Swiggy’s Decline: Product Case Study | Root Cause Analysis

Revathy G
4 min readApr 16, 2023

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Problem Statement :

Imagine you are a Product Manager at Swiggy. The Playstore rating has dropped from 4.5 to 3.8 stars in the last 2 weeks. Find out the root cause of the problem (Imagine Swiggy is only on Android)

Disclaimer: This case study represents hypothetical scenarios and solutions and is written for educational purposes only.

We can find the root cause by investigating the Mobile App.

Let‘s start with the user journey of Swiggy:

Assumption — As a Product Manager of Swiggy ‘s operation in India, we are going to focus on problems and factors originating in India only. In addition, we are focusing on Swiggy India APK for this case study.

The problem could have been caused due to internal or external factors.

Internal Factors: These are factors within the organization such as technology, marketing, human resources, etc.

External Factors: These are factors external to the organization. They are not within the organization’s control.

So, our question to the stakeholders would be

(In real-time, the Product Manager would already know answers to some of these questions)

We are going to assume the following responses :

  1. Minor UI/UX changes across the search pages in the Food section have been released to the customers before 2 weeks.

2. We have rolled out a few major technical updates in the payment section (in the UPI payments) (Assuming Swiggy uses the same payment module for all 4 sections.)

3. Zomato launches a new service ‘Everyday’ offering home-cooked meals starting at Rs. XX(at a notably low rate). There have been active commercials and marketing around this new service launch.

Based on the responses we have come up with the following hypothesis:

1. The UI/UX changes could have been misleading to the users and could have caused discomfort to the customers.

2. Issues in the latest release with updates to the payment section could have caused dissatisfaction among the customers.

3. Probably the customers who order almost every day for their daily meal could have switched to Zomato preferring the home food. Due to this they would have rated Swiggy low.

Qualitative Analysis of Playstore Reviews:

There have been bad reviews and a noticeable increase in 1 and 2-star ratings in the past 2 weeks.

~10k new 1-star ratings in last 3 days

~ 8k new 2-star ratings in last 3 days

There have been bad reviews mentioning all the Swiggy features like food, Instamart and Swiggy Genie.

Analyzing the Metrics:

A drop in daily users:

Bounce Rates :

15% increase in bounce rates in the Food section during the payment.

10% bounce rate in the Instamart section during the payment.

8% bounce rate in the Genie and Dineout section during the payment.

These bounce rates increase has been found in all locations across India.

UPI Payment Success Rate:

The bounce rate on the payments page is abnormal. There has been an overall 15 % increase in bounce rates over the sections like Food, Instamart and Genie(which is unusual) particularly when they are choosing UPI as their payment method all over India. However, the bounce rates across other payments like Netbanking, CRED, Pay later, and Pay on Delivery are normal.

After analyzing all the metrics, we can accept or neglect certain hypotheses:

1.There have not been any significant changes in the bounce rate on the Search page, So we are neglecting the hypothesis around the UI/UX changes.

2. Considering the Playstore reviews, ratings, the bounce rate increase across all the sections (Food, Instamart, and Genie), and the drop in the UPI payment success rates we can recognize this hypothesis as the root cause of the problem

3. Since the bounce rate shoot-up has been found only on the payment page and not on the other pages like search or add to cart and there is no concrete evidence (social media trends or playstore ratings) of discontent that customers are switching to competitors (due to their recent new service launch), we are neglecting this hypothesis.

ROOT CAUSE:

After careful analysis, we conclude that the root cause of our problem lies in the UPI payment update that has been released recently.

Solution:

Bug Handling: We have identified Critical issues with the UPI payment process. We should start by analyzing the reviews and contacting the support team for more details on the failure. We should talk to the tech team to work on the fixes as quickly as possible.

After we incorporate the solutions, we should reanalyze the metrics to verify if our analysis is correct.

Disclaimer: This case study represents hypothetical scenarios and solutions and is written for educational purposes only.

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