Creating an In-App Shopping Experience to Drive Engagement and Revenue – Banca Z1
About Z1
Z1 is a Brazilian neobank designed for teenagers, offering services like prepaid credit cards, fee-free digital accounts, Pix payments, savings accounts, and gift card purchases and top-ups.
- Startup
- Brazil
- B2C fintech
- Near 1M users
- 2021
The Challenge
While Z1’s acquisition rates were strong (teenagers loved the concept!), we faced challenges with activation, engagement, and monetization. Customer lifetime value (CLTV) was low, indicating users weren’t sticking around, and we lacked a clear path to monetizing our growing user base. Churn rates were particularly high after the first four weeks.
The Goal
- Increase activation and engagement rates;
- Increase users TPV and CLTV;
- Create a clear path to monetization and revenue generation;
- Decrease churn rates on cohorts after 4 weeks;
The Hypothesis
Z1’s initial value proposition focused on empowering teens with financial autonomy. However, the app lacked key features that teens expected, such as easy top-up options and the ability to purchase gift cards for popular gaming, entertainment, and ride-sharing services. This gap created friction and limited Z1’s relevance in users’ daily lives. We hypothesized that integrating an in-app shopping experience would increase engagement, reduce churn, and create a new revenue stream.
With the new Banca Z1 feature, I aimed to bring Z1 closer to users’ purchasing habits, offering convenience for users while unlocking results for the business.
My Role
As the Product Manager responsible for building the in-app shopping, I led the process end-to-end, from discovery to development and launch of Banca Z1 (named after the small shops, or “bancas,” found near schools in Brazil):
Strategic Alignment & Prioritization: As a startup in its MVP phase, we had many competing priorities. I worked closely with the founders to align on the strategic importance of in-app shopping and to justify the investment in gift cards over other potential features, such as crypto integration. This involved developing a clear business case and demonstrating the potential ROI.
Product Roadmap Communication: I clearly communicated the product roadmap and timelines to the broader organization, ensuring alignment between the founders, the technical team, and other stakeholders.
Scope Definition & Requirements Gathering: I collaborated with design and development teams to define the scope and requirements for the alpha version of the in-app shopping experience.
User Story Development & Execution: I translated product requirements into detailed user stories, documented decisions, and worked closely with the tech team throughout the development process to ensure smooth execution and timely delivery.
Stakeholder Enablement: I ensured that legal, compliance, support, and marketing teams were aligned and prepared for the launch of the new feature.
Go-to-Market Strategy: I led the development of the go-to-market strategy, focusing on differentiation and highlighting the unique value proposition of Banca Z1 to our target audience.
Launch Execution & Rollout: I developed and executed the launch plan, including phased rollout and rollback strategies to mitigate risk.
Performance Monitoring & Reporting: I tracked key performance metrics and regularly reported results to C-level executives.
Results and Impact
Implementing the gift card shopping on Z1 yielded significant results:
Increased in TPV/User: The in-app shopping experience significantly increased user spending within the app.
New Revenue Stream: Banca Z1 generated a new revenue stream that accounted for one-third of the company’s total revenue within the first two months post-launch.
Reduction in Churn: The feature contributed to a 15% decrease in churn rates for user cohorts after four weeks, indicating increased user stickiness.
The Learnings
Implementing Banca Z1 required integrating with a third-party provider to process gift card transactions. This was the company’s first integration involving complex financial transactions across multiple accounts. Ensuring the seamless flow of funds and preventing errors required meticulous planning and execution. Additionally, the new feature introduced new accounting processes, such as managing rebates, reconciliation, and chargebacks. Anticipating and addressing these challenges was crucial to the successful launch and positive business outcomes.
Team (with much appreciation for their hard work): Ana Beatriz Aldrighi, Ana Helena, and Jonathas Souza.