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Product Management Improvement Question: Redesigning Swiggy's loyalty program for increased customer retention and engagement

Asked at Swiggy

15 mins

In what ways can Swiggy's loyalty program be redesigned to increase customer retention and engagement?

Product Improvement Hard Member-only
Product Strategy User Segmentation Feature Prioritization Food Delivery E-commerce On-demand Services
Product Strategy User Engagement Food Delivery Customer Retention Loyalty Programs

Introduction

Redesigning Swiggy's loyalty program to increase customer retention and engagement is a critical initiative that can significantly impact the company's growth and market position. As we dive into this challenge, we'll explore user segments, pain points, and innovative solutions that align with Swiggy's broader objectives. Let's begin by clarifying some key aspects of the current situation.

Step 1

Clarifying Questions (5 mins)

  • Looking at Swiggy's market position, I'm thinking about the competitive landscape. Could you share insights on how our loyalty program compares to our main competitors, and what unique challenges or opportunities we face?

Why it matters: Determines if we need to focus on differentiation or catch-up strategies. Expected answer: Swiggy's program lags behind in personalization but excels in delivery speed rewards. Impact on approach: Would prioritize personalization features while leveraging existing strengths.

  • Considering the current economic climate, I'm curious about user price sensitivity. Has there been a shift in how customers perceive the value of our loyalty program, and are there specific benefits they're seeking more now?

Why it matters: Guides the balance between cost-saving and premium features in the redesign. Expected answer: Increased price sensitivity, with users seeking more immediate, tangible benefits. Impact on approach: Would focus on high-value, low-cost benefits and clearer communication of value.

  • Thinking about Swiggy's broader ecosystem, I'm wondering about cross-platform integration. How well is our loyalty program currently integrated across our various services (e.g., Swiggy Genie, Instamart), and what opportunities exist for improvement?

Why it matters: Identifies potential for creating a more cohesive, ecosystem-wide loyalty experience. Expected answer: Limited integration, with separate point systems for different services. Impact on approach: Would explore unified loyalty structure across all Swiggy services.

  • Considering user engagement patterns, I'm curious about the current loyalty program's impact on order frequency and average order value. Do we have data on how these metrics differ between loyalty program members and non-members?

Why it matters: Helps quantify the program's current effectiveness and areas for improvement. Expected answer: Loyalty members order 30% more frequently but have only slightly higher average order values. Impact on approach: Would focus on strategies to increase both frequency and order value for loyalty members.

Tip

At this point, you can ask interviewer to take a 1-minute break to organize your thoughts before diving into the next step.

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