Design a product/feature to double the customer base for Dunzo.

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Design a product/feature to double the customer base for Dunzo.

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Mahnaz Majeed · Answer 1 · 2020-03-17T06:47:14+0000

Dunzo’s mission: To be the logistics layer of every city.

Goal: New user acquisition for consumer goods sold locally at a high frequency

Constraints: Need fulfillment has to be hyperlocal with same hour/day and unit economics must be reasonable. The target audience has to be within the B2C segment.

Dunzo USP - Mobile-based virtual personal assistant for city and urban people, assigning real people to get complete chores involving consumer goods, for a specified service fee within the city limits. Services include:

Pickup item(s) and drop at doorstep
Out of home individual item repair errands
Shop item(s) and make delivery

Primary value add for the consumer: Hyper convenience, speedy access, doorstep delivery, and time saver

Threeway marketplace - Consumer, partners, and merchants.

Product verticals from the consumer goods market: Food, groceries, small household items and everyday necessities, small electronics, medicines,

Competitors: Broadly speaking anyone who delivers anything to consumers for as a service provider, Amazon prime, amazon pantry, hot food delivery apps like Swiggy and Zomato delivery, grocery delivery apps like BigBasket, Grofers and fresh Milk delivery services (the community milkman and milk delivery apps).

B2C Personas:

	Category	Sub Categories	Urgent - Last mile delivery	Post-date delivery OK	Frequency # orders per week	Number of Verticals per order
1	Corporate professionals	People who can leave their home but have limited time
1.1		Workaholic professionals who need assistance getting groceries during work hours so they can cook when at home	-	Yes	2	3 (Daily Groceries, Fruits and vegetables, Meat & Fish)
1.2		Professionals working night shift and have a flipped sleep cycle	-	Yes	1	2 (Daily groceries, Restaurant)
1.3		Non-resident visitors on work travel who would like things delivered to them	Yes	-	1	1 (Daily groceries)
1.4		Working parents who just don’t have enough time in the day to do it all themselves	Yes	Yes	2	5 (Daily Groceries, Fruits and vegetables, Meat & Fish, Medicines, Pet supplies)
2	Homebound and not by choice	People who can’t leave their homes
2.1		New moms and caregivers who are homebound and unable to step out	Yes	-	3	3 (Daily Groceries, Fruits and vegetables, Medicines)
2.2		Cancer patients, caregivers of sick people and people with compromised immunity who don’t want to risk going in public spaces because it can make them very sick. They follow a specific nutritious diet and eat frequent small meals. Overwhelmed caregivers may not be able to plan ahead.	Yes	-	2	5 (Daily Groceries, Fruits and vegetables, Health and wellness, Medicines, send packages)
2.3		Senior people with limited mobility who find it challenging to physically get to the store to make the purchase	-	Yes	1	2 (Daily Groceries, Fruits and vegetables)
2.4		People with physical disabilities who are unable to get access to things they need or want because of the city’s infrastructure is failing them	Yes	-	0	N/A

SOLUTION

Since the goal is to expand the customer base by 2x and with the goal of targeting high-frequency customer segments. I would focus on the segments using the app twice a week or more and/or have a higher basket value with more expensive items per category. So, I will go ahead and target Workaholic professionals (1.1) to expand the customer base.

Assumptions: Fees payable per delivery based on items and service received, app allows multiple cashless payment options and literally every online payment method available for both domestic and international users. Ability to charge franchise businesses a fee to aggregate demand.

Persona traits - Workaholic professionals (1.1) : Age 25-40, Tech-savvy, Prefer cashless payments, don’t have time to coordinate receiving orders more than once and need guaranteed delivery times, like getting cashback from their amazon orders, frequently purchase online for their varied lifestyle needs, experiment with imported FMCG products because they can afford it like to cook simple meals and have food necessities well stocked.

Ideas

Personal assistant feature idea - Create essential personal care packages of varying pricing points to attract new users, developed to align with demographic and psychographic trends observed in the existing data, with cashback offers (skincare, body care, hair care, and styling products).
Personal assistant idea - Make it simpler to create a to-do list of errands and chores by predefined buckets - these primarily fall under the deliver-to-shop and collect when repaired service- repair electronics, repair kitchen utensils, repair clothes/shoes/bags and so on. Partner with local repair retailers to auto-connect the buyer and seller. This would be similar to the existing grocery store selection they have listed int he app.
Personal meal planner idea - Make recommendations for what to cook and create ‘add recipe ingredients to cart’ as a one-click option.
Personal meal planner idea - Add a feature to plan meals for the week. Show recommendations for what to cook based on time-to-cook estimates
Personal meal planner idea -Partner with chefs to create ‘meal in 20 mins’ recipes
Budget planner idea - Offer a weekly budget planner for essential supplies including food and household items, that plans for the user.

Conclusion - I think the meal planner ideas are feasible and they provide sufficient value to the end-user to attract more users. I didn't use a scoring system for this case. The goal is to reduce the pain point of figuring out what to cook, what ingredients are needed and the number of steps to add the needful into the cart (with the option to remove ingredients in case the user already has it - like maybe everyday spices and oil). It provides the value add of a time saver. It also encourages existing users to increase basket value.

The metrics I would consider -

# new daily users after the meal planner feature released

# of users adding recipe ingredients to cart as a package

Average basket value of users who used the with meal planner feature - look for signals of increase in basket value because now the user is buying more ingredients than they previously did thanks to the recipe recommendation

Average basket value of users who don't use the meal planner feature - look for signals that indicate if the new feature improves basket value

Rate of increase of average number of weekly orders- we would look for higher frequency or consistent number of orders to indicate that the planner is working as a planner

shaz24 · Answer 2 · 2019-12-14T16:27:55+0000

Clarifying questions: What cost constraints? Geography exansion or existing teritory.

Primary metric: Acquisition related: New signups/day, DAU, WAU; Secondary metrics: Retention, Avg Order value

Users: Young adults looking to fulfil an immediate need (e.g. grocery item that they have run-out of at home) - current users

However they might have to acquire newer customer segments to double the customer base. They might have to target middle class in the 30-50 age range.

What job do customers hire Dunzo for? Get items to doorstep conviniently

User journey: 1. Realize that you need an item 2. Define/Plan how (e.g run to the store, order on AMZ for a later delivery etc.) 3. Execute (choose items, pay) 4. complete and get back to what you were doing earlier

A. Biggest friction point for consumer is step 3 above - it is time consuming and not an enjoyable activity

B. Biggest challenge for Dunzo is Step 2 above- they dont have customer's mindshare

Point B above would require the usual marketing, top-of-funnel conversion, marketing etc. However, a product moat can also be introduced: Since Dunzo is about hyperlocal discovery, the app can have a section similar to Google neighbourly (hyperlocal social network groups) where people can come and explore what is happening in their neighbourhood, ask other community members any questions, get their questions answered. The idea is by creating an information sharing section, more people would start using Dunzo - who can later be converted to commerce users. This will also help in network effects, and increase the user base.

Point A above would require making purchasing on Dunzo frictionless - maybe integrate with google home, voice assistant. Use coversational AI to understand items that people need. Use machine learning to figure out how to procure the items in the customers vicinity.

Some input merics I would measure post building the features above: How active are the hyper local chat group? Conversion from chat -> commerce, turnaround time to complete ordering etc

d_m · Answer 3 · 2022-05-16T13:05:24+0000

Mission: Let’s start with mission of Dunzo. Dunzo started off with mission of providing convenience for its customers but pivoted now to a mission of becoming ‘Logistics layer of every city’. The mission increases scope to every errand we run as part of our lives and also expands scope to all geographies

Users: Dunzo has both b2b and b2c users. In b2c users, large user base of dunzo comes from 18 to 35 year olds who are tech savvy and also have disposable income.

For given problem statement, along with new geographies or new use cases, I would like to look at new user segments as well. Users above 35 years and users who are non tech savvy.

Goals: The north star metric to go after would be number of new users acquired/per day (acquisition). And the supporting metric would be the number of users who made atleast one transaction on app/Total users acquired (activation)

Needs:

Dividing user persona & needs below

Users with age more than 50 years who are not tech savvy, who probably cannot use google maps and cannot type right search words to purchase groceries to get their task get done (in current Grocery section). The frequency of usage will be 2-4 orders per month.
Users with age more than 50 years who are unwell/ cannot walk far distances for simple breakfast or food needs. They would want someone who can pick up idli from a nearest small shop and deliver within 10 minutes. The frequency is daily or even more than once in a day.
Users with age more than 50 years who want medicine items to be picked, books to be purchased from a local store. They would hard to use the courier services by Dunzo. The frequency of usage will be 2-4 orders per month.
Users who are above 35 years, who have simple errands from picking up clothes to how to fix their laptop which requires a person with expertise to guide them and also get it fixed. The frequency of usage will be 1-2 orders per month.
Users with are between 25-35 and have kids and want to buy stationery. They would not know which item their child might like and hence end up not using courier services and instead have to take the child all the way to the shop. The frequency of usage will be 4-6 orders per month. Their lifestyle would consist of optimisation of time as much as possible so that their work is not disturbed.

Prioritisation of needs:

I would pick 2 segments - users between 25-50 and users above 50. Based on frequency, user segment size, order value, I would pick need 5 to be top priority.

Solutions:

Kirana store onboarding where a user can search for items like ‘pencil, book etc.’ and get these items delivered for themselves or others. The current grocery stores need to expand their portfolio to include these items.
Kirana stores onboarding can also solve for steel items, household items purchases. The convinience factor of getting that item delivered within 15-30 mins and ability to even talk to the owner for any questions definitely increases user base and also retains them.

Recommendation:

My recommendation would be to expand scope to all types of stores and not just grocery delivery.

neeraj gather · Answer 4 · 2020-05-11T13:00:33+0000

Product Description - A platform to order any daily need to be delivered at doorsteps

Goal - To double the customer base for Dunzo

Clarifying Questions:

Can we explore market penetration? (finding ways to compete and grow users with no change in product or market) - Answer Yes
Can we explore market Development? (Offering same products/services to new market) - Answer Yes
Can we explore product Development? (Offering new products/services to same market) - Answer No
Can we explore Diversification? (Offering new product/services for new market) - Answer Yes

Assumptions:

Dunzo is currently looking for market penetration only and do not want to invest time/money in new market opportunities without tapping the full potential of existing market. So, let's focus on Market Penetration only

Users:

Anyone who doesn't have time/resources to commute for a daily need and is looking for a convenient solution to carry out the errand.

User Journey, Pain Points and Solutions:

User Journey	User has a need/want	User knows about Dunzo offering	User opens Dunzo App and filters through categories to choose the item he needs/wants	User gives additional details like quantity and items that are not mentioned in the Dunzo catalog	User submits the request and gets an ETA	User receives a call from Dunzo serviceman and clarifies the details	User collects the item from service guy and make a payment along with service charges
Category	Problem	Awareness	Product Quality	Product Quality	Service Quality	Service Quality	Pricing
Pain Points		User doesn't know about Dunzo Offering	User gets a hard time finding the category and item he wishes to buy. Either it is hard to traverse/search or it is not available in the Dunzo Service Portfolio	(Covered in previous step)	Time taken to get the item delivered is too high and doesn't meet user's delivery expectation criteria	User has hard time explaining the details to the Service Guy and sometimes it results in wrong orders getting placed	User finds the service charge too high for the value he gets from the offering
Priority	NA	H	L	NA	M	L	H
Rationale		This is the core of the business and this would directly help Dunzo acquire new customers	I am assuming that Dunzo is taking all possible measures to design a user friendly UX. Non-availability may be a concern for some users but there may be a reason for which some items are not available in the catalog, that's why low priority		This may be a cause of concern for some users and if it is then it should be addressed as it is one of the key offering of Dunzo	Not sure if this would be a major concern as mainly users are ordering day to day items and that is not difficult to understand by servicemen	This may be a major concern as India has mainly value driven buying patterns and nobody wants to pay more than the value they are getting out of the product/service
Validation		Find out what is the awareness percentage in the cities Dunzo operates in?	Find out via searches, customer feedback on what are the missing items in the catalog?		Find out through customer complaints, order cancellations, servicemen interviews if ETA is a major concern for Users or not	Do a small group interview to understand if this is a concern or not	Check how many of the customers are leaving/uninstalling dunzo or have reduced usage? Check what are their concerns? Check how many users are cancelling their orders after getting the service charge quote?
Solution		Run strategical awareness campaigns	Analyze if these needs can be addressed without much investment in the operational/legal process		Find out solutions to improve ETA, operational effectiveness	-	Find ways to reduce service charges if possible

Though none of these solutions may help in exactly doubling the customer base. So we may need to look into other options mentioned in the clarifying questions.

Please feel free to share your feedback.