Engagement & Retention project | Swiggy

Core Value Proposition:

Universal Brand Proposition: Food from the Best restaurants of the city delivered on time with Amazing offers

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Customers experience this value prop via

• Being offered an Exhaustive list of Restaurants across Local & National chains catering to different cuisines and price points, hence there's something for each user cohort, every hunger pang of theirs across occasions :)
• Majority of the Restaurants run various promotional offers for different use cases - Offers such as FLAT 100 @ MOV 199, 60% upto 120rs, BOGO, JUMBO, Pocket Hero, PARTY etc.
• The end-2-end experience of ordering gets further elevated by a superior tech product and customer support where-in Customers are made aware of every flow of the pre- and post ordering process with precise ETAs
• The aforementioned mediums enable customers to experience 'Convenience & Affordability' at the same time driving stickiness and repeats for the platform

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Natural Frequency

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Platform's Repeat Rate across all user cohorts and geographies hovers in the range of 2.5-3orders/month

• Casual : 1-2 orders / month
• Core: 8-10 orders/month
• Power: 12-15 orders/month

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Category Extension

In decreasing order of Geographical coverage, Swiggy has the following categories/products as well:

• Dine-out : Present across the Top 100 cities majorly
• Instamart: Available across the Top 30-35 cities
• Genie: Peer to Peer Logistics ; Present among the Top 25-30 cities
• Mall: Hosts non food categories outside Instamart for instance Electronics, Kitchen appliances, Toys, Books, Clothing etc. ; present in Bengaluru only
• Minis: Local artists/sellers catering to Personal care, Gourmet products, Bakery, Jewellery etc. ; present in top 2-3 cities majorly

E&R Metrics

Active Food User

An active user is one who has >=1 completed order in the last 4 weeks

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Active Swiggy One User

A user who has an active One subscription and has placed a 'ONE' order in the last 4 weeks

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Natural Frequency

Natural Frequency for Swiggy is Money driven by Frequency *AOV

Customer Segmentation

Casual

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• Nomenclature: Casual Users can also be termed as Infrequent Indulgers
• Frequency: Their frequency is 1-2/month and generally would order on special occasions
• Ordering Pattern: Due to the extremely low ordering frequency, their ordering patterns could be skewed towards specific dishes/cuisines say Cakes/Desserts or once in a while indulgence say Asian food/Pizzas when they want to break-in the monotony
• Breadth: Their breadth of involvement is limited to 1 product only i.e. Food
• Demographics: Such users are from the higher age groups say 40+ staying with family + kids and already have a means to cook at home
• Features/Value Prop: Variety of Restaurants available specially Gourmet and Premium categories
• Loyalty Program: Not Applicable
• AOV: 400 - 500rs
• Discount Redemption: Low (<=40%)
• Unit Economics: >=10rs

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Core

• Nomenclature: Core Users can also be termed as 'Foodies'
• Frequency: Their frequency is ~2/week
• Ordering Pattern: Ordering patterns could be diverse across cuisines and price points, it could also vary based on the day of the week, weekday orders could be 'For One' while weekend orders could be for more folks as catching up with friends and house parties
• Breadth: Their breadth of involvement is limited to 1 or 2 products maximum, food and Instamart
• Demographics: Such users are from the age groups 20-40, would have a means to daily meals, however tend to order to break the monotony, indulge or for house parties
• Features/Value Prop: Moderately price sensitive hence would value Discounts & Deals from the more popular restaurants of the city
• Loyalty Program: Moderate propensity to subscribe to Swiggy One
• AOV: 300 - 350rs
• Discount Redemption: Moderate; 50% - 70%
• Unit Economics: ~2-5 Rs

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Power​

• Nomenclature: Power Users can also be termed as 'Swiggy Loyalists'
• Frequency: Their frequency is ~3-4/week
• Ordering Pattern: Ordering patterns are skewed towards a few Go-to restaurants mostly restaurants serving meals/combos etc.
• Breadth: Their breadth of involvement is across >=2 products Food, Instamart and in some instances Dine-out too
• Demographics: Such users are from the age groups 20-30, staying alone and depend on online food ordering for sustenance, might be dependent on office cafeteria for 1 meal and Swiggy for the other
• Features/Value Prop: High price sensitivity hence would value Discounts & Deals more than anything else
• Loyalty Program: High propensity to subscribe to Swiggy One as they can recover the Swiggy One subscription cost the fastest
• AOV: 200- 250rs
• Discount Redemption: Very High ; >=80%
• Unit Economics: Negative UE customers; <0rs

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Engagement Campaigns : Frequency

Swiggy operates at a 45%-46% Market share lagging behind Zomato. In Food Delivery market share is calculated basis Volume of Orders and not GMV, hence building Engagement campaigns on the Frequency framework.

Campaign I: Casual to Core Movement

• Segment: Casual User
• Goal: To build higher engagement with these users via increasing App opens and subsequently ordering frequency
• Pitch/Content: These are low involvement, low mind share and fewer use case customers, hence engaging these users in terms of mind share would be more rewarding compared to a vanilla discounting promotion
• Offer: Leverage Social Proofs in the form City's Most Loved restaurants, Award Winning Restaurants in your area, Social Media Influencer go-to restaurants ; Idea is to engage with them beyond being transactional while positioning Swiggy as the one stop shop for all food recommendations

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Push Notification/WhatsApp Channel

• In-app Property : There's a new widget on Swiggy called the 'Explore' which features Restaurants across similar categories and leverages Social Proofs
• Content: "Haniel, Check out Koramangala's Top Crowd Pullers this June'
• Landing Page would be the Explore widget in-app

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• Frequency & Timing: Frequency would be 'Once or Twice' a week for 4 weeks; Timing to be Friday/Saturday evening as that would be the highest propensity in terms of use case for them to order driving better CTRs and Conversions
• Success metrics: App opens generally trend in the range of 7-8/month, they should increase by ~50% post the campaign period.
• Campaign Performance: Avg CTR benchmark for a Push Notification lies in the 1%-2% ballpark, conversions to be even lower ; for this particular campaign/channel CTRs to be in the ~5% ballpark with 1-2% users getting activated via a single instance of communication.

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Campaign II: Gamifications​

• Segment: Core User
• Goal: Create virality and WOM through the campaign because of the novelty of moving beyond discounts, offers etc.
• Pitch/Content: Order >=4 times in the next 7 days and stand a chance to win an all paid meal at a 5 star hotel of your choice
• Offer: Reward shouldn't be higher discounts, free Swiggy One. It has be an offline reward so its enticing enough. Depending on the budgets, can also consider product rewards such as iPhone 15, Bose headphones etc
• Frequency & Timing: Push notification to be triggered on Mondays at 7 pm
• Success metrics: Frequency uptake for the users who got activated due to this campaign beyond the 7 day period. For instance, 100 users ordered >=4 times, however 1 user ordered 7 times and he/she would win the iPhone. Frequency uptake to be measure for a month for all 100 users beyond the contest cycle.
• Campaign Performance: 10% of the users get activated using the Push Notification and have higher frequency than their previous 4W average. >=2-3% users all order ?=4 times

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Campaign III: Casual to Core Movement​​

• Segment: Casual User
• Goal: To gain higher mind share and position Swiggy as the Go-to for any festive needs
• Pitch/Content: India being a land of festivities, every month there's a festival(small/big) in some part of the country and naturally the propensity to order or indulge significantly rises, Build that connect at for such geographically nuanced festivals across the country
• Offer: Festive relevant Cuisine Discounts, for instance for Diwali Sweets are the most orders - Have an exclusive discount offer with National brands and local brands like Haldiram's, Bikanerwala, Apna Sweets (Indore) etc. on FLAT200rs off on 599rs (AOV organically spikes due to the festive) ; Biryani Bonanza during Durga Puja in Kolkata, Desserts during Valentines day

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• Frequency & Timing: Begins 2-3 days prior to the festival daily and 2 PNs on the day of the festival ; Important: Needs to be in the local verbatim, not English; Timing to be post 4pm where in the propensity to order increases, on the festive day 1 communication in the morning and the other post 4pm
• Success metrics: As the campaign would be very targeted and hyperlocal in nature, >=10% customers getting activated would be the goal, Higher order volume for the specific cuisines during the festive period

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Campaign IV: Casual to Core Movement​

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• Segment: Casual User; There would be a subset of this segment whose primary app would be Zomato hence their share of wallet is extremely low with Swiggy, inspite of a healthy use case frequency
• Goal: To increase ordering frequency from 1-2/month to 1/week ; 167% growth
• Pitch/Content: Exclusive Customized Offers with a Expiry Date
• Offer: Has to be a higher depth offer than what is being universally offered for instance if the highest offer is 60% off, position them a marginally better offer, for instance FLAT125@199
• Communication: "Haniel, Here's wishing you a Happening Weekend, FLAT125@199, Valid only for the next 48 hours'! We're just getting started :)"
• Frequency & Timing: Campaign duration Friday 5 pm to Sunday 5pm; 2 Push notifications Friday 5 pm and Sat morning 11am
• Success metrics: 10% of the TG to be activated across the 4 weeks of the campaign. The 10% activated TG to have improved frequency after the campaign duration Post to Pre benchmark

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Campaign V: Core to Power Movement​

• Segment: Core User; A subset of the core users would be dual-appers would check Swiggy & Zomato both apps for discounts and then order from the cheapest platform
• Goal: To increase ordering frequency from 2/week to 3/week ; 50% growth in weekly frequency
• Pitch/Content: One Lite Offer Packs
• Offer: Miniature One Packs like Next 20 deliveries free for 100rs
• Communication: "Haniel, You've unlocked a One Lite Offer, Your next 20 deliveries are on US, Buy NOW'
• Frequency & Timing: Offer to be added onto the cart automatically whenever the user places the next order, Push notification to be scheduled on days post Wednesday beyond 5pm where in the weekend Indulgent behavior starts kicking in
• Success metrics: Its a very enticing offers so the goal should be to get ~20% of the TG get activated. Atleast 20-30% of the activated TG to re-subscribe to One Line at the standard pricing

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Campaign VI: Core to Power Movement​

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• Segment: Core User; are inherently Foodies who do not depend on Swiggy for sustenance but order for indulgence or to break the monotony
• Goal: Build further use cases leveraging the indulgence attribute To increase ordering frequency from 2/week to 3/week ; 50% growth in weekly frequency in a stable state
• Pitch/Content: Use cases like Snacks and post Dinner desserts ; Snacks is a category where customers generally tend to have some quick dishes such as Samosa/Vada Pav etc. Post dinner desserts is also a good option to trigger usage
• Offer: "You must have tried the Death by Chocolate from Cornerhouse, but have you tried it at a 40% off"
• Frequency & Timing: Push notification to be triggered on Mondays & Wednesdays at 10pm, due to Monday blues
• Success metrics: This is a slow burner in terms of building use cases in consumer's minds hence would take some time hence a 2%-3% activation on the TG would be helpful

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Retention Curve

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• In a food delivery ecosystem, dormancy starts 4 weeks after the prior transaction hence retention is also measured starting from a D30 time-frame
• The 12 month Retention rate hovers in the range of ~55% - 60% (Zomato's annual report)
• This begins to flatten post a 90 day period, where in most of the newly acquired users drop out of the ecosystem

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Most retained ICPs

• Swiggy has 3 consumer cohorts P1,P2,P3. P1 being the premium low frequency customers, P2 are the typical corporate goers while P3 are majorly discount seeking students
• Best retained customer cohort are P2s who are moderately restaurant loyalist (mostly order from a handful of 4-5 restaurants) and then in sometime get habituated to the app and the service experience, hence becomes second nature to use for Ordering, P3s aren't as high on retention as they're Deal seekers and Dual appers, would check for offers before every order and use the cheapest platform, they are neither restaurant nor platform loyal

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Acquisition Channels

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• Swiggy currently leverages mediums such as Performance marketing (Insta & Facebook), Youtube ads, TVC, Push notifications for 'Registered Not purchased' users
• The performance marketing campaigns are split geographically as in there's a different campaign running for the Top 7 metro cities, another campaign for the next 20 cities, 3rd campaign for the next 100 cities, fourth campaign for the remaining 350-400 cities
• Performance marketing on Instagram positioned towards P2 users in the Top 7 metro cities results in the Best in class Retention owing to the inherent use case of these customers

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Products/Features driving Retention

• Swiggy One is one of the major contributors for customer retention
• Exclusive Restaurants: Swiggy also has a healthy supply of restaurants that are exclusive only to them and do not operate on Zomato. for instance 'The Rameshwaram Cafe' was Exclusive to Swiggy until Apr'24, such exclusive supply also drives retention and stickiness

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​Churn​

Voluntary Reasons

• Unsatisfactory IGCC resolutions (IGCC - Instant Gratification customer complaint) specially in instances of a Wrong order and missing order. For instance, the order value/item value was of 200rs, customer is being given a coupon code of 100rs
• Mishandled orders: Spillage during transit specially with cake orders, if the cakes get smudged during transit no amount of a coupon code is enough to pacify the customer
• Not-Delivered orders: Instances where customers have to wait for their orders for a considerable amount of time and then finally the order gets cancelled
• Egregious Delay Orders (ED): Swiggy defines ED orders as the Orders which were delivered in PSLA + 20mins
• Wrong Items: Incorrect items getting delivered to customers, becomes High Severity when a Veg customer receives a Non Veg order
• Missing Item: When there are multiple items in an order, the plausibility of the rider/restaurant missing some items increases
• Favourite Restaurants Not Serviceable or Not on Discounts : Repeated instances of favourite restaurants not being serviceable on Swiggy while they're available on Zomato OR have discounts on Zomato but none on Swiggy,
• Stale Food: Though food quality is owned by the Restaurants, customers tend to believe that Swiggy should own the responsibility for the mishap and then tend to switch platforms
• Incessant Calls: Delivery Riders are unable to trace the location and call repeatedly, however doesn't happen with Zomato
• Doorstep Delivery Not Available: In large societies, sometimes riders deliver to the main gate or the tower entrance only, do not go all the way to the customer's door, few instances however does exist and results in churn as they do not observe the same behavior with Zomato riders

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In-Voluntary Reasons

• One-time use case: Ordered as a one time use case on Swiggy for a special occasion
• Life-event: Life events such as Gotten married or has shifted with parents, hence no longer depends on food delivering
• Budgetary concerns: User has lost his/her job and hence has started cooking to minimize expenses
• Changing Dietary Preferences: Happens when a customer wants to completely cut off outside food for a fitness goal

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High Impact Reasons​

• Non-Delivered Orders specially when they're off hours, for instance Late Night hours beyond 12/1 midnight
• Unsatisfactory IGCC resolutions where the refund value isn't in line with the customer payable
• Wrong Items specially in instances of Veg orders getting interchanged with Non veg
• Order Spillage
• Changing Dietary Preferences

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Signals to predict Churn

• Extremely Poor Order Ratings: If a customer has rated an order 'Extremely Poor' say 1 or 2/5
• Consistent Average Ratings: A customer rated the last few orders an average 3/5
• IGCC tickets: IGCC tickets raised by customers
• IGCC Value Given: IGCC Value given is the value of cashback in the form of coupon code; Ratio of IGCC Value given to the Customer Payable if <=50% has a higher possibility of the customer getting churned due to unsatisfactory resolution
• Egregious Orders: ED order customers where in the order got delivered in PSLA + 20mins
• Social Media Escalations: High severity and churn possibility as the customer has taken the effort and post it on Social media

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Resurrection Campaigns

Campaign I

• Segment: Power Users as these were Swiggy Loyalists and hence have experienced the CVP and Aha moment
• Pitch/Content: High Depth Offer construct on their most ordered Restaurant/Item
• Offer: "We miss you, Here's a FLAT200rs off on an order of 499 on your favourite restaurant Truffles"
• Frequency & Timing: Push notification on Fridays, owing to the highest propensity when a customer could order
• Success metrics: Customer activations in the ballpark of ~15% due to the campaign being very targeted and of High depth offer. Customer placing the 2nd order beyond the discount would be the actual test.

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Campaign II

• Segment: Power Users with Non-renewed One and have churned
• Pitch/Content: Your next 5 deliveries are on us
• Offer: Here's a 1 in a million Offer, Your next 5 deliveries are on US, Order by Sunday 9pm to Unlock
• Frequency & Timing: Push notification on Fridays evening ~7pm giving the user 48 hours
• Success metrics: Customer activations in the ballpark of ~20% due to the campaign being very targeted and the customer has already experienced the CVP of Swiggy One. Customers to start ordering once the 5 deliveries exhaust.

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​Campaign III

• Segment: Core Users
• Pitch/Content: Emotional Resonance via Celebrating Swiggy Milestones
• Offer: "Its been 540 days since we first met, Click on the link to relive our Love Story (Swiggy report card in the form of most ordered items/restaurants, birthday orders, party orders etc) and Hoping Today would be a new milestone for a Happily ever after"
• Frequency & Timing: Push notification on Monday evening to break the monotony against Monday Blues; Campaign to be live once a week
• Success metrics: High CTRs in the range of 8~-10% owing to the campaign positioning. App opens beyond this campaign would be a true measure of the success.

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​Campaign IV

• Segment: Core & Power
• Pitch/Content: Storytelling
• Offer: "Your favourite Smoor Newyork Cheesecake(to be customized) is missing you, Tap to relive the memories. We'll top it up with a surprise"
• Frequency & Timing: Push notification on Friday evening, Content to be used only once and then to be refreshed
• Success metrics: High CTRs in the range of 8~-10% owing to the campaign targeting

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​Campaign V

• Segment: Casual
• Pitch/Content: Moments and Occasions, Building Curiosity
• Offer: Congratulations, You've been selected for an Exclusive offer this Diwali from Haldiram's. Enter the Code 'ABC789' to Unlock
• Frequency & Timing: Push notification on a day prior to the festival, 2 push notifications/whatsapp messages to be sent
• Success metrics: Customer Activations 2-3% as these have historically been casual users

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