PM Interview Question→You are PM at Swiggy food delivery vertical and target give to you is to bump up revenue by 20% (primarily by product led growth). Prepare a strategy for this.

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Bootcamp

5 min readJan 6, 2025

As a Product Manager at Swiggy, the goal of driving a 20% revenue increase through product-led growth (PLG) presents a challenging yet exciting opportunity. PLG revolves around leveraging the product as the primary driver of customer acquisition, conversion, and retention. This approach aligns well with Swiggy’s ecosystem, where user experience, personalization, and operational efficiency can directly boost transactions and customer lifetime value.

This article outlines a structured, practical strategy to achieve this growth target, touching on frameworks, initiatives, and execution steps that can help articulate a compelling vision during a product management interview.

1. Understanding the Revenue Levers

Before diving into solutions, it’s critical to break down Swiggy’s revenue streams:

Order Volume — Increasing the frequency of orders per user.
Average Order Value (AOV) — Upselling and cross-selling to boost basket size.
New User Acquisition — Growing the customer base through organic and product-driven referrals.
Retention and Reactivation — Bringing back dormant users and preventing churn.
Merchant and Partner Growth — Expanding the restaurant supply side to offer more choices.

2. Prioritizing Focus Areas (ICE Framework)

To drive product-led growth, prioritize areas where impact (I) is high, effort (E) is low, and confidence © in success is strong. The focus should be on the following:

Increasing Repeat Orders (High Impact, Medium Effort)
Upselling and AOV Expansion (Medium Impact, Low Effort)
Referral and Viral Growth (High Impact, Medium Effort)
User Retention and Churn Reduction (High Impact, High Effort)

3. Initiatives to Drive Revenue Growth

1. Increase Order Frequency:

Hyper-Personalization: Use AI to recommend food based on past orders, time of day, and contextual data (weather, festivals, etc.).
Habit Formation: Introduce meal plans or subscription services with benefits such as free delivery, discounts, or exclusive restaurant access.
Gamification: Incentivize frequent orders by rewarding users with points, badges, or milestones that unlock tiered benefits.
Smart Reordering: Use one-click reordering for favorite meals or routine orders, making the process frictionless.

2. Boost Average Order Value (AOV):

Bundling and Combos: Highlight combo deals and suggest relevant add-ons (desserts, drinks) during checkout.
Dynamic Discounts: Implement surge pricing and offer dynamic discounts on higher order values, prompting users to add more.
Exclusive Limited-Time Offers: Partner with restaurants for exclusive dishes or limited-time menus that create urgency.

3. Leverage Referrals and Social Proof:

Referral 2.0: Enhance the referral program by offering both the referrer and referee attractive benefits (e.g., 20% off for both).
Group Ordering Features: Introduce features allowing users to pool orders with friends or family, increasing ticket size.
Social Sharing of Meals: Enable users to share their meals/orders on social platforms with links that offer discounts to new users.

4. User Retention and Churn Prevention:

Proactive Engagement: Use push notifications to remind users of ongoing offers, time-limited discounts, and low-stock warnings.
Loyalty Programs: Create a tier-based loyalty system rewarding repeat customers with exclusive discounts, early access, and birthday specials.
Dormant User Reactivation: Launch win-back campaigns for users who haven’t ordered in 30+ days, offering special reactivation discounts.

4. Operational and Merchant Initiatives

Restaurant Promotions: Enable dynamic pricing for partner restaurants to promote high-margin items or underperforming hours.
New Merchant Onboarding: Expand restaurant supply by simplifying onboarding and providing marketing support for smaller/new restaurants.
Cloud Kitchens: Partner with or build cloud kitchens in areas with high demand but low supply, ensuring greater fulfillment capacity.

5. Metrics and KPIs to Track

Order Volume Growth: Monitor the percentage increase in monthly active users and order frequency.
AOV Trends: Track growth in average basket size and upsell conversion rates.
Retention Rate: Measure repeat order frequency and churn rates.
Referral Contribution: Track the percentage of new users acquired through referral programs.
Revenue Per User (ARPU): Measure growth in average revenue per user over time.

6. Implementation Roadmap (3–6 Month Plan)

Month 1–2: Research and Quick Wins

Launch personalized reordering and upselling at checkout.
Kickstart referral enhancements and A/B test various reward structures.
Design initial loyalty program mockups and run pilots.

Month 3–4: Scaling and Optimization

Expand meal plans/subscription services.
Implement gamification features tied to repeat orders.
Engage dormant users with reactivation campaigns.

Month 5–6: Innovation and Expansion

Onboard new merchants and expand cloud kitchens.
Launch new group ordering or social sharing features.
Deepen AI personalization for even sharper user recommendations.

7. Risks and Mitigation

Risk: Increased competition from Zomato or other delivery platforms.
Mitigation: Focus on unique value propositions like hyper-local cloud kitchens or exclusive restaurant partnerships.
Risk: Over-reliance on discounts that could erode margins.
Mitigation: Emphasize upselling, dynamic bundling, and gamification over discounts.

Final Thoughts

Driving a 20% revenue increase at Swiggy through product-led growth requires a multi-faceted strategy focused on improving user engagement, increasing AOV, boosting retention, and expanding the customer base. By leveraging AI, personalization, and operational innovations, Swiggy can create sustainable growth while delivering enhanced value to users and restaurant partners.

This structured yet flexible roadmap not only addresses revenue growth but also positions Swiggy as a product-centric, experience-driven platform poised for long-term success.

Thanks for reading! If you’ve got ideas to contribute to this conversation please comment. If you like what you read and want to see more, clap me some love! Follow me here, or connect with me on LinkedIn or Twitter.

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