PRODUCT CONCEPT NOTE — Swiggy User Retention
Problem Statement
Case study
- You are the Product Manager at Swiggy
- Harsha, founder of Swiggy realized that users were leaving the platform and migrating to other platforms
- Swiggy wants to increase customer loyalty and retain the customers
- Currently, WoW retention is 60% and needs to be increased to 80%
Current User Journey:
Reason for the Problem (Why):
Price:
Price is high compared to other platforms.
Membership
Swiggy One Membership is not beneficial compared to other platforms.
Limited restaurant options
All the restaurants are not onboarded. While searching, it doesn’t show all the restaurants in the locality, as a result, users are dissatisfied that they aren’t able to order from the restaurant that they preferred.
No offers
Swiggy doesn’t offer more coupons and discounts for power users and also for the active and casual users.
Delivery
There are delivery delays. Sometimes the time taken to deliver exceeds the delivery time shown in the page. And there is no prior information regarding the delay. In addition, there is no discount coupon or compensation for delivery delays.
Customer Service
Customer service number is not explicitly visible to the customer. Sometimes the customer wants to speak to a real person instead of a chat bot.
Increase the bandwidth for customer call services.
The notifications sent to the user are not intriguing to order more.
Vernacular support
Certain users find it difficult to understand the language of the app. There is no option to switch to a regional language.
Prioritizing the Solutions:
Easy Wins
- Make the customer service number more explicit to the user.
- Remove unnecessary ads that are distracting in the User Interface.
- Provide concessions/coupons in case of delivery delays.
Big Bets
- Revamp the membership structure.
- Onboard new restaurants.
- Revisit the pricing strategy for non-members.
- Mechanism to incorporate more coupons and offers.
Incremental
- Enhance Order for others feature
- Sending intriguing marketing notifications
- Enhance Transparency in quality checks and hygiene checks for customers
Money Pit
- Vernacular Language Support
- Code restructuring by the engineering team over the food vertical
End Goal / Vision
Increasing the WoW retention from 60% to 80% within 6 months.
Detailed Solution:
- Make the customer service number more explicit to the user. Once the user raises a complaint, after chatting with the bot for initial filtering of their case. Have a provision to skip further chat with the bot and contact a customer service executive directly if the user prefers. Increase the bandwidth of the customer service operations.
- Remove unnecessary ads that are distracting in the User Interface in most used screens like the home page, Dine Out page, and Instamart page.
- Provide concessions/coupons in case of delivery delays. Add them to their Swiggy account and let them use it for further orders. Have a mechanism to calculate the coupon amount.
- Revamp the membership structure. Modify the existing membership structure so that it will be beneficial to the user. Introduce multiple types of membership like regular /premium if necessary. Check if it’s feasible to add discounts in the Dine Out or other verticals as part of the membership plan.
- Onboard new restaurants. Find the gaps that are preventing the restaurants from onboarding to Swiggy and resolve them.
- Revisit the pricing strategy for non-members. Sketch out a pricing strategy with offers that focus on user retention first rather than profits for the initial phase of the user using the app.
Solutions that are out of scope currently and can be considered for the future:
- Vernacular support and Voice support for the end users in the app.
- Users will be able to switch to their regional language for ease of use.
- They can search for their favorite dish /restaurant and add addresses through voice support.
