In Search of PMF • Part 1

From 0.03% to 1% conversion rate

COMPANY

PERIOD

ABOUT RIBON

5 months
jun/23 - nov/23
Ribon is a social impact startup that facilitates donations to nonprofits through an innovative and accessible model. On the platform, users can donate to social causes at no cost to themselves, using "tickets"- a virtual currency earned by engaging with content.

These tickets are sponsored by philanthropists and companies committed to expanding collective social impact. Ribon generates revenue when users choose to make donations with their own funds after experiencing donations with the virtual currency. In this case, a fee is applied to the additional donation amount, enhancing the platform's potential for contribution and sustainability.

SKILLS

Growth
Prototyping
User testing
Hypothesis testing
A/B testing
No-code

MAIN OBJECTIVE

Achieving the conversion benchmark for freemium apps (reference: Lean Analytics) of 1% conversion in paid donations.

WHY?

Ribon had just pivoted its business model and was approaching a new investment round. To support this, we were seeking metrics that demonstrated Product Market Fit.
We launched the product with the new business model structure, but the conversion rate was below expectations.

To achieve the 1% benchmark, we formed a growth squad consisting of a growth manager, a developer, and myself as the product designer. Our goal was to implement at least one experiment in production each week, testing strategic hypotheses identified in qualitative interviews, focusing on three pillars:

  • Conversion: Is the path clear?
  • Security: Do users trust the payment process?
  • Motivation: What encourages donations?

HOW WE STARTED

An overview of june 2023

Conversion rate
0.03%
We used a collaborative opportunity tree (reference: Teresa Torres) to prioritize each experiment, attaching user interview excerpts, quotes, Mixpanel analyses, and Hotjar recordings to support each branch and hypothesis. Assessing complexity and potential impact was key to determining which experiments we would run. A data engineer from another squad supported us in accurately measuring each experiment's outcomes.

We also reached out to users who made paid donations to maintain an ongoing interview process.

The opportunity tree

How our figjam looked like (Security brench)

Bruna
Growth manager
Me!
Product Designer
Leod
Developer
Leo
Data Engineer
Among various inconclusive, failed, and successful experiments, I highlight three deliverables that truly made a difference.

3 key takeaways

This test focused on the conversion flow.

We observed via MixPanel that about 50% of users returned to the home screen even after completing a free donation with virtual currency.

Although we already had an intermediate conversion screen post-donation, we decided to add a banner on the home screen. To evaluate its effectiveness, we conducted an A/B test comparing the home screen with and without the banner.

1. Impression banner

Results

0.03%

Conversion

0,06%
2%

Checkout form opening

11%
New impression banner

User flow

Pix is a Brazilian payment method that allows users to make instant transactions through their bank's app, using a code or QR Code.

Since all financial operations of Ribon take place in the United States, using Pix involved high fees and bureaucratic processes. Nevertheless, we decided to test this option, even with a reduced revenue margin, due to desk research indicating that Pix is the preferred donation method for Brazilians, according to the 2022 Donation Research conducted by IDIS.

2. New payment method: Pix

Results

0.06%

Conversion

0.35%
Final version
With the success of the test, we developed a native solution for the form and, together with the finance team, reduced fees and bureaucracies.
MVP
We used Stripe's native solution for Pix payments within a modal for the experiment.
The successful Pix experiment indicated that our users had concerns about security. With the addition of a payment method that doesn't require sensitive information like credit card numbers, our conversion rate increased significantly.
"
User Quotes
I look for more information about institutions to ensure that it's not just a single person operating behind a business registration (CNPJ).
"
We don't know what is legitimate and what is fake.
"
I'm really comfortable with Pix, I feel safe.
Finally, the most impactful experiment focused on testing motivation.

We modified the checkout structure to be URL-parameterized, allowing the use of external pages created with no-code tools. This enabled us to quickly test different arguments to encourage paid donations.

3. Testing what resonates with our users

Results

0.35%

Conversion

1.04%

User flow

Example of URL

Although we expanded the journey to the checkout, we were able to include more arguments and motivations to encourage users to donate. The main elements worked on the landing pages were:

  • Playful storytelling for engagement (motivation)
  • Logos of recognized partners of Ribon (security)
  • Focus on the beneficiaries of the donation (motivation)
  • Institutional content about Ribon and the nonprofit (security)

No-code Landing Pages

We achieved our goal of reaching the 1% benchmark, an excellent metric for Product-Market Fit (PMF). However, we realized that to truly solidify the PMF, our product needed more "stickiness." Although conversion had increased significantly, we were not able to retain our paying donors.

Thus, our next step was to focus on qualifying users to improve donor retention.

HOW WE STARTED

End of 2023

Conversion rate

1.04%
If you'd like, check out the continuation of this case study :)

In the search of PMF • Part 2

Ribon App

Doubling our user aquisition

App
Growth
All rights reserved
Made on
Tilda