Zomato Problem statement

Understand the food delivery market in India and other trends through primary and secondary research.

Product
Based on your understanding of the customers and market landscape, create a product roadmap on how
Zomato can improve the metric “Revenue per customer per month”. Guidelines on completing the
assignment:

roadmap 1. Market understanding will be critical in doing the assignment, so invest some time in secondary research,
and if possible primary research as well
2. You can make any assumptions that you feel are relevant but pls do state them clearly in your document
3. We appreciate a good balance of breadth and depth in the recommended solutions
4. We expect the assignment to be completed in 3 days from the time it is shared
5. You can use either a word document or a slide deck to articulate your plan
by Vishal Bohra A medium-term product roadmap to solve the problem is the expected deliverable
Contents

1)Understanding business goal

2)Zomato operating metrics and user personas
3)Primary research findings
4)Order journey
5)Product solution and roadmap
6)Prioritization
An increase in revenue per user per month can either be achieved by increasing order
frequency or AOV – the other options are company level strategy changes

2
Out of the 5 levers
1)Not considered as
Increase order frequency higher
per customer
commissions can
lead to vendor
dissatisfaction
3
2)Considered
Increase GOV per
customer Increase item values in an 3)Considered
order 4)Not considered as
Zomato pro
4 program already
Revenue per user per offers free delivery
month Increase AOV per order Increase delivery charge 5)Not considered as
one of the primary
1 drivers for online
5
food ordering is
Increase commission per
order
Decrease discounts per discount
order
5% of the customers of Zomato contributes to 34% of the orders; 18-35 years old are
the top users – majority of them order for just one person
Revenue / user / Monthly orders
Revenue MAU AOV
month per active user
₹ 26.3k cr 1.7 cr ₹ 407 (FY 23)
₹ 1,289 3.2

Just 5% of the users contribute more Zomato food delivery service is primarily targeted towards age 18-35 with a high
than a third of the orders on zomato concentration of metro cities

Customer vs orders groups Bloomers Young adults Professionals Family

Age 18-22 22-26 26-30 30-35
1%
1% 13% Working Well settled
3% Occupation Student 1st Job
professional working professional
6%
16% Family size Single Single 1-2 3-4

66% Lives at home / hostel –

Lives in a
food is either arranged Lives in a shared
shared flat. Food Lives with family.
Food by parents or by hostel flat. Food is
95% is arranged by Food is either self-
requirements owners. However, likes to arranged by either
either cook / tiffin cooked or by a cook
binge eat and order food cook / tiffin service
service
from outside

Ends up ordering on
2-3 a week –
Likes to order in a special occasions,
Mostly on Sunday
1-2 a week when mess / lot. Might stretch to weekends and
Customers Orders Ordering habits when cook is on
home food is not great 5-6 times a week desserts. Might order
leave / Friday
Less than 50 50-80 basis discounts a dish during
and Saturday
weekdays
80-100 100+
Primary research – a total of 25 personas were interviewed for the study; Age group of
25-30 with an income of 15-25lpa was given highest weightage

What is your biggest pain point Which platform do you prefer the What is the biggest pain points
with respect to your food most with these apps

I order from the cheapest option. Takes too much time to order –
29 years old single male Keeping a cook is not feasible and
However, I prefer Swiggy / Zomato so many discounts / offers, food
living alone in Kolkata. getting expensive as I live alone.
over the company apps as I options, ETA to consider it is like a
Earns around 25-30 lpa Managing groceries is also tedious
remember the UI flow well puzzle

I am indifferent and mostly

dictated by any coupon which I I am indecisive most of the times
27 years old single female I want healthy food, but my
have received. Also, as I am very and the myraid of options makes it
living in Bangalore. Earns maid doesn't know how to cook
particular about food, I do even more difficult to finalize an
around 15-20 lpa many options
complaint a lot - Swiggy gives option
refunds faster

35 years old male with a I started off with Swiggy as they

My kids are very fuzzy eater.
family of 2 kids and have a more friendly UI. As I Order delays are very frequent as I
I promise them ice creams /
earning wife living in Noida hardly order, I continue to use only mostly order on Sunday nights
sundaes to make them eat food
Earns around 40 lpa Swiggy
 Order journey - Starting with trigger, browsing and ordering are two zones where the
user spends most time and effort leading to opportunities

Trigger Browsing Ordering Waiting Post delivery

ACTION

User opens User searches for User decides on Checks Selects Checks the
User User decides Leaves
the more possible restaurants the items and Applies other apps payment app to get Consumes
needs whether to a
frequently with acceptable ETA adds them to coupon for final mode order food
food cook / order review
used App and price points the cart price and pays status

Customer searches the restaurants and then

the offers, pricing and ETA varies for each
Customer firsts tracks the order, a
The decision is governed by multiple factors:- restaurants (and branches) leading to Customer browses multiple apps
DOING

screen which gives them the position of

Budget, Eating healthy home cooked meal or multiple permutation & combination. If the (Swiggy, Zomato, ONDC, Restaurant app)
the rider. Post delivery, the customer
ordering from outside customer knows that dish they want to to check pricing
leaves a review / complaints
order, still they will have to search on each
restaurant's page

Customer has to compare across apps

Customer is puzzled with the numerous Customer frequently refreshes to
leading to even more combinations. If
FEELING

Customer is uncertain about their decision to combinations available leading to a lot of get the time to delivery. As a new
while going on another app, if the
order in and is still weighing their choice time wasted on the app which in turn leads addition both these apps gives
customer likes something else, then the
to poor user experience in the end advertisements / trivia
process starts from scratch

Customer has no
The decision to order or not is taken at the The numerous combinations leads to poor Offers are at
reason to be loyal
INSIGHT

first step. User should be incentivised to customer experience which manifests in the times are not Customer sticks on the app for a long
to a certain app as
order daily / higher frequency similar to for customer choosing not to open the app in utilized because time
promotional offers
eg. How they book cabs the first place of lower AOV
can be different.
Revenue per user can either be increase by increasing the AOV or by increasing the
ordering frequency

Insight Initiative Initiative description Adopters Metrics

Retention
Ordering frequency
User should be incentivised to order daily / higher Introduce a monthly meal plan Professionals and
Monthly meal plans AOV
frequency similar to for eg. How they book cabs with themes young adults
Contribution margin of
order

Retention
Giving coupons which expires in the
Customer sticks on the app for a long time and is a Bloomers and young Ordering frequency
Retention coupons next few days. In case of refunds,
bargain hunter adults Contribution margin of
give cashbacks / send free desserts
order

The numerous combinations leads to poor customer

An item wise search without going Retention
experience which manifests in the customer Item wise search All
into the restaurants Ordering frequency
choosing not to open the app in the first place

There is not much activity on the cart page except AOV

Give option to create a meal at a Professionals
offers which at times are not utilized because of Meal crafting Contribution margin of
discounted cost and young adults
lower AOV order

Add loyalty points post every order

Retention
Customer has no reason to be loyal to a certain app which can be redeemed on Bloomers and
Loyalty engine Contribution margin of
as promotional offers can be different subsequent orders / zomato land young adults
order
passes
Initiative discussion with users – All 25 correspondents were asked to choose how likely
are they to use a feature; Item search, retention coupons and meal plans were top rated

How likely are you to subscribe to a monthly meal plan – 60%

Yes No

How like are you to use these retention coupons – 76%

Yes No

How useful will be the item wise search feature be for you – 88%

Yes No

How likely are you to use the create a combo feature in given at a discounted price – 52%

Yes No

How likely you to stick to zomato if it rewards you on your orders – 48%

Yes No
Monthly meal plans roadmap – Start with a basic version of selecting, paying and
placing in a theme; Add nutritional trackers post that

Initiative, reasoning and expected features Versions for the product

Version Feature Metrics

Introduce a meal plan for the user to subscribe.
The meal plan needs to vary with duration
(monthly / weekly / 10 meals a month), theme • Select a meal plan • Number of subscriptions
(healthy food, home food, keto) and price bands • Pay for a meal plan • DAU
V1.0 • Select an item on the meal plan • MAU
(200 per meal, 300 per meal). The user, would • Place an order • Total orders placed
INITIATIVE then be able to order a dish from a curated list of • See the expiry of plan and pending meals • % of plan used
items in a given theme and price band

• Ability to show nutritional information (for

With a fair majority of users in the 25-30 age band healthy meals plan), home recipe icon (for • Increase in meal selection with
additional information over meals
living alone, managing a cook is a hassle due to V1.5 home food plan)
with no additional information
high cost (as cook is only cooking for one), • Ability to change a plan in the middle of
the cycle • Number of plans changed
maintaining grocery, office timings clashing with
cook timings. Addition of such a service will lead
WHY to these users switching over. This will also result • Ability to build a tracker for nutritional
in better retention V2.0 information for all meals consumed by the • Retention of customers who use
this feature
user in a cycle

1) Ability to select a meal plan

• Retention of customers who use
2) Ability to select from multiple themes • Predictive meal basis nutritional this feature – retention of
3) Ability to select different durations V3.0 consumption in the last few days customers who do not use this
FEATURES 4) Ability to select the rate • Ability to add a cheat meal feature
Users have an option of selecting amongst different themes (keto, healthy, home food),
type (veg / non-veg) and cost per meal (₹ 200 / ₹ 250 / ₹ 300)

Themes Combo Cost per meal Plan cost Discount Final price

Keto diet - veg 25 meals a month ₹ 300 ₹ 7,500 5% ₹ 7,125

Healthy nutrition - veg 5 meals a week ₹ 250 ₹ 1,250 10% ₹ 1,125

Home food – non-veg 30 meals a month ₹ 200 ₹ 6,000 15% ₹ 5,100

Home food – non-veg 30 meals a month ₹ 250 ₹ 7,500 15% ₹ 6,375
While the meal plan is only suitable for a smaller segment of users, if adopted, it can
increase revenue per customer by 4x

Metric Current Expected Comments / Assumptions

AOV (A) ₹ 250 ₹ 250 Basis 5 eateries near my location

Bulk meal discount (B) 0 10% Approx 10% on buying meal plans

AOV final (C = A * (1-B)) ₹ 250 ₹ 225 Calculated metric

5 is an assumption for low frequency users. Also assumed, these would

Ordering frequency per month (D) 5 25
subscribe to monthly plan of 25 meals a month at 200 rupees per meal

Revenue per customer per month (E = C*D) ₹ 1250 ₹ 5625 Calculated metric
Retention coupons roadmap – initial versions will include simple notification to send
retention coupon; offering of one-click order to be added in next version

Initiative, reasoning and expected features Versions for the product

Version Feature Metrics

Introduce an option to give coupons to the user
basis their order frequency and order days (For
eg., if a customer only orders on weekends, the
coupon should be given to the user on their • Mine data to get user personas across
V1.0 ordering frequency and days • % of retention coupons used
INITIATIVE weekend order which expires on Wednesday) • Ability to send a retention coupon

Majority of orders by family people are placed

during weekends leaving weekdays as potential • Offering a one-click order for past • % of users who have reordered on
place to increase revenue. Having an V1.5 cuisine ordered with auto applied weekdays without retention
addition discount (with notification), will increase retention voucher coupon
WHY weekdays ordering

• Ability to use this retention voucher across

1) Ability to send a retention coupon post order orders (as voucher amount will be basis • % of coupons used across multiple
placement V2.0
the weekend order amount which would orders
2) Ability to find customer personas who are be lower than weekday order AOV
FEATURES eligible for such offers
User gets a voucher which expires in the next few days equal to 50% of the current
order value

Woo-hoo! Get a coupon worth 50% of

your order once this order is delivered

Offer expires in 3 days (by Wednesday)

User is given a voucher after placing The voucher can be redeemed in the
an order worth 50% of the order value next 3 days
20% coupon usage rate can increase revenue per customer by the same amount

Metric Current Expected Comments / Assumptions

AOV (A) ₹ 407 ₹ 407 AOV as per zomato

Retention coupons amount (B = A/2) 0 ₹ 200 Half of AOV

Usage of coupon (C) - 20% Assumption

Ordering frequency per month (D) 3.2 3.84 3.2 is as per Zomato and 3.84 is because of 20% increase

Revenue per customer per month (E = A*D) ₹ 1302 ₹ 1563 Calculated metric
Item wise search roadmap – The initial versions should cover the use case of restaurant
level information on item page itself; Filters to be added later

Initiative, reasoning and expected features Versions for the product

Introduce an option to search basis the dish and Version Features Metrics
not the restaurant. This feature will not redirect
the user to a restaurant (as is currently the
practice), but directly lead the user to the
checkout page. The price shown, will be after best • Create a catalogue of top items
V1.0 • Number of visits
INITIATIVE • Ability to browse item level catalogue with
possible discounts which is avaialble for the restaurants tag • % of orders placed
particular restaurant

The ordering journey is extremely cumbersome –

starts from what the customer wants to eat, • Add relevant filter for each item (For eg.
followed by searching the best restaurant, Thin crust or pan crust for pizza, spicy or
medium spicy for paneer) • % of usage of filters
checking vouchers, branch wise ETA – all of which V1.5 • % of orders placed
• Ability to add ratings and pricing
leads to extremely poor user experience. For • Number of visits
• Ability to sort the items basis cost
WHY frequent users, this leads to massive waste of time and ratings

1) Create a catalogue with multiple popular items

across cuisines (pizza, masala dosa)
2) Add restaurant tag and corresponding discount V2.0 • One click check out from item page • % of orders placed
structure
3) Add item wise rating to the UI for better
FEATURES decision making
Item wise search roadmap – a one screen check out will reduce the time taken to order
which in turn would increase customer satisfaction

On searching chilly chicken burger, the item should

be displayed like this with one-click checkout
A 20% increase in customer visit on the app and 20% increase in chances of ordering
due to better flow would lead to ~40% gain in revenue per customer per month

Current Expected
Metric
Values Comments/ Assumptions Values Comments / Assumptions

AOV (A) ₹ 407 AOV as per zomato ₹ 407 AOV as per zomato

Assuming a 20% increase due to

Customer visit on app (B) 15 Assumption 18
better experience

Assuming a 20% increase due to

Chances of customer ordering (C) 21% Backcalculated (3.2 / 15) 26%
better experience

Ordering frequency per month (D=B*C) 3.2 As per zomato 4.68 B*C

Revenue per customer per month (E = A*D) ₹ 1,302 Calculated metric ₹ 1,904 Calculated metric
Meal crafting roadmap should include adding both – preset as well as personalized
combos

Initiative, reasoning and expected features Versions for the product

Version Features Metrics

The user should be given an option to add

frequently crafted combos (for eg., add coke and • Create a catalogue of frequently ordered
sweet with Biryani) at a discounted price combos • % of cases where an item was
INITIATIVE V1.0
• Ability to add preset combos at a added from preset combos
discounted price

In the entire ordering journey, the user is most

interested in ordering the main dish. Post this, as • Ability to create personalized combos basis
beverages and sweets are at the bottom of the user choice (for eg., giving a • % of cases where an item was
page, adding them gets missed. Current feature is V1.5 recommendation to add gulab jamun if added from personalized combo
pure addition but not at a discounted price which the user is a frequent gulab jamun rather than present combo
WHY reduces the attach rate consumer)

1) Create a catalogue with multiple popular items

across cuisines (pizza, masala dosa)
2) Add restaurant tag and corresponding discount
structure
3) Add item wise rating to the UI for better
FEATURES decision making
Meal crafting roadmap – option to add both preset as well as personalized combo
options will increase AOV

₹59

Option to add a preset combo at a discounted price

A 10% addition of combos to these meals will result in a 5% increase in the revenue

Metric Current Expected Comments / Assumptions

AOV of pre added items on cart (A) ₹ 407 ₹ 407 AOV as per zomato

Chances of adding a combo (B) - 20% Assumption

Cost of combo (C) - ₹ 100 Assumption

New AOV (D) ₹ 407 ₹ 427 ₹417 = ₹407 + 20%*₹100

Ordering frequency per month 3.2 3.2 Basis zomato

Revenue per customer per month (E = A*D) ₹ 1302 ₹ 1366 Calculated metric
Loyalty engine roadmap – adding a gamified system will build long term loyalty;
Ledgers and points usage should be the first features

Initiative, reasoning and expected features Versions for the product

Version Features Metrics

Build a gamified reward system, which will

incentivize customers by giving them real and • Create a customer ledger to record all
virtual rewards for ordering on platform transactions for loyalty • % of customers using loyalty points
INITIATIVE V1.0 • Order frequency of users using
• Ability to use the accumulated points loyalty points
during ordering on Zomato app

Gamified rewards can keep customers engaged

with the platform and generate long term loyalty . • Adding tiers in loyalty basis ordering
frequency
Currently, there is no privilege or loyalty program V1.5 • % of customers in each tier
• Adding badges basis tiers / actions
based on shopping history undertaken
WHY

1) Customer points ledger • Ability to redeem collected loyalty points

2) Customer loyalty tier through mystery rewards • % of customer using loyalty points
V2.0
• Ability to redeem collected loyalty points for each activity
3) Ability to redeem points in the form of mystery on partner websites
rewards, free movie tickets,
FEATURES
Loyalty engine roadmap – add a tier wise loyalty engine

Metric Eligibility Conversion (for discounts on final order value)

Tier 4 (Zomato foodies) ₹ 2000 average per month x1

Tier 3 (Zomato lovers) ₹ 5000 average per month x1.2

Tier 2 (Zomato VIP) ₹ 10000 average per month x1.5

Tier 1 (Zomato VIP +) ₹ 2000 average per month x2.0

A 20% increase in app visits by loyal customers should result in an overall increase of
18% revenue per customer per month due to greater loyalty

Metric Current Expected Comments / Assumptions

AOV ₹ 407 ₹ 403 AOV as per zomato. Assumed to decrease by 1% because of loyalty points

App visits 15 18 Assumption for 15 visits. Assumed to increase by 20% because of higher loyalty

Chances of customer ordering 21% 21% Back calculated

Ordering frequency per month 3.2 3.84 Basis zomato

Revenue per customer per month (E = A*D) ₹ 1,302 ₹ 1,547 Calculated metric
Basis RICE framework, retention coupons, monthly meal plans and item wise search
will be the top 3 initiatives

Confidence
Impact
100% = high Effort
Reach (How many 3 = massive impact
confidence (Man
users will be 2 = high impact RICE = Stack
Solution 80% = medium months Remarks
impacted – on a 1 = medium impact (R*I*C/E) rank
confidence required to
scale of 1 to 100) 0.5 = low impact
50% = low complete)
0.25 = minimal impact
confidence

Being an entirely new feature, the solution

Monthly meal plans 30 3 100% 3 30 3
will require time to build

The feature has low development and high

Retention coupons 50 2 80% 1 40 1 impact. There is high visibility on the EPICS as
well

Plenty of EPICS will overlap with monthly meal

Item wise search 50 3 80% 3 40 1
plans

The feature already exists and will only

Meal crafting 80 0.5 50% 1 20 5
require addition of a discounted option

Loyalty cashbacks will erode contribution

Loyalty engine 100 0.5 50% 2 12.5 4 margin and will start acting similar to
discounts