Didi Premium Service - Research

 

Didi premium service:
Research Process

 

Business Objectives

After initial analysis based on marketing and customer service team feedback, we found that in order to achieve 30% share in the premium ride market, the following tasks were critical to accomplish:

  1. Understand the key characteristics of Didi’s potential premium users

  2. Provide attractive incentive offers to influence them to begin to use Didi’s premium services

  3. Develop VAS (value-added service) to increase existing premium users’ stickiness

  4. Improve Didi’s premium service level


Research Process

Understanding users and existing problems

We spent the first month conducting competitive analysis, qualitative and quantitative user research to understand existing and potential premium users’ characteristics, needs and concerns with Didi’s premium services. We also conducted competitive analysis to investigate existing services that fulfill premium ride service users’ needs.

We began our research by breaking down the prompt into 3 sets of key questions that we would like to address: 

1. What are characteristics and needs of premium ride service users? In what scenarios do they use premium ride services? What are key reasons that Didi's potential premium users decide not to use Didi's premium ride services?
2. What is the current user flow of the existing premium ride service users, and what are their goals?
3. What are the key challenges and pain points premium ride service users experience?

Research Methodologies

Consider Didi’s 400 million users already covered more than 90% of the premium users in the market, we decided to leverage Didi’s big data to select specific users we would like to conduct quantitative research with.

 

Competitive analysis

Studied 3 other competitors in the premium ride service market: YiDao, ShouQi and Car to understand Didi’s competitive edges.

Quantitative research:

Leveraged Didi’s big data to select 1,000 Didi frequent users from top 5 cities in China via in-app survey. Selection criteria:

1.Averagely, spend more than $17 a day during weekdays
2. Work at Central Business District or live in high-end communities
3.Requested or reserved vehicles in different cities averagely 2 times per month

Objectives:
1.Discover potential premium users' characteristics, needs and concerns.
2.Verify internal initial criteria for premium users
3.Uncover key reasons that DiDi users don't use Didi's premium services.

Qualitative research:

Conducted 10 focus groups in 5 cities, each group 10 people and each city has A&B group.

Group A - Didi existing premium users:
1.Deeply understand their current experiences, What are the problems they encounter and suggestions to Didi's services?
2.What are their intents when they use Didi ?
3.What do they need from Didi's services? What are their unmet needs?

Group B - Competitor's premium users but also Didi products:
1.What are their key reasons to choose Didi competitors' services over Didi?
2.What do they need from premium services? What are their unmet needs in using Didi’s competitors?
3.What are the problems they encounter and suggestion to premium services?


Research Findings

 

Q1 - Didi’s competitive edge

Variety ride services

Didi’s competitive edge is its mature platform with a variety of ride-service offerings (4-to-5 times more than Didi’s competitors). As a result, Didi can cover more transportation scenarios for its users than its competitors.

Q2 - Who are premium users?

90% of premium users are Didi users

There are 3 categories of premium users:

 
 

Q3 - Why didn’t they use Didi’s services instead of Didi competitors’ services?

1.Lack of awareness about Didi’s premium ride services

59% of Didi premium service users didn’t know about Didi’s premium services because the premium service button is hidden in the ride option bar. They used the most visible services to them such as Taxi and Express, but they didn’t notice Didi Limo.

2.Didi is not perceived as a premium ride service provider

64% think Didi’s premium drivers are not professional compared to Didi’s competitors (ShouYue or other Black car companies)

3.Didi lacks of attractive / competitive incentives

71% think Didi’s premium products’ pricing is not attractive due to lack of incentive package (lack of discount etc...) majorly due to Didi’s competitors frequently launch marketing campaigns that involve attractive discount packages (i.e. ShouYue’s buy $3000 ShouYue credits and get $3000 additional credits)

Q4 - What are unmet needs of Didi’s existing premium service users?

Lack of loyalty member benefits for premium service users

75% think Didi should give them additional benefits such as priority in requesting a vehicle during peak hours and additional discount packages, etc.