Everyday Needs Instantly Delivered by bigbasket (E&R project)
About Bigbasket
Bigbasket is the first online grocer in India and was set up in 2011. Most of its customers are early adopters of online grocery buying. Bigbasket is currently owned by Tata Digital and is in the process of converting to a Quick Commerce app. The earlier model was to select a time slot for delivery while placing the order. They are slowly transitioning to delivery in 10mins by increasing the number of dark stores within the city. Currently, most customers are shown both the options at check out - Get delivery in 10mins or to schedule a time slot for delivery.
Core value proposition
One stop shop for daily needs in the grocery and general merchandise categories with the widest range of 20,000+ products, and maintaining high quality at reasonable prices and getting them delivered to the customer’s doorstep at the promised time.
User experience of the value proposition
- Being able to shop from a wide variety of 20,000+ products of their desired brands and SKUs (sizes).
- Getting to choose the quick delivery option of 10 mins or scheduling a convenient time slot for delivery.
- Getting farm fresh fruits and vegetables of high quality delivered to their doorstep
- High quality products at reasonable prices
- Ease of having multiple payment options
- Good customer service and 'no questions asked' return policy
Defining an Active User
For Bigbasket, an active user can be defined as someone who places an order at least once a month.
Sub-products of Bigbasket
- There are no sub-products for Bigbasket app now. Earlier there used to be multiple storefronts like BB Supersaver, BB Now, BB Daily etc. Now it has consolidated the storefronts into a single storefront.
- BB Daily subscription hasn't been consolidated yet into the Bigbasket app yet. It still operates as a separate app. Hence, it is out of scope for this E&R project for the time being.
Natural Frequency
User Type | Natural Frequency | Reason |
|---|---|---|
Casual | Up to once a week | -Prefers to order staples in bulk to get good offers/prices - Likes to shop the desired products and sizes from the wide range of products available |
Core | Twice a week | -Prefers to order farm fresh fruits and vegetables -Wants to top up the staples and vegetables by ordering a few essential items every week |
Power | More than twice a week | -Has a busy lifestyle and prefers home delivery of farm fresh fruits and vegetable -Doesn't have a daily subscription for milk, curd, eggs and greens on any app or with any vendor but orders as per requirement. |
Primary value
The primary value delivered by Bigbasket to the users is that it is a one stop shopping destination for daily needs, delivering high quality products at reasonable prices at the promised time. This primary value is experienced by the user every time they place an order.
Ideal Engagement Framework
Engagement Framework | Key Tracking Metric | Selected | Rationale |
|---|---|---|---|
Frequency | Number of orders per week | Primary | -The aim of Bigbasket is to become a one stop shop for all the daily needs of the consumer. -Increase in order frequency shows that a habit is formed to order from Bgbasket. And once a habit is formed, retention becomes easier. -There is fierce competition from the other quick commerce apps especially those apps which can deliver as quickly as possible. So frequent orders leads to brand loyalty. |
Depth | Total order value per month (Money spent) | Secondary | -Higher order value indicates spending a bigger wallet share from the monthly grocery budget on Bigbasket and lesser share on the competitor apps. -But since there is a limit to increase the order value, this metric is not as important as the order frequency and can be considered secondary. |
Breadth | Variety of features used (Search bar, Order again feature, Category landing pages etc.) | N/A | -Features explored in the app doesn't directly impact engagement since users can achieve their goals with just a few features. -BB Daily is a big lever for the customer to get a subscription and increase engagement but since it is a separate app at present, is not covered in the scope of this E&R project. |
Actions that make an active user - placing the order on Bigbasket once a month.
Natural frequency of regular active users is 3-4 times a month (as per primary & secondary research).
Engagement Framework
Engagement Framework | Key Tracking Metric | Selected | Rationale |
|---|---|---|---|
Frequency | Number of orders per week | Primary | -The aim of bigbasket is to become a one stop shop for all the daily needs of the consumer. -Increase in order frequency shows that a habit is formed to order from bigbasket. And once a habit is formed, retention becomes easier. -There is fierce competition from the other quick commerce apps especially those apps which can deliver as quickly as possible. So frequent orders leads to brand loyalty. |
Depth | Total order value per month (Money spent) | Secondary | -Higher order value indicates spending a bigger wallet share from the monthly grocery budget on Bigbasket and lesser share on the competitor apps. -But since there is a limit to increase the order value, this metric is not as important as the order frequency and can be considered secondary. |
Breadth | Variety of features used (Search bar, Order again feature, Category landing pages etc.) | N/A | -Features explored in the app doesn't directly impact engagement since users can achieve their goals with just a few features. -BB Daily is a big lever for the customer to get a subscription and increase engagement but since it is a separate app at present, is not covered in the scope of this E&R project. |
User Segmentation
Casual/ Core/ Power Users
- During the user research, I found many homemakers who ordered just once a month from bigbasket but they are loyalists and buy all the staples in bulk and their monthly order value is more than Rs.5000. This makes them power users of the app even though the frequency of ordering is less.
- To be called a core user, the consumer has to either order at a frequency of twice a week or has an average monthly order value between Rs.1000 & Rs.5000.
- To be called a power user, the consumer has to either order at a frequency of more than twice a week or has an average monthly order value of more than Rs.5000.
Depth | Frequency | Breadth | |
|---|---|---|---|
Casual Users | Monthly money spent <1000 | Up to once a week | Uses features like Order Again from their previous months shopping list to buy their monthly staples. |
Core Users | Monthly money spent b/n Rs.1000 to Rs.5000 | Twice a week | Uses features like search bar to find the necessary top up items required for their weekly grocery needs |
Power Users | Monthly money spent >5000 | More than twice a week | Uses the category pages to scroll down and order whatever they need, search bar to find specific brands & SKUs, the Order Again feature to buy from previous orders list and a subscription service (BB Daily) for buying milk, curd, greens etc. |
- ICP/ Persona based
ICP 1: Dealhunter Dhanya
Dhanya is a 32 year old professional who works as a senior manager in a tech based startup. She has a hybrid model at work and has to go to office twice a week. She stays with her husband and 3 year old daughter. She has a house help, a cook and a nanny. She orders all household essentials through Quick commerce apps - Swiggy Instamart, Blinkit, Zepto, Flipkart Minutes & Bigbasket. She orders atleast 5 times a week. Most of the time, the grocery order is placed at 8am when the cook points out a missing item such as Green chilies which is critical for cooking. In order to attain a minimum value of order to be eligible for free delivery, Dhanya orders other vegetables and grocery items along with this critical item. She prioritizes convenience & prices over other features of the Quick commerce app.
ICP 2: Single Sharan
Sharan is a 25 year old IT professional who is single and stays in a 1BHK flat. He goes to office 5 times a week and has food from the office cafeteria on those days. He cooks during the weekend. He typically orders via Quick commerce apps twice or thrice a week. He has a house help who comes in everyday to clean the house. Most of the time, he orders cleaning items like Lysol, Vim dishwash liquid etc. via the Quick commerce apps. He just orders from 2 apps - Swiggy Instamart & Bigbasket.
ICP 3: Homemaker Hannah
Hannah is a 37 year old homemaker who is very organized. She has certain passive income streams and the family has a good disposable income. She stays with her in-laws, husband & 10 year old son. Every Sunday, she goes to the neighborhood grocery store with her husband to buy the groceries for the coming week. Over the next week, she tops up necessary vegetables and dairy products via Quick commerce apps. She typically orders twice a week from these apps. She prioritizes the availability of a particular Brand and its particular SKU in the Quick Commerce app.
ICP Summary
Ideal Customer profile | ICP 1 | ICP 2 | ICP 3 |
|---|---|---|---|
ICP Name | Dhanya (Dealhunter) | Sharan (Single) | Hannah (Homemaker) |
Age | 28-38 years | 20-30 years | 35-45 years |
Shopping Goals | Quick 10mins delivery of good quality grocery at best prices. | Maximise shopping within a budget. | Buy products/Brands of my choice at best deals and discounts. |
Income Levels | 75K - 1.5L per month | 25K - 50K per month | 50K - 75K per month |
Gender | Female | Male | Female |
Location | Metro-Tier 1 cities in India like Bangalore, Pune, Delhi etc. | Tier 2,3,4 cities in India like Vijaywada, Amritsar, Bilaspur | Metro-Tier 1, Tier 2 cities in India like Bangalore, Pune, Delhi, Trivandrum etc. |
Companies | High growth tech startups, Multinational Companies etc. | IT companies, traditional sector like banking etc. | Housewife, Own business, part time jobs, government jobs |
Marital Status | Married | Unmarried | Married |
How do they spend their weekdays |
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How do they spend their weekends |
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Apps they spends most of their time on | 1. IG, LinkedIn, X - social media 2. Messaging- Whatsapp 3. OTT apps - Netflix, Amazon Prime, Hotstar 4. Financial Apps - Groww, Zerodha | 1. YT, IG - social media 2. Dating apps - Bumble, Hinge, Tinder 3. OTT apps - Amazon Prime, JioCinema, Hotstar | 1. YT, FB- social media 2. Messaging apps- Whatsapp 3. OTT apps - Amazon Prime, Zee5 |
What do they spend most on | Leisure expenses, shopping, rent, grocery, savings | Commute to office, food, rent | Grocery, Household expenses, savings |
Most used features on the app | Category pages | Search bar | Search bar |
Frequency of feature usage | More than 5 times a week | Twice a week | Twice a week |
Willingness to pay | High This cohort wants to buy good quality products at decent prices and are willing to pay a premium for quick delivery. | Moderate Value seeking cohort because of limited budget. | Moderate Extreme value seeking cohort. They would be having a weekly grocery budget. |
Average order value | Rs.750 | Rs.200 | Rs.300 |
Monthly order value | Rs.15,000 | Rs.2,000 | Rs.3,000 |
Problem Statement | I really want a few cooking ingredients delivered quickly in the morning when the cook asks for it. | I want to order a few necessary household items/ grocery within my budget and would prefer to just order them online to save time. | I want to get the product of my choice at the best deals and discounts. |
Product Hook
Goal - Improve engagement of core and power users
Success Metric - Conversion of Core to Power users, track increase in order frequency of the cohort
Problem Statement - User expects to get discounts & special benefits when placing high value orders
Current Alternative - User places the order from the competitor quick commerce apps - Zepto, BlinkIt, Swiggy Instamart, Flipkart Minutes, Amazon Grocery
Solution - Make the users feel good by providing increased value and benefits via BB Plus pass (detailed in the next section)
Metrics to Track - Number of opt ins for the pass, increase in orders frequency by pass holders
Ramp up milestones - 20,000 Opt ins a month, conversion % of free pass to paid pass users in the next month
The following Engagement campaigns have been designed to convert casual to core and core to power users.
Engagement Campaign #1 - BB Plus pass
Campaign Name | BB Plus pass |
Goal | To convert core users to power users by increasing the frequency of orders as well as average order value |
Segmentation/ Type of User | Core & Power Users |
User Behaviour | -User expects to get discounts & special benefits when placing high value orders -Uses also prefers to get priority delivery slots especially in the mornings |
Pitch | Opt in for a free BB Plus pass today and enjoy up to 20% discounts, zero handling charges, free priority delivery slots on every order. |
Channel | Emails, Push notifications |
Offer | Enjoy free BB Plus pass for a month with the following benefits:
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Frequency | Thrice a week |
Timing | Different time slots through out the week on alternate days |
Flow of the campaign |
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Success Metrics |
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Reasons why it will work | Majority of the wallet share of the user from their monthly grocery budget can be captured if the overall value given to the user is increased |
Engagement Campaign #2 - 8 ka Dum Sale
Campaign Name | 8 ka Dum Sale |
Goal | To convert casual users to core users to power users by increasing the frequency of orders and to drive impulse purchases through limited-time offers |
Segmentation/ Type of User | Casual & Core Users |
User Behaviour | -Orders mainly staples once a month from Bigbasket -Uses competitor apps more for getting discounted items -Buys fresh fruits and veggies from local vendors to ensure quality |
Pitch | Discover exclusive deals & offers everyday at 8AM & 8PM only on Bigbasket |
Channel | In-app notifications, Push Notifications |
Offer | Heavily discounted items available for a short period of 10 mins |
Frequency | Twice a day |
Timing | 8AM & 8PM |
Flow of the campaign | App Notifications with today's highlighted offer -> Browsing the Sale section -> Quick checkout before the Sale ends |
Success Metrics |
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Reasons why it will work | The fear of missing out (FOMO) will drive quick purchases. |
Engagement Campaign #3 - Free Delivery ka Dhamaal
Campaign Name | Free Delivery ka Dhamaal |
Goal | To convert casual users to core users by increasing the frequency of orders |
Segmentation/ Type of User | Casual Users |
User Behaviour | -Orders mainly staples once a month from Bigbasket -Uses competitor apps more for getting discounted items -Buys fresh fruits and veggies from local vendors to ensure quality |
Pitch | Don't feel like going out to get your veggies today? Order now, the delivery charge is on us! |
Channel | Emails, In-app notifications |
Offer | Get Free delivery for the next 5 orders this month for a minimum order value of 100 |
Frequency | Weekends Friday-Sunday |
Timing | Start Friday evening, get fresh creatives on Saturday and Sunday afternoons |
Flow of the campaign | In-App Notifications -> Addition of items to basket -> Checkout of items |
Success Metrics |
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Reasons why it will work | Users order from bigbasket for the next 5 orders instead of using the competitor's app in order to get free deliveries, this results in increased engagement and habit formation. |
Retention Design
As per secondary research, retention data of the various quick commerce players is as follows:
- Blinkit has over 1 million weekly customers with a retention rate of 50 Percent (Source - Indian Retailer, Jun 2024)
- Regular customers of quick commerce platforms typically order three to four times per month, with retention rates as high as 60% to 65%. Top users, however, make even more frequent transactions, ranging from 30 to 40 times per month (Source - TechCrunch, Mar 2024)
- For the private label brands, BigBasket has a retention value of anywhere between 40-80 percent. BB Royal Organic accounts for 45 percent of the overall agri-commodity sales (Source - Indian Retailer, Mar 2022)
Retention Curve for bigbasket vs Top 10 Apps in Food & Drink (Applications)
Which ICPs drive the best retention?
- Hannah (Homemaker) for whom the ordering on Bigbasket has become a habit drives the best retention followed by Dhanya (Dealhunter) who focuses on quality followed by Sharan (Single) who has the least retention since he is primarily a casual user of bigbasket.
- The acquisition channels that drive users that retain better for Bigbasket is paid social media channels like Meta & Instagram since it increases Top of Mind Awareness (TOMA) of the user and most of the ICPs are heavy users of these social media apps.
- BB Daily will drive the best retention since the customer is engaged on the app multiple times a week and provided the user experience is good, the users will retain for this feature.
Reasons of Churn
- Delivery not done on time - Voluntary
- Bad quality items received - Voluntary
- Different items received from the ones that were ordered - Voluntary
- Inadequate customer service support - Voluntary
- Better pricing on competitor apps - Voluntary
- Moved locations - Involuntary
- Got married and spouse takes care of ordering - Involuntary
Negative actions to be looked for:
- Deletion of address from the app
- Deletion of saved cards & other payment methods on the app
- Negative reviews on app store
- Negative reviews on social media
- Low NPS
- High number of support tickets and re-opening of support tickets
Retention Campaign 1
Goal | To retain at-risk users |
Pitch | Get free deliveries on your next 3 orders |
Channel | App push notifications, In-app notifications |
Offer | Get free deliveries on your next 3 orders |
Frequency | Thrice a week |
Timing | Alternate days different timings |
Metrics |
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Retention Campaign 2
Goal | To retain at-risk users |
Pitch | Dhamakedaar prices only on bigbasket - Get everything at Rs.10 just today |
Channel | App push notifications, In-app notifications |
Offer | Get everything at just Rs.10 |
Frequency | Once a week for an hour |
Timing | Saturdays 12 noon |
Metrics |
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