How Can Food Delivery Companies Use Product Analytics?

Food delivery is one of the most competitive industry to be in at the moment. As consumers become lazier to buy their own food from the stores delivery companies are becoming more and more popular, and therefore their numbers are booming as well.

In this article, we will talk about how product analytics can help you to better serve to your customers. The examples given above are the use cases we have seen in some of our customers.

Use Case 1

Let’s say that you deliver certain grocery items to your customers and you realized that your ice cream sales are down because customers who order ice cream are no longer using your app.

• You can use segmentation feature to group customers who ordered ice cream before they churned.
• Export the email addresses of the targeted group or export their user ID’s to a list
• Start a mail campaign specifically designed for your target audience, offer incentives such a discount on their next ice cream order.
• Instead of an email campaign, you can use the user ID’s to send a notification to your users through the app and let them know about the discount

Use Case 2

Product team wants to learn what other apps their customers are using and are there any correlations and patterns in usage?

• You can retrieve the information regarding which other related apps installed in your users’ phones.
• Product managers can use the segmentation feature to group the users who have similar apps to yours and create a list of those apps.
• If your users are using your competitor’s app than you can run retention analysis on those users to see if their retention rate is decreasing.
• If your customers have your competitors app and their retention is falling continously, your product teams can investigate why your customers prefer to use your competitor’s app
• Based on the research your product team can better optimize your app and services and use segmentation feature to identify the users who are using your rival’s app and send them incentives such as discounts and promotions via email or in-app notification

Use Case 3

Your team rolled a new update on the user interface, but product managers are complaining about the decreasing number of orders and suspicious of a problem in the new interface

• You can create a funnel to see the steps your customers take before reaching to transaction phase (log-in-view product-add to basket-order and so on)
• Analyze the steps in your funnel to identify where does the number of customers drop most significantly? (This is going to be your bottleneck point)
• Eliminate the bottleneck point, and rerun funnel analysis to see if the problem is solved