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Tiered Insurance

GOSEND 2022

From Q1 to Q2 of 2022, I spearheaded a project encompassing various stages, including requirement analysis, early concept ideation, design sprints, regular presentations to leadership, reviewing and confirming final deliverables for production. Throughout this period, I collaborated with multiple cross-functional teams, which comprised product managers, engineers, the central design team, researchers, data specialists, legal experts, and the business team.

Project Summary

When presented with the option to choose between default free insurance coverage for low-cost items and premium insurance coverage for expensive delivery items, the current design fails to effectively capture users' attention and highlight the significance of opting for premium insurance. By redesigning the insurance section and introducing multiple types of insurance, we can offer users a range of choices that will attract their interest and encourage them to protect their various types of delivery items.

The problem

In order to offer a premium service on par with our competitors, we introduced a premium insurance plan alongside a complementary free insurance option. However, our analysis over the years has revealed that a mere 2-3% of users opt for the premium insurance, while the majority default to the free insurance.

 

This low adoption rate suggests that the current presentation of the premium insurance fails to effectively communicate its value and importance, especially when users are presented with just two choices. As a result, we recognize the need to enhance our approach and highlight the benefits of choosing the premium insurance package.

Goal:

User: Choose the insurance option according to the amount of items being sent.

Business Goal: With the new package protection options, we aim to increase GT & Gross Profit, which is in alignment with our North Star.

Product Goal: Our goal is to educate and inform our users about the advantages and value they can derive from upgrading to premium insurance, ensuring they make an informed decision that best suits their needs and preferences.

The User Segment

Based on our existing research data, we have defined our target user segment at a high level using the following approach.

Wireframe

The process outlined below starts with initial idea wireframes and their iterations, progressing towards the final version of wireframes and design iterations leading to the final design. If necessary, a prototype is created. This simplified version demonstrates how this approach effectively addresses user needs.

Design

Designing insurance features is critical because it's an optional for users and to encourage users to opt in for paid is more challenging. 

 

After multiple iterations and incorporating feedback from stakeholders, the wireframe was transformed into a finalized design.

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Usability Testing

As a team, we conducted a user testing session with ten participants and obtained fascinating results.

  • In this quick UT, we found that customers can easily find the package protection position.

  • We noticed all participants choose different type of protection, means that customer is subjective to measure the value of the importance

  • From this testing we've found that customers mentioned that, "They wiIl not set this protection as default because the type of protection will be depend on the package that they will sent"

This result made us have another hypothesis, this set as default will be use by seller that mostly will send the same type of package, which in this study we've just covered personal users

How it works

How it work.png

Result

Within a span of just 15 days after implementing this feature, we experienced a significant 25% increase in user adoption. Let's delve into the detailed breakdown of user preferences for each option:

 

Premium Insurance: During this period, approximately 25% of users made the informed decision to opt for the premium insurance package. These users recognized the value and benefits associated with the enhanced coverage and additional features offered by this option.

 

Free Insurance: The majority of users, approximately 75%, still chose to stick with the free insurance option. Despite the increased adoption of the premium insurance, the majority of users either found the free option to be sufficient for their needs or may not have fully understood the benefits of the premium alternative.

 

This data suggests that our efforts to emphasize the advantages of the premium insurance package have yielded positive results, as evidenced by the notable increase in user adoption within a short timeframe. However, it also indicates that further improvements in communicating the unique value proposition of the premium option are necessary to encourage more users to consider and choose it as their preferred insurance coverage.

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