)

  • The Cost of Acquisition (CAC) was $6 (₹500.)

  • The Average Order Value (AOV) was $2 (₹150) then.

  • At a 20% Gross Margin, it takes more than 17 rides to break even at this CAC.

A clear recipe for disaster.

Then we made a simple change in the acquisition flow, which resulted in an increased new user conversion rate by ~100% and reduced CAC by ~50%.

How to Improve Your Marketing Funnel?


By removing the email ID requirement in the signup flow.

  • Install to signup rate increased from 35% to 60%

  • Install to booking rate improved from 8% to 15%

After the ride completion, promoting the user to add an email ID to receive the invoice got us the email ID from most users.

This is an incremental change that yielded a great outcome.

Today most brands use this flow.

The improvement becomes quite visible as the brand expands to the Tier 2 & 3 cities.

Another great idea to test in the acquisition flow is moving the signup prompt to the end.

By Installing the app, the user makes a small investment in the brand.

What If we let the user see the available cabs or browse the product straight away (without the need for signing up)?

And when they are about to book or make a purchase, prompting them to signup. Here the user made an additional time investment toward the brand.

Even for a free platform, we can do this by letting the user browse the content catalog and prompting them to sign up when they decide to consume.

More investment means more likely to convert.

Trying this will undoubtedly improve the install-to-activation/purchase rate for all brands.

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