How will you increase AOV (average order value) by 15% for Swiggy?

To answer the questions I'll follow a simple approach :

 

Objective/Situation : To increase AOV of Swiggy by 15%

Clarifying questions :

1. You want to increase AOV across any specific section , such as QSR restaurants , premium restaurants or it will be at a whole

2. Are you looking at increasing the AOV from any specific segment or it will be at an overall level.

3. How many months are you looking at to move the metric up ?

 

For the sake of answering let's assume we are taking Swiggy as a whole with everyone who orders on the app. (All user segments).

Task : increase AOV from x to y for Swiggy in a span of z months .

Look at data of previous customers who buy from the platform w.r.t maximum purchase , what is purchased ? For e.g. Biryani was the highest selling item on Swiggy for the last few months which has brought in x cr. Create a bell graph to understand the distribution of audience wrt what is ordered the most.

Analysis and action :

1. Cross selling promotion at check out page - do you think by cross selling at check out page we can increase the number of users who order something extra along with their order . For e.g with Biryani so you think adding in extra chicken , vegetable or Raita/Salan will help. ?

2. Personalisation: for the user based on the history do you think when the users enters the app can algorithmically we can show him restaurants which command more premium based on his last order and have a better feedback/reviews. For e.g. an user has been purchasing biryani from x restaurant and also has purchased from any other restaurant but typically he has shelled out not more than 300 rs whenever he orders it. can we show restaurants which can give it to him at 350 rs with a better quality/taste. Can the filters applied make these restaurants come on top and also on the app can it show these restaurants which can give him an opinion of what to order

3. In case the user has been consistently ordering from x restaurant for past few weeks , can upselling/cross selling give more margina from his pocket ?

4. increase the engagement through communication channels such as : Push notifications, emails , whatsapp's, insta. Show ads where the product cost could be higher but is personalised as per his taste. Emails which promote cross-selling. / upselling.

5. Make use of Instamart (sub vertical within Swiggy app). Use cross promotional deals . For eg if the user wants to purchase rice from instamart. Can we also look at recommendations of what well can be made with rice and what are the best restaurants which might be giving us something which might tantalize our taste buds ?

6. Combined value of 1+1 and effectively playing on the price. For eg if I order roti with main course , can instead buy a bread basket which might be 20-30 rs more but has more variety and roti .

7. Coupons of value which will decrease the overall price at a certain order threshold . For eg if I buy something for 399 I'll get 30 rs off whereas at 300 rs I'll not receive anything

Metrics to track :

1. Per user AOV increase WA, MA , DA

2. With new features - engagement - clicks , CTR , opens , churn

3. % increase in user orders compared against AOV increase per order

4. Specific segmentation increase or category increase

Result : Achieved y from x in z months / weeks and counting .