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Understanding BigBasket

Long story short, BigBasket is an Online Grocery Shopping App and Online Supermarket.

The problems being solved?

Some Facts about BigBasket and its operating industry.

Key Features

1. ⏩⏩⏩⏩Fast Delivery: 15 to 30 minutes delivery for all BBNow orders.
2. 🥕🎧🧃🧻Vast Catalogue: 40,000 Products, 1000 Brands.
3. ⏲️Scheduled Delivery: Order now, receive whenever you want.
4. 💵🤑Free delivery above 99 for all orders: No membership needed.
5. 🦾😎Recommendations tracks your order history and recommends what to order.

What differentiates BigBasket from Competitors?

• BigBasket is one of the oldest and hence commonly known brands.
• They are backed by Tata: Builds trust.
• They provide two types of delivery models: immediate (within 5-30 minutes) and slot wise: order now, receive at your convenience.
• No Surge pricing.

ICP Table

Journey Map:

Customers go to google/app store to find a solution.

Onboarding and Placing the order

Brainstorming the Natural Frequency

Sub-Products

1. Organic Products: Once a month/Quarter: Just to try out.
2. Super Saver: Once a month for large orders.
3. Beauty Store: Once a month for power users, never for casual users.
4. Meats: Similar to grocery for all users.
5. Pharma: triggered by falling sick.

Best Engagement Framework

Our priority will be Depth > Frequency > Breadth

The Goal is to increase the Average Order Value and the number of orders to maximize revenue.

This can be done by couple of ways:

1. Increasing the number of orders per user. The ceiling here will be 15 orders per month (assuming one order every two days)
2. Increasing the average order value per order. The ceiling here will be low as the average grocery spend per month is between 4000 to 6500 per family. Assuming 4 orders per month, the ceiling will be 1626.
3. Increasing number of users: Currently BigBasket holds ~10% of market share. The industry itself is reaching a mature stage, which means that the number of new users added will hit a ceiling. Focus should be on retaining the existing users and luring in new users from competitors.

Why Depth?

Depth = F {frequency, order Value}

By Optimizing for frequency, we will be able to increase the number of orders. This enables us to provide better experience to the customer by giving better recommendations. Also, the customer gets to experience our USP features like free deliveries above INR 99, no membership, no additional fees, no surge pricing, and scheduled deliveries. None of our competitors give the same features! This will impact the user retention directly. Optimizing for number of orders also enable us to focus on getting more users to use BigBasket and encouraging them to order more frequently.

Average order value can be optimized by introducing more relevant product lines, giving better recommendations, making recurring orders automated and providing good quality products.

Monthly Revenue = Number of orders * Average Order Value = depth

Number of orders = F {delivery cost, delivery speed, quality of products, customer service}

Average Order Value= F {product catalogue, recommendations, quality products, recurring orders}

Active User

An Active User (Monthly) is someone who performs one or more than 1 of the following:

• Places any order
• Rates any delivery
• Rates any product
• uses Schedule delivery feature
• uses any of the breadth products: organic shop/meat/beauty store/pharma
• Updates Address
• Updates Payment details

Customer Segmentation

RFM

Engagement Hook

Engagement Campaign

Automated Order Recommendations

Hypothesis: Ordering Grocery takes effort and people tend to forget things. BigBasket should start recommending items based on the order history. The recommendations should be added to cart only if the customer confirms.

Distribution Channel: Digital: via app, while adding items to the cart/viewing the cart

Target Users: Power

Pitch: "We think some of your groceries are about to be finished. Do you want to reorder these?"

Goal: To make it more convenient for the user to place order.

Frequency: Customized for different users: based on the frequency at which any one item is repeated.

Success Metrics: 1. User adds any one or more of the recommendations and orders. 2. User manually clicks on "Recommendations for you" and adds items.

Milestones: 1. 10% increase in the usage of "Recommendations for you" tab within 2 months. 2. 10% decrease in TAT for ordering within 1 month. 3. 10% increase in AOV within 2 months.

Seasonal Fruits and Vegetables recommendations

Hypothesis: All types of groceries are available nowadays: both in season and out of season. The users prefer to eat only healthy food and hence prefer seasonal items. BigBasket can add a "Season" batch on products to show users what is in season right now. This will help customers in getting more value out of BigBasket.

Distribution Channel: Digital: via app: While looking for different products.

Target Users: Casual, Core, Power

Pitch: "Ordering Seasonal fruits and vegetables made easy"

Goal: To offer additional value to the customer which will help in better retention and engagement.

Frequency: always visible on the product image.

Success Metrics: 1. User clicks on Seasonal Category. 2. User adds a seasonal product (which he/she hasn't ordered in last 1 month) in the cart and orders.

Milestone: 20% increase in sales for products with Seasonal tag compared to other products in the same category within 1 month.

Subscribe and Save Campaign

Hypothesis: Customers have certain grocery items which need to be ordered on a recurring basis like milk. BigBasket automating this will reduce effort for the customer.

Channel of Distribution: Push Notifications/Mail

Type of User: Power, Core

Pitch: "Subscribe to the products you order most frequently and save 10%"

Goal: To reduce effort for the customer. This will also make it harder for the customer to go to new platforms.

Frequency: Twice a month, After a 5-star rating.

Success Metric: User sets up a subscribe and save order.

Milestone: 10% of monthly spends being routed via Subscribe and Save.

Be the Chef Campaign

Hypothesis: We will gamify the grocery ordering experience. Customers will be promoted to share their recipes over social media and top 5 recipes will be bundled together and added in the BigBasket App. Any user can order this bundle and BigBasket will provide the groceries and the recipes.

Channel of Distribution: Social Media: Instagram, Twitter/X, Facebook.

Type of User: All.

Pitch: "Get a chance to showcase your recipes on BigBasket"

Goal: To reach out to new users, get them to use BigBasket.

How: Users will have to order groceries from BigBasket to participate. Post this, they can click on participate and use the same groceries to cook and share over social media.

Frequency: once a year

Success Metric: Users create a recipe and share it over social media tagging BigBasket.

Milestone: 50% increase in new users while the challenge starts and ends.

BigBasket for me Campaign

Hypothesis: Given there are over 40000 products in BigBasket, users might get overwhelmed with the sheer number of products. BigBasket for me Campaign will help user to customize the interface for themselves. This will be done by reordering tabs based on Usage, safeguarding 50% of the screen space for the items and categories user uses the most and remaining 50% for suggestions (data based and random). This will increase convenience for the user. This will also promote a sense of exclusivity.

Channel of Distribution: Mail, Home Page Banner.

Type of Users: Power

Pitch: "You are our best customer! We want to personalize your app experience"

Goal: To increase the value for power users and to bring more incentives for casual and core users to move towards power users.

Frequency: Once the user reaches the Power User segmentation.

Success Metric: User clicks on the banner/mail and gives consent and inputs to customize.

Milestone: 10% of Power user customize the app within 1 month, increase in conversion from core to power and casual to core by 10% within 1 month.

Retention Design

Benchmarking Competitors

TAM = $45 billion. Current captured market = 7%

[1] BigBasket claims that they server 15 million monthly orders = 5,00,000 daily orders. Also, 30% of BigBasket revenue comes from BBNow. Estimated Daily orders = 30% of 5,00,000 = 1,50,000

[2] Retention Rate for BBNow: The industry average rate is 60%. BBNow offers many features which are unavailable in competitors and is one of the highest rated app. Sources tell that though BigBasket's Growth has slowed down, it is still positively growing. Based on this we can expect a slightly better retention rate.

​Based on Data from Various sources over the internet.

ICP 1 is expected to have a better retention rate as the core value prop is quality and cost. BigBasket excels in these two: this is also validated further by the app store reviews.

ICP 2 is expected to have a lower retention rate. This is because the core value prop is time, cost and UX. The competitors offer modern UX with faster deliveries.

Best Channel to increase retention will be push notifications. However, the number of notifications need to be controlled. Instead of sending Spam notifications, BBNow should send notifications to add value to the customer: like "We think your grocery might be over!"

Generating more value from existing features:

• In case the user is using subscription model, if he/she adds a subscribed item in the cart, notify him that the next delivery for subscription is already scheduled.
• Suggest more ideas for subscription and cart items from the previous history.
• Provide customers with monthly spending insights on mail. Put these in a way to show them how much they have saved by using BBNow.
• For Quality focused ICPs, suggest better quality options for the items added in cart: e.g. Organics veggies instead of normal veggies.

Churn

Potential Reasons

Negative Actions

Resurrection Campaign

Target: At Risk

15-minute delivery or free Campaign

Target: Dormant users unhappy with Deliveries (rated less in deliveries, raised complaints regarding deliveries)

Aim: To re-build the trust.

Hypothesis: If a user has raised complaints regarding delivery, rated <4-start on delivery and is now reducing the frequency of order, this campaign will help resurrect this user.

Channel: Mail, Push notification

Target features: Fast delivery

Pitch: "Exclusive offer for you: 15 minutes delivery or free!"
Details: BBNow already offers fast deliveries, this specific user will be prioritized to ensure on time delivery.

Frequency: 2-3 days after a <4-star rating.

Timing: till redemption / 2 weeks whichever is earlier

Success Metric: Customer rates the next delivery as 5-star.

Milestone: out of the customers who are given this offer, target 20% resurrection in 1 month.

No Questions asked refund Campaign

Target: Dormant users who have rated the products as low quality.

Aim: To re-build trust, empower for more orders.

Hypothesis: If customer has become dormant due to quality issues, we can initiate a refund to them in case of quality issue with no questions being asked. This can show the customer that BBNow is confident in its products.

Channel: Push Notification, WhatsApp

Target Features: No Questions asked refund

Pitch: "BBNow now offers 0 questions asked refunds"

Details: In case the user tries to exploit this, BigBasket will reach out to them to understand the problems.

Frequency: Once in 2 weeks.

Success Metric: Customer places a new order and rates 5-Star

Automated Order Recommendation

This can also be used for dormant users who have lowered their frequency. e.g. moving from 2 orders a week to 1 order in 2 weeks. Start sending recommendations to them as a push notification once a week to get them back to being core users.

Target: Churned

Daily Value Deals Campaign

Target: Churned users: where the signs of churning were cost competitiveness.

Aim: To resurrect these users by providing better cost value.

Hypothesis: If a user has churned due to cost being higher, we can get that user back by giving better costing. This can be done by providing daily discounts on different items.

Channel: Mail, WhatsApp

Target Features: Daily Value Deals

Pitch: "Get quality products at cheapest rates in Daily Value Deals"

Details: We will offer discounts on specific items only: these can be items with larger inventory or better margins.

Frequency: once in a week.

Success Metric: Customer re-joins BBNow and places an order.

Milestone: out of the customers who are given the offer, target 10% resurrection within 1 month.