Traya·BSM Case
01 / 08
Traya Health · BSM Case

Retention is the bigger problem right now.

We acquire 25k users a quarter but only 34% come back for month 2. My recommendation is to spend 85% of the ₹50L on retention (coach calls, app engagement, auto refill, a dedicated female track), and the remaining 15% on one lean clinic pilot in Mumbai. The budget is one time, so I'm funding things that keep working once the quarter is over, not recurring costs like a new clinic lease.

Primary betRetention

85% of ₹50L · ₹42.5L

Clinic play1 lean pilot

15% of ₹50L · ₹7.5L setup only

O1 to O2 target34% to 42%

+8 pp inside the quarter

In quarter GP~₹48L

Near full payback in 90 days

Diagnosis

Most of the drop off is at the first refill.

Acquisition is fine, we brought in 25k O1 users in 90 days. The issue is that only 34% of them come back for month 2. If they do make it to month 2, 57% continue to month 3, so the product is working for the people who stick around. That tells me the problem is specifically at the month 1 to month 2 step.

O1 Acquired (90d)25,000
healthy
O1 to O234%
below benchmark
O2 to O357%
strong
CAC₹950
payback fragile

Stage wise drop off (per 100 acquired)

StageUsersConversion
O1 start100 
O2 retained34
O3 retained19

Why this matters for the P&L

  • CAC is ₹950. At 34% O1 to O2, we only break even on gross margin after about 1.9 kits per acquired user.
  • If we can push O1 to O2 to 42%, that drops to about 1.5 kits and the 57% O2 to O3 does the rest of the work.
  • Roughly, every 1pp improvement on O1 to O2 is ₹4.5L of gross profit across a 25k cohort. So 8pp is meaningful.
What the data suggests

Three things stand out when I dig in.

Insight 1

A third of users get no coach call in the first 21 days.

35% of O1 users receive zero coach calls in their first 21 days. We're already paying ₹120/user/month for coaches, so the capacity exists, it just isn't reaching these users. Fixing this doesn't need new hires.

→ Fix: structured Day 3 + Day 14 touchpoint, redistributed via engagement triage.

35%
0 calls
20%
2+ calls
Insight 2

Women are dropping off 5pp faster than men.

Male O1 to O2 is 36%, female is 31%. The gap is probably down to the protocol being male first (minoxidil, finasteride) and women needing a different conversation around PCOS, postpartum, and side effects. Worth a dedicated track.

→ Fix: dedicated female protocol + consult flow + content refresh.

Male 36%
Female 31%
Insight 3

App engagement is very low.

Only 17% of O1 users are daily active on the app. For a product where people need to track progress over 5 to 6 months, that's a problem. The app should be the main place users see their own progress and get reminded to refill.

→ Fix: 30 day tracker + photo streaks + discount unlock on Day 21.

Recommendation

85% on retention, 15% on one clinic pilot.

The ₹50L is a one time budget and I only own this for a quarter. A new full format clinic is ₹9.7L/month in fixed costs, which I can't commit to without the recurring budget to back it. So I'd rather put most of the money into things that keep working after Q1, and use a small slice to test a leaner clinic format in Mumbai.

Retention (85% · ₹42.5L)

  • A structured Day 3 + Day 14 coach call for every new user, using existing coach time.
  • A separate female protocol with its own consult slot and content.
  • App changes to drive daily engagement: progress photos, refill reminders, streaks.
  • Auto refill as the default at checkout, with easy pause.
  • All of these stay running after the quarter at near zero extra cost.

Clinic pilot (15% · ₹7.5L)

  • Pune is already doing useful work: CAC ₹420 vs ₹950 online, and a 14% uplift on digital conversions within 5km.
  • Mumbai is a 90 day pop up inside an existing partner clinic or salon. No lease, no full time derm. The whole thing ends with my quarter, so no funding cliff for the next owner.
  • This is a test, not a commercial launch. Goal is to see if Pune's numbers hold in a second city.
  • By end of quarter we have real data to decide whether clinics deserve a recurring budget in Q2.
Retention plan

Four initiatives to lift O1 to O2 from 34% to ~42%.

1. A structured Day 3 and Day 14 touchpoint

Two mandatory touchpoints per user. But with the coach hiring freeze, I can't make both live calls. So the plan is: Day 3 is a pre recorded video + WhatsApp check in by default, with a live call only for system flagged users (low app opens, missed check ins, side effect questions raised in chat). Day 14 is a live call for everyone still on the protocol. This roughly matches today's call volume, just redistributed to users who actually need help.

Target: +5pp on O1 to O2  ·  Cost: ₹8L (tooling + video content)

2. Dedicated female track

A separate consult flow for women, with female dermatologists where possible, and content that speaks to hormonal and postpartum hair loss specifically. Today the experience is fairly gender neutral, which skews male by default.

Target: close the 5pp gap  ·  Cost: ₹10L

3. Make the app a daily habit

Three things, all cheap to build:

  • A 30 day protocol tracker. Users see "Day 7 of 30" on the home screen. Commitment bias kicks in, no one wants to quit at Day 14.
  • Weekly photo streak with milestone badges (Week 1, Week 3, Week 6). Gives users their own before/after proof.
  • 5% off next kit for anyone who maintains the photo streak through Day 21. Couples engagement directly to refill behaviour.

Target: DAU 17% to 30%, +2pp on retention  ·  Cost: ₹15L

4. Auto refill as the default

At checkout, users are subscribed to monthly auto refill by default, with a clear option to pause anytime. Most of the month 2 churn is probably passive (users just forget to reorder), not active rejection of the product.

Target: +1pp on retention  ·  Cost: ₹5L

Clinics

Pune makes sense once you count the halo effect.

Standalone, the clinic loses money. With the halo effect on nearby digital conversions, it's profitable. So the clinic is really a CAC and conversion lever, not a standalone P&L.

Pune economics (per month)

O1 starts1,100 × 37% = 407
Month 1 revenue407 × ₹3,300 = ₹13.4L
Gross profit @ 62%₹8.3L
Fixed costsminus ₹9.7L
Halo lift (14% on ~1,800 local digital leads)+ ₹4.5L
Net contribution+ ₹3.1L

One assumption I'm making

The brief doesn't tell us O1 to O2 for clinic acquired users vs digital. I'm assuming clinic users retain a bit better (42%) because they paid more upfront and had a face to face consult, which usually signals higher commitment. Here's how the decision changes if I'm wrong.

ScenarioClinic O1 to O2Verdict
Worst30%kill
Base42%pilot
Best48%scale Q2

I'd confirm this in Q1 by running the Mumbai pilot and tracking clinic users separately.

Things I'd avoid in this quarter

  • Opening a new full format clinic. ₹9.7L/month is a recurring cost I can't fund with one time capex.
  • Signing a long lease or putting a full time dermatologist on payroll for Mumbai. Keep it reversible.
  • Counting clinic halo without measuring it properly. I'd run a geo holdout so we know the 14% number is real.
Budget and expected impact

We get most of the ₹50L back within the quarter.

Budget allocation (₹50L, one time)

InitiativeSpendType
Coach playbook + engagement triage₹8LTooling
Female protocol track₹10LContent
App activation engine₹15LEng + CRM
Auto refill at checkout₹5LEng
1 Mumbai clinic pilot (setup)₹7.5LCapex only
Experimentation + measurement₹4.5LA/B infra
Total₹50L 

Expected impact (25k cohort, in quarter)

LeverΔ O1 to O2Δ GP
Coach playbook+5 pp₹22.5L
Female track+1.5 pp₹6.7L
App activation+2 pp₹9.0L
Auto refill+1 pp₹4.5L
Base case total+9.5 pp~₹42.7L
Mumbai halo (upside) + ₹3.0L

I'm deliberately keeping the clinic halo out of the base case because we don't have clinic retention data yet. Even without it, the retention plan pays back ~85% of the ₹50L spend inside the quarter.

The real story is the second quarter: these systems keep running at near zero marginal cost. Expected 2-3 quarter ROI is ~150%+ as retention compounds into O3 and beyond.

Supply check: An 8pp lift on ~8,300 new O1/month adds ~660 extra kits/month into the refill queue, plus some compounding into O3. Well inside the 6,000 kit/month buffer, but I'd track it weekly from Week 3 onwards.

Assumptions used: O1 to O2 has been stable at 34% (confirmed). AOV ₹2,900, gross margin 62%. Clinic acquired retention assumed at 42% (base case). No additional coach headcount. Halo measured via geo holdout against a similar non clinic city.

30 day plan

Here's what the first month looks like.

Week 1

Set things up

  • Pilot the coach playbook with ~2k O1 users
  • Dig into the female cohort data properly
  • Shortlist Mumbai sites for the clinic pilot
Week 2

Start shipping

  • Auto refill live at checkout as an A/B test
  • App progress photo and refill reminder live
  • Female track content and consult slots opened
Week 3

Roll it out

  • Coach playbook goes to 100% of new O1 users
  • Mumbai pilot opens softly (friends & family first)
  • First real read on retention uplift
Week 4

Review and plan Q2

  • Look at each lever vs target, double down or cut
  • Write up Mumbai pilot economics honestly
  • Draft the Q2 plan based on what actually worked

Metrics I'd track weekly, in order of importance

#MetricTargetRole
1O1 to O2 retention34% → 42%North star
2Coach touchpoint reach65% → 95%Input metric
3App DAU (21 day cohort)17% → 30%Leading indicator
4Blended CAC₹950 → ₹820Secondary

Risks I'm watching

  • Supply cap. If retention lifts faster than expected, we could brush the 6,000 kit/month ceiling. Mitigation: weekly supply review, staged rollout of auto refill.
  • Female content quality. Hiring freeze blocks new medical staff, but doesn't block freelance medical copywriters (vendor spend, from the ₹10L). Existing derms handle the clinical review.
  • App DAU metric. Measured on 21 day O1 cohorts only, not all time users. Avoids the trap of counting already churned users.
  • Clinic retention unknown. Kept out of the base case. Mumbai pilot is how we find out.