The document discusses increasing the average order value (AOV) on the Dunzo delivery app from Rs. 125 to Rs. 250. It notes that young professionals and students are key target users who order frequently but with low order values. To increase retention and AOV, the document proposes offering flexible subscriptions and rewards for frequent users who spend over Rs. 1500 over 6 orders. It also suggests improving product availability and informing users of past orders to encourage bulk ordering. Metrics like monthly orders, AOV, orders with offers applied, and time spent on the app will help measure the effectiveness of the proposed solutions.

1. Aishwary Pachauri - 8 may 2023
DUNZO case study
Insurjo’22

2. Problem Statement
• Average Order value to be increased from Rs.125 to Rs.250 per order
• Target audience majorly in focus is young professionals and Student
• Young professionals and students are doing frequent orders but order value is
less
• Higher number of orders and low value/order

3. Impact of Problem
• A frequent user who has low cart value, orders based on delivery time and
o
ff
ers available which is replaceable as these users are looking for short term
bene
fi
ts.
• Average order value de
fi
nes the credibility and loyalty of a user, higher the
order value de
fi
nes the trust and con
fi
dence in the services.
• Retention% of a user can be increased if AOV is increased
• We are also looking at operational e
ffi
ciency with high AOV and lesser number
of orders

4. Searches for
the product
availability
Finalises best
2 apps
Looks at
delivery time
and fees
Looks at o
ff
ers
available in the
checkout page

5. Objective
Voice of Customer / User research
• 1) Ayushi - married, 30, working professional,
Orders frequently almost daily for vegetables/milk/ other daily items
Is not sure that Dunzo has a subscription model like big basket, otherwise will prefer that ( Daily order value is around 100-150)
Perception that products will always be available on Blanket in comparison to Dunzo, with more variety
• 2) Aishwary - married, 30, working professional,
used Dunzo very less for sending documents once in 2-3 months
Uses Zomato/Swiggy for food based services not for daily items
• 3) Nishant - 21 - student
Uses Blanket for quick service or Swiggy instamart based on o
ff
ers available
Frequent orders, of value 150-200
If daily subscription is there, will prefer that
• 4) Monica - 23 - young professional
Uses Dunzo as her location it has quickest service, orders get delivered within 15-20 minutes,
Although orders similar things frequently but as service is quick.
if o
ff
er is there on higher value which is 30-40% higher than her frequent order value
Eg:- Her avg order value is 100-120, if o
ff
er is there on 250-300 order value will shift to bulk ordering

6. Pain Points
• Low product availability
• No o
ff
ers on AOV which is in 250-500 range, hence avoid going for higher
AOV than 500 which has o
ff
er sometimes
• Delivery time and fees are also the deciding factor based on product
availability
• As product delivery quality currently is similar across di
ff
erent apps,
fi
nal
decision is considered after looking at all the cable o
ff
ers.
• Alternate/daily, subscriptions aren’t there, which is there in BB

7. Solution
• Daily/Alternate/bi weekly/Weekly Subscriptions
User order similar product for 10-15 days of a month, hence can’t subscribe for monthly or
weekly, need
fl
exible ordering dates
• O
ff
ers for frequent users
Young professionals and Students prefer frequent orders because of quick delivery or low
delivery time and decide the
fi
nal app to be used based on the o
ff
ers available at the time.
We can inform the user like this :-
“We saw that you ordered products worth Rs.1200 in your last 10 orders, we would like to
say thanks in style,
If you order products worth Rs.1500 in your next 6 orders you will receive Rs.250 cash
back or discount of Rs.250”
• Messaging/communication of their value invested and if o
ff
er is available

8. Solutions
• Product availability - Increasing in product variety and their SKU’s
• Informing the user of their recently ordered items by clubbing 2-3 orders in a
single group
Eg- 1st order was of 110, 2nd order - 130, 3rd order 80
Inform the user , “ hey you order products ( of 1st and 2nd together) last
week, time to bring in the supplies)

9. Metrics to be considered
• Number of orders of user/month - directly proportional to AOV
• AOV/month - Focus KPI
• How many orders with O
ff
ers applied per user - gives the understanding of
decision made
• Total time spent on app weekly and monthly - gives an idea of retention

10. Thank You