Engagement & Retention project | Zepto
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Engagement & Retention project | Zepto

Market Understanding

1. India’s quick commerce market is all set to astound us with a 10-15X growth by 2025, reaching a market size of close to $5.5 Billion, leading other markets (including China) in terms of quick commerce adoption

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2. Previously a far-fetched dream, quick commerce is now a ~$45 Bn TAM reality, with massive headroom for growth!

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3. Quick commerce is fundamentally changing consumer purchase behavior in metros and creating delight

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4. The way forward for Quick commerce:

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5. Q-Commerce GMV skyrockets, surging at an unprecedented 77% year-on-year growth rate

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6. New user adoption drove this remarkable growth

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7. Winning event days and category diversification have emerged as exciting pages in the q-commerce playbook

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8. Going ahead, q-commerce is likely to sustain 40-45% growth over the next ~3 years, riding on promising user growth potential

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Understanding Product


Core Value Proposition (CVP)

Are you looking for late-night munchies but too lazy to step out? Have you run out of eggs while you are in a rush to go to the office? Unexpected guests at home and need last-minute groceries? Want to order your groceries in the comfort of your home and get them delivered to your home?

  1. Ultimate Convenience: Zepto provides the ultimate convenience by delivering your orders directly to your home. No more rushing to the store; we bring the store to you and you can even get it delivered for free.
  2. Lightning-Fast Delivery: Zepto's delivery is not only convenient but also incredibly fast. We try to get your essentials to your doorstep in just 10 minutes, saving you time and effort.
  3. Irresistible Deals: Zepto offers unbeatable deals and discounts, ensuring that you not only enjoy the comfort of shopping from home but also save money while doing so.


How do users experience CVP Repeatedly?
  • Once a user places the order, Zepto displays a time ticker that the order has been delivered within a specified time
  • In the user profile > Orders section > User can see a list of orders placed by him and the time taken to deliver each of the past orders which is another strong reiteration of Zepto's promise
  • Once an order is placed, the assignment of delivery executive and packaging is done in the first 2 min which assures that the order is acted upon instantly
  • One thing Zepto does well - It reiterates its promise of 10-minute delivery across platforms including search, app store, organic and paid ads


Active user and Natural Frequency

Actions that make a user an ‘Active user’:

Ordering at least twice a month in the first month of downloading the app

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Mention the action(s) that make someone an active user of your product:

Type of User

CASUAL

CORE

POWER

Frequency

1 - 2 times a month

1 - 2 times a week

More than once a Day

AOV

≥ 100-150

≥ 300-400

≥ 500-600

Casual User: Orders once or twice a month when he genuinely forget something. Likes to stock up on groceries to avoid delivery costs for small last minute requirements. Values money more than time.

Core User: Orders from Zepto atleast twice a week. Orders multiple things at once foreseeing the requirements for the next day as well. Semi reliant on the app and likes the luxury of fast delivery in the event of late night hunger pangs, mid summer day beverages and other small daily essentials like milk and eggs.

Power User: Heavily reliant on Zepto. Chooses to order last minute because he now trusts the app and has formed a habit of checking in once a day or in two days to see what’s needed before placing his order. Least likely to churn.


Creating an RMF Analysis based on various product stages of the user:

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Segmenting our Users and ICPs

Meet our ICPs:

ICP-1

Meet Mia, an 18-year-old college student, who moved to a new city to pursue her dream of higher education. This was her first time living away from home, and she quickly realised the responsibilities that came with it. Juggling classes, assignments, and part-time work left her with little time for grocery shopping.

One day, while scrolling through social media, Mia came across Zepto India. The idea of getting groceries delivered to her doorstep seemed like a game-changer. She decided to give it a shot. Now, Zepto is Mia's go-to place for groceries. She can order everything she needs, from instant noodles to fresh fruits, and have it delivered to her tiny dorm room. The best part? The student-friendly discounts help her stretch her budget, and she often teams up with her roommates to place collective orders. Zepto has not only simplified her life but also made her feel more at home in her new city.


ICP-2

Alok and Neha, a young couple in their late twenties, recently relocated to a new city for their jobs.

Their careers were taking off, but the move meant managing their household chores independently for the first time. With both of them working long hours, they were determined to find a solution that offered convenience without sacrificing quality.

One evening, after a particularly exhausting day at work, Alok stumbled upon Zepto India while searching for grocery delivery options. He was impressed by the quick delivery promise and the quality of products offered. The couple decided to try it out. Now, Zepto is an integral part of their daily routine. They can place orders together, selecting their favorite brands and fresh ingredients for their home-cooked meals. Zepto's reliable and speedy service has brought convenience to their doorstep, making life in the new city more manageable and enjoyable.


ICP - 1ICP - 2ICP - 3
Age18-2525-3535+
TypeCollege Students or Fresher relocated from homeYoung Couple Living SeparatelyYoung Couple + Kids
Income 5- 15 LPA20-40 LPA25 LPA +
Most Used Application InstagramInsta/WhatsAppWhatsApp
Price SensitivityHigh - Need free delivery + Best Deals Low for low priced Products

Will Switch to alternate platforms if they don’t levy charges
Low for low priced Products

Will Switch to alternate platforms if they don’t levy charges
Pain PointsNeed something urgently

New to the place so don’t know what offline options

Late night delivery
Don’t have time for grocery shopping

Need something urgently

Save time and Spend it elsewhere
Don’t have time for grocery shopping

Need something urgently

Save Time and Spend it elsewhere
Zepto's Core Value Proposition for them/JTBD1. Getting Deals
2. Free Delivery
3. Getting late-night delivery quickly
1. Home Delivery - Bonus if Free
2. Getting urgent things quickly
1. Home Delivery - Bonus if Free
2. Getting urgent things quickly
How to they experience CVP regularly? They need something - Snacks, Lentils, Party Decor Etc.

They Search platforms for the cheapest

They Go with the one that is fastest and cheapest.

Zepto Checks both the boxes.

If all platforms charge high delivery fees they don’t mind going to the shop and buying it themself.
They need something - Snacks, Lentils, pet care

They Search on the platform they are used to.

They order if an item is available and the delivery time is not extraordinarily high.

If the delivery fees and other charges are high they compare with other platforms.
They need something - Snacks, Lentils, Fevistick for the kid’s project.

They Search on the platform they are used to.

They order if an item is available and the delivery time is not extraordinarily high.

If the delivery fees and other charges are high they compare with other platforms.
Engagement GoalThis ICP is price-sensitive and will jump on platforms to save moneyThis ICP values time a lot more than a small amount of money. Unless the difference is considerable they will not hop apps.

The goal is to become their primary app and make them habitual of Zepto.

Once this is done then the game gets simpler.
This ICP values time a lot more than a small amount of money. Unless the difference is considerable they will not hop apps.

The goal is to become their primary app and make them habitual of Zepto.

Once this is done then the game gets simpler.


Power UserCore UserCasual User
Frequency of Ordersonce a dayTwice a weekOnce a month
Features UsedBasic User Flow + Explore Zepto CashBasic User FlowBasic User Flow
Frequency of Use Case/CVP5-6 Times a week2-3 Times a weekThrice a Month
Frequency of Use Case Met through Zepto5-6 Times a week50% times his orders are from Zepto.Zepto isn’t the Primary App
How do they experience the CVP?Transaction Flow

They need something > They Visit Zepto first (Habit) > They find what they need (Prices are competitive with others) > They complete the order if the Time taken is not very high or the delivery charges are not the highest.
Transaction Flow

They need something > They Visit Zepto to evaluate their options but it need not be their first app > They find what they need (Prices are competitive with others) > They complete the order if the Time taken is not very high or the delivery charges are not the highest.
Transaction Flow

They need something > They Visit Zepto to evaluate their options but it need not be their first app > They find what they need (Prices are competitive with others) > They complete the order if the Time taken is not very high or the delivery charges are not the highest.
What Can We Solve ForWe will Solve For Breadth

They are already power user and Zepto is their primary App for this Use case.

So, to engage them more we can add Breadth - More Use case for them
Solve for Frequency

This set of users keeps Zepto and other apps.

If we can make it their primary app then they can move to power users.
Solve For frequency

Make Zepto the first app that comes to their mind when they need something

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To Summarise:

The users of Zepto value time more than anything. The perceived value of the service is much higher than the cost of goods here, allowing the user more time at hand to do whatever they please - right from scrolling pointless reels to binging their favourite show uninterrupted or making it to an office meeting on time.

We can further segment the user based on Recency frequency and their AOV.

1. Champions would-be users who are driving business. They have high frequency and recency is also high.

2. The would-be users we cannot lose. They had a high frequency of usage but it has been time since they ordered their last delivery. They may shift from power to core users.

3. Then are hibernating users- They ordered from us last month and the frequency is also once a month. Multiple other segments can be drawn but for this project, I have not explored them in detail due to the absence of data. However, for companies like Zepto above can be used to automate marketing campaigns.

Engagement:

Engagement Strategies for Zepto

Which Engagement Strategy Is Best For Our Goal?


Strategy/GoalIncrease Power User's Engagement Move Core Users to power usersMove casual users to Core Users
Breadth
(Adding alternate offerings enhancing core value prop + Serving other use cases)
They are already using Zepto as their primary App for grocery delivery use cases.

If we want to engage them more towards other categories such as Pet care, Medicines, etc. + We can build a sub-feature that they can use.
For them, there is room to grow them as consumers of our CVP currently. Once they have moved to Power User then we can think of the breadthFor them, there is room to grow them as consumers of our CVP currently. Once they have moved to Power User then we can think of the breadth
Depth
(Time/Money Spent x Frequency)
Enhancing their core value prop by making them spend more time or money
Increasing the order value is a way to earn more commission.

However, the CVP prop is to get urgent things delivered fast. Usually, these items are low tickets.

So, increasing Depth is not an engagement framework that I would like to prioritise.
Increasing the order value is a way to earn more commission.

However, the CVP prop is to get urgent things delivered fast. Usually, these items are low tickets.

So, increasing Depth is not an engagement framework that I would like to prioritise.
Increasing the order value is a way to earn more commission.

However, the CVP prop is to get urgent things delivered fast. Usually, these items are low tickets.

So, increasing Depth is not an engagement framework that I would like to prioritise.
Frequency
(making them order more)
They are already having good frequency So this will not work for themYes, by solving for frequency we can take them to the next Power user segment Yes, by solving for frequency they can be moved to the core user segment.
Building a sub-product/feature with a lower natural frequency Power users are already using the App multiple times a week so Zepto has Top of mind awareness for themThese users use the product weekly and they will also have top-of-mind awareness. Casual users who use Zepto can be from 2 groups.

1. Those who have a lower natural frequency for the use case - They don’t order online and only use in case of urgency - We can solve this by building a Sub product/feature with a high natural frequency.

2. Those who have the higher natural frequency for the use case but are casual users because Zepto is a secondary app for them. - Solve by frequency



Let’s Design Engagement Campaigns


1. Zepto is a mobile first platform so the primary engagement channel would be mobile application/WhatsApp/Email (Not suitable for our platform).

2. We are in a competitive market. We will spend money on engaging users only if that leads to a sustainable user engagement after the discount flow is closed.

3. Here, we are working towards engaging ACTIVATED USERS and not activating them. So, the goal is not to throw heavy discounts that user can’t avoid and ultimately becomes habitual as he completed 10 transactions in 30 days.

4. All the users targeted here are activated and the purpose is to make them coming back again and building the loop.

Campaign -1 Let’s Target those Core Users + ICP 1

Target Segment Mia who is a college Student but doesn’t uses Zepto as primary App.

Kabir, is 21 year old moved to Mumbai for his financial analyst role. He doesn’t uses Zepto as primary app either
Goal of CampaignTake them, from core users to power users.

Increase the frequency from once a week to 2-3 times a week. We do it by making Zepto their primary Application
Pitch and Content "College is challenging, Mia. But don’t forget to party. Just let us know your needs, and we'll make it happen. Avail offers now. 🎈🥳”

”Kabir, work's tough, but relaxation is easy. Snacks, couch, favorite shows – Zepto's got you! Avail offers now.🍿📺”
Channel UsedApp Push Notification or Whats App notification.
Offer being madeWe want to establish ourself as we care for the user and the user will be able to relate to it as he/she is a college goer.

Offer - Free delivery on Snacks order. Min order Rs. 99
Offer - 10% off on Party decor. Min order Rs. 299
Frequency of Campaign Friday Night
When is offer being made2-3 days after user made order so that if this succeeds then he will start making new purchases
Success MetricCTR, CTR-Order Completed with 24 Hours of Push
Why is campaign DeignedCampaign is designed to set Zepto as primary app for grocery delivery and other use cases.

The pitch is something that college students/freshers in their professional career can relate to. And they are hungry for deals.
How will it work Backed by User InsightsWhat do these ICPs do after college/work?

Catch up with friends/Party/Binge Netflix - Common traits of these ICPs and all these things need snacks. So, connecting them emotionally and serving that need.
Campaign FlowUser receives the Push notification → He Opens The App and Order

Campaign - 2 Let’s Target those core users - ICP 2 and ICP 3

Target Segment Rajat/Neha who live on their own and are in middle of their career. They can be married/unmarried. They don’t chase penny discounts and order have platform stickiness.

They value quality time in their life.

Currently they use Zepto as secondary app.
Goal of CampaignTake them, from core users to power users.

Increase the frequency from once a week to 2-3 times a week. We do it by making Zepto their primary Application
Pitch and Content "Rajat, coffee break time! ☕ Just let us know what you'd like, and it's on its way. Your treat!”

”User receives the Push notification → He Opens The App and Order Neha, it's movie date night! 🍿🎥 Plan a perfect evening with your partner and let Zepto handle the movie snacks”
Channel UsedApp Push Notification /Whatsapp
Offer being madeWe are not offering discounts here. We want them to enjoy their time and that should get them to order from us.
Frequency of Campaign Friday Night
When is offer being madeEvery Friday/Saturday night - Given the user did not order earlier on the same day..
Success MetricCTR, CTR-Order Completed with 24 Hours of Push
Why is campaign DeignedCampaign is designed to set Zepto as primary app for grocery delivery and other use cases.
How will it work Backed by User InsightsThis segment of ICP doesn’t care about saving on delivery fees or discounts.

They value quality time much more. So, that is what we are offering through above campaign.
Campaign FlowUser receives the Push notification → He Opens The App and Order

Campaign 3 : Target Casual Users To order more often - ICP -2 and ICP-3

Target Segment Raj/Sneha who live on their own and are in middle of their career are 32 years old. They can be married/unmarried. They don’t chase penny discounts and order have platform stickiness.

They value quality time in their life.

Currently they use Zepto as secondary app.
Goal of CampaignTake them, from Casual to Core and then to power users.

Increase the frequency from once a month to 2-3 times a month. We do it by making Zepto their primary Application.
Pitch and Content "Your next 10 order: Priority Delivery! 📦🚀 Just 4 orders to go.”

”Your essentials are here, Rajat! 🛒✨ We're delivering faster than ever. Shop away!”
Channel UsedApp Push Notification /Whatsapp
Offer being madeWe are not offering discounts here. Rather what the ICP prefer is delivery time, and availability at their location + have what they need.

So, they don’t use Zepto as primary app becasue
1. They only come here when their primary app is not available.
2. The delivery time is higher with Zepto
3. Their products are unavailable at Zepto so they don’t like using it.
Frequency of Campaign Weekly
When is offer being made1st Push - After they completed their order from Zepto. 5 hours after they received the order and rated 5 star of no complaint was raised…

2nd Push - 1 week after their last order. Then weekly

Success MetricCTR, CTR-Order Completed with 24 Hours of Push
Why is campaign Deigned1. They value delivery time and availability a lot more.
2. We want them to use our product more often in next few days so that we build habit and are first to have brand recall.
3. This segment of users will like having priority customer tag. even if that’s subconscious.
How will it work Backed by User InsightsMost users use Blinkit instead of Zepto because delivery time is shorter there. They use Zepto for the product that’s not available there.

Users said they use it as primary because now they are used to it and have strong brand recall.

So, by capturing the wallet share of user we will build habit and then it will run on auto pilot mode.

But make Zepto their primary app we will offer them what they value - Nudge on the product they love and priority delivery.
Campaign FlowUser receives the Push notification → He Opens The App and Order

Campaign 4 - Target Casual Users ICP 1

Target Segment Vansh who is 21 Years old - In college or have started working. Zepto is not his first priority app. - He is not habitual
Goal of CampaignTake them, from Casual to Core and then to power users.

Increase the frequency from once a month to 2-3 times a month. We do it by making Zepto their primary Application.
Pitch and Content ""FOMO alert! 🚨 15% extra off on your cart - get shopping today!”
Channel UsedApp Push Notification /Whatsapp
Offer being madeSo, he values money and is hungry for deals. I want to make strong brand recall to make him habitual to our app.

So, here is how campaign is structured.

He has Cart value of Rs. 100. He get 15 Zepto credits that he can use in his next order. The Credits expire in 10 days. - We offer this for 5 orders - 1-1.5 Month he solely uses Zepto

This will make him order again and again and even though we will not make money from him for but then Zepto will become his primary App
Frequency of Campaign Weekly
When is offer being madeAnytime during the week post 7 PM
Success MetricCTR, CTR-Order Completed with 24 Hours of Push
Why is campaign Deigned1. They are hungry for deals.
2. We want them to use our product more often in next few days so that we build habit and are first to have brand recall.
How will it work Backed by User InsightsMost users use Blinkit instead of Zepto because Blinkit captured them early. They use Zepto for the product that’s not available there.

Users said they use Blinkit as primary because now they are used to it and have strong brand recall.

So, by capturing the wallet share of user we will build habit and then it will run on auto pilot mode.
Campaign FlowUser receives the Push notification → He Opens The App and Order

Campaign 5 For Power Users (We Don’t take them for granted)

Target Segment Rohan, who is 25 Years old. He is single and works as SDE in Gurgaon. He uses Zepto to get - Groceries and Home essentials.
Goal of CampaignShow how they have saved on Zepto and motivate them to be at it = Report section is additional feature build for them.
Pitch and Content “Your wallet is smiling! 😃 Rs. 4,000 saved in 6 months. Keep being a smart shopper and let the savings roll in! 🛒💸”
Channel UsedIn App Banner
Offer being madeThis set of users are already using the App. So, when they come to App we want to show them how we helped them save money.

We will add view details tab as a CTA on this banner where user can analyse where he saved and spending habit.
Frequency of Campaign So, this banner will appear once every 10 days.
When is offer being madeThe banner opens after he completes an order every 10 days. Because only we don’t want to interrupt business flow.
Success Metric% of users who visit analyse section.
Average time spent on analysis section.
Why is campaign DeignedTo show them value of being associated with us
How will it work Backed by User InsightsPower users use Zepto as primary App. So, the Monthly cumulative order value would be high and even if we display that he saved a few thousand bucks while sitting at home he will think that he will continue with the behaviour.

Analyse section will help him track what he is eating and what he is not - User behaviour is to feel happy when he is eating right.

That is what we are likely to show him.

On Zepto, Onions, Milk, Curd, Bread, Butter are most searched items. So, users are likely to find these in there report so there will not be any negative impact of this report.


Imagine Food delivery Apps showing this - A disaster
Campaign FlowUser Completes the order → The banner pops up → All get to know the money they have saved → They either follow up on the banner or close it → If the follow up on banner they analyse their past orders and get insights on their order.

Product Hook - Zepto Premium

Goal

To drive casual users to core and core to power. Zepto Premium would allow a user to pay a monthly subscription amount for the following benefits

How it works

  • No delivery charges- This will increase the order frequency and it will also incentivise the customers to shift their orders to Zepto instead of ordering from Blinkit and BB Daily
    Note: Currently the delivery charges need to be paid for orders below Rs. 199 in Zepto. With the subscription, there may be a reduction of the AoV, it will be more than compensated by the increase in frequency/no. of orders
  • Tiered Discounting- Earlier we hypothesised about how a person is more likely to retain if he/she orders from multiple categories (depth). The subscription model can have a progressive discounting where if you purchase from 2 categories, you get a discount of 5%, if you purchase from 3 categories and more, you get a discount of 10%.
  • Priority Orders during peak hours
  • Priority Customer Support

Success Metrics

  • 5% of users opting for Zepto Premium within 1st month
  • Increase in AoV by 10-15% of Zepto Premium Users within a month of joining Zepto Premium
  • Increase in ABS by 20% of Zepto Premium Users within a month of joining Zepto Premium

Problem Statement

  • Customer has access to multiple apps for instant delivery - Blinkit, BB Daily
  • Customers using the app for only emergencies
    As a result- Ordering frequency is low, AoV and ABS are low

Current Alternatives

Blinkit, BB Daily, Local Kirana Stores, Dunzo

Metrics to Track

Percentage of users opting for Zepto Premium

  • Increase in user AoV- before and after Zepto Premium
  • Increase in user ABV- before and after Zepto Premium

Ramp up Milestones

1. 2% users signed to Zepto Premium ———> 5% users signed to Zepto Premium ——> 50% retention rate for Zepto Premium after 1 month


Retention:

Overview

What is Zepto's current retention rate in terms of users?

According to the founder's interviews, the month-on-month retention is 65%-78%, and week-on-week retention is 50%.


​"Vohra said that its month-on-month buyer retention is 65%" - Techcrunch.

"Palicha said they are seeing a 200% growth month-on-month, with a monthly retention rate of 78%". - Times Of India

"The data speaks for itself. Once we started delivering in 10 minutes, our NPS (net promoter score) shot up and has constantly remained at around 85, with a 50 percent weekly user retention rate, which shows the powerful customer love for our product," - Your Story.

At what time period does Zepto's retention curve flatten?
Based on online articles and user calls, Zepto's retention curve starts flattening after 

  • 3rd month of usage.image.png
  • 10+ orders.

​Source:

Which ICP has best Retention Rate?

​Core/Power Users and ICP 2+3 have a high retention rate because they stick with product that they get used to.

After User calls following were the key reasons why people love Zepto

  1. “Am used to the platform and I have hardly ever faced any issue”
  2. “Fastest Delivery, address mapping is accurate”
  3. “Availability of my brand of snacks, unavailable on Blinkit, and hence I place any required grocery order on the same - or any form electronic accessory that's not available on Blinkit or if Zepto has a better inventory”
  4. “They were the category creators hence they're brand recall”

While power users who belong to ICP 1 had lower retention because they jumped apps which offered best deals, had lowest Minimum order value and was fastest.


Which Channels drive maximum retention?

  1. Push Notifications:

keeps the app top of mind and keeps users engaged with discounts, offers, and promotions while driving retention. For a Power User reminding the category which he has not ordered for 2-3 days can drive retention. For Example if Power users orders Eggs and Breads every two days and has not ordered for 2-3 days nudging him with a reminder to order bread and eggs for breakfast can drive retention

  1. WhatsApp Messages:

WhatsApp as a channel has a high success of reading the message. Prompting users about a flash sale or an offer on the favorite brand can prompt power and core users to order and eventually drive retention.

  1. In App Banners:

Users Login into the app and check the top Banner for offer. In App Banners create a sense of urgency to order and drive retention.

  1. Referrals:

Referrals provide social proof and act as endorsements from existing customers. When someone receives a referral from a friend or family member, they are more likely to trust the recommendation and try the service. This trust establishes a positive perception of Zepto and increasing the likelihood of customer retention

Defining Churned User + At-Risk Users

The whimsical shows that we only look at those who experience the CVP at least once or were activated.

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Then we first identify users who are taking negative actions or are anti-engaging. The reason for doing this is to early identify users who may churn in the coming weeks. So, here are the following metrics we will look at and try to Early identify users who are likely to churn.


Metric/BehaviourRationale

Decrease in frequency of orders- User moved from Power To Core To Casual Segment

If the user is decreasing the frequency of the order he is doing with Zepto then he may be slowly making Zepto a secondary App. This could happen because of the attractive offer by competitors. Or There is a delay in delivery time, the charges have increased, and Inventory modification is done.

The user is opening the App less often

If the user is opening the app less often then that’s an indication that he is distancing himself from the product.

User Opens the App > Check Delivery Time > Closes the App.

The user was habitual of Zepto. He opened the app but found delivery time to be 25 mins so he closed the app and ordered from BlinkIt. If this trend is increasing over a period then that’s an early warning sign

If the user used Zepto cash then is he not adding money there

If the user has stopped adding money in his Zepto wallet then that’s an indicator of decreased commitment.

The user opens the App > Checks the Price of Items and Drops off.

The user was habitual of Zepto. He opens the app but finds the Price + Delivery charges to be high and drops off. If this behaviour for a user is rising then that’s a negative behaviour.

CTR of Notification is decreasing

Early signs of anti-engagement

Rise in the number of complaints from the user

The user has a lot of flexibility in terms of the options he has. Hence, if the number of complaints and support tickets are rising then even habitual users might think of switching the platform.

Reasons Users Churn

  1. Voluntary Reason - We need to solve these for churned users.

Bad Order/Delivery Experience

If the user has had a very bad delivery experience he may stop using Zepto. If we look at the Play Store rating many users have highlighted this concern.

Bad Customer support experience

A user might have some issues with his order and payment, or bad behavior with the delivery partner. If he does not get a tangible solution from the support team then he is likely to stop using Zepto

Sudden Increase in the prices, delivery charges etc

Remember ICP-1, the college-going student? She was the power user but because the discounts were slashed and charges were high she decided to go with an alternative offline method of shopping.

Significant change in time for order to get delivered

Earlier users used to get delivery in 12 Mins but now the order TAT has increased to 25 mins. He is likely to switch to better competitors

New Competitor in the Market/New Value prop by existing competitors

A new competitor came and is giving heavy discounts. our users have switched to that app

What he use to order is no longer available on the platform

Our user used to use our app for his favourite cigarette brand but now it’s not available.

  1. Involuntary Reason- If these are the reason then we need to be mindful while conducting the campaign. These users are unlikely to come back because they stopped using Zepto because of external reasons.

They Moved to Tier 2/3 city where we are not operational

They want to use Zepto but how can they if we are not present in that city?

They shifted places where TAT for Zepto is higher than the competitor

During the user call one user said that he was a heavy Zepto user and even added Zepto Cash. But when he moved to Gurgaon Big Basket was having much less order TAT so he switched to that platform.

Change in Frequency of Use Case

Remember Mia? College student.
She has moved back to her home and now the order she does has reduced to negligible levels. Reason - Her parents manage all the groceries at their home. At home, the maximum she needs is some snacks and because they are not a very high order value she gets it from the offline shop that she was used to from childhood.

Retention Campaigns - For At-Risk and Churned Users

Campaign - 1 Let’s solve for Users for whom support tickets are rising

Who is Target Group

Power users for whom customer support tickets have increased recently.

Why is the Campaign being designed?

The users are power users. They love Zepto. But due to recent orders, they faced some issues- either their order was not proper, & wrong delivery item.

Why is the Campaign being designed?The users are power users. They love Zepto. But due to recent orders they faced some issues- either their order was not proper, & wrong delivery item.

They reached out to the Customer support team but are not satisfied - We need to solve this at the execution level.

But now we don’t want to lose them. So, how can we compensate them and give them a good experience again so that the recent good experience overpowers the old bad experience?
Pitch“Dear Rajat, your feedback matters. As a gesture of goodwill, we're offering credits and waiving charges on your next three orders. Thank you for giving us the chance to improve! 🛒💖”
What are we offeringWe are reaching out to them and saying we hear you. We offer them compensation for an order they did not find appropriate.

Further, we want to motivate them to make a few orders from Zepto so that their recent experience improves - for this we are offering No charge on the next 3 orders.
How does offering solve the issue the User had in the first placeThe user was dissatisfied with the order. So, we are compensating him for the bad experience that he had.
Channel WhatsApp/Email
Frequency of campaignX days after the user raised the ticket. X days is the average time difference the user had between his 2 orders.

For example - If a user used to place 1 order in 4 days then 3 days after he raised the complaint we will send him this notification. And this we will send only if there was no order done in the interim.
How does the campaign help in Onboarding 101?This helps in onboarding 101 as we can take a hypothetical activation metric as 3 orders in 10 days.

And because we are giving him charge-free delivery on the next three orders and the offer expires in 10 days.

So, the expected action from him is that he completes 3 orders within the next 3 days.

And because the last 3 order experiences would have been good then we can expect the user to continue using Zepto.
Metrics to track1. No. of orders per user in the next 10 days of the push.
2. No. of orders per user after the 10-day period expired - did he go back to ordering again?
3. Natural frequency of user before the complaint vs. after the offer was given.
4. % of users who attained their natural frequency back after the campaign.

Campaign - 2 Let’s bring back churned user by telling him we his favourite product is back in store

Who is Target GroupPower users for whom his favourite coffee brand is out of stock
Why is Campaign being designedThe users are power users. They love Zepto. But now their preferred coffee brand is not present.

But now we don’t want to lose them. So, it’s important to see why there coffee brand is not present. We can solve for inventory using data.

But if it’s a supply side problem then let’s look at options to solve it.
Pitch“Hey Coffee Aficionado! ☕ We get it, we're big fans of Sleepy Owl too. Sadly, it's taking a coffee nap. But fear not, we've got Blue Tokai Coffee, a favorite in the sleepy owl community. Order today and get 10% off. Let's keep the coffee party going! 🎉🌟

What are we offeringA curated list of coffee brands that have high demand overlap among users who orders Sleepy Owl coffee.

User wanted Sleepy owl but it’s not present. So, he comes to app, can’t find sleepy owl closes the app.

But this campaign helps him make a decision.
How does offering solve the issue User had in first placeHelping him with alternative option. Herd Bias and discount urgency will solve for him to order the coffee with us.
Channel Whatsapp/EmaiL
Frequency of campaignOn the same day he looks for sleepy owl coffee on the app but can’t find it.
How does campaign help in Onboarding 101Here, the purpose of this campaign is to target specifically those users who have not ordered because their preferred product is not available. SO, the frequency of order for him is decreasing and by solving for the availability we are making him keep at his natural frequency.

So, if he was a core user. He will stay core user and not become casual user.
Metrics to track1. No. of users of this group who completed order post push notification.
2. Order frequency before when his product was available Vs Frequency after the campaign.
Metrics to track1. No. of orders per user in the next 10 days of the push.
2. No. of orders per user after the 10-day period expired - did he go back to ordering again?
3. Natural frequency of user before the complaint vs. after the offer was given.
4. % of users who attained their natural frequency back after the campaign.

Campaign 3 - For users who have reduced orders because now competitor’s order TAT is better than us for them.

Who is Target GroupUsers who now have lower order TAT with competitor. So, he opens the Zepto App and sees that the order time is higher and he started using competitor’s App.
Why is Campaign being designedThese set of users loved Zepto. Zepto was their first love.

But now, our competitor has placed their dark stored near them and they can serve this segment faster.

However, we will not lose this set of users. We want to tell them that they are focusing on wrong thing and how they are still better with us.
Pitch🚀 Faster deliveries? Absolutely! Speed is important, but so is quality. We're finding the perfect balance to give you the best of both worlds. 🕒⭐️”

Exciting News! 🌟 Your favorite products are now front and center in our catalogue. No more digging around – it's easier and faster to order what you love. Surprising deals on products you adore! 🛒🕒
What are we offeringWe don’t want to offer discount because that is not sustainable.

This set of user churned because order TAT was better with competitor.

So, we tell them the upside they have with us - quality + we know what they want
How does offering solve the issue User had in first placeThe difference in delivery time is not going to be substantially high. It’s just that the dark store of competitor is nearer to them.

However, these set of users have been using Zepto. They must be habitual of using us and we need to give them reason to stay.
Channel Whatsapp/App Push
Frequency of campaignWhenever user opens the app and closes it by looking at order TAT.
How does campaign help in Onboarding 101The user still uses the application and onboarding 101 doesn’t apply to this set. It’s at risk user identified early and not outright churned.
Metrics to track1. Average orders per use (Weekly) before the campaign vs After the Campaign - Want to measure if campaign made them order from Zepto.

2. CTR and % of CTR who completed transaction
Metrics to track1. No. of orders per user in the next 10 days of the push.
2. No. of orders per user after the 10-day period expired - did he go back to ordering again?
3. Natural frequency of user before the complaint vs. after the offer was given.
4. % of users who attained their natural frequency back after the campaign.

Campaign 4 - Master Retention Campaign for users who value money - ICP 1

Who is Target GroupUsers who used Zepto but jumped to competitor because they offered discounts.
Why is Campaign being designedWe will get them back but the offer can’t be short lived because then they will again switch to competitor if they run discount campaign.

We want them to have something invested with us that makes them keeps coming back to us.
PitchDear Rajat,

We miss you and have something for you - Zepto Exclusive loyalty program

🌟 Zepto Coins - Earn, Redeem, Repeat! 🛒💰

Complete 3 orders in 10 days to earn Zepto Coins with each order.

On your 4th order, use your earned coins and get more!

Start saving today! 🎉
What are we offeringIt’s type of a loyalty program

We will offer them Zepto Coins that they will receive after they complete 3 orders in 10 days, and the coins could be used on 4th order.

Now when they make their 4th order they will not only be able to redeem the coins they earned through the past 3 orders but they will also get more coins from the 4th order itself.

So, when they place 4th order they will be 2 orders away from using the coins.
How does offering solve the issue User had in first placeThe user kept jumping platforms looking for best deal. By doing this we make him come back and offer him incentive to be with us only
Channel Whatsapp/App Push
Frequency of campaignOnce a week only till time he is not active again
How does campaign help in Onboarding 101When he order 3 orders in 10 days that does meet our activation hypothesis
Metrics to track1. % of users availing this offer.
2. % of users who were inactive but became active after this offer.
Metrics to track1. No. of orders per user in the next 10 days of the push.
2. No. of orders per user after the 10-day period expired - did he go back to ordering again?
3. Natural frequency of user before the complaint vs. after the offer was given.
4. % of users who attained their natural frequency back after the campaign.

Campaign 5 - This for users who also use our competitors platform. We want to their wallet share.

Who is Target GroupUsers who use Zepto but are moving from Power to Core users.

We will not offer this to Loyalty program users to control the burn.
Why is Campaign being designedThey are not ordering less. They are ordering less from us. So, how do I solve for this?

I want them to only use Zepto for all their needs
PitchDear Rajat,

Your next month coffee stack ☕ is on us.

Order now on Zepto, and your exciting gift will be on its way with your 12th order.

Keep the orders coming, and the surprises flowing!

Order today to avail the offer.
What are we offeringA gift that is waiting to be unlocked.

We know that this set of users love Coffee/Protein Bars etc. So, on the basis of their most loved products we tell them that they can unlock their free gift if they complete 12 orders in a month.

Now, we are not asking him to go overboard. He is already doing 3-4 orders a week. What I want is to have all those order through Zepto.

Once he does this he gets to unlock the gift and get it delivered with his 12th order.

This cycle will keep repeating.

We can decide min order value as Rs. 199.
How does offering solve the issue User had in first placeThe user is 28-35 makes good money and has order value of atleast Rs. 6000 monthly from all quick commerce platform combines. He uses it for groceries snacks, pet care.
Channel WhatsApp
Frequency of campaignOnce a week only till time he is not active again
How does campaign help in Onboarding 101He is doing 3 orders a week on average meeting our activation hypothesis metric. Because this cycle will keep moving we can continue to retain him
Metrics to track1. % of users availing this offer.
2. Avg Revenue from user before availing this offer Vs After availing this offer.
Metrics to track1. No. of orders per user in the next 10 days of the push.
2. No. of orders per user after the 10-day period expired - did he go back to ordering again?
3. Natural frequency of user before the complaint vs. after the offer was given.
4. % of users who attained their natural frequency back after the campaign.









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