Mohit’s Engagement & Retention Project | Bigbasket

About Bigbasket

While Indians are known to love grocery shopping, isn't it a task to do it all redundantly every day, week, and month? Think about your mom, who goes to the "sabzi mandi" every week, spends time choosing the right vegetables and fruits, asking and bargaining for prices, then goes off to the supermarket to purchase other groceries, and lastly, carries it all back home. While this might be the old normal, it's such a task to do.

Now, think about an app that has over 20,000 products across multiple categories that will deliver great quality products at similar prices to your home in under a few hours, also minutes, wouldn't that be game changing? If you just screamed yes, you must know that it exists with Bigbasket.

A quick look through of some facts about BB:

• Bigbasket is India's first online grocer launched in 2011, and Tata Digital has taken a majority stake in the company.
• As of January 2023, the company operates in more than 30 cities in India and processes around 15 million orders per month. [Source: The Arc]
• Bigbasket hosts a range of services like BB Super Saver, i.e., Slotted Delivery (with better prices), Quick Commerce (Delivery under 15 minutes across multiple categories, and BB Daily (everyday grocery delivery subscriptions).
• Bigbasket has about 9 million monthly active users, and BB Super Saver's average order value is Rs 1,250 compared to BB Now's Rs 400-450. [Source: The Arc]

The above proposition and statistics confirm how nearly everyone affected by the daily run-ins with grocers and spending endless hours bargaining can be saved and utilised into something very productive, such as watching Heeramandi on Netflix.

Understanding Bigbasket

1. What is the core value prop of BigBasket?

Supermarket at your fingertips, delivering as per your needs.

Bigbasket solves for the needs of groceries and other utilities of Indian households across Metro and Tier 1 cities (for now), with multiple kinds of service models to cater to a user's evolving needs. Its CVP lies in access to (more than) a supermarket within a few clicks. The users experience BB's CVP by:

• Ordering groceries, utilities, and other products as an when required (last moment a lot of times).
• Getting access to over 20,000 products across Groceries and Utilities, Fitness, Gifts, Stationary, and a lot more.
• Catering to a wide range of customer traits, i.e., Super Saver with Slotted Delivery, Quick Commerce, Everyday Morning Essentials, among others.

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2. How do users currently experience that core value prop repeatedly?

The current flow of users experiencing BB's CVP comes through everyday morning delivery of essentials, covering last minute necessities through BB Now, and lowest prices on slotted deliveries. However, to make users experience these, here are a few initiatives undertaken by BB:

• Providing access to a non-exhaustive list of products across 20+ (portfolio) categories within user's reach.
• Timely deliveries as promised with real time tracking.
• Priority deliveries for last minute needs. Fun fact, nearly 30% orders are Quick Commerce orders on the platform.
• Exclusive branded products under BB's umbrella for premium/organic groceries, for example, Fresho! and Royal categories.
• Notifying users about new products, offers, and daily deals that they would/might need.

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3. What is the natural frequency of BigBasket's core product?

With Bigbasket's core value prop being a supermarket within reach, the natural frequency across the product can range from daily to monthly, however, a natural frequency across grocery needs tied to online delivery can be considered nearly 2 times a week.

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4. Does BigBasket have other sub-products? What is their natural frequency like?

While slotted delivery and quick commerce can be considered BB's primary products, while its sub-products can entail the following:

• BB Daily, an everyday morning grocery delivery service is intended to deliver milk, eggs, dairy, and fresh fruits and vegetables every morning. A user using BB Daily is likely to have a natural frequency of daily, as products are based on subscriptions largely.
• Various private label products of BB like Royal Organic, Fresho, and Happy Chef Gourmet are tangible consumables which is across fruits and vegetables, and other storage based groceries, and it is estimated to have an approximate weekly frequency.

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5. Which engagement model is the best for BigBasket? (Arriving at the Best Engagement Framework)

The most ideal engagement model for Bigbasket lies in Frequency as its primary lever, however, the secondary level remains to be the breadth of a user's engagement. For arriving at the best framework in this case for Bigbasket, here's the deep dive:

• Frequency of Engagement - Frequency of engagement emphasises on the number of times the key action is fulfilled, and for BB, the number of times one places an order over a period of time, aligns closely with the CVP and customer engagement, hence, being the primary parameter.
• Depth of Engagement - Depth of engagement refers to the more time/money one spends on the product, that engages them better, however, for BB's case, it can be true to provide better recommendations and personalised products for the user to purchase, however, since this does not help make the core value prop better, and the time spend on the app does not correlate to engagement it does not fit here.
• Breadth of Engagement - Breadth of engagement focuses on the number of other products/services one is interacting with, and that in BB's case can include BB's Private Label brands, their Everyday Morning Delivery Services, among others, which can act as a secondary lever for engagement, as the frequency of orders aligns with their CVP, breadth creates continuity and reinforces BB's branded assortment, exclusively available there, hence, enhancing the CVP. This can then be considered a secondary parameter for engagement.

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Defining Bigbasket's Users

1. Actions that make someone an active user

For BB, anyone who places an order and the order is delivered, at least once a month would be considered an active user for the platform.

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2. Natural frequency of active user

The natural frequency of an active user can be different for different types of users. Here's a quick breakdown of the same:

• Casual Users - Use BigBasket's suite of services nearly once in a month, for their one-off or monthly needs.
• Core Users - Use BB services at least 2-3 times every fortnight, for their regular grocery and other requirements.
• Power Users - Ideally use these services everyday, including morning needs to their grocery and other vanity requirements.

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3. How do casual, core and power users perceive and experience Bigbasket's core value prop?​

Segmentation of Users

1. ICP Deep Dive

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2. Usage Based Segmentation

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3. Advanced Segmentation​

Note: The Advanced Segmentation is based on the RFM Grid concept and of all the available user segments, I'm choosing the ones that lie on the straight diagonal from the origin, i.e., hibernating, in danger, loyalists and champions. With BB hosting more than 0.5 million users, the validation of this hypothesis will help further understand the engagement campaigns better.

Understanding Retention among BB's User

Bird's Eye View (Statistics were rounded off basis the numbers available on SimilarWeb)

Industry Insights

Based on Stream's Data Analysis, apps for utilities have a D1 Retention rate of 18.3% whereas their D30 Retention statistics stand at 3.4%.

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Retention Analysis of BB

• D0 (Initial Users): Bigbasket has over 50 million users as of the most recent data.
• D1 Retention: The next day retention is at 33.48%, meaning about 16.74 million users return the day after their initial use. This is significantly higher than the utilities app industry's average D1 retention rate of 18.3%.
• D30 Retention: By extrapolating the proportional difference in D1 retention figures between Bigbasket and other apps to D30 calculations, it is estimated that approximately 6.21% or 3.105 million users remain active by the 30th day.
• D60 & D90 Retention: By day 60, it is estimated that around 4.87% or 2.435 million users continue to engage. By day 90, this figure is projected to be approximately 3.81% or 1.905 million users.
• • • D60: Estimating a proportional decrease from D30 (i.e., D60/D30 = D30/D1), we get (D60/6.21 = 6.21/33.48 → D60 ~4.87%) of 50 million gives about 2.435 million users.
    • D90: Estimating a proportional decrease from D60 (i.e., D90/D60 = D60/D30), we get (D90/4.87 = 4.87/6.21 → D90 ~3.81%) of 50 million is 1.905 million users.

Basis these insights, Bigbasket's retention numbers are stronger than the industry averages. Surveyed user data provides qualitative insights into retention patterns across 19 participants:

• Long-term Users: About 26.84% of users might claim to use Bigbasket regularly for over a year, indicating its value for long-term and consistent grocery needs.
• Medium-term Users: Nearly 31.57% might discontinue usage around the 90-day mark, often due to factors like service issues or finding alternatives, largely other quick commerce companies. Identifying and addressing these pain points could help in retaining more users.
• Short-term Users: 41.59% of users might drop off after the first month, often due to a variety of reasons including dissatisfaction with the app experience, first order discounts or changing needs.

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Retention Curve​

Bigbasket demonstrates robust retention performance, beginning with a strong initial user base of over 50 million. The D1 retention rate is 33.48%, significantly higher than the industry average of 18.3%, indicating effective initial engagement. By D30, retention drops to 6.21%, yet still surpasses the industry standard of 3.4%, showing good mid-term user retention. The retention rates at D60 (4.87%) and D90 (3.81%) suggest that while there is a decline over time, a core user base remains engaged. These metrics highlight Bigbasket's success in retaining users, although there is potential for improvement in retaining users between D1 and D30. Overall, Bigbasket's retention strategy effectively maintains a stable and engaged user base, outperforming industry averages.

Microscopic View

Which ICPs drive the best retention?

The ICPs driving the best retention for BigBasket are Working Professionals followed by The Mom Construct. The reasons being the value of time and prioritisation of convenience over other parameters, however, The Mom Construct can be exceptional in driving highest AOVs, based on the multi-functional approach of BigBasket.

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Which channels drive the best retention?

Basis the study available through secondary resources, apps across a vertical quick commerce and Bigbasket, largely drive retentions through:

• In-App Notifications: These are effective for promoting new features, personalised offers (like BB Super Saver discounts), and reminders for daily or weekly essentials (BB Daily).
• Email Campaigns: Emails are useful for sharing personalised recommendations and newsletters on new launches, updates on new products (especially private labels), and exclusive offers. This can be seen with all Tata Group companies including Bigbasket focusing on newsletters and YouTube channel distribution.
• SMS Notifications: Particularly effective for urgent updates such as Quick Commerce availability or time-sensitive discounts. SMS can prompt immediate action from users, enhancing retention through timely engagement.

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What sub-features or sub-products drive the best retention?

While Bigbasket’s sub-products are an extension to it’s core offering, i.e., Slotted Delivery, that are helping drive better retentions in this currently cut-throat competition space, which are:

• BB Daily: This service ensures daily delivery of fresh essentials like milk, eggs, and vegetables. Users who subscribe to BB Daily are likely to have high retention due to the convenience and regularity it offers in their daily routines.
• BB Now: The ability to deliver orders in under 15 minutes across multiple categories is a feature correlating to it’s current slotted delivery, and intends to retain it’s existing users from shifting to it’s competitors. The company however plans to make it’s Quick Commerce vertical, it’s primary.

Increasing Engagement with BB's Users

Product Hooks

Hook #1 - BB Star Membership

• Goal - Improving user loyalty and reducing churn by offering an attractive membership for free deliveries, no hidden costs, and more discounted products. (Just like Zomato Gold and Swiggy One, subscriptions evolved from being loyalty programs and have become points of preference for a user to purchase from a specific store, i.e., a Zomato Gold customer is more likely to buy from Zomato than Swiggy and implementing the same across BigBasket will be helpful for QC companies.)
• Success Metrics - Number of subscribers and Retention Rates!
• Problem Statement - Price-sensitive users are deterred by delivery fees and high prices and users seek more value and exclusive benefits to remain loyal to Bigbasket.
• Current Alternative - Users may switch to competitors like Instamart and Zepto, which offer subscription services with free deliveries and other benefits.
• Solution (User Flow Attached Below) - Introduce the BB Star membership, a one-year subscription at ₹299 that offers unlimited free deliveries, better product prices, and no extra charges.
• Metrics to Track - Number of BB Star Memberships, Retention Rate of Star Members, Order Frequency of Star Members, Member CSATs.
• Ramp-up Milestones
• • Pilot the BB Star membership with 5% of the user base to gather initial feedback.
  • Expand the offering to 25% of users based on feedback and initial success.
  • Full rollout to all users with continuous monitoring and updates to the membership benefits.
  • Introduce seasonal promotions and bonus perks for BB Star members to maintain engagement.

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Hook #2 - Sale Constructs

• Goal - Increase user engagement and drive sales by leveraging topical promotions and targeted offers for user segments, for example, for the currently ongoing ICC Cricket T20 World Cup, Bigbasket can launch a Sale Construct for promoting merchandise, fitness products, and other categories for targeting new-age or user's likings.
• Success Metrics - Higher conversion rates during sales events and increased average order value.
• Problem Statement - Users are often unaware of new products and special offers and there's a need to create excitement and urgency around Bigbasket's offerings for the currently enthusiastic or new-age audience.
• Current Alternative - Users may miss out on deals or rely on other platforms for perceived better promotions.
• Solution (User Flow Attached Below) - Implement Stores & Sale Constructs, utilizing thematic sales events and targeted offers to promote new SKUs and attract user attention.
• Metrics to Track - Sale Order Uptick, Conversion Rates, AOVs, User Engagement (with Promotional Reachouts)
• Ramp-up Milestones
• • Launch a pilot sale event targeting 5% of users to measure response and gather feedback.
  • Expand sale events to 25% of users, incorporating feedback to refine the experience.
  • Full rollout of themed sale events to all users, with regular updates and new themes.
  • Introduce personalized sale recommendations based on user behavior and preferences.

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Hook #3 - LaunchPad & Box of Happiness

• Goal - Enhancing user delight (and inquisitiveness) by providing them gift boxes on orders, through supporting new startups to offer their samples and reach a specific demographic.
• Success Metrics - Increase in CSATs (Users) and Sign-ups on the LaunchPad program (Startups)
• Problem Statement - Users enjoy trying new products but may be hesitant to purchase full-sized items without sampling and new startups struggle to reach a wide audience and gain market visibility. 
• Current Alternative - Users might purchase from other retailers that offer sample boxes or miss out on discovering new products, in usual cases.
• Solution (User Flow Attached Below) - Introduce LaunchPad (like and unlike Amazon), a platform for new-age startups to reach a wide audience with tester samples, which are packaged into a Box of Happiness by Bigbasket, for users to get upon ordering above a specific threshold (INR 2000 or Above). This coupled with India's obsession for freebies helps a user be engaged on the platform, which would not be available on other platforms.
• Metrics to Track - Number of Boxes Delivered, CSATs of Orders (with Boxes), Order Uptick of Full Items (which were sampled through BB)
• Ramp-up Milestones
• • Launch the first Box of Happiness with a limited user group to gather feedback.
  • Expand the distribution to a larger user base based on initial success and feedback.
  • Regularly introduce new boxes with different themes and startup products.
  • Create a feedback loop to continually improve the selection and user experience.

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Engagement Campaigns

​Campaign #1 - "Everyday Essentials Excellence" Campaign

Campaign #2 - Quick Commerce Quest

Campaign #3 - Exclusive Label Loyalty

Campaign #4 - Super Savers

Campaign #5 - BB Star

Understanding Churn among BB's Users

Reasons for Churn

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Negative Actions to look out for!

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Power Users in Danger of Becoming Core Users:

• Pausing/Cancelling of their BB Daily Subscription.
• Fall in their number of SKUs consumed and AOVs across a month.
• High app activity with lower conversions (could intend to show price comparisons).
• Constant negative CSATs or frequent feedbacks.

Core Users in Danger of Becoming Casual Users:

• Reduced orders across the core services or small order chunks (aligning with a user’s one-off activity).
• Lower engagement across new products and categories, or private label brands.
• Frequent cart non-check outs.
• Increasing app inactivity and lessened session times.

Casual Users in Danger of Churning:

• Erratic purchase frequency and high app inactivity.
• Order SKUs shifting from the user’s core SKUs, like groceries to one-time requirements.
• Negative CSATs or more support tickets for other issues including Returns and Refunds.

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Resurrection Campaigns

Campaign #1 - Personalised Price Alerts

Campaign #2 - Product Availability Alerts

Campaign #3 - Faster Delivery Benefits

Campaign #4 - Revamped Subscription

fin. (FINALLY)