Product Concept Note — Swiggy

Project Summary:

The objective is to enhance customer loyalty and retain users for Swiggy, a food delivery platform. To achieve this, Swiggy must adapt its methods to improve customer experience, aiming to raise the current Week-over-Week (WoW) retention from 60% to 80%.

Goal and Success Criteria:

Ø Goal: To improve the customer loyalty and retain their customers.

Ø Success Criteria: To increase the WoW retention from 60% to 80%.

Customers:

Customers utilizing the Swiggy platform are individuals aged 18–50, possessing smartphones, skilled in using apps to access services, and depending on online platforms to fulfill their daily needs, especially when it comes to ordering food from restaurants. They are as follows:

· Students

· Working Professional

· Entrepreneurs

Current Alternative:

In the existing user journey, customers log into the app, choose a restaurant, select their desired food items, and specify the quantity. The process continues to the order confirmation page, where users input the delivery location. Following this, users have the option to apply available coupons before proceeding to make the payment. The final step involves the order being delivered by the assigned delivery agent.

User Pain points / Needs:

User research can be conducted through various methods, such as secondary research, focused group discussions, in-depth interviews, market research, and more. For our current initiative, we opted for in-depth interviews with users to comprehensively understand their issues, delving deep into the root causes of their problems and assessing the impact on their experiences.

We categorized the identified pain points into distinct themes based on the user’s responses. These themes include:

Delivery Time: Users frequently encounter delivery delays, with delivery agents citing the handling of two or more orders simultaneously as a common cause. This extended waiting period often results in users receiving food that is not served hot. Timely and reliable delivery is a top priority for users when choosing a food delivery platform, and the recurrent delays have led them to reduce their frequency of placing orders online.

Discount and offers on charges: Swiggy can boost its attractiveness by providing additional discounts and launching comprehensive advertising campaigns to highlight these promotional offers. This strategic approach is designed to effectively attract and engage customers. Some users prefer ordering when there are more discounts available, aligning with their goal of saving money while enjoying the convenience of food delivery.

Customer Support: Users anticipate swift and efficient customer support to resolve any issues or challenges they may encounter. Inadequate customer support has the potential to create negative experiences, discouraging users from returning to place future orders.

Misplacing orders: Users have encountered problems with receiving the wrong food item, prompting them to contact customer care for resolution. However, most users prefer refunds over replacements due to the additional time involved in the replacement process, which includes preparation, pickup, and delivery. These discerning users carefully choose specific items from particular restaurants, and the receipt of misplaced orders leads to significant dissatisfaction.

Affordable restaurants / foods: Customers encounter difficulty in locating affordable food options or restaurants, often facing higher charges for smaller quantities compared to the prices for dining in. The cost of ordering is significantly higher, causing dissatisfaction among customers who perceive a disparity in pricing between ordering online and dining in.

Solutions:

High level solutions:

· Increase the number of delivery agents to assign them to individual orders, ensuring timely and efficient deliveries.

· Delivery agents must guarantee the accurate delivery of food to the correct customer by carefully referencing restaurant details and properly segregating orders.

· Boost promotions and launch a promotional campaign to increase visibility, making it easier for customers to identify and take advantage of them.

· Enhance the efficiency of customer service to promptly address and rectify customer issues, ensuring complete satisfaction.

· Expand the range of restaurants to align with people’s preferences, offering more options at affordable costs.

· Explore cost-cutting methods that do not compromise our processes and profitability to reduce excess prices in food.

Prioritization:

Easy Wins: Hire more delivery agents, Boost promotions

Incremental: Increase Efficiency of customer service | Big Bets: Cost cutting methods

Money Pit: New restaurants

Detailed Solution:

· Given the noticeable disparity between restaurant prices and online prices, including packaging charges, it is essential to engage in discussions with restaurant unions across all cities where Swiggy operates. The objective is to collaboratively revise the costs, establishing a win-win situation for all parties involved.

· Organize a high-level meeting involving key stakeholders such as restaurant owners, delivery agents, and the Swiggy leadership team to reach a mutual agreement. The aim is to lower delivery charges, commissions, and online food prices to enhance user engagement and increase successful orders.

· Initiate educational campaigns for restaurant owners, focusing on food safety and quality to positively impact end-users. Given the significance of trust in this matter, this approach is crucial.

· Prioritize robust customer support across all channels, addressing issues promptly and replacing food immediately upon receiving complaints. To compensate for low-quality food, offer customers a free order next time equivalent to the amount of their initial order, demonstrating a commitment to customer satisfaction.

Future Scope:

· Expand the pool of delivery agents by offering diverse benefits and incentives while ensuring they are well-educated on efficient delivery processes.

· Enhance the quality of customer support services.

· Introduce more discounts and lower food prices to attract and retain customers.

· Forge partnerships with additional affordable restaurants to broaden the range of options available to users.