Milkbasket - How to engage & retain users?
Milkbasket - How to engage & retain users?
Milkbasket - How to engage & retain users?
Milkbasket - How to engage & retain users?
Milkbasket - How to engage & retain users?
Milkbasket - How to engage & retain users?
Engagement & Retention Strategy
What is Milkbasket?
Milkbasket is an app which delivers essentials, groceries, milk and dairy products daily at 7 AM. Milkbasket serves 20+ cities and has around 5000+ SKUs in its arsenal. Users need only add the products in the cart and provided they have enough wallet balance, those products will be delivered to their door steps, by 7 AM. Users can create subscriptions or order any products for one time also.
Add anything to your cart by 12 AM (midnight) and it will be at your door step by 7 AM in the morning.
Core Value Propositions of Milkbasket
Variety: Even though it has ‘Milk’ in its name, Milkbasket delivers around 5000+ day-to-day essentials including most brands of dairy products
Convenience: Add any product to your cart by 12 AM and it will be delivered to your door step by 7 AM the next morning.
Flexibility: Create subscriptions for any product that you want daily. Users can also create subscriptions for any products at custom intervals. Don’t need anything for a few days, pause your subscriptions or create ‘Vacation days’ in the app - the orders will be skipped for those days.
Pocket friendly: No minimum order value needed. No extra delivery fee. No additional charges (All products are sold at MRP or less than the MRP)
Consistency: Guaranteed delivery by 7 AM except under extreme circumstances (which is communicated via SMS/Whatsapp messages)
Trust: Delivers high quality items and provides refund with no-questions asked (in case of items missing or when bad quality items are received)
How do users currently experience that core value prop repeatedly?
Order anything by 12 AM the previous night, they will be delivered by 7 AM
Subscribe to any of the regular items at competitive rates with zero delivery fee
Order items at great discounts (especially for staple items)
Discover new items in the app which might be missed in daily/weekly trips to the market
What is the natural frequency of Milkbasket?
What is the best engagement framework for Milkbasket?
The two best engagement frameworks for Milkbasket are Breadth & Frequency
Breadth of Engagement:
Milkbasket at the end of the day is an app which delivers essential groceries to people’s home every morning. It started mainly with one product: Milk (hence the name). But as it grew, Milkbasket added more essential grocery items to the list.
In order to increase the AOV and GMV (adding more value to the company) and to give more choices to the user (adding more value to the user), Milkbasket has gone on to increase the breadth of engagement by
Adding more products in the same category
E.g., Need milk? Order any and every brand through Milkbasket
Adding more categories that can be delivered in the same order
E.g., Order breakfast, beverages, personal care, packed foods, home care. In short, you don’t need to step to any other app to order your essentials.
Frequency of Engagement
Subscription is the bread and butter for apps like Milkbasket. If a user subscribes to daily items like milk, breads, eggs etc., frequency of those purchases are set and no other inputs are needed from users on daily basis.
In those cases, the only thing needed from Milkbasket is to make sure that the wallet balance doesn’t fall below the required amount for daily subscription.
‘Subscribe to Save’ range helps the user save more money by subscribing to them. This also helps Milkbasket plan their inventory better and also create fixed frequency from user.
Also ‘Holidays’ work as a great tool to reduce the chance of user cancelling the subscription, instead of pausing it for a few days.
Who is an active user?
Has active daily subscription (for at least a month)
Places order at least one custom order per week
Recharges at least once a month for more than Rs. 1000
Gives back the packaging bags for recycling at least once a month
Ordered products from more than 2 categories a month
Segmentation
Based on usage: Casual vs Core vs Power
Based on ICPs
Based on RFM
Engagement Campaigns (Just Ideas)
Campaign 1
Campaign 2
Campaign 3
What is Milkbasket’s current retention rate?
As per data from Milkbasket, customer retention rate stands at 95%. However we can make the following assumptions about the retention curve.
Retention curve will flatten when
Subscription Users: Users have an active subscription for the last 3 months
Non-subscription users: Users have vintage of more than 6 months and total order value of more than Rs. 2000 in each of last 3 months
Which ICPs drive best retention?
Among the three ICPs defined, ICP number 2 (The Housewife) drives best retention as she is a power user who has active subscription of 2+ products and orders groceries only on Milkbasket app.
Which channels drive best retention?
Referrals & Word of mouth
What sub-features or sub-products drive the best retention?
Milk subscriptions, Vegetables & Staples
Define
What are the top reasons Milkbasket’s users churn?
Negative actions to look out for
Cancellation of active subscriptions (And no new subscriptions created in T+3 days)
Core user not recharging the wallet balance after it has reached less than Rs. 30
Increase in support tickets
Negative reviews on the app store, play store, social media
Decrease in AOV/SKUs per order
Lower CSATs/NPS ratings
Delinking payment details like card details
Removal of address
Resurrection Campaigns
What is Milkbasket?
Milkbasket is an app which delivers essentials, groceries, milk and dairy products daily at 7 AM. Milkbasket serves 20+ cities and has around 5000+ SKUs in its arsenal. Users need only add the products in the cart and provided they have enough wallet balance, those products will be delivered to their door steps, by 7 AM. Users can create subscriptions or order any products for one time also.
Add anything to your cart by 12 AM (midnight) and it will be at your door step by 7 AM in the morning.
Core Value Propositions of Milkbasket
Variety: Even though it has ‘Milk’ in its name, Milkbasket delivers around 5000+ day-to-day essentials including most brands of dairy products
Convenience: Add any product to your cart by 12 AM and it will be delivered to your door step by 7 AM the next morning.
Flexibility: Create subscriptions for any product that you want daily. Users can also create subscriptions for any products at custom intervals. Don’t need anything for a few days, pause your subscriptions or create ‘Vacation days’ in the app - the orders will be skipped for those days.
Pocket friendly: No minimum order value needed. No extra delivery fee. No additional charges (All products are sold at MRP or less than the MRP)
Consistency: Guaranteed delivery by 7 AM except under extreme circumstances (which is communicated via SMS/Whatsapp messages)
Trust: Delivers high quality items and provides refund with no-questions asked (in case of items missing or when bad quality items are received)
How do users currently experience that core value prop repeatedly?
Order anything by 12 AM the previous night, they will be delivered by 7 AM
Subscribe to any of the regular items at competitive rates with zero delivery fee
Order items at great discounts (especially for staple items)
Discover new items in the app which might be missed in daily/weekly trips to the market
What is the natural frequency of Milkbasket?
What is the best engagement framework for Milkbasket?
The two best engagement frameworks for Milkbasket are Breadth & Frequency
Breadth of Engagement:
Milkbasket at the end of the day is an app which delivers essential groceries to people’s home every morning. It started mainly with one product: Milk (hence the name). But as it grew, Milkbasket added more essential grocery items to the list.
In order to increase the AOV and GMV (adding more value to the company) and to give more choices to the user (adding more value to the user), Milkbasket has gone on to increase the breadth of engagement by
Adding more products in the same category
E.g., Need milk? Order any and every brand through Milkbasket
Adding more categories that can be delivered in the same order
E.g., Order breakfast, beverages, personal care, packed foods, home care. In short, you don’t need to step to any other app to order your essentials.
Frequency of Engagement
Subscription is the bread and butter for apps like Milkbasket. If a user subscribes to daily items like milk, breads, eggs etc., frequency of those purchases are set and no other inputs are needed from users on daily basis.
In those cases, the only thing needed from Milkbasket is to make sure that the wallet balance doesn’t fall below the required amount for daily subscription.
‘Subscribe to Save’ range helps the user save more money by subscribing to them. This also helps Milkbasket plan their inventory better and also create fixed frequency from user.
Also ‘Holidays’ work as a great tool to reduce the chance of user cancelling the subscription, instead of pausing it for a few days.
Who is an active user?
Has active daily subscription (for at least a month)
Places order at least one custom order per week
Recharges at least once a month for more than Rs. 1000
Gives back the packaging bags for recycling at least once a month
Ordered products from more than 2 categories a month
Segmentation
Based on usage: Casual vs Core vs Power
Based on ICPs
Based on RFM
Engagement Campaigns (Just Ideas)
Campaign 1
Campaign 2
Campaign 3
What is Milkbasket’s current retention rate?
As per data from Milkbasket, customer retention rate stands at 95%. However we can make the following assumptions about the retention curve.
Retention curve will flatten when
Subscription Users: Users have an active subscription for the last 3 months
Non-subscription users: Users have vintage of more than 6 months and total order value of more than Rs. 2000 in each of last 3 months
Which ICPs drive best retention?
Among the three ICPs defined, ICP number 2 (The Housewife) drives best retention as she is a power user who has active subscription of 2+ products and orders groceries only on Milkbasket app.
Which channels drive best retention?
Referrals & Word of mouth
What sub-features or sub-products drive the best retention?
Milk subscriptions, Vegetables & Staples
Define
What are the top reasons Milkbasket’s users churn?
Negative actions to look out for
Cancellation of active subscriptions (And no new subscriptions created in T+3 days)
Core user not recharging the wallet balance after it has reached less than Rs. 30
Increase in support tickets
Negative reviews on the app store, play store, social media
Decrease in AOV/SKUs per order
Lower CSATs/NPS ratings
Delinking payment details like card details
Removal of address
Resurrection Campaigns