Engagement & Retention project | EatClub

📄

Engagement & Retention project | EatClub

Elevator Pitch - What is Eat Club?

Hungry to eat but do not know which restaurant to order from? Don't worry! We got you covered! Eat Club curates some of India's best food and beverage brands of all cuisines, right into the frame of your eye so that you don't spend hours searching where to order from! And the best part? We got you covered in all your favorite cities at a very reasonable cost with a guarantee of authentic taste, free delivery, and easy to consume packaging which is also environment friendly!

Understanding Eat Club

What is the fundamental problem that Eat Club is solving for?

Core Value Proposition of Eat Club:

Saving time to scroll amongst loads of restaurants or outlets and curating it into buckets of authentic brands as per different types of cuisines.

Besides that, it is delivering food and beverages within 25-30 minutes! More importantly Eat Club's services are available across popular Indian cities such as Mumbai, Bengaluru, Pune, NCR, and Hyderabad.
What are the basic features and functionalities that the Eat Club provides?

a) It has a simple home page with a list of food brands of various cuisines.
b) It allows you to add items to cart and allows you to pay on the checkout page.
c) It allows you to pay through your regular and popular payment methods.
d) It asks you for feedback once the order is delivered.
What other ways are users using to solve the same problem?

a) Zomato has introduced "Home Chef" and Swiggy has relaunched "Daily" to solve the same problem where in they curate primarily Indian dishes made by small food businesses or home makers to add the "authentic homely taste" besides their regular delivery offering.

b) Local Bengaluru based startups such as Home Meal and Pure Eats are also curating "homely menus" to deliver food using their apps and also with daily/weekly/monthly subscription models where one gets the food delivered at the same time daily.

Natural Frequency

Eat Club's Natural frequency is ordering food either once or twice a week or couple of times a month.

What stage is it Eat Club at?

Eat Club was Found in: 2012
Number of Users = 10,41,473 (Approximately)
Eat Club's revenue in FY23 was INR 315 crore.

Is Eat Club ready to acquire new users?
1. Yes.
What Acquisition Channel is working best for Eat Club at a Mature Scaling Stage?
1. Referrals.
Does Eat Club have an onboarding flow and mechanism in place?
1. Yes.

Eat Club is at its Mature Scaling phase. Therefore it is ideal to assess its Engagement Framework and dissect into its retention.

Customer Segmentation for Eat Club

Who all can use Eat Club?

People living in Tier 1 Cities of: Mumbai, Bengaluru, Pune, NCR, Hyderabad. Because that is only where its presence is.

Basis this let us divide the User Types:

User Type	Casual	Core	Power
Usage Characteristics	Orders 1 or 2 times a month or at least every 15 days.	Orders at least 2-3 times a week. And has the Eat Club Annual membership.	Orders 6-8 times a week and has the Eat Club Annual membership.
Recency of use case	Occasional. Used it a couple of weeks backs or a month back.	Frequent. Used it this week or few days back.	Very Frequent. Used it yesterday or today or every 1 or 2 days.
Natural Frequency	Fortnightly or Monthly	Weekly	Daily or every alternate day
Monetary/AOV/Revenue Generated (All figures are assumptions).	Frequency: 1-2 times a month AOV: ₹200 Monthly Revenue per User: ₹200-₹400 Annual Revenue per User: ₹2,400-₹4,800 Total Revenue (assuming 10,000 casual users): ₹24,000,000-₹48,000,000	Frequency: 2-3 times a week AOV: ₹300 Weekly Revenue per User: ₹600-₹900 Monthly Revenue per User: ₹2,400-₹3,600 Annual Revenue per User: ₹28,800-₹43,200 Total Revenue (assuming 5,000 core users): ₹144,000,000-₹216,000,000	Frequency: 6-8 times a week AOV: ₹400 Weekly Revenue per User: ₹2,400-₹3,200 Monthly Revenue per User: ₹9,600-₹12,800 Annual Revenue per User: ₹115,200-₹153,600 Total Revenue (assuming 1,000 power users): ₹115,200,000-₹153,600,000
Pain Points	Wanted to try something different for a cheaper price (maybe due to budget reasons). Limited Time for Meal planning.	High expectations for food quality and authenticity. Desire for flexibility. Limited time.	High demand for convenience. Expectations for exceptional service. Desire for exclusivity.
Valued Features	The coupons used at checkout. Easy ordering and reordering process. Easy ordering. Affordable prices. Curated list of handpicked restaurants.	CHEAP EAT CLUB MEMBERSHIP (THEY ARE NOW OFFERING THEIR ANNUAL MEMBERSHIP FOR 30 RUPEES). Hand picked and curated restaurant selection. Flexible ordering options with multiple cuisines.	CHEAP EAT CLUB MEMBERSHIP (THEY ARE NOW OFFERING THEIR ANNUAL MEMBERSHIP FOR 30 RUPEES). Priority support from customer care. (They personally call and check feedback for every order). Hand picked and curated restaurant selection.
Core Value Proposition (CVP) being utilized	Convenient meal solutions for busy lives. Or Just a different meal option to try in free time.	Quality meal solutions for busy lives. (Trustworthy option). That also saves time from searching through restaurants.	Premium meal solutions at an affordable price and no time needed to scroll through different brands/restaurants.
JTBD of the persona	"I want to quickly order food without much hassle of searching through restaurants."	"I want to enjoy good food without much effort."	"I want to enjoy the best food with minimal effort and the options I can trust since I have tried and tasted them."
Discovery	Referrals Word of Mouth Paid Ads/Search	Referrals Word of Mouth Online Reviews	Referrals Word of Mouth Online Reviews
Level of Engagement	Occasional (1-2 times a month or fortnightly).	Regular (2-3 times a week).	Frequent (6-8 times a week).

Defining Core Engagement and Retention Metrics for Eat Club

Who is an active user for Eat Club?

At core, a user who signs up for the Eat Club App and places an order and receives it can be considered as as an active user. However, the active users can be further broken into:

1. Light Active: 1-2 orders in the last 30 days

- Users who have placed at least one order in the last month, indicating some engagement with the platform.

2. Moderate Active: 3-5 orders in the last 30 days

- Users who have placed multiple orders in the last month, showing regular engagement and potential loyalty.

3. Highly Active: 6 or more orders in the last 30 days

- Users who have placed frequent orders in the last month, indicating strong loyalty and heavy reliance on the platform.

Let's classify the users as active based on their ordering frequency:

1. Casual Users → Light Active: They place 1-2 orders in the last 30 days, indicating some engagement with the platform. They are likely to use Eat Club occasionally, but not regularly.

Rationale: Casual users have limited time for meal planning, desire convenience, and have a limited budget. They might not rely heavily on Eat Club, but still use it sporadically.

Core Users → Moderate Active: They place 3-5 orders in the last 30 days, showing regular engagement and potential loyalty. They are likely to use Eat Club regularly, but not excessively.

Rationale: Core users have high expectations for food quality, desire flexibility, and have limited time. They rely on Eat Club for regular meals, but might not be extreme users.

Power Users → Highly Active: They place 6 or more orders in the last 30 days, indicating strong loyalty and heavy reliance on the platform. They are likely to use Eat Club frequently, almost daily.

Rationale: Power users have high demand for convenience, expect exceptional service, and desire exclusivity. They rely heavily on Eat Club for most of their meals, indicating strong loyalty and dependence.

Engagement Framework	Relevance	Key Metric to be tracked	Rationale
Breadth	Tertiary	NA	Any new feature added to Eat Club will not directly impact on engagement unless there are additions of new curation of brands and update in menu.
Depth	Primary	Average Order Value (AOV); Which can be computed by AOV = Total Revenue / Total Number of Orders. Where: - Total Revenue = Sum of all order values (including taxes, delivery fees (if not an Eat Club member, etc.) - Total Number of Orders = Number of orders placed within a specific time period (e.g., month, quarter, year) etc.)	Increasing AOV can directly impact the Lifetime Value (LTV) of a customer at Eat Club because LTV is directly impacted by AOV, Frequency, and Lifespan of a customer on Eat Club. LTV = (AOV x Purchase Frequency x Customer Life Span) Average Order Value (AOV) = Total Revenue / Total Number of Orders (as described in the column besides this) Purchase Frequency (PF) = Number of orders placed by a customer within a specific time period (e.g., year) Customer Lifespan (CL) = Average duration of a customer's relationship with Eat Club (e.g., 2 years) {We won't factor CAC here since Product is already at a mature scaling stage}.
Frequency	Secondary	Number of Orders per day or per week.	You can only have 3 meals a day. Therefore making this the primary framework can cause churn as we might exploit channels such as spamming push notifications, etc.

Engagement Framework

Relevance

Key Metric to be tracked

Rationale

Breadth

Tertiary

Any new feature added to Eat Club will not directly impact on engagement unless there are additions of new curation of brands and update in menu.

Depth

Primary

Average Order Value (AOV); Which can be computed by

AOV = Total Revenue / Total Number of Orders.

Where:

- Total Revenue = Sum of all order values (including taxes, delivery fees (if not an Eat Club member, etc.)

- Total Number of Orders = Number of orders placed within a specific time period (e.g., month, quarter, year)

etc.)

Increasing AOV can directly impact the Lifetime Value (LTV) of a customer at Eat Club because LTV is directly impacted by AOV, Frequency, and Lifespan of a customer on Eat Club.

LTV = (AOV x Purchase Frequency x Customer Life Span)

Average Order Value (AOV) = Total Revenue / Total Number of Orders (as described in the column besides this)

Purchase Frequency (PF) = Number of orders placed by a customer within a specific time period (e.g., year)

Customer Lifespan (CL) = Average duration of a customer's relationship with Eat Club (e.g., 2 years)

{We won't factor CAC here since Product is already at a mature scaling stage}.

Frequency

Secondary

Number of Orders per day or per week.

You can only have 3 meals a day. Therefore making this the primary framework can cause churn as we might exploit channels such as spamming push notifications, etc.

Engagement Campaigns for Eat Club

Engagement Campaign	Hypothesis	Channel of Distribution	Persona/Type of User	Theme	Target feature	Pitch and Content	Goal of the campaign	Details	Offer	Frequency and Timeline	Success Metrics	Milestones for the campaign	Budget Allocation
Campaign 1 - "Discover Your New Favorite"	Casual users need encouragement to explore new restaurants.	Email, Social Media - especially WhatsApp and Instagram.	Casual User	Exploration	Discovery of the curated restaurants by Eat Club	"Get out of your comfort zone and try something new!"	Increase ordering frequency of the casual users. (Essentially trying to convert them to core users).	Showcase a new curated restaurant each week.	10% off first order from featured restaurant.	Weekly campaign Timeline - Month 1-3: Campaign setup and launch, Month 4-6: Optimization and evaluation.	Increase in Number of orders from featured restaurants.	20% increase in orders from featured restaurants within 3 months.	30% Email, 40% Social Media, 30% In-app notifications.
Campaign 2 - "Loyalty Rewards"	Core users value loyalty programs.	In-app notifications, Email.	Core Users	Loyalty	Loyalty program	"We appreciate your loyalty!"	Increase retention	Offer Eat Club credits for every order, redeemable for discounts. For Context - 1 Eat Club Credit = 1 Rupee.	Exclusive discounts for loyalty program members besides the Eat Club membership.	Monthly Timeline - Month 1-3: Campaign setup and launch, Month 4-6: Optimization and evaluation.	Increase in retention rate.	15% increase in retention rate within 6 months.	40% In-app notifications, 30% Email, 30% Social Media.
Campaign 3 - "The Power Club"	Power users desire exclusivity.	In-app notifications, Email.	Power Users	Exclusivity	Priority support	"You deserve the best!"	Increase retention	Offer priority support, exclusive restaurants that are yet to be added to all users.	Complimentary premium features.	Quarterly Timeline - : Month 1-3: Campaign setup and launch, Month 4-6: Optimization and evaluation.	Increase in retention rate.	20% increase in retention rate within 9 months.	50% In-app notifications, 30% Email, 20% Social Media.
Campaign 4 - "Share the Love, Get Rewarded"	Users will share their positive experiences with friends and family, driving word-of-mouth marketing.	Email, Social Media - especially WhatsApp and Instagram.	Core and Power Users	User-generated content	Social sharing	"Share your favorite Eat Club moments and get rewarded!"	Increase brand awareness and user acquisition	Encourage users to share photos or reviews of their Eat Club experiences on social media, using a branded hashtag.	1000 credits for every 5 shares, redeemable for discounts and orders directly. For Context - 1 Eat Club Credit = 1 Rupee.	Ongoing Timeline - Month 1-3: Campaign setup and launch, Month 4-6: Optimization and evaluation.	Increase in social media engagement and user-generated content.	50% increase in social media engagement within 3 months, 20% increase in user acquisition within 6 months.	60% Social Media, 20% Email, 20% In-app notifications.
Campaign 5 - "Anniversary Celebration"	Users will appreciate personalized recognition.	Email, In-app notifications.	All Casual, Core, Power Users	Personalization	Personalized communication	"Happy anniversary! Celebrate your joy with us!"	Increase retention	Send personalized anniversary messages.	Exclusive discounts on anniversary!	Annually Timeline - Month 1-3: Campaign setup and launch, Month 4-6: Optimization and evaluation.	Increase in retention rate	10% increase in retention rate within 12 months.	50% Email, 50% In-app notifications

Retention Design for Eat Club

Retention Curve:

Month 1: 70% (industry standard for food delivery services)

Month 2: 55% (adjusting for Eat Club's unique features and subscription model)

Month 3: 45% (considering the initial novelty factor wears off)

Month 4: 40% (stabilizing retention rate)

Month 5: 38% (minor drop due to seasonal changes)

Month 6: 36% (continued stabilization)

Month 7-12: 35% (long-term retention rate)

Observations and Insights:

1. Initial drop-off: A significant drop in retention (15%) occurs between Month 1 and Month 2, indicating that users may be trying the service due to novelty or promotions.

2. Stabilization: Retention rates stabilize between Month 4-6, suggesting that users who remain engaged are likely to continue using the service.

3. Seasonal fluctuations: A minor drop (2%) in Month 5 may be attributed to seasonal changes or holidays, impacting user behavior.

4. Long-term retention: The retention rate plateaus at 35% from Month 7-12, indicating a loyal user base.

To improve retention, focus on the following strategies:

1. Onboarding optimization: Enhance the initial user experience to reduce the Month 1-2 drop-off. One core observation in the Onboarding experience is that USERS DO NOT FIND THE SEARCH BUTTON ON THE FIRST APP SCREEN! THIS LEADS TO MAXIMUM CHURN FOR NEW USERS.

2. Engagement campaigns: Implement regular campaigns (like the ones mentioned in the above section) to maintain user interest and encourage repeat orders.

3. Personalization: Leverage user data to offer tailored promotions, restaurants, and features, increasing the perceived value of the service.

4. Loyalty program: Refine the loyalty program to reward long-term users and encourage retention.

5. Seasonal adjustments: Prepare for seasonal fluctuations by offering special promotions or features to maintain user engagement.

6. Continuous improvement: Regularly collect user feedback and iterate on the service to ensure it meets evolving user needs. And also updating the curation of brands and menus can help Eat Club's cause in this case.

By addressing these areas, Eat Club can optimize its retention strategy and improve the overall user experience.

Why do Eat Club users Churn?

Let us look at all the core reasons why Eat Club Users could Churn.

Resurrection Campaign for Churned out Eat Club users

Resurrection Campaign	Hypothesis	Channel of Distribution	Persona/Type of User	Theme	Target feature	Pitch and Content	Goal of the campaign	Details	Offer	Frequency and Timing	Success Metrics	Milestone for the campaign	Budget Allocation (Out of total 100%)
Campaign 1 - "Welcome Back"	Users who left due to lack of options will return for new brands and restaurants.	Email, Social Media - Especially WhatsApp and Instagram.	Users who churned due to limited options.	"New Arrivals"	New brands and restaurants.	"We've added new brands and restaurants! Come back and explore!"	Reactivate users who left due to limited options.	Showcase new additions, offer exclusive discounts.	20% off first order after reactivation	One-time email campaign, social media ads for 2 weeks	Reactivation rate (number of users who reactivated their subscription). Order frequency increase (average orders per user after reactivation).	Month 1: 10% reactivation rate. Month 3: 20% increase in order frequency.	20% (Email marketing, social media ads).
Campaign 2 - "Free Trial Revival"	Users who didn't want to pay for another subscription will try Eat Club again with a free trial.	Email, Social Media - Especially WhatsApp and Instagram.	Users who churned due to subscription fee.	"Try Before You Buy"	Free trial subscription.	"Experience Eat Club's curated experience with a free trial!"	Reactivate users who left due to subscription fee.	Offer a 1-month free trial, showcase benefits.	Free 1-month subscription	One-time email campaign, social media ads for 2 weeks	Free trial subscription uptake (number of users who take up the free trial). Conversion rate (number of users who convert to paid subscription after free trial).	Month 1: 500 free trial subscriptions. Month 3: 30% conversion rate to paid subscription.	25% (Email marketing, social media ads, influencer partnerships).
Campaign 3 - "Search Simplified"	Users who couldn't find the search button will return with a simplified search feature.	Email, In-app notifications.	Users who churned due to lack of search button.	"Find Your Favorite"	Simplified search feature.	"We've made it easier to find your favorite restaurants!"	Reactivate users who left due to lack of search button.	Showcase new search feature, offer exclusive discounts.	15% off first order after reactivation	One-time email campaign, in-app notification	App engagement increase (average time spent on the app after search feature update). Search feature adoption rate (number of users who use the new search feature).	Month 1: 20% increase in app engagement. Month 3: 50% adoption rate of new search feature.	15% (In-app notification, email marketing).
Campaign 4 - "Vegan/Vegetarian Delights"	Users who left due to limited vegan/vegetarian options will return for new additions.	Email, Social Media - Especially WhatsApp and Instagram.	Users who churned due to limited vegan/vegetarian options.	"Plant-Based Delights"	New vegan/vegetarian options.	"Explore our new vegan and vegetarian options!"	Reactivate users who left due to limited vegan/vegetarian options.	Showcase new options, offer exclusive discounts.	20% off first order after reactivation	One-time email campaign, social media ads for 2 weeks	Order increase from vegan/vegetarian options (average orders from vegan/vegetarian restaurants). Customer satisfaction increase (measured through surveys or reviews).	Month 1: 15% increase in orders from vegan/vegetarian options. Month 3: 25% increase in customer satisfaction.	20% (Email marketing, social media ads, influencer partnerships).
Campaign 5 - "More Exclusive Deals Ahead"	Users who left due to no significant difference in offers will return for exclusive deals.	Email, In-app notifications.	Users who churned due to no significant difference in offers.	"Unlock Exclusive Deals"	More NEW Exclusive offers and discounts.	"Get MORE NEW exclusive deals and discounts only on Eat Club!"	Reactivate users who left due to no significant difference in offers.	Showcase exclusive offers, partner with popular restaurants.	25% off first order after reactivation, exclusive deals for a month	One-time email campaign, social media ads for 2 weeks	Redemption rate (number of users who redeem exclusive deals). Average order value increase (average order value after reactivation).	Month 1: 20% redemption rate of exclusive deals. Month 3: 15% increase in average order value.	20% (Email marketing, social media ads).