Engagement and Retention | Dunzo
Increasing Engagement & Retention of Dunzcustomers
Product – Dunzo
Core Value Proposition – Quick delivery of items within the city. Dunzo is a hyperlocal concierge application designed to automate the process and the focus on delivering items from one part of the city to another.
How do users experience the CVP regularly -
1. Getting your item (groceries, medicine or packages) from point A to point B within a city within the promised amount of time
2. Getting live updates of the status of the delivery throughout the process
Natural Frequency –
Casual Users: Use the app once a week
Core Users: Use the app 2-3 times a week
Power Users: Use the app every day
Engagement Framework: Key Tracking Metric Selected Rationale
Engagement Framework | Key Tracking Metric | Selected | Rationale |
Frequency | Number of times the app is opened | N/A | Only opening the app is not indicative of use |
Depth | Amount of time spent on the app | Primary | As the user explores the different vendors for whichever s/he wants to use, s/he is more likely to make a purchase |
Breadth | Number of features used on the app | Secondary | The more the user explores the options on the app - to buy medicines, various kinds of groceries or courier everything from documents to food and equipment – the more likely s/he is to use Dunzo for more of their daily tasks |
Define:
Define the action makes a user an active user?
1. Saving one or more addresses on the app
2. Saving one or more payment modes (credit card, UPI ID) on the app
3. Completing the first order within 24 hours of installation
4. Completing 3 orders within the first 7 days
5. Completing at least one order per service offered within the first 7 days
Ideal Customer Profiles
| ICP 1 | ICP 2 | ICP 3 |
| Mrs. Reddy | Aftab Jassal | Dilip Badwe |
Demographics |
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Profession | Housewife | Professional/Business Owner | Senior Citizen |
Age range | 35-50 | 30-55 | 60-70 |
Marital Status | Married | Single | Single/Married |
Gender | Any | Any | Any |
City | Bangalore | Delhi | Mumbai |
Education | Masters degree | Masters degree | Masters degree |
Tech Expertise | 7/10 | 9/10 | 8/10 |
Where do they spend time | At home, temple | Home, office, gym | Home, doctor’s office, pharmacy, grocery store |
Social Media | Facebook | Facebook | Facebook |
Frequently Used Apps |
|
| Facebook |
Where do they spend money | Groceries | Groceries | Groceries |
Problem Statement | Mrs. Reddy manages all the daily household responsiblities - groceries, managing the maid, events/projects/classes for her children. However, this means she is working on or supervising multiple people/projects at the same time and cannot necessarily leave home. Getting groceries and other items required for her children's school acitivities will help her manage her time more easily and efficiently | Aftab is a busy professional, living alone and therefore often needs to order groceries, have work or personal parcels delivered from point A to point B. An app that allows him to do both things things will make his life much easier | Mr. Badwe is a senior citizen. While he is generally in good health, old age means that he and his wife often need to re/fill their prescriptions, get groceries delivered |
JTBD | Functional - getting groceries, medicines, packages delivered quickly, efficiently and economically. Mrs. Reddy uses the app nearly every day for one or more of these | Functional - getting groceries, medicines, packages delivered quickly, efficiently and economically. Aftab uses the app 3-4 times a week primarily to have groceries delivered to his apartment. This saves him a huge chunk of time and money by allowing him to cook at home and get the routine home tasks outsourced | Functional - Mr. and Mrs. Badwe are able to conveniently order fresh produce, dry groceries as well as medicine to their doorstep saving them time and effort of having to go to the physical stores |
Time or Money | Time and Money | Time | Time |
How much time are they currently spending on groceries and deliveries | 4-5 hours per week | 5-7 hours per week | 1-2 hours per week |
Segmentation:
Power/Core/Casual
| Depth | Frequency | Breadth |
CASUAL USER
The Senior Citizen (Mr. Badwe) | Spends 20 minutes a week on the app | 1-2 times a week | Uses Dunzo once a week for groceries or medicine |
CORE USER The Housewife (Mrs. Reddy) | Spends 30-40 minutes on the app in a week | 2-3 times a week | Uses Dunzo twice or thrice a week for groceries and deliveries |
Power Users
The Professional (Aftab Jassal) | Spends an 15-20 minutes every day | Every day | Uses Dunzo at least one of the services offered by Dunzo everyday |
Casual Users | Spends an hour a week | The Senior Citizen |
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Context | Goal | Pitch | Channel | Offer | Frequency | Timing | Metrics |
Signed up on the app and not sure how to use the app OR got overwhelmed by the features and only stuck to medicine delivery | Increase depth of use. To get the user to try all the services offered by Dunzo | Senior citizens can get stuff couriered to and from their families and friends, buy groceries without having to haggle or worry about cleanliness and get their medicines delivered right to their doorstep |
Push Notifications
| Loyalty and senior citizen discounts on all dunzo services
| Twice a month on each channel
|
Push notification: Every time the a sale or discount goes live. Timing: 9 am - 6 pm, weekdays
Notifications through whatsapp and SMSs
| Number of orders placed in a month
Retention M6, M12
Increase in time spent on the app
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Core Users | Spends 1-2 hours a week | The Housewife |
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Context | Goal | Pitch | Channel | Offer | Frequency | Timing | Metrics |
Signed up on the app to outsource their deliveries and couriers | Increase depth of use. To get the user to use the app once every day | Pitch 1: Your friend Shanti was able to get her groceries from the local Hypermarket delivered home within 30 minutes Explore now | Push Notification
Emails
Update on the app, SMS, whatsapp
| Never miss an offer from your favourite local stores and discounts on deliveries and Push notifications to keep you updated. | 2-3 times a week. | Push notification: Every time the a sale or discount goes live. Timing: 9 am - 6 pm, weekdays
Notifications through whatsapp and SMSs | Number of orders placed in a month
Retention M6, M12
Increase in time spent on the app
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Power Users | Spends an 15-20 minutes every day | The Professional |
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Context | Goal | Pitch | Channel | Offer | Frequency | Timing | Metrics |
Signed up on the app to outsource their daily personal admin tasks such as groceries, medicine and courier pickups and deliveries | Increase depth of use. To get the user to continue the same level of engagement | Thank you for making Dunzo a part of your daily routine. You are upgraded to a power user.
| Push Notification
Emails
App Pop up with confetti+app tour to showcase what is new
| Early bird access to offers, preview of new product updates before the other members, loyalty discounts | When the upgrade happens | Email and Push Notification: Tuesday – Thursday between 6-8pm
App Pop up+tutorial: When the member opens the app | Increase in time spent on the app(~10%)
M6,M12 retention (~5%) |
Retention:
Step 1 – Understand
Bird’s eye view
1. What is your current retention rate in terms of users? 27% (per publicly available information)
2. At what time period does retention curve flatten? Draw the curve
It flattens closer to the 3 months mark of a customer signing up.
Microscopic view
1. Which ICPs drive the best retention?
a. The Professional: Early to mid-career stage professionals who are looking to outsource as
much of their personal admin work as well as use Dunzo for work related deliveries and
pickups
2. Which Channels drive the best retention?
Most of the users I interviewed that had continued to use Dunzo had come via referrals Hence the mode will be:
a. Referrals
3. What sub-features or sub-products drive the best retention?
a. Discounts
b. Loyalty Program
Step 2: Define
1. What are the top reasons your users churn?
Voluntary | In-voluntary |
No value for money | Service is more expensive than competitors like Swiggy Genie, not enough variety of products or vendors available |
App changes too frequently and no clear communication | Too many and too frequent app updates resulting in poor app performance |
Disagree with the change in pricing | Service is more expensive than competitors like Swiggy Genie |
2. Negative actions to look for:
At Risk Users:
Indicators | Frequency/Time Span | Reason |
Not used the app | 1 week | Dunzo is a hyperlocal delivery provider, and intended to provide basic services used by people daily. If the user has not used the app in a few days, it is indicative of poor app performance or higher fees than competitors |
Not explored multiple features | 15 days | Dunzo is a hyperlocal delivery provider, and intended to provide basic services used by people daily. If the user is not exploring multiple features and using them, this indicates a lack of stickiness among users. Same reason as above – poor UX, high fees, the deliveries and pick ups did not happen in a timely manner |
Not responded to messages in the inbox | 30 days | Since Dunzo is a virtual concierge for the layman, if the user has not availed the discounts and loyalty benefits communicated to him/her, it is indicative of the user disengaging and exploring other delivery options |
Churned
Indicators | Frequency/Time Span |
Not used the app in a week | 1 week |
Not updated to the most recent version | App updates on Dunzo are frequent and they are shown each time you login to the app. Not updating to the most recent version clearly indicates churn |
Deleted the App | App deleted from the phone |
Step 3: Resurrection Campaigns –
In most user interviews of the ICP- The Professional, they mentioned that they can be brought back to the app by
1. Competitive pricing – often Dunzo deliveries are priced higher than its competitors and yet partners are not assigned in a timely manner
2. Better UX – the app screens are to data heavy and not intuitive to use
At Risk.
Segmentation of user | Context | Pitch/Content | Offer | Channel, Frequency & Timing | Success Metrics |
The Professional | For those users where time is of essence and they want to optimize the use of the app | Email: Aftab's Curated feed!
Now find the most relevant grocery offers delivered right to your mailbox
· App layout shows the most recent conversations on the feed · Weekly email to keep you updated about the latest offers on the most frequently purchased product(s) and store(s)
| Tell us what you like and see the app work for you. |
Push notifications: Notify users of offers on frequently bought products and frequently used stores via Whatsapp and SMS
Social Media announcement of curated feed! | Time spent on the app
Retention in M4,M6,M10
Increase in frequency of user and AOV
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Churned
Segmentation of user | Context | Pitch/Content | Offer | Channel, Frequency & Timing | Success Metrics |
The Professional | For users who had earlier churned because of not finding delivery partners in time or high delivery fees | Introducing Dunzo Loyalty Program
More than 200 stores and products are listed within 5 kms of your location
Sign up with Dunzo to explore them | Tiered discount based on number of orders placed in a week, a month and a quarter | Whatsapp: Introduce the new feature, mention discount by service give a link to sign up
| % of members that sign up on the app again
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· Metric to track:
o Increase in number of orders placed
o Increase in number of services used and the frequency of user
o Increase in use of the discount codes
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