Product Concept Note — Swiggy
Problem Statement (What):
Swiggy is experiencing a significant loss of customers migrating to alternative platforms. The current Week-over-Week (WoW) retention rate is 60%, posing a challenge to the company’s long-term success. The primary objective is to increase customer retention to 80% by identifying and addressing the issues driving customer attrition.
How Big is the Problem?
The problem is significant and has the potential to severely impact Swiggy’s market share, revenue, and overall competitive advantage. Failure to increase retention rates could lead to a continuous decline in customer numbers and undermine the company’s brand value and sustainability in the market.
Reason for the Problem (Why):
- Inadequate customer service: Slow response times, unhelpful support agents, or failure to resolve issues may lead customers to seek alternative platforms.
2. Lower perceived value compared to competitors: Limited restaurant choices, less attractive deals, or higher prices may cause customers to shift to competitors with better deals or exclusive partnerships.
3. Poor app/website user experience: Difficulty navigating the site, slow loading times, or frequent technical issues may discourage customers from using Swiggy’s platform.
Scope of the Project:
The project scope includes assessing Swiggy’s current customer retention strategies, identifying areas for improvement, and implementing targeted changes to address the underlying issues affecting retention. This may require collaboration across customer service, marketing, and product development departments.
Goal and success criteria
- Goal
Swiggy aims to be the preferred choice for online food ordering, known for its quality service, competitive pricing, and unmatched customer experience. Achieving an 80% retention rate will signify Swiggy’s success in meeting customers’ needs and drive long-term growth and profitability. - Success criteria
This project’s key success metric is achieving an 80% WoW customer retention rate from 60% . Secondary metrics may include user satisfaction ratings, the number of repeat orders, and average customer lifetime value.
Customers
Customers are individuals who want to learn or enhance their knowledge about a particular skill offered amongst the others on the Growth School platform.
- New Customers
- Working professionals
- Repeat customers
- Social media influencers and Brand advocates
- High value customers
User Persona
User Journey
Customer pain points/ needs
User pain points are gathered through different methods like user research, data analysis, and user journey. For this case, we conduct an FGD (Focused Group Discussion) with different user personas to understand their pain points and we went through the user journey to understand possible problems encountered by the users.
Based on our research, the following are the user pain points:
- Enhancing User Interface for New Users
New users may face challenges in navigating the UI/UX of food delivery apps, causing them not to complete orders. - Ensuring Food Quality and Hygiene in Restaurants
Customers have concerns over food quality and hygiene of outside food, prompting them to prefer homemade meals for safety reasons. - Offering Unique and Difficult-to-Make Dishes
Customers often order dishes that they cannot prepare due to a lack of resources or experience. - The Appeal of Time-Saving Food Delivery
Customers choose delivery services for their convenience in saving time and getting meals delivered to their doorstep. - Addressing Dissatisfaction with Food Options and Delivery Services
Existing customers may have complaints about food options, discounts, and delivery services, resulting in a preference for dining out instead of ordering in. - Assessing Prices and Options on Food Delivery Apps
Customers often compare prices and options on various food delivery apps, leading to a lack of loyalty. - Prompt and Efficient Customer Support
Customer support services might not address issues promptly, negatively affecting customer satisfaction and retention.
Solution
- High-level solution for every problem
1. To address this, restaurant kitchens should undergo inspections and receive ratings based on proper hygiene standards.
2. Swiggy should invest in training their customer support teams to provide timely and effective solutions.
3. Swiggy should provide proper tools and guidelines to delivery personnel to ensure food is handled safely. This can include branded items for marketing purposes, such as Swiggy-branded packaging.
4. The apps must focus on offering exclusive deals and incentives to retain customers.
5. The apps should improve user-friendly interfaces and provide easy navigation.
6. Build a mobile application separate for most used service like InstaMart.
Easy Wins
3. Swiggy should provide proper tools and guidelines to delivery personnel to ensure food is handled safely. This can include branded items for marketing purposes, such as Swiggy-branded packaging.
2. Swiggy should invest in training their customer support teams to provide timely and effective solutions.Big Bets
1. To address this, restaurant kitchens should undergo inspections and receive ratings based on proper hygiene standards.
5. The apps should improve user-friendly interfaces and provide easy navigation.Incremental
2. Swiggy should invest in training their customer support teams to provide timely and effective solutions.
4. The apps must focus on offering exclusive deals and incentives to retain customers.Money Pit
6. Build a mobile application separate for most used service like InstaMart.
Detailed Solution:
1. Restaurant hygiene inspections: Schedule regular inspections of partner restaurant kitchens to ensure they maintain proper hygiene standards. Assign a rating to each restaurant based on the inspection results and prominently display this within the app, allowing customers to make informed choices about the order from.
2. Strengthen customer support: Invest in training customer support teams to efficiently provide timely and effective solutions to any issues that arise. Consider various communication channels like live chat, email, and social media to ensure a responsive and robust support system.
3. Safe food handling and delivery: Provide delivery personnel with proper tools, guidelines, and branded materials (e.g., Swiggy-branded packaging) to ensure food is safely handled during transit. This could also encompass insulated containers and temperature-resistant bags to maintain food quality from restaurant to customer.
4. Exclusive deals and incentives: Maintain customer engagement by offering exclusive deals, discounts, and loyalty programs. Collaborate with partner restaurants and develop targeted offers based on consumer behavior and preferences to keep customers coming back.
5. Improve app interface and navigation: Constantly invest in enhancing the app’s user interface and navigation by regularly updating its design, incorporating user feedback, and addressing any technical issues. This will lead to a more pleasant and seamless user experience.
6. Separate mobile application for popular services: For widely-used services like InstaMart, create stand-alone mobile applications to cater specifically to customers who frequent these services, offering them dedicated features and streamlined functionality. This will improve user experience and satisfaction in these high-demand areas.
By implementing these high-level solutions, Swiggy can address current issues and improve its overall service to better meet the needs of customers and in the food delivery market in India.
End Goal/Vision:
Swiggy aims to be the preferred choice for online food ordering, known for its quality service, competitive pricing, and unmatched customer experience. Achieving an 80% retention rate will signify Swiggy’s success in meeting customers’ needs and drive long-term growth and profitability.
Future scope
Features that were not included this time can be considered in the future.
- An improved algorithm for automatic refunds in cases where the cannot be delivered due to a fault on the part of the delivery partner/Swiggy or the restaurant partner.
- Swiggy can introduce a feature that allows customers to compare the prices of the same food item across different restaurants on the platform
- The estimation of delivery time has been upgraded, taking into account the historical record of the actual delivery time and the historical preparation time by the restaurant.
- We’re developing a loyalty redemption program that will allow premium users to exchange their loyalty points for additional experiences/offers from Swiggy.
