When was the last time you

• called a plumber who came on time and did a professional job without extorting any money for unnecessary things.
• took care of your hands and feet with a manicure or pedicure at the comfort of your home.
• got your sofa and couches cleaned with professional vacuum cleaner, at the convenience of your home.

These are just a few examples from a long list of problems relating to household chores and beauty services faced by many like home makers, working professionals and elderly.

Product

Problems Being Solved by UC With It's Features

Summary of Core Features of UC

• Services are provided at the comfort of home
• Book services on website and mobile app
• 55+ services in home and beauty category
• Professionals are background checked, trained and provided with all the tools to deliver best service
• Simple and clean booking process
• Transparent pricing with standard rate cards
• Wide options of date and time slots
• On time arrival of professional
• Quality verification of services by posting photos in the app by the professional
• Easy cancellation and refund request

ICP's

Monetization Litmus Test

1 - Retention Graph

UC offers various services with different natural frequencies. Hence, to determine the retention rate we will look at the retention rate of it's 2 main categories - Home Cleaning Services and Beauty & Wellness Services. The Home Cleaning comprises home cleaning, appliance repair, pest control, handyman. Beauty and Wellness services includes male, female grooming and spa services.

Retention Rate for Beauty Services

Out of the two major category of services provided by UC, Beauty and Wellness Services includes services that have the highest frequency example, facial, wax, eyebrow etc.

As per the FY 20 Financial Statements, UC mentioned that 55% of it's revenue comes from this category alone.

Let's explore some features of beauty services and plot the retention curve:

• From our user calls and current trend, many users (including those who had booked home service as their first booking on UC) have transitioned to beauty services category in their 2nd booking, specifically - hair cuts, facials, waxing, manicure and pedicure, makeup. These services have a frequency of monthly (includes both men and woman).
• 33% of users who had booked beauty as 1st service re-booked beauty services again the subsequent month.
• Beauty services is a very personalized. If the user is not comfortable with the beauty professional or senses any negativity then the experience will be bad.
• Many users prefer to stick with 1-2 beauty professionals (offline or online). Users do not like to experiment with new professionals.
• Users enjoy the comfort of home when undertaking beauty services. Many do not like to wait for their turn (especially men) at salons.

The above Retention Curve shows the retention rates of users over 12 months period.

50% of users drop off after 1st booking due to the below mentioned reasons:

• From the reviews we noticed that many users are not satisfied with the service provided by UC
• The same service professional they got on the 1st booking is not available for the 2nd booking
• The time slot for their second booking is not available
• Prices on UC have become higher

In the subsequent bookings for M2, M3 and M4, there is a gradual drop off of users due to the above mentioned users. At this point only those users continue, who are really happy with the overall experience. We also see that M4 is the point where the retention curve starts to flatten.

Retention Rate for Home Services

The home cleaning services includes services that have a lower natural frequency. Ranging from monthly to once every 3 years.

From our user calls, it was noticed that users who book their first home service tend to book their second home service only after 2-3 months.

Services like appliance repair also falls in the same bandwidth.

The above Retention Curve shows the retention rates of users over 12 months period. Observations:

• After the first booking of home service, due to it's lower natural frequency, retention rate drops to 0%. For example, if a user had booked Sofa Cleaning, then the user will only book this after 4-6 months.
• About 40% to 35% users rebook in the third month and the fourth month, respectively as these months align with Indian festivals like Holi and Ugadi, users tend to clean their homes. This is also the time before the summer starts and users tend to book AC repair, installation or cleaning service
• Months 5, 6 and 7 are flat due to summers, monsoon and low frequency of category
• Months 8 see an onset of festivals again and marriage season in some parts of India. The same applies to Month 10 which happens to include a major festival during which users clean their houses which is followed by marriage season.

Retention Rate for UC (Avg. of Beauty and Home Services)

Although, the home services category doesn't have a flat or a smiling retention curve, the reason for which is the nature of the service, it's frequency and seasonality; the beauty service category achieves flat retention. In totality, UC does achieve a flat retention curve, which does not fall below the lowest point.

What is Retention Litmus Test?

The Retention Curve must be either flat of smiling.

UC passes the Retention Litmus Test as it's flat.

2 - Depth of Engagement

What is Engagement Litmus Test?

Core and Power users should make up be least 50% of the total user base.

UC passes the Engagement Litmus Test as Core and Power users make up 70%.

3 - Willingness to Pay

What is Willingness to Pay Litmus Test?

Users must be willing to pay for the product/service

UC passes the Willingness to Pay Test as Core and Power users are willing to pay.

UC is Monetizing

We will be designing an experiment on the UC Plus Subscription Plan

Current UC Plus Plan

Current Cross Sells and Up-sells

• The UC Plus can be sold as a cross and up-sell both.
• Currently, UC scarcely does the cross/up selling of the UC Plus Membership.
• It is not visible anywhere on the home page/main page.
• It is not visible on the sub-categories page.
• The first time It is visible is on the main-service selection page (Middle Image)
• The second it is visible is on the cart page as an upsell (Last Image)

Experiment

Three tier pricing plan is being launched under the experiment. The plans are designed for each use type and ability to convert the user from casual to core and core to power, with the limitations and restrictions kept intact as in the current UC Plus Plan

New UC Plus Membership Plans

Note: Sodexo is not Pluxee but we are going with the Sodexo because I used it everywhere and now can't change it. :)

New Plan Designed (For Project resubmission)

Important Note:

• In detail analysis of the new plan is in the following sections with cognitive biases used, AB testing, Time Value ROI etc.
• The above plan has been redesigned for resubmission purposes with better clarity and idea.

Key Changes of New Plan

Why the New Plan will Work

For Casual Users

• One of the major pain points of a casual user is price. Providing 10% discount will enable the user to book more services, thus increasing engagement.
• The Casual User pricing has been provided on the right side because users read from left-to-right and the Power Plan creates an anchor. We want more and more casual users to purchase the plan.
• Once casual users start experiencing the CVP of UC, then they will slowly realize the benefits offered by the other plans.
• There is 2x the savings for casual user as the pricing is for 12 months instead of 6 months.

For Core and Power Users

• From user calls it was understood that power users wanted the above mentioned benefits. They liked UC but one key pain point was the ability to book the same person and getting Insta Help every time (Insta Help is not available for majority of the booking slots due to high demand).
• Other small benefits are Sodexo Coupons redemption as Power and Core users involve users who are working professionals. Many companies provide Sodexo to users and this allows them to redeem as at least 1-2 services.
• These benefits do not cost any additional monetary loss to UC except technological changes.
• These benefits from the new plans ensure higher transition of users to Champion users, as it slowly eliminates all their major pain points.

A standard discount rate ensures that UC is not about just price, it is about experience and value offered by UC by way of other benefits. We want users to be hooked to UC for it's value and experience and not for the price competitiveness, hence the same discount for casual as well.

New Cross-sells and Up-sells Placement

• The home page shall feature the UC Plus plans right below the categories with a video.
• The home page section for UC Plus Plan will also show the testimonials from real users with the amount saved, just like below.
• The UC Plus Membership will be highlighted in a better way for more exposure on the main-service page as well.

Substitute Pricing

What are your customers paying for?

• Trained Professional
• At home delivery
• Guaranteed Service
• Flexibility to book

How does UC stand out?

• Provides wide variety of services from Home Services
• Products also included under Native Products - water purifier and smart lock
• UC Promise includes warranty , cover for damage, assured trained professionals
• Highly professional service delivery
• 48,000+ wide network of professionals
• Multi platform (website and app)
• Instant bookings
• Large number of time slots

How do you position your product?

• With over 48,000+ trained professionals UC boasts of assured availability of professionals at all times and provides multiple time slots.
• The UC Promise, ensures quality assurance from UC with warranty of 3-9 months and even a damage cover of 10000 (based on products/service)
• Single platform for all household and beauty chores

The above position UC to charge a premium over other competitors

Aligning Problem Statements with UC

Summary

UC with it's features has a clear ability to retain customers thus reducing switching cost. UC addresses some major pain points of customers that apply to almost every ICP type and service type.

Monetization design

UC passed on all the 3 stages of litmus test and we designed a 3 tier pricing system named Casual, Core and Power plans that not just provide 10% discount like what UC provides now but also provides additional benefits and experiences that were taken from the 8 user calls and going through over 50+ reviews.

Who to charge?

RFM for Urban Company

User Segmentation (for 4 segments)

What does the new plan do for the three users segments?

We will be charging the New UC Subscription Plan to Loyal Customers and Champions. Although, the plan is designed in such a way that other users can also be pitched, but currently let's focus on Loyal Customers and Champions.

The pricing plans are designed in such a way that:

• They do not target to increase the frequency of the bookings, as both Loyal Customers and Champions have higher booking frequency, it is to increase the breadth of engagement further and also increase the average order value.
• They target on providing much more nuanced experience to these 2 types of users, for the pain points that they are facing, which are not getting resolved by the standard service provided by UC.
• it provides coverage though the year without the variable of 3/6 months. Let's users enjoy their service in much better way.
• Keeps the users on UC with the 10% discount even if something goes wrong on the experience point of view.

Churn Vs Revenue Gain

How does the plan address churn and revenue as these are the two key parameters here. While churn will ensure the users are retained, revenue gain ensures that the plan actually generate more revenue from the user segments.

• Loyal Customers and Champions have higher elasticity to pay and lowest churn rate as their frequency of booking is already high. Hence, Revenue Gain due to better experience is > than churn rate in the case of Champions and Loyalists. (Graph below)
• The key focus with these 2 segments is to increase the depth which is AOV
• They key focus for Potential Loyalists is to bring them back in experiencing the CVP of UC more. This is achieved by the basic plan by letting them book services at discounted rates. (Graph below)
• For At Risk users, the key goal is to stop them from churning and bring them back from the point of no return. This can be done with churn strategies but not with the pricing plan. Although, some ICPs may take this up but it's rare cases.

The above points can be visually seen in this graph below.

Note: this is only a reference image.

Example:

Let's say a Champion user books only 4 premium beauty services which cost 1000 each so (4 x 1000). now the user purchases the UC+ Power Membership Plan for 399 per year. Due to the UC Plus Plan the user not only gets 10% discount which increases the booking frequency of user but nudges the user to book more because of the benefits from the plan like Sodexo coupons alone + COD. Let's say the user gets 1300 worth of Sodexo/month. The user will now book more premium services or a service with higher price like 1300. So, 1300-130(discount) x 8 times = 9360.

The revenue has more than double for the said user from 4000 to 9360

Aspect that Determines Value

For UC Functional Goal is the primary goal because the user wants a professional to come home and get the work done, which is convenient and easy.

The secondary goal is personal. This includes users who are lazy (home services) or who want to look good, feel good (beauty & spa).

Perceived Value

For UC the primary perceived values are

Time: Saves time of users to find a professional first and then go to the place of service.

Money: Saves money of users with standard pricing and eliminating the cost of travel

Secondary perceived values can be Efficiency as UC provides faster booking and on time delivery and Dopamine for some users, especially in the Beauty/Spa as they feel good after taking the service.

Perceived Value for the New UC Subscription Plans

Efficiency: Saves time with guaranteed Insta Help, selection of past professionals and Sodexo as ultimately user will book from UC instead of going offline by redeeming. As, these are Loyal and Champion users, the Perceived Value of Time and Money is already factored in. If anything, these 2 are enhanced.

Since our focus is on three key user segments for the new pricing plan - Power, Core and Casual users let's understand inflection point for all the three user types.

Inflection Point

• Red Curve is for Casual Users who grow slowly. The curve flattens early either because they have not experienced the CVP right or the breadth.
• Orange Curve is for Core Users who have a steady upwards trajectory. They keep experiencing the breadth and depth of services and experience higher perceived value with each booking due to experience, pricing or breadth.
• Green Curve is for Power Users who have the highest growth in terms of perceived value. They value UC so much that it's not easy for them to switch and will be more inclined to accept the new pricing plan.

Now that we have understood the inflection point, let's try to create a strategy when exactly to show the pricing plan based on the users journey on the UC app. This ensures that the pricing plan is visible exactly at the inflection point to nudge the user to purchase the plan.

User Journey Based Triggers to Show New Pricing Plan

Core Value Prop

Get Salon, Spa, Handyman Servicers, Home Cleaning, Appliance Repair and Servicing delivered by trained professionals at the comfort of your home.
Urban Company let's you book home and beauty services, provided by trained professionals at the convenience of your home. With over 48,200 trained professionals in 59 Cities spanning 4 Countries, Urban Company let's you choose the date and time of the booking for over 50+ services through their online marketplace. From a hair cut to massage and pest control to AC cleaning, Urban Clap is focused delivery of a quality driven, standardized and reliable service experience provided by trusted professionals.

What Does UC Charge For?

UC charges for Output.

A service professional delivers the service at home and the user experiences the output-which is the service.

Currency That Lets Users Experience UC

Core Features of UC

• Services are provided at the comfort of home at date and time of our choosing
• 55+ services in home and beauty category
• Professionals are background checked, trained and provided with all the tools to deliver best service
• Transparent pricing with standard rate cards
• Quality assurance with UC Promise
• Easy cancellation and refund request

A User experiences the CVP by booking a service on the UC App or website.

What Does the New UC Subscription Charge For Finally?

The new UC Plus plans provide efficiency in experiencing the outcome, which becomes elevated with the booking along with money savings.

For New UC Subscription what we charge for is Output. But there is one key additional feature that is provided in new plans that can be categorized under Access i.e., ability to choose previously booked professionals, dedicated human support and guaranteed Insta help.

So what we charge for is Output by way of CVP, overlayed with Access by way of getting priority access to some CVP features.

Value Ladder

At the base, Casual Users are driven by basic functional needs like affordability and access to reliable services. As they begin to experience UC’s quality and time savings, they transition into Core Users, who seek consistency, flexible payments, and smoother booking journeys.

At the top of the ladder are Power Users, for whom service is about experience, trust, and premium convenience—such as rebooking past professionals or getting instant help when needed.

By aligning each plan tier - ₹249, ₹299, ₹399 to this progression, UC ensures that it’s not just charging for features, but for increased value realization. This ladder isn’t just about price—it’s about recognizing what each user segment truly values at their stage in the journey, and making that monetizable through relevant access, benefits, and trust.

Market Trends Supporting UC's Monetization Strategy

Rationale for 3 Pricing Tiers

Perceived Value Vs. Perceived Price

We have only considered the Core Plan for the current discussion

Time Value ROI Calculation

Avg. hourly wage of working professionals - ₹ 500

Time saved per service - 1.5 hours

Total savings per service - ₹ 750

Savings

Subscription ROI for Power Plan - ₹ 399

Savings per year - ₹ 750 x 12 bookings = 9,000

Discounts - 100 x 12 (Max discount = 100 per booking) = ₹ 1200

Total Value Gained - 9000 + 1200 = ₹ 10,200

ROI

Net ROI for Power Plan - 10,200/399 = 25X

Net ROI for Core Plan - 10,200/299 = 34X

Net ROI for Casual Plan- 10,200/249 = 40X

A user spending just ₹399 annually receives over ₹10,000 worth of value, yielding an ROI of 25x. This not only makes the plan extremely attractive, but also deeply aligns with the user’s own time-efficiency and savings goals—especially for Core and Power Users.

Assumptions

• We have not considered GST or other charges and considered only the service booking price
• We have rounded off the plan prices

A/B Testing to Validate

AB Test 1

• Builds social proof and trust—key drivers for buying a subscription.
• Helps users visualize savings through relatable examples.
• Reduces hesitation by showing others have already benefited.
• Particularly effective for first-time users who haven’t experienced the plan yet.

AB Test 2

• Uses anchoring bias to make the Core Plan feel like the most balanced option.
• Encourages selection of mid-tier plan (₹299) through the decoy effect.
• Visual hierarchy strongly influences decision-making—center placement + “Most Popular” badge increases conversions.
• Aligns with pricing psychology seen in Swiggy/Zomato Prime-like models.

AB Test 3

• Targets high-intent users who drop off at the last moment—often due to price friction.
• A timely nudge reinforces the value of savings right before they decide.
• Helps convert “almost buyers” into committed plan users.
• Smart monetization trigger at the critical decision point (checkout).

Pricing Page

Current Pricing Pages for UC Plus Membership Plans

The discoverability of UC Plus Pricing Plans are visible only on these pages:

• The first time It is visible is on the main-service selection page (Middle Image)
• The second it is visible is on the cart page as an upsell (Last Image)
• The navigation is currently clear.

The UC Pricing Plan Page:

• Provides only 1 benefit of 10% discount with 2 terms - 6 and 12 months.
• There are more FAQ's than benefits listed out
• The 10% is highlighted twice, once at the top and once at the bottom.
• UC's competitor like Yes Madam provides additional benefit of 1000 YC coins where 1 coin is equal to 1 INR, along with 10% discount.

Redesigned Pricing Page

New Pricing Design (for resubmission)

Cognitive Biases Used in Pricing Page

Discoverability

• Instead of just the main-service page and the cart page, the home page shall feature the UC Plus plans right below the categories with a video or in the hero section with a banner.
• The home page section for UC Plus Plan will also show the testimonials from real users with the amount saved, just like below.
• Another place to discover the UC Plus would inside the service page itself by showing the savings that can be made by choosing the plan. This also solves for Contextual Linking.

Reason for the Pricing

• Three Tiered Pricing: To resonate with all user types and to let the highest number of users i.e., core to choose the middle plan
• 10% Discount: One of the major pain points of a casual user is price. Providing 10% discount will enable the user to book more services, thus increasing engagement. Giving a standard 10% to all users ensures the messaging that UC is not about just price, it is about experience and value offered by UC by way of other benefits. We want users to be hooked to UC for it's value and experience and not for the price competitiveness, hence the same discount for casual as well along with of course increasing the frequency of booking.
• Insta Help: From user calls it was understood that power users wanted the above mentioned benefits. They liked UC but one key pain point was the ability to book the same person and getting Insta Help every time (Insta Help is not available for majority of the booking slots due to high demand).
• Select Professionals From Previous Booking: Users who re-book UC services do it primarily because of the experience provided by the professional more than the CVPs offered by UC. Hence, users want to be able to re-book the same professional. Providing the ability gives them great flexibility and motivates other professionals to become better. This may lead to bookings clash, but a cap of 4-6 max. bookings can be provided.
• Dedicated Customer Support: This is a major issue in UC which only provides AI help. By letting uses experience, dedicated human help, users feel at ease to book high-value services and also causes lesser churn for the loyal and champion users.
• Sodexo & COD: Many companies provide Sodexo to users and this allows them to redeem at least 1-2 services as it falls within the allotted coupon limit. Many a times COD is not available, and user may want to pay with COD. Although, this is not over-the-top feature, but during user calls it was mentioned that some home makers want to pay via cash.
• Scratching: The scratched prices of the plans provide a feeling of savings.
• Price Anchoring: The Casual User pricing has been provided on the right side because users read from left-to-right and the Power Plan creates an anchor. We want more and more casual users to purchase the plan to increase their frequency of booking as well.
• Social Proofing: Reviews by real users and their savings shown below the pricing plans provide social proof to the users of the saving along with positive push.
• Highlighted the Core Plan with Darker Shade: This is to bring the attention of the user to Core Plan which aligns with majority of the user based i.e., Core Users who make up 40% of the total user base.
• Plan Name: The plan names are not to represent the user type but give a literal sense of the plan itself.

Before Vs. After Pricing Table Comparison