Swiggy - Enhancing Customer Loyalty and Retention
Problem Statement
As a product manager at Swiggy, the primary challenge is the migration of users from Swiggy to competing platforms. The objective is to increase customer loyalty and retain existing users by enhancing the app's user experience and services to be hassle-free and friendly.
Project Summary
The focus is on improving the Swiggy app to make it more user-friendly and reliable, thereby winning users' loyalty and increasing retention rates.
Goals and Success Criteria
- Increase the week-over-week (WoW) retention rate from 60% to 80%.
- Address and solve user pain points to boost loyalty.
Assumption
This project concentrates solely on the food delivery segment of Swiggy's services.
Customer Segments
- Repeat customers
- New users
- High-value customers
- Social media influencers and brand advocates
User Personas
| Segment | Repeat Customers | New Users | High Value Customers | Social Media Influencers & Advocates |
|---|---|---|---|---|
| Demographics | Age 30-45, urban/suburban | Age 18-35, urban, busy professionals | Age 35-50, high disposable income | Age 18-30, socially active |
| Behavioral Traits | Loyal users valuing convenience, reliability, variety | Tech-savvy, time-starved, first-timers looking for easy onboarding | Frequently order for groups/special occasions, value quality | Trendsetters, sharing experiences, engaged on social media |
| Psychographics | Food enthusiasts, convenience seekers | Busy professionals seeking efficiency | Luxury seekers, gourmet enthusiasts | Trend followers, experience seekers |
Customer Pain Points
- Poor Delivery Experience: Users report late deliveries, incorrect or damaged orders hurting trust and overall app satisfaction.
- Limited Restaurant Options: Customers feel the restaurant choices are narrow in some locations, prompting them to try competing platforms.
- Pricing and Value Perception: Prices on Swiggy may seem higher than dining in or ordering directly, raising doubts about value for money.
- Competitor Marketing Noise: Aggressive strategies by competitors distract and attract users away from Swiggy.
Prioritization of Improvement Areas
| Priority Level | Focus Area |
|---|---|
| Easy Wins | Improving delivery logistics and quality control |
| Big Bets | Diversifying restaurant offerings |
| Incremental | Enhancing pricing transparency and competitiveness |
| Long-term | Building competitive differentiation through brand and features |
Detailed Solutions
1. Improving Delivery Experience
- Advanced Logistics & Tracking: Invest in technology to optimize delivery routes ensuring timeliness.
- Quality Control: Strict protocols for packaging and handling to minimize damage and errors.
- Delivery Personnel Training: Educate on food handling best practices.
2. Restaurant Diversification
- Conduct market research to understand regional preferences.
- Onboard a broader range of restaurants, enhancing variety.
- Expand service reach to new neighborhoods.
3. Pricing Value Enhancement
- Maintain transparent pricing with clear indication of additional fees.
- Negotiate competitive deals with restaurants to offer exclusive discounts.
4. Competitive Differentiation
- Strengthen brand identity with effective marketing campaigns.
- Innovate with unique app features, such as customized ordering and exclusive partnerships.
Future Scope
- Price Comparison Feature: Allow customers to compare prices of the same dish across participating restaurants, aiding informed decisions.