Context: Jar is a savings (mobile) application. The savings are made in digital gold. User can sign-up on Jar and opt for the following methods of saving.
- Daily Autopay Subscription: Here users selects an amount (minimum Rs. 10), Jar takes permission from user to deduct the selected amount daily. User has the flexibility to pause or stop the deduction anytime.
- SIP (Systematic Investment Plan): Weekly or Monthly Subscription
- Round-off : It is a unique feature that enables user to save the pennies collected on transactions made outside Jar. E.g., if a user does a purchase of groceries of Rs. 552, then Jar detects the spend and rounds it off to nearest 10 i.e., 560. The difference between purchase amount and rounded amount i.e., Rs. 8 is saved on Jar.
Daily Savings (Autopay) Cancellation Research
Problem Statement
On the Jar app, users sign up and set up autopay. Within the first week, approximately 25% of users who set up autopay on their first day churn. We seek to understand the sentiment behind users' reasons for cancellation.
Objective
- To analyse why users cancel Autopay within the first three days.
- To identify critical barriers causing Autopay cancellations.
- To understand users' existing mental models and behaviours.
Research Target
Phase 1: Day 0 to Day 3 (users who cancel their autopay subscription within 4 days of setup)
Phase 2: Day 7 to Day 30 (users who cancel their autopay subscription within 1 month)
Insights
- Users intended to save on the platform but were discouraged by automatic deductions they perceived as unauthorised.
- They expected funds to be deducted only when they consciously initiated transactions, leading to loss aversion when automatic deductions occurred.
- Users commonly desired advanced communication about automatic deductions, feeling a lack of control over their savings and experiencing emotions of helplessness and fear.
- Financial constraints hindered autopay for some users, stemming from insufficient funds amid other financial obligations.