Increase Average Order value(AOV) - DUNZO🚀.pdf

ABOUT
DUNZO IS A 24*7 DELIVERY APP THAT DELIVERS
ANYTHING TO YOUR DOOR STEP
INSTANTLY,WHERE DUNZO DAILY AS ITS PRIME
OFFERING.
DUNZO DAILY IS AN ALL IN ONE ONLINE
GROCERY SHOP APP THAT GETS GROCERIES
DELIVERED IN JUST 19 MINUTES. IT OFFERS
GROCERY DELIVER OF THE FRESHERS FRUITS
VEGETABLES AND HOUSEHOLD ITEMS
CURRENTLY AVAILABLE IN
BANGALORE, CHENNAI, PUNE
MUMBAI, DELHI, GURGAON, NOIDA
AND HYDERABAD
IN 18 ROUNDS THEY HAVE
RECIEVED FUNDING OF $700.1
MILLION
COMPETITORS

PROBLEM STATMENT
THE CASE STUDY INVOLVES THE WAYS TO GET
YOUNG COUPLES AND FAMILIES WITH KIDS TO
ENGAGE MORE WITH THE PLATFORM AND AS A
RESULT INCREASE THE AVERAGE ORDER VALUE
BY 30 TO 40%.
WE HAVE TO RESEARCH USER SPENDING
BEHAVIOURS FOR GROCERY AND SHOPPING AND
HOW THEY DIFFER FOR DIFFERENT DATES IN A
MONTH FOR THESE USER COHORTS AND DEVICES
STRATEGY TO INCREASE THE AVERAGE ORDER
VALUE.

AVERAGE ORDER VALUE (AOV) REFER TO THE
AVERAGE AMOUNT OF MONEY EACH CUSTOMER
SPENDS FOR TRANSACTION WITH YOUR APPLICATION
TO CALCULATE THE COMPANY'S AVERAGE ORDER
VALUE SIMPLY DIVIDE TOTAL REVENUE BY THE
TOTAL NUMBER OF ORDERS
[AVERAGE ORDER VALUE = TOTAL SALES
REVENUE /NUMBER OF ORDERS]
AVERAGE ORDER VALUES DETERMINE WITH THE
HELP OF SALES PER ORDER AND NOT SALES FOR
CUSTOMER
WHAT IS AVERAGE ORDER VALUE

TOTAL ADDRESSABLE MARKET FOR QUICK DELIVERY
APPS IN INDIA - $45 BN
MOST GROSS MARGIN VALUE(GMV) COMES FROM
THERE IS A SURGE IN THE ORDERS BEFORE MAJOR
FESTIVITIES AND EVENTS
DELIVERY SPEEDS ARE THE SINGLE MOST IMPORTANT
FACTOR FOR CUSTOMER ACQUISITION, FOLLOWED BY
LISTED PRODUCTS, AND OFFERS AND DISCOUNTS
ZEPTO PERCEIVED FASTER THAN BLINKIT & DUNZO
MY FOUNDINGS AFTER RESEARCH
BANGLORE>CHENNAI>DELHI. GMV IS NO. OF
. TRANSACTION* AOV
MARKET RESEARCH

USER PERSONA
Discovering the reality from the ground
Demogrpahy
User needs &
Pain Points
User Story
AGE 27
GENDER Female
INCOME >100000
JOB LOCATION Noida
AGE 33
GENDER Male
INCOME >200000
JOB LOCATION Banglore
AGE 40
GENDER Female
INCOME >200000
JOB LOCATION Mumbai
Hassle free shopping and check out
experience
A windowshopper
Values convenience and responsiveness
Has significant disposable income and
higher usage frequency
Hassle free check out experience
Window shopper
Values convenience and speed
higher frequency of usage
Faces extreme time crunch and wishes to
delegate grocery deliveries
A planned shopper
Values convenience and quality of
deliverables
fixed pattern of usage
Somiya is 27 year old working
professional who is the window shopper
however values convenience on hyper
local delivery she primarily engages on a
frequent basis she is driven by product
price and sometimes Quality
Stephen is a 33 year old working
professional who wishes to delegate
monthly grocery delivery his plan
shopper however has significant
disposable income is open to trying
output and such as vegan organic cruelty
free meat etc.
Jeena is a 40 year old working
professional who is involved in
household chores, is a window shopper
and values convenience and speed of
hyper-local deliverys

PROBLEM IDENTIFICATION
Current order value Goal
Rs. 300 (Based on user
and market research)
Increase AOV by 30-40%
[Rs.390-420]
Why to increase the order
value
Increasing the overall sales
revenue
Recovering the cost to acquire
customers more quickly
Bringing in more revenue
within a short period of time

PROBLEM SOLVED - THIS WILL SHOW WHAT
CUSTOMERS ARE FREQUENTLY PURCHASING
IN YOUR SOCIETY AND IN A PROXIMITY AREA
WHERE YOU LIVE IN
INDIAN SOCIETY HAS FEAR OF MISSING OUT
SO THEY KEEP UP WITH THE SOCIETY
SOLUTION 1: SHOWING
CUSTOMER'S FREQUENTLY
PURCHASED ITEMS ON
HOME SCREEN

PROBLEM SOLVED - ON THE CHECKOUT PAGE
THE USER WOULD BE DISPLAYED WITH
FREQUENTLY BOUGHT-TOGETHER ITEMS BASED
ON THE ITEMS HE ADDED TO THE CART. THIS WAY
USER GETS TO KNOW THE GENERAL BUYING
BEHAVIOR AND WOULD EASILY ADD RELEVANT
THINGS TO THE CART
SOLUTION 2: SHOWING
FREQUENTLY BOUGHT TOGETHER
SECTION IN CHECKOUT PAGE

PROBLEM SOLVED - IF A PERSON HAS TO
ORDER A SINGLE QUANTITY THAN HE CAN
ASK OTHERS THIS WAY HE WON'T BE
CHARGE DELIVERY FEE AND DUNZO'S
AVERAGE ORDER VALUE WILL BE
INCREASED
IN THIS SOLUTION NEIGHBORHOOD WHO
ARE LIVING IN THE SAME SOCIETY CAN
MAKE A COLLECTIVE ORDER.
THIS WILL INCREASE THE VALUE AS WELL
AS QUANTITY OF THE ORDER.
ULTIMATELY INCREASING THE AVERAGE
ORDER VALUE
SOLUTION 3: PROVIDING
OPTION TO SHARE A CART
LINK WITH NEIGHBOURS

PROBLEM SOLVED - USERS WHO COOK AND
TRY DIFFERENT RECIPES HAVE TO LOOK FOR
THE RECIPE INGREDIENTS AND HAVE TO ADD
ALL OF THEM MANUALLY.
IN THIS SOLUTION THE USER WILL BE
SUGGESTED AN ADD ON WHICH IS
GENERALLY USED WITH THE PRODUCT WHICH
THE USER IS PURCHASING
SOLUTION 4: IF A USER IS
ORDERING A RECIPE,
SUGGESTING SOME ADD ONS

THIS SECTION WILL BE FOR SPECIFIC DAYS
WHEN THERE IS ANY FESTIVAL, NATIONAL
DAY, INTERNATIONAL DAY ETC.
AS YOU SCROLL DOWN THE HOMEPAGE
JUST UNDER MOST POPULAR SECTION YOU
WILL FIND THE NAME OF THE DAY AND
SPECIFIC ITEMS WHICH ARE BOUGHT ON
THAT DAY
PROBLEM SOLVED - A CUSTOMER CAN
CONNECT AND SEE IF HE HAS BOUGHT
EVERYTHING FOR THE SPECIAL DAY AND
USUALLY DUE TO THE TIME CRUNCH
SCHEDULES USERS TEND TO FORGET
IMPORTANT THINGS FO FESTIVES
SOLUTION 5: FREQUENTLY
BOUGHT THINGS ON
OCCASIONS

CONVERSION RATE (AFTER DEPLOYING THESE CHANGES
THE COMPANY EXPECTS A CHANGE IN THE REVENUE AND
MOST IMPORTANTLY AVERAGE ORDER VALUE )
AVERAGE BASKET SIZE (CAN TRACK NUMBER ITEMS)
AFTER PRIORTIZATION BY RICE MATRIX WE CAME TO A
CONCLUSION THAT ADDING FREQUENTLY BOUGHT THINGS
ON OCCASIONS WILL HAVE THE MOST IMPACT ON THE
BUSINESS.
WE HAVE ALREADY GIVEN THE NORTH STAR METRIC
AVERAGE ORDER VALUE
SOME SOLUTION RELATED METRIC TO WATCH OUT FOR
AFTER THOUGHTS

THANK
YOU
BY SHIVAM SINGH YADAV
linkedin.com/in/shivamsyadav

Increase Average Order value(AOV) - DUNZO🚀.pdf

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