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Viewers to Users: The PayU Puzzle!

Problem Statement:

PayU, a leading payment aggregator, launched an ad featuring prominent movie and cricket stars, reaching 4 million viewers. Last year, Uber ran a similar campaign with the same viewership and added 40,000 new users. How many new users might PayU have attracted? Options: 0, 400, 40,000, 4,00,000

Solution:

The key difference between PayU and Uber is in their business types: PayU operates in the B2B (business-to-business) space, while Uber is primarily B2C (business-to-consumer). B2B businesses often deal with fewer clients, as their target audience is other companies, not individual consumers. While Uber could easily onboard 40,000 new users due to the large consumer base in the B2C space, it is much harder for PayU to get businesses to sign up in large numbers. The scale of user acquisition is inherently smaller for B2B compared to B2C because the decision-making process is longer and the target market is smaller. For PayU, attracting 400 new businesses from the same 4 million viewers is a more reasonable estimate as acquiring businesses involves more complex negotiations and a higher commitment, making the growth rate slower but more valuable per client.

Lookalike Businesses in the B2B Space:

Salesforce: A leading customer relationship management (CRM) platform, Salesforce helps businesses manage customer data and improve relationships. Their user base consists of companies rather than individual consumers, so each new client adds significant value.


AWS (Amazon Web Services): A cloud computing giant, AWS provides cloud solutions to businesses globally. The onboarding process is slower compared to consumer-focused services because companies need to integrate their entire operations into the platform.


Shopify: While Shopify helps businesses build online stores, it remains a B2B platform because its primary customers are businesses looking to sell to consumers. The value of each signup is higher but the number of businesses compared to consumers is much smaller.


LinkedIn (Premium for Businesses): LinkedIn serves both B2C and B2B markets, but its premium services for businesses, like LinkedIn Sales Navigator, are specifically targeted at helping companies grow their networks and find talent.


Slack: A communication platform for businesses, Slack operates in the B2B space, where each company signing up can bring in hundreds or thousands of users, but the onboarding happens at a slower pace compared to consumer-focused platforms.

Takeaway

The B2B and B2C models have significantly different scales and approaches, especially in fintech. Payment aggregators like PayU operate in the B2B space, where the goal is to attract businesses directly, and those businesses will then drive the platform's usage through their customers. For example, if PayU collaborates with a business like Uber, it could reach millions of Uber’s users, enabling them to transact through PayU’s platform. However, acquiring those key business clients is more complex than acquiring individual consumers, requiring a more targeted, value-driven approach. This is why B2B user acquisition numbers are typically smaller but often more impactful.

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