Founded in 2014, Swiggy is India's leading on-demand convenience platform with a vision to elevate the quality of life for the urban consumer by offering unparalleled convenience. It connects consumers to over 290,000 restaurant partners in over 600 cities. Using innovative technology in logistics space, Swiggy provides a hassle-free, fast, and reliable delivery experience.
Swiggy’s core value proposition revolves around online food delivery across a huge network of restaurants offering variety of cuisines.
With a vision to elevate the quality of life for the urban consumer by offering unparalleled convenience, they have expanded into other verticals like Instamart (on-demand grocery delivery) and Swiggy Genie (same-day package delivery).
It is present not only to order online, but also help dining out by making table reservations and paying bills offline.
On-demand delivery of food and groceries is how users most commonly experience the core value proposition.
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Service | How users experience Core Value Proposition |
---|---|
Online Food Delivery | - Search for cuisines from a wide range of restaurants within the city - Review images, ratings, prices, and healthy options - Place orders using offers, coupons, UPI, and bank cards - Receive timely deliveries (approximately 90% on-time rate) - Enjoy the customization of food |
Dineout | - Explore top restaurants & dishes based on curated recommendations - Reserve tables in advance for dine-out experiences and get extra discounts on advanced reservations. - Pay bills via Swiggy Dineout feature and get discounts on walk-in restaurants |
Genie | - Promptly send and receive parcels within the city |
Instamart | - Instantly order and receive fresh vegetables - Order and promptly receive home essentials |
We haven't taken supply side of restaurants for our assignment. Only users on demand side have been considered here.
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Based on our observation from user interviews and secondary research online, two of the core products: food delivery and instamart contribute to majority to overall revenue (>80%). We have taken it into account to draw an engagement framework analysis:
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Please see the attached PDF for deep dive. It has been done on basis of casual, core and power users.ICP __ Swiggy - ICP (1).pdf​
Phase-based rollout for top food influencers and dineout power users with immediate availability for dineout options and gradual extension to food delivery.
Push notifications, In-app banners, & Social Media Influencers.
Enhanced discovery and social interaction, personalized recommendations, and leveraging influencer reach for broader awareness. In our research, users are more likely to order recommended food and often look out for them. It also helps in reducing bad order experiences and increasing retention.
Initial Phase:
Second Phase: Extend Playlist Feature to Include Food Delivery
Introducing Swiggy Hygiene Seal!
Now you can order with confidence from restaurants that have been certified for top-notch hygiene practices by the Swiggy team. Look for the Blue Tick, which is the mark of the Hygiene Seal, and enjoy your meals worry-free!
In-app search, Push notifications, In-app banners, Social Media, Email newsletters.
Building trust through verified hygiene practices, addressing a top user concern, and differentiating Swiggy from competitors like Zomato. Encourages restaurants to maintain high hygiene standards, improving the overall food ecosystem.
Initial Phase: Certify Top Restaurants
Second Phase: Expand Certification
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Goal of the Campaign:
Encourage frequency of orders to build a habit. Convert casual users into core users and core users into power users.
Segmentation:
Campaign Pitch/Content:
Email Communication 01:
Keep the streak alive of killing your hunger pangs!
Get an extra 10% off on current offers with each order of your streak.
First order = +10% saved.
Second order = +20% discount.
Third order = +30% discount.
Bigger the buffet, merrier the savings. ?
Tap to Order Now.
Email Communication 02:
We will continue your streak of savings.
Hit 3 orders to unlock free delivery on the next 2 orders of INR 249.
Sounds like a lucky day for you!
Communication 03:
Free delivery sounds exciting, right?
You get to spend your best dollars on your best food moments.
Opt in for Swiggy One membership to get free delivery. It costs less than INR 1 per day.
Tap to get it at INR 49 for 49 days!
Also, count on extra coupons, free deliveries of groceries and home essentials on Instamart, and curated discounts for you. Still thinking? Huh!
Offer:
Gamify the user experience by giving them achievable milestones.
Channels:
Frequency and Timing:
Success Metrics:
Marketing Campaign Metrics:
Product Metrics:
Business Metrics:
Goal of the Campaign: Increase frequency of usage for Dine Out for core and power users
Segmentation: Core and Power Users
Campaign Pitch/Content:
Food choices are what unites us, right? So, share your curation of top places which are on your list to dine out in the city. Let the common love language of food help you match with someone who matches your palette. UNLOCK a NEW hidden discount on your each dine out.
Offer:
Channel:
Frequency and Timing:
Success Metrics:
Marketing Campaign Metrics:
Product Metrics:
Business Metrics:
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Goal:
Convert core users to power and casual users to core users by helping them experience one more sub-product Instamart for groceries. Help them experience of convenience and delivery CVP better with saved payment and location solution.
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Segmentation: Casual and Core Users
Campaign Pitch/Content:​
01: Welcome to Swiggy's Weekly Market! Get the freshest deals on your favorite groceries delivered to your doorstep. Enjoy weekly specials and unbeatable prices every week!
02: Shop now and unlock exclusive discounts! Spend INR 500 and get an additional 10% off. Plus, enjoy free delivery on your first order this week.
03: Keep coming back every week for fresh deals and special offers. Don't miss out on your chance to save big on Instamart groceries. Happy shopping!
Offer:
Channel:
Frequency & Timing:
Success Metrics:
Marketing Campaign Metrics:
Product Metrics:
Business Metrics:
Goal:
Boost lunchtime orders by providing special lunch deals. Increase frequency of usage by converting casual users to core users and core to power users.
Segmentation:
ICPs focused on office workers, students, and regular lunch-time users.
Campaign Pitch/Content:
We will focus on gaining a competitive advantage to compete with Zomato everyday. Lunch constitutes 35% of total orders placed on food delivery applications, so it is important to leverage this to drive frequency by forming a habit.
Communication:
01:
Make lunchtime special with Swiggy!
Enjoy exclusive lunch deals delivered to your desk.
Quick, delicious, and affordable meals just a tap away.
02:
Order now and get 20% off on all lunch orders!
Plus, unlock free delivery on your next lunch order when you order next time this week.
Part 03: Your lunchtime cravings, sorted!
Opt for Swiggy One membership for consistent free deliveries and extra discounts on your lunch orders. Get it now at INR 49 for 49 days!
Offer:
Channel: Push Notification, In-app banner, Email.
Frequency & Timing:
Success Metrics:
Marketing Campaign Metrics:
Product Metrics:
Business Metrics:
Goal:
Boost applications for the Swiggy HDFC credit card by offering curated, exclusive food experiences for core and power users. Encourage frequent transactions and long-term platform loyalty among high disposable income users.
Segmentation:
Core users with high disposable income who frequently use Swiggy but haven't yet applied for the Swiggy HDFC credit card, which offers exclusive and additional platform currency in the form of cashback and discounts.
Campaign Pitch/Content:
01: CRED x Swiggy invites you to an exclusive culinary affair curated for the top 1% at ITC Bukhara by head chefs! Tap to apply for the Swiggy HDFC credit card and get 50% off on booking the experience.
02: Check off being part of Chef Ranveer Brar's Masterclass! Tap to apply for the Swiggy HDFC credit card now to grab this opportunity to be a student of the world's best chef!
03: Upgrade your dining experience. Experience a seven-course cacao fusion meal hosted at the Darkins Chocolate Factory. This invite-only experience is for Swiggy HDFC credit card holders. Tap to apply for the credit card now!
Reference image generated by AI
Offer:
Collaborate with CRED to curate premium culinary experiences for the top percentile of their userbase who are more likely to opt for the credit card. Nudge people to check their eligibility and allow them to apply if they are core or power users.
Channel: Push Notification, In-app banner, Email, Social Media, CRED app, Ads, Influencer Campaigns
Frequency & Timing:
Success Metrics:
Marketing Campaign Metrics:
Product Metrics:
We would also like to track the number of people applying for curated experiences to see the effectiveness/attractiveness of the campaign or to figure out if applications were led more from a discovery point of view.
Business Metrics:
INTERNET APPROACH:
I’ve gone from seeing 6% to 65% on the internet as retention rates for food delivery apps like Swiggy and Zomato, largely due to the fact that everyone can choose to define it on its own terms.
For example, in 2018, Zomato defined retention rate as the number of users who have ordered in the past 12 months, leading to a retention rate figure of 65%. Source HERE. It might have been relevant for it in PMF/ early scaling but it is no more.
So, it is time we take our own GUESTIMATE APPROACH to ground our numbers.
Given our earlier data of segmentation based on user surveys, we will use it to draw the retention curve using guesstimate approach.
After having established assumptions, to accurately calculate M-o-M retention percentage points, we will take in consideration the following variables to adjust the rate:
Let’s begin!
Here we will logically assume each variable impacts retention rate and till what extent.
Average change in M-o-M, assuming all 3 factors play an equal role in determining user actions.​
Month | Casual Users | Core Users | Power Users | Overall Retention |
---|---|---|---|---|
1 | 20.00% | 40.00% | 60.00% | 30.00% |
2 | 15.68% | 36.00% | 56.04% | 25.81% |
3 | 12.29% | 32.40% | 52.33% | 22.33% |
4 | 9.64% | 29.16% | 48.86% | 19.42% |
5 | 7.56% | 26.24% | 45.62% | 16.97% |
6 | 5.92% | 23.62% | 42.60% | 14.90% |
7 | 4.64% | 21.26% | 39.81% | 13.14% |
8 | 3.64% | 19.13% | 37.23% | 11.65% |
9 | 2.85% | 17.22% | 34.85% | 10.36% |
10 | 2.24% | 15.50% | 32.58% | 9.25% |
11 | 1.75% | 13.95% | 30.50% | 8.29% |
12 | 1.38% | 12.55% | 28.51% | 7.44% |
13 | 1.08% | 11.30% | 26.20% | 6.66% |
14 | 0.85% | 10.17% | 24.02% | 5.96% |
15 | 0.66% | 9.15% | 21.84% | 5.33% |
16 | 0.52% | 8.24% | 19.66% | 4.75% |
Each month's overall retention is derived from the weighted average of the retention rates of Casual, Core, and Power users.
Overall Retention for each of the months can be calculated at:
= ((60% x Casual User Retention) + (30% × Core User Retention) + (10% × Power User Retention)) = ((0.6x Casual User Retention) + (0.3 × Core User Retention) + (0.10 × Power User Retention)) = Final numerical value to be converted into percentage
We have covered this in above table: "M-o-M change in retention for Each User Segment and Overall Retention"
To understand calculations, refer to the spreadsheet HERE
To determine when the retention curve flattens, we need to analyze the month-over-month percentage changes in retention rates. A curve is considered to be flattening when the month-over-month changes become smaller and more consistent, indicating that the retention rates are stabilizing.
Let’s figure delta of the change, folks!
Month | Overall Retention | % Change in Retention |
---|---|---|
1 | 30.00% | |
2 | 25.81% | 13.96% |
3 | 22.33% | 13.49% |
4 | 19.42% | 13.04% |
5 | 16.97% | 12.61% |
6 | 14.90% | 12.19% |
7 | 13.14% | 11.78% |
8 | 11.65% | 11.39% |
9 | 10.36% | 11.02% |
10 | 9.25% | 10.74% |
11 | 8.29% | 10.41% |
12 | 7.44% | 10.19% |
13 | 6.66% | 10.56% |
14 | 5.96% | 10.47% |
15 | 5.33% | 10.61% |
16 | 4.75% | 10.86% |
The percentage fall decreases over time, indicating that the retention curve is flattening.
Conclusion: The retention curve starts to stabilize around Month 8 as the percentage falls becoming smaller and more consistent from this point onward.
​Retention Curve for Swiggy .pdf
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The Core and Power users drive the best retention for Swiggy. A common observation in these two categories is the subscription to Swiggy One, which offers free deliveries (except Genie) and premium discounts across Swiggy sub-products. This drives high engagement and retention.
Above pointers is based on chat with users (primarily) and secondary research
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​For each of the reasons, what are the negative and anti-engagement metrics to track:
Reason for Churn: Higher Prices
Negative Actions to Track:
Reason for Churn: Delivery Delays
Negative Actions to Track:
Reason for Churn: Poor Food Quality
Negative Actions to Track:
Reason for Churn: Swiggy One Membership Expired
Negative Actions to Track:
Reason for Churn: High Price of Membership Renewal
Negative Actions to Track:
Reason for Churn: Unavailability of Specific Restaurants
Negative Actions to Track:
Reason for Churn: Late Delivery (Instamart)
Negative Actions to Track:
Reason for Churn: Complicated User Experience
Negative Actions to Track:
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Reason for Churn: Availability of a Better Cook
Negative Actions to Track:
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Reason for Churn: Relocation to an Unavailable Location
Negative Actions to Track:
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Reason for Churn: Relocation to a Location with Competitor
Negative Actions to Track:
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Reason for Churn: Change in Lifestyle
Negative Actions to Track:
Reason for Churn: Financial Constraints
Negative Actions to Track:
​Reason for Churn: Proximity to Markets/Restaurants
Negative Actions to Track:
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TIP: WE WILL HEAVILY USE PERSONALIZATION. IT IS KEY TO BE ABLE TO LEVERAGE DATA WHICH DEFINES USER CONTEXT FOR EFFECTIVE CAMPAIGNS.
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Segmentation:
Hibernating users (users who haven't ordered in the past 15-30 days)
Goal:
To re-engage users with a fun and personalized interaction that reminds them of their favorite orders and incentivizes them to return with a discount.
Pitch/Content:
You've got a message from your favorite dish, Burger!
'Hey there, it's your favorite Burger! I've missed you. Come back and enjoy me with a special 30% discount!'
Offer:
Frequency and Timing:
Success Metrics:
Segmentation of User Type:
Users moving from core to casual (significant drop in order frequency)
Goal:
To prevent further decline in user engagement by offering strong incentives that encourage frequent ordering through a gamified experience.
Pitch/Content:
Use data on previously favored dishes and peak ordering times to tailor communications.
Example:
Join the Swiggy Comeback Quest! Complete challenges and unlock irresistible discounts and rewards. Order a Shawarma Bowl for lunch and get INR100 credited to use anytime!
Offer:
By gamifying the experience, users are more likely to be engaged and motivated to complete challenges, leading to increased order frequency and higher retention.
Gamification Elements:
Frequency and Timing:
Success Metrics:​
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Segmentation of User Type:
Instamart churned user: Users who have experienced long delivery times and haven't used Instamart in past 2 months but have used Swiggy as well as have app installed.
Goal:
In our surveys, users have expressed dissatisfaction with long delivery times, leading to decreased usage or complete churn from Instamart. This campaign aims to re-engage these users by guaranteeing fast delivery times, thereby rebuilding trust and improving user satisfaction.
Pitch/Content:
Guaranteed 10-minute delivery or it's FREE.
We have added INR 80 in your wallet to shop from Instamart. Get your essentials in a BLINK. Tap to order now!
Offer:
Frequency and Timing:
Success Metrics:
Segmentation:
At-risk users with low activity who create a cart and leave without ordering. Recency of cart creation is within the past 4 weeks. These users are more likely to compare prices and switching to competitors or are not convinced of price value.
Goal:
Motivate the at-risk user to complete their order.
Content/Pitch:
The weekend party is on us! Place an order and redeem INR 200 Swiggy credits on your next order. Offer expires soon!
Offer:
Channel:
Frequency:
Timing:
Based on user activity. Suggested could be:
Success Metrics:
Segmentation:
Churned users who used to be core and power users and now who haven't ordered in the past 4+ months and most probably even unistalled the app.
Goal:
Re-engage churned users by offering exciting incentives to remind of Swiggy Days and reignite their love for Swiggy.
Content/Pitch:
AI-personalized video received on WhatsApp from a Celebrity (like Dia Mirza)
Content for the first communication. Placeholders to be personalised based on past data.
Hey <Abhishek>, Remember the golden days when you used to have <Falfel Greek Salad from Salad Days> along with <Chocolate and Cashew Nuts Ball>. You had ordered it <5> times and Swiggy always delivered it with love to you!
Why not, rewind back to good old days? Get 70% off on this meal. It is a treat from us to you.
Still thinking?
We have missed you for so long. What better way than to talk in our shared love language for food.
Open Swiggy. Order now.
Ah, wait
Don't forget to use MISSEDYOU coupon to get 70% off!
Offer:
Channel:
Frequency:
Timing:
Best to personalise timing for communication based on users order patterns:
Success Metrics:​
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PHEWWW! That was long.
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