Engagement & Retention Project | Swiggy

Understanding Product

Swiggy started as an online food delivery company, solving for convenience. Currently, it acts as a parent app that has expanded to array of services majorly solving for all food and household needs.

Website

Some of the key features of Swiggy are:

Food delivery: Solves for convenience of delivery of food from restaurants to home. It delivers food from distant restaurants as well.
Instamart: Solves for instant (approx 10min) delivery of household items, ranging from grocery to electronics
Dineout: Solves for seat reservation at restaurants for dine-in, extending additional offers and discounts
Genie: Solves pickup & drop service of any item within a city
Minis: Acts as a mini online store for small sellers to sell products online instantly
Swiggy X HDFC credit card: Solving for swiggy exclusive benefits on food to household items deliveries, apart from regular benefits

Most users prefer Swiggy over its competitors because it meets multiple needs, offering quick delivery, competitive prices, and the convenience of an all-in-one, easy-to-use app from the comfort of home.

User	Natural Frequency
Sub-Product	Food Delivery	Instamart	Dineout	Genie
Casual User	2-3 times a month	1-2 times a month	Rare	Basis Demand
Core User	6-8 times a month	4-5 times a month	Occasionally	Basis Demand
Power User	10+ times a month	5+ times a month	Once a month	Basis Demand

Note: Loyal and power users seem to coincide as most of them do end up purchasing the Swiggy One membership.

Customer Segmentation

User Type	Casual (ICP 1)	Core (ICP 2)	Power (ICP3)
Name	Mr./Ms. Price concious	College buddy/Fresher	Mr./Ms. Office goers + Foodie
Gender	Male/Female	Male/Female	Male/Female
Age	21-60	18-25	24-40
City	Tier 2 and 3	Tier 1 and 2	Tier 1 & 2
Occupation	Job/Business	Student/Fresher	Job or business
Income	5+	0 - 10L	10L+
Family (Members, Marriage, Kids)	Family orientation	Unmarried, stay with friends, or with a family of 4-5	Single, No kids. Either lives with a family of 4 or can order for them Married, 1-2 kids, Lives with a family of 4-6
Mindset: Time (Convinience)/Money	Money	Money but convinience	Values convenience in this category and quality experience
Usage Characteristics	Orders for self, friends, family	Orders for self, friends, family - but compares from other places	Orders for self, friends, family
Apps Used	Social media, finance, news, health, e-commerce	Social media, Food delivery, games, ott, finance	Social Media, OTT, Food Delivery, Finance, Health
Money spent	Household, personal, leisure	Leisure, Food, Personal	Leisure, Food, household work, OTT, Health
Recency of use case	Sometime this month	This week	This week
Natural Frequency	2-3 times a month	6-8 times a month	10+ times/month
AOV	200	300	400 (typically Swiggy One user)
Pain Points	Urgency in delivery Prices (compares with other places)	Late night orders, no cook/good food in mess/parties	No cook/unable to cook, urgent/planned deliveries, unavailable seat at restaurants
Valued Features	Quick delivery, Instamart/Food delivery with less frequency, and discounts	Delivery and discounts, Instamart, Food with rare exploration of other features	Quick delivery, use 3+ features actively, seamless experience - online/offline
JTBD of the persona	Quick delivery with great discounts	Delivery of food and few range of items with good discounts	Quick delivery at home from a range of categories in food and household items
Discovery	Word of Mouth	Word of mouth	Word of Mouth/News/Ads
Level of Engagement	Low	Medium	High

Engagement Framework and Core EnR Metrics

An active user for Swiggy is one, who has placed at least 2 orders across offerings within first 15 days of activation, and continues to order at least 2 orders every month.

Engagement Framework	Relevance	Key Metric to be tracked	Rationale
Breadth	Primary	AOV = no. of orders x value of order	To make users experience the core value proposition more, by allowing them to experience other services as well. Other engagement frameworks typically hit a ceiling in terms of how much a user can experience the core value proposition. Keeping the current and broader company objective of profitability in mind.
Depth
Frequency

Engagement Product Hook

Key observation: Many users shared that they spend much time scrolling through the app to decide what to order. However, the more they scroll, the more confused they get, devaluing their experience. Often times this leads to either not placing an order, or ordering a lower price dish. This is a clear example of Hick's law.

Problem statement: Decrease the effort of deciding what to order.

Goal: Create a hook that solves mindless scrolling and the inability to decide what to order.

Note: Suggestions allow Swiggy to leverage the user behavior and order data they have, into creating a suggestion module, increasing user experience and an opportunity to increase order value.

Success Metric:

No. of users who placed an order through the feature/no. of users exploring the feature
Reduced overall time spent on the app and increase in conversion

Solution: Swiggy Bot

Swiggy Bot will be used to suggest users the dishes they should order, based on their order history, and certain categories of choice. This will be an interactive bot, supporting users to make conscious choices, eliminating cognitive overload through progressive disclosures.
At the end, choice of ordering through the bot will be given as an option to prevent user to search things again on the app.
Even if the user is not happy with the suggestion, and wishes to explore, they will likely prefer ordering the suggested dish due to anchoring bias.
The same can be enabled through WhatsApp integration, allowing non-committed users to explore the options, choose the dish, and then push them to order through the Swiggy app.
Swiggy can recommend slightly higher priced dish than the AOV of the user, which will slowly push the user to order higher-value dish, without any issues.

User Flow -

Future Recommended Hooks -

Since users value prices, Swiggy can introduce a gamified version to unlock prices like Cred wheel, which engages the user, and builds a bias of getting a reward.
Instamart can introduce a grocery checklist feature, increasing user engagement and higher chances of conversion.
Dineout can introduce 2 features:
1. Moments: Share insights about what event is happening in which hotspot, attracting users to the location, and increasing chances of conversion.
2. Vibez: Reels/Stories format to be created and shared by restaurants & cafes, to allure the crowd, increasing engagement on the app.

Engagement Campaign

Broader objective is to increase the following metrics, by engaging users through campaigns based on user insights.

Customer satisfaction
No. of orders/user
Value of order/user/delivery

Engagement Campaign	Hypothesis	Channel of Distribution	Persona/Type of User	Target feature	Pitch and Content	Goal of the campaign	Offer	Frequency and Timing	Success Metrics	Milestones for the campaign
Khane mei aj kya khaoge?	It is a natural human tendency to be confused on what to eat/order - during parties, going out, when mom asks, or for self. This campaign will work as it is relatable to the user, and solves a problem they are facing.	Digital Social Media - Instagram Youtube Push Notification	All ICP 2 & 3 (Core and Power)	Swiggy Bot	Ads - Masterchef mother asks the child about what to cook for dinner, as she is tired for the day full of work. Child searches on the bot and places an order saying, "Swiggy karo aur aram karo" Friend rants about confusion of what to ask the cook to make for dinner. Since it was a festive eve, the friend searches on the bot and places the order saying, giving an off to the cook. Notification - At between 7pm. Kya khaoge aj? Confused as usual. Swiggy Bot see puchlo.	Encourage Core and Power users to order through Swiggy frequently	First order through the bot will get 10% off.	Product launch: One time blast with mother campaign. As per metrics performance, can release the friend campaign. Can use push notifications once a week on Friday/Sunday evenings.	Increase in orders through the bot.	Increase in clicks on the bot Increase in successful orders Increase in successful conversions on additional suggestions
Healthy raho, wealthy bano!	With the growing demand and focus on health, and our core audience being office-going professionals, unlocking and engaging in a health-focused cuisine can increase the frequency of orders, and capture more users. Health-focused items from Instamart can later be pushed to them.	Digital: Social Media - Instagram WhatsApp Push Notification	All ICPs	Guiltfree Options	Let's make it a challenge. Let's make the coming week a healthy week. If you eat 1 guilt-free meal from us for 1 week, Rs 50 discount on next 5 orders is on us. Additionally, 1 month's Swiggy One free for you. Swiggy Team is taking this healthy week challenge, can you?	Encourage all ICPs to explore healthy food options.	For who successfully completes the challenge, they will be promoted through Swiggy social media channel and the mentioned offer. *Conditions apply	Yearly challenge. 1-time blast. Exclusive display on the landing page of the app.	Increase in frequency of orders in the guilt-free category. Expense<earning Increase in retention rate.
Dur rehke bhi sath hai	A lot of users are ordering for families on occasions, festivals, or parties.	WhatsApp Push Notification	All ICPs	Gift Cards	Ap apno ka dhyan rakho, hum apka dhyan rakhenge. Ap khas mauko pe apne saare chahne valo ke sath an mil sake toh kya, share Swiggy Gift Cards with your loved ones, ek lifafe ki tarah	Encourage ICPs to use more of gift cards for both swiggy/non-swiggy users. Ensure Swiggy is the first choice for any instant delivery needs especially for upcoming festival season.	For every 5 Gift Cards, flat Rs10% off on the next order.	2 days before every major festival	Increase in no. of gift cards created every festival
Indian Rail see Tez!	A lot of users are train travellers, where they are mostly in a hurry to catch the train. Solving the order needs during travels, and a comparison to the delay in trains can be a satire and can instil confidence in Swiggy's fast deliveries.	Ad Banner (Food Delivery) Push notification	All ICPs	Food on Train & Instant Delivery	Train late ho sakti, magar hum nahi. Chahe station pe ho, ya apke ghar.	Instill confidence on fast deliveries, and promote a feature	10% off on first order	Notifications should go ideally basis available user level data of searching or booking for trains, or similar.	Increase in IRCTC related orders. (Evaluate if the same users ordered more through regular food deliveries/instamart)
Local Must Try	Engage users to try more unique and famous dishes of the city they are living in or travelled to, thus, increasing the no. of orders.	Social Media Push Notifications	All ICPs	Local Must Try	Do you ever feel that you have lived in a city, or travelled to, but didn't even try their special cuisines from most famous places? Not anymore!	Spread awareness about the feature so that users try more of local special cuisines & dishes	Rs 40 off for 1st time order in the sub-category of cuisine under Must Trys	Once a month, on a weekend or whenever the city changes in the user's address	Increase in orders of the dishes under the category, identified through the feature

PS: All campaigns has an element of Hindi, to bring more reliability for the users, as most of the users interacted with spoke/understood Hindi comfortably.

Retention Design

When is a user considered retained?

When a user places an order through Swiggy at least once, every month.

PS: The following representation is drawn with assumed numbers basis benchmarks

Note: Food delivery apps typically observe a retention rate of about ~15%, by the end of 4th week (1 month) post download.

Keeping the definition in mind, the retention rate flattens to about 7% until 4 consecutive months of usage.

Retention % vs. Month for Swiggy Users.png

Observation:

Swiggy One, providing benefits, in combination for Instamart and Food delivery provides the best retention, especially driving power users to increase frequency and order value. The other services like genie, dineout play an interesting role in creating an ecosystem to solve all problems related to deliveries for a user.
ICP 3 (Power Users) of office goers, who are big-time foodie, drive maximum retention.
In terms of channel, basis user interactions, Word of Mouth seems to be the best channel working for them.

Note: The new launch of Swiggy X HDFC is a great GTM for EnR, we are yet to observe the learnings through that initiative.

Churn

Churn Reason	Category	User Insights Indicating Churn
High prices	Voluntary	Increased time spent on menu page Drop offs at cart Decrease in frequency of order Items removed/Total added
Delayed Deliveries or unavailability of rider	Voluntary	Increase in calls to the driver Time spent on delivery tracking page > average/ideal time spent Customer reviews - social media/app store Increase in support tickets Pickup from restaurant/dark store > Average/Ideal time
Poor delivery experience	Voluntary	Increase in calls to the driver Customer reviews - social media/app store Increase in support tickets
Item delivered is not as per expectation or is wrong	Voluntary	Customer reviews - social media/app store Increase in support tickets Increase in compensation
Preferred places not often accepting orders	Voluntary	Drop-offs from restaurant page
Unsatisfactory customer service	Voluntary	Poor customer support ratings Increase in unresolved tickets Increase in compensation
Relocation	Involuntary	Increase in searches in unserviceable areas Sudden churn/no-use
Accessibility in nearby areas & availability of vehicle	Involuntary	Decreased frequency of order
Mindset - Prefer Home Cook Food	Involuntary	Sudden churn/no-use Decreased frequency of order
Lost purchasing capacity	Involuntary	Sudden churn/no-use Decreased frequency of order Decrease in AOV
Death	Involuntary	Sudden churn/no-use

Due to the above reasons for churn, some of the negative actions that can be observed:

Reduced order frequency
Decrease in AOV
Stopping Swiggy One membership
Frequent cart abandonment
Ignored offers
Unsubscribing from communication channels

Resurrection Campaign

Based on user calls, few reasons of churn as listed above for primarily identified. Below are a few ideas on resurrection campaigns, targeting those reasons for churn.

Resurrection Campaign	Hypothesis	Channel of Distribution	Persona/Type of User	Theme	Target feature	Pitch and Content	Goal of the campaign	Offer	Frequency and Timing	Success Metrics	Milestones for the campaign
Treat yourself	Targetting students during special moments of delight can potentially bring back users to experience the offering/feature	Push Notification	ICP 2 - Students	Breaking cost barrier	Food Delivery	Want to take a break from that stressful hours of study? Take a break, you deserve it.	Core to potentially power, or re-activation	Unlock discounts, every second order, up to 3 orders where offer is used.	Mid-days, especially during examination months.	Increase in the number of re-activated users, the number of orders placed by re-activated users, and the overall improvement in customer satisfaction.	No. of coupons order was used and if users ordered again within 15 days or not.
Impress your crush	Targetting students during special moments of need can potentially bring back users to experience the offering/feature	Push Notification Social Media	ICP 2 - Students	Delayed delivery and experience	Instamart	Trying to impress someone? Not nice to go empty handed. Small gestures count. Get the delivery in 10mins with Instamart.	Core to potentially power, or re-activation	Unlock 1 month free Swiggy One.	Evenings, once a week on weekend.	Increase in the number of re-activated users, the number of orders placed by re-activated users, and the overall improvement in customer satisfaction.	No. of coupons order was used and if users ordered again within 15 days or not.
Delivery on time or on us	Re-build confidence on timely deliveries in the minds of users	WhatsApp Social Media	ICP 2 & 3	Delayed delivery	Food and Instamart	Better late than never? Don't worry. We promise to not even be late, varna paise wapas.	Core to power and re-activation	Refund the value of item only to swiggy money.	One time blast	No. of refund cases should be less than 1%	Timely delivery No calls to user or vice-versa Improved rating and retention
New city troubles	Encourage power users to order even when they travel or changed cities	Push Notification	ICP 3	Relocation troubles	Swiggy One	Moved to a new city? Busy in shifting? Travel hassles? Worry not, Swiggy hai for all your needs	Power User retention	1 month free swiggy one subscription	When the location changes	Retention in subscription post 1 month	Increase in orders
Mandi feels	Encourage users to order from Instamart	Social Media	ICP 1 & 2	High Prices and local accessibility	Instamart	Ab mandi jaisa bhav on Instamart, without the burden of carrying the whole weight, in 10min	Casual to Core and re-activation of casual and core	Dhaniya/chocolate for free for orders above 299 Adrak/Coke for orders above 399	Once a week till 2 months	Increase in frequency and order value