Swiggy, Don’t Let Your Customers Swigg-leave: A Plan to Keep Them Hungry for More!

Product Concept Note

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Problem Statement

Swiggy’s objective is to improve the lives of its urban consumers by offering the convenience of doorstep delivery. However, recently, there has been a decrease in user retention on the platform, with users migrating to competitors.

Goal and Success Criteria

The aim is to boost customer loyalty, and the measure of success is increasing the Week-on-Week user retention rate from 60% to 80%.

Swiggy Products

1. Food Delivery
2. Reservation via Dineout
3. Grocery delivery via Instamart
4. Package delivery via Genie

Swiggy User Personas

Swiggy’s user personas can be defined broadly by 3 individuals:

1. Swiggy Users (Regular users and Swiggy One Users)
2. Restaurant Partners
3. Delivery Partners

Assuming a user retention rate of 60% for Swiggy Users, it is necessary to raise the retention rate to 80%

Let us examine at what point in the customer journey these issues arise:

Current Alternatives

At present, there are no viable alternatives to address problems such as delivery delays and inadequate customer support. Whenever delivery issues arise, customers generally turn to the customer support team for assistance. However, if the customer support team is unable to resolve the issue by contacting the delivery partner or restaurant, providing a compensation for the delay, or initiating a refund for a failed delivery, customers are left with no other option but to switch to another platform and leave negative feedback on the App Store or Play Store. This not only leads to the loss of customers, but also damages the reputation of the business. Hence, it is imperative for companies to address these issues and improve their customer support services to retain their customers and maintain a positive brand image.

User Pain Points

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.

Neglecting customer pain points can lead to dissatisfied customers, resulting in the loss of loyalty and negative feedback. Therefore, it is crucial to prioritize customer satisfaction by addressing the issues that trouble both regular and Swiggy One users. Some common pain points for Swiggy users include delayed delivery, unavailability of delivery partners, difficulty finding addresses, incorrect delivery estimates, wrong deliveries, poor customer support, and generic responses from chatbots.

By resolving these issues, users are less likely to migrate to other food delivery apps. Swiggy can also introduce a loyalty points system for each order, which can be redeemed on Swiggy One membership. This incentivizes users to continue using Swiggy and encourages repeat orders. Overall, focusing on resolving pain points and introducing rewards can help improve customer retention and satisfaction.

Solution

High-level solution

1. Swiggy can implement several measures to address common pain points that customers face, such as delayed delivery and poor address recognition. For instance, Swiggy can segment and allocate delivery partners based on restaurant popularity and promotions, use historical data to improve delivery time estimation, and leverage Google’s on-demand rides and solutions for last-mile assistance. Swiggy can also develop an in-house machine learning system for accurate address recognition, offer loyalty points per order that can be redeemed by Swiggy One users, and provide delivery prompts to new delivery partners. Additionally, Swiggy can enhance its auto-refund algorithm to process refunds more efficiently in case of failed deliveries caused by delivery partners, Swiggy, or restaurant partners.
2. To improve customer satisfaction and retention, Swiggy needs to address several pain points that users commonly face. These include issues such as delayed delivery, wrong delivery, poor customer support, and inaccurate address recognition. Swiggy can address these issues by implementing several measures, such as segmenting and allocating delivery partners based on restaurant popularity and promotions, using historical data to estimate delivery time more accurately, and providing last-mile assistance through Google’s on-demand rides and solutions. Swiggy can also develop an in-house machine learning system for address recognition, offer loyalty points per order for Swiggy One users, and provide delivery prompts to new delivery partners. Furthermore, Swiggy can enhance its auto-refund algorithm to process refunds more efficiently for failed deliveries caused by delivery partners, Swiggy, or restaurant partners.

Detailed Solution

1. Integration with Google On-Demand Rides & Solutions: Instead of developing an in-house solution for last-mile delivery, it is advisable to integrate with the existing Google On-Demand Rides & Solutions. This integration can be achieved by incorporating two APIs — the Place Autocomplete API and the Geocoding API, which can help capture accurate addresses and prevent issues such as inaccurate address entry and undeliverable addresses. Additionally, the integration can provide driver routing and navigation capabilities to enhance the driver’s application for enterprise-level features.
2. Loyalty Points: Swiggy can introduce a gamification experience by offering loyalty points for each order, encouraging users to spend more on the platform. The assigned avatars can be based on the lifetime order value of the customer, and 0.5 points can be assigned for each rupee spent on the user’s order. The avatars can be defined based on the transaction value and displayed on the user’s homepage with their respective name and icon.