Engagement & Retention project |

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Engagement & Retention project |

Core Value Proposition (CVP)

Zepto’s core value proposition is “ultra-fast delivery of groceries and daily essentials within 10 minutes.”

What truly differentiates Zepto from its competitors is:

Speed: 10-minute delivery time, unmatched in the Indian grocery delivery space.
Freshness: Focus on fresh produce, dairy, and essentials—high trust categories.
Wide Assortment: 7,000+ products across 20+ categories, ensuring one-stop grocery shopping.
Price + Convenience: Competitive pricing with frequent discounts, offers, and low delivery minimums.
Reliability: Consistent, on-time delivery through dark store micro-fulfillment model.

How Users Repeatedly Experience the CVP

Users experience the CVP consistently through:

Step	Experience
Product discovery	Seamless product search + personalized recommendations
Price & value	Discounted combos, deal banners, and Zepto Coins
Checkout	Smooth 1-click checkout, wallet integration
Delivery tracking	Live tracking of 10-min delivery with rider status
Order quality confirmation	Fresh, well-packed essentials, on-time, no-miss delivery
Reorder & history	“Buy Again” & subscription options for high-frequency items

Natural Frequency of Usage

User Type	Order Frequency	Typical Profile
Casual User	1–2 times per week	Students, single professionals, trial customers
Core User	2–4 times per week	Young families, working couples
Power User	5–12 times per week	Large households, elderly users relying on Zepto

Why this frequency?
Groceries are a high-frequency need. Indian households shop 2–3x/week on average for perishables and forgotten items—Zepto’s convenience fills this gap perfectly.

Engagement Framework for Zepto

Engagement Dimension	Primary	Secondary	Tertiary
Breadth	Categories ordered (Fruits, Dairy, Snacks, etc.)	Basket size	Number of SKUs per order
Depth	Orders/month	Number of items per order	Repeat category purchases
Frequency	Weekly repeat rate	Daily app opens	Cart creation frequency

Engagement Signal to Track: A highly engaged user will show high frequency (ordering multiple times/week), moderate-to-high depth (larger basket or cross-category), and increasing breadth (trying new categories).

Who is an Active User for Zepto?

An Active User is defined as someone who places ≥2 orders per week, or who:

Returns to the app more than once per week
Adds items to cart and browses multiple categories
Has re-ordered the same category within a 10-day window

A power user might not only order frequently but also engage deeply with features like “Buy Again,” subscriptions, and in-app offers.

ICP Table – Zepto

Criteria	User 1: Casual Buyer	User 2: Core Habitual Buyer	User 3: Power User
Name	Aditi (Busy Professional)	Rahul (Young Working Parent)	Priya (Home Chef / Host)
Age	25–35	30–40	28–45
Demographics	Urban, single/couples, working full-time	Urban, married, kids, salaried	Metro areas, upper-middle-class, large household
Need	Last-minute essentials, snacks, beverages	Weekly groceries, baby products, fresh produce	Frequent stock-up, meal prep, hosting guests
Pain Point	No time for grocery runs	Unreliable local kiranas, time crunch	Bulk buying is a hassle, freshness inconsistency
Solution	Quick impulse orders in 10 mins	Regular delivery of essentials	High-volume, fresh, scheduled replenishments
Behavior	1–2 orders/week	2–4 orders/week	5–12 orders/week
Perceived Value of Brand	Convenience, speed	Reliability, quality	Inventory variety, premium quality, dependability
Marketing Pitch	“Groceries in 10 minutes. No planning needed.”	“Fresh groceries, on time, every time.”	“Power your kitchen with ultra-fast restocks.”
Goals	Fast checkout, good offers	Quality + consistency	Volume + freshness, trusted platform

Segmenting Goal Summary

Segment	Why We Segment Them	Growth Opportunity
Casual Buyers	They're low-frequency, often price-driven or convenience-first	Convert into Core users via habit loops, streaks
Core Users	Represent stable volume; trust and repeat behavior	Increase basket size and reduce churn
Power Users	High LTV; often evangelists or loyal customers	Retain via premium features & loyalty programs

Engagement Framework (Breadth–Depth–Frequency)

Engagement Dimension	Definition	Primary Segment	Metric to Track	Rationale
Breadth	Number of categories used (Fruits, Dairy, Snacks, etc.)	Power	Avg. categories per order	Indicates dependency on Zepto across verticals
Depth	Basket size / AOV and proportion of weekly needs met	Core, Power	AOV, % of needs from Zepto	Shows revenue impact + Zepto becoming habit
Frequency	How often a user orders from Zepto in a week	Casual → Power	Orders/week, time between orders	Key signal of habit formation

RFM Segmentation

RFM = Recency + Frequency + Monetary

User Type	Recency	Frequency	Monetary Value (AOV)	Pain Points	Valued Features	CVP Utilized	JTBD	Discovery Mode	Engagement Level
Casual	Ordered 5–10 days ago	1–2 orders/week	₹200–₹350	Forgetting Zepto exists, alternative options	Speed, offers	Instant delivery, pricing	Need something fast & convenient	Performance Ads / Referrals	Low
Core	Ordered in last 3–5 days	2–4 orders/week	₹350–₹600	App friction, lack of variety in pack offers	Freshness, reliability, value bundles	Essentials + Weekly needs	Weekly replenishment of groceries	Organic / Word of Mouth	Medium
Power	Ordered in last 1–2 days	5–12 orders/week	₹600–₹1200+	Lack of personalization, loyalty recognition	Premium quality, scheduled deliveries	Multiple categories, time-savings	Outsource shopping completely	Repeat + Home screen app	High

Segmentation Validation

We validate this segmentation through:

User interviews and survey feedback (e.g., “I order milk every 2 days but keep forgetting” → Casual persona insight)
Cohort analysis by acquisition channel (referral users may skew Core or Power)
Feature usage logs (e.g., Power users rely on auto-replenishment or combo packs)
Order data (Recency/Frequency can be mapped precisely in app analytics)

Example of Engagement Framework Application

Persona: Rahul (Core User)
Breadth: Uses 3 categories — Fruits, Dairy, Snacks
Depth: Orders ₹450 weekly; 70% of grocery needs
Frequency: 3 orders/week

Engagement Campaigns for Rahul:

Smart refill bundles on weekends
WhatsApp reminders for “Your Weekly Box is Ready”
Streak cashback for 3+ orders/week

Summary

Framework Layer	Purpose
ICP Layer	Defines who the users are
Engagement Layer	Measures how they use Zepto
RFM Layer	Measures how recently and how much they order
Validation Layer	Ensures accuracy via user & data insights

Goal

To drive frequent and repeat usage by making Zepto a default grocery behavior, especially for daily and impulsive needs.

Success Metric

Increase in orders per user/week
Increase in 7-day & 30-day retention
Growth in DAUs to WAUs (stickiness) ratio
Increase in number of repeat orders in first 30 days

Problem Statement

Users may place an initial Zepto order based on novelty or urgency but often don’t develop a long-term habit, either reverting to offline stores or switching between apps due to price or offers.

Current Alternatives

Offline Kirana stores (immediate but lack convenience/inventory)
Modern trade or supermarkets (weekly/monthly but time-consuming)
Other delivery apps (Instamart, Blinkit) (may offer similar speed but inconsistent inventory or price)
Planned grocery delivery (BigBasket, DMart Ready) (scheduled but slow)

Solution – Summary

Create a hooked experience around instant gratification, quality, and habit formation that drives users to rely on Zepto for daily micro-fulfillments (milk, eggs, fruits, snacks) and impulse-based needs (rainy-day cravings, late-night snacks).

Solution – Detailed (User Flow)

Trigger → Action → Reward → Investment

Trigger:
- External: Ad, offer, or need arises (e.g., milk runs out)
- Internal: Craving, stress, laziness, habit
Action:
- Open Zepto app → Search/select from curated recommendations → Apply offer (if any) → Checkout
Reward:
- Instant dopamine hit: order delivered in 10 mins, satisfaction of receiving exactly what was needed
Investment:
- User adds address, favorite items, enables notifications → more personalized nudges later

Metrics to Track

Daily active users (DAU), WAU, MAU
Repeat order % in D7, D14, D30
Avg. orders/user/week
Add-to-cart vs checkout drop-off rate
% of users opting into streaks/offers
NPS / App rating change

Ramp-Up Milestones

Milestone	Timeline	KPI Goal
Launch streaks + gamification	Week 1–2	5% lift in repeat orders
Referral rewards redesign	Week 2–3	10% increase in referral conversions
Auto-bundles (snacks, dairy)	Week 3	+8% in basket size
WhatsApp reactivation journey	Week 4	15% revival in churned users
Loyalty Tier Test (Top Users)	Week 4–5	Increased retention in Power segment

5 ENGAGEMENT CAMPAIGNS

1. Zepto Streak Challenge

Goal: Build ordering habit
Target: Core & Casual users
Mechanism: Order on 3 consecutive days and unlock a cashback or free item
Channel: In-app, push notifications
Trigger: After first 2 orders in same week
Success Metric: 7-day repeat order rate

2. Spin the Cart – Gamified Checkout

Goal: Increase AOV + excitement
Target: All users
Mechanism: Spin a wheel at checkout (rewards: free product, ₹ discount, next order bonus)
Channel: In-app only
Trigger: Min. cart value ₹499
Success Metric: AOV uplift, repeat rate

3. Weekend Combo Packs

Goal: Drive weekly ordering habit
Target: Core buyers
Mechanism: Curated snack, fruits, dairy packs with 15% off on Fri–Sun
Channel: Email, push
Trigger: Friday morning & Saturday evening
Success Metric: Weekend order volume increase

4. We Miss You + Hyperlocal Offer

Goal: Recover churned users
Target: Dormant users (inactive 14+ days)
Mechanism: Personalized WhatsApp with offer (e.g., “Your old favorite is just ₹49 today”)
Channel: WhatsApp
Trigger: Based on product previously bought
Success Metric: Reactivation rate

5. Refer & Refill

Goal: Grow user base organically
Target: Active users with 3+ orders
Mechanism: Refer a friend → both get ₹75 when friend orders a refill combo
Channel: In-app, referral link
Trigger: After 3rd successful order
Success Metric: Referral conversion rate

Retention Curve Analysis – Zepto

Retention Intervals and Meaning

Time Frame	What We Track	What It Tells Us
Day 0	App open → first order	Activation quality, onboarding success
Day 1–3	Repeat visits / 2nd order	First impression stickiness
Day 7	Weekly behavior begins	Early retention signal for habit-building
Day 14	Continued use	Strength of repeat engagement
Day 30	Core retention checkpoint	Shows if we’ve built a habit loop
Day 60–90	Flattened retention curve	True loyal base (Power/Core Users)

Illustrative Retention Curve:

Insight: The sharpest drop-off is between Day 0 and Day 7. That’s where your retention campaigns must work the hardest.

Which ICPs and Channels Retain Best?

ICP	Retention (D30)	Why They Stick
Casual Buyer	~5–8%	Weak hook, impulse orders only
Core Buyer	~15–20%	Weekly needs met, trust in product
Power User	~30%+	Strong habit loop, multi-category dependency

Channel	D30 Retention	Observations
Referral	Highest	Trust from known person → better onboarding
Organic	Medium	Intent-driven, selective but sticky
Paid Ads	Lowest	Offers-driven; high Day 1 drop-offs

What is Churn?

Churn is the rate at which users stop ordering or uninstall the app. In Zepto’s case:

A user is considered churned if no orders are placed in 30+ days.
Churn hits hardest between Day 1–7 and Day 14–30.

Churn Reasons – Voluntary vs Involuntary

Voluntary Churn (user chooses to stop using)

Reason	Explanation
Poor first experience	Product not delivered in 10 mins / wrong item
Better offers elsewhere	Switched to competitor for discount
Lack of perceived value	“Why should I pay extra for delivery?”
Limited selection	User didn’t find daily essentials or regional products
Habit not formed	Didn’t get second nudge in 3–5 days

Involuntary Churn (systemic or friction-based)

Reason	Explanation
Payment failure / Wallet issue	UPI declined / no clear retry
App crashes / tech bugs	App exit before order → no comeback
Failed delivery	Rider couldn’t reach or canceled → trust broken
Poor customer support experience	Ticket not resolved in time

Negative Signals to Watch For

Signal Type	Metric	What It Means
Low NPS (<7)	User is unlikely to recommend	Weak value delivery or experience
Multiple support tickets	High CSAT drop	Friction, trust broken
Long time since last open	>15 days	Cold user – high risk of churn
Abandoned cart	Items added but no checkout	Price/UX friction, delivery slot dissatisfaction
Push opt-out	Declining notifications	User disengaging, missing engagement campaigns

What Features Keep Users Coming Back?

Feature / Sub-Product	Retention Driver
10-minute delivery promise	Core value proposition fulfillment
Streak Rewards / Zepto Coins	Gamified retention, loyalty loop
“Your Regulars” / Auto Refill	Personalized, effortless repeat purchases
Weekly Combo Packs / Bundles	Value-based retention (esp. Core Users)
Scheduled Deliveries	Power User retention tool

Zepto – Resurrection Campaigns to Win Back Churned Users

Now that we've mapped churn drivers and user segmentation, here are 5 resurrection campaigns tailored by ICP type and churn reason to re-engage dormant users and convert them back into active customers.

Campaign 1: “We Miss You” – Reconnect for Casual Users

Target Segment	Casual users churned for 14–30 days
Pitch/Content	“Haven’t seen you in a while! Let us make it worth your while. Try us again today.”
Offer	Flat ₹50 off + Free Delivery on next order
Frequency/Timing	Triggered 14 days post last order, then reminder on Day 21
Success Metric	CTR > 8%, Return-to-order rate > 20%

Campaign 2: “Your Basket is Waiting” – Abandoned Cart Recovery (Core Users)

Target Segment	Core users with last activity <21 days, abandoned cart
Pitch/Content	“Your items are still fresh in your cart! Order now and get a special deal.”
Offer	Extra 10% off on cart value >₹499
Frequency/Timing	1 hour post abandonment + next-day reminder
Success Metric	Conversion Rate > 18%, Cart recovery rate > 25%

Campaign 3: “Reignite the Habit” – Power User Comeback

Target Segment	Power users inactive for 7–21 days
Pitch/Content	“You were on a streak! Let’s get back to your daily essentials—fast.”
Offer	Streak Bonus: ₹100 Zepto Coins on 3 orders in next 5 days
Frequency/Timing	3-part series: Day 7, 10, 14
Success Metric	Order streak recovery > 30%, LTV increase over 14 days

Campaign 4: “Your Favorite Items Are Back” – Category-led Personalization

Target Segment	Any user segment who frequently ordered a specific category (e.g., Fruits, Snacks) but churned
Pitch/Content	“Your favorite mangoes/snacks are back in stock! Order now before they’re gone.”
Offer	BOGO or 20% off on previously purchased items
Frequency/Timing	Category restock-triggered, 1-time message + follow-up 3 days later
Success Metric	Reorder rate of promoted items > 22%, Re-engagement > 15%

Campaign 5: “Switch to Weekly Mode” – Convert to Habitual Use (Core/Power)

Target Segment	Users who churned after 1–3 orders (habit not formed)
Pitch/Content	“Make life easier—switch to weekly grocery plans with guaranteed slots.”
Offer	₹150 cashback on completing 4 orders in the next 14 days
Frequency/Timing	Weekly nudges on Sunday and Wednesday (grocery planning days)
Success Metric	Weekly order frequency uplift, Conversion to ≥3 orders in 2 weeks

🏁 Final Notes

Tools to Trigger: These campaigns can be automated via MoEngage, CleverTap, or WebEngage.
Channels: Push > WhatsApp > SMS > Email (in this order of effectiveness for Zepto ICPs).
Experimentation: A/B test messaging tone – emotional ("We miss you!") vs. rational (offers)