WHAT ARE THE METRICS THAT WE CAN TRACK FOR A BUSINESS LIKE SWIGGY?

1. Market Share – Market share lets us know how well Swiggy is doing overall with respect to
its competition. This is an important metric to track as the online food delivery market is
really competitive and Swiggy as of December 2018 was the market leader. Nearly half of all
the online food transaction volume in India in 2018 was happening on Swiggy as per the
data shared by Data intelligence and management platform KalaGato.

2. Relative Market Share – Relative market share helps us understand how better or worse
are we as compared to the market leader. In terms of apps installation, Zomato leads the
market and this metrics will help Swiggy in understanding the difference and keeping a
track of how effective their strategy is in increasing the app installation among customers.
3. Market Penetration – This metrics will help in understanding how well the marketing
efforts are going in terms of people knowing about the brand Swiggy and using it. Higher
the penetration better will be the end results and Swiggy will be trying to aim for higher
market penetration. As you can see from the snip below, Zomato has a highest brand
penetration in Indian market which makes sense as it has the highest app installation. But
the good thing for Swiggy is that the market penetration has increased from 2018 to 2019
showing that the marketing efforts are paying off. But as a category of online food apps, this
category has still a low market penetration of just 17% till 2018.
4. Ticket Size/Order Size – This metrics helps in looking at the average order value on Swiggy
app and its competitors. This metrics in important because if the order size is worse than
the competition, then Swiggy will need to take some marketing drive as to increase its
average order size like providing a discount or trying to upsell or cross sell the products.
Upselling and cross selling are a good way to increase order size and this is what we
generally see as well on the food app in the form of recommendations on the bottom of the
app. You can see that on average, Swiggy is doing really well in this metrics and we can
conclude that they are getting more revenue per order from their customer which is a good
thing.
5. Share of Wallet – This metrics is particularly important as it will let Swiggy know the future
tactics that they need to apply in order to increase their share and become the leader. As of
2018, Zomato has the highest share of wallet followed by Swiggy. And to stay consistent in
the findings, the study was done in Tier 1,2,3 cities. By tracking this metrics, Swiggy will
know how effective their marketing drive leading to customers using Swiggy instead of any
other alternatives.

6. Repeat Rate – This metrics measures how man existing customers purchase the product
again. This metrics is really important in current scenario in online food industry. Most of
the players are trying to increase their revenue by launching programs to retain old
customers and increasing the repeat purchase. According to economic times, it is expensive
to bring in new customers as the company will have to spend a lot on discount coupons.
Instead, Swiggy is investing in loyalty programs and hence they will have to closely track the
repeat purchases from their existing customers to check if the loyalty program i.e. Swiggy
Super or the Swiggy POP are an effective marketing drive.

7. Coupon Redemption Rate – This is an effective metric to track as it tells us how effective it
is to keep on investing in promotions in a particular channel. This metrics is a ratio of hoe
many coupons were redeemed to how many coupons were distributed. For Swiggy, since
they do promotion on multiple channels, it is an effective measure at it tells us the top
channels where we need to invest money in marketing and also the channels where the
marketing action is not effective so that we can reduce the investment in those channels.
The below pic illustrates the top trending coupons i.e. coupons that customers have used
the most and through this data the marketing team can access how effective the plan is and
future decisions of rolling out such coupons.
8. Trial Volume – This metric helps in understanding the number of first time users of Swiggy.
As the marketing team member of Swiggy, the aim is to increase this number and that is
why this metric needs to be closely tracked on regular basis. This measure also helps in
evaluating how effective the marketing action is i.e. if the revenue generated from trial
volume is at par or greater than the money spent on marketing actions, then the marketing
drive is a success or else it’s a fail.

9. Last Mile Delivery – This metric basically measures how effective is the logistics part of a
business. Providing the order to customers as fast as possible is the main motive of Swiggy
and keeping a track of Last mile delivery is very important. This metric basically tracks the
time taken for the delivery agent to deliver the order from the restaurant to the customer’s
door step. For Swiggy, the less the value the better.

10. % On time delivery – This again is a key metrics to track the logistics part of the business.
This metrics tracks what percentage of orders were delivered on or before time by the
delivery agent to the customer. This metrics is important for Swiggy as if not paid attention
to the on-time delivery of orders, the customer satisfaction score can take a hit resulting in
decrease in the number of orders and eventually reduced revenue. Therefore, tracking the
% of orders delivered before time is crucial.

11. RFM – This measure i.e. basically Recency, Frequency and Monetary Value is used to look at
historical data and take decisions for future. This measure basically tracks for each customer
in the database how recently did the customer make a purchase, how frequently in a
particular time frame does a customer place an order and what is the total revenue
generated from a customer. This measure is important for Swiggy as to decide what
coupons to generate for existing customers, how much expenses will that lead to and what
will be the final revenue after running the coupons. Hence using historical data, Swiggy can
take marketing actions for individual customers present in the database.
12. Promotional Lift – This metrics is one of the crucial metric to measure the effectiveness of
marketing actions. Promotional lift looks at the increase in the revenue/volume that
happened because of a marketing action such as trade promotion or consumer promotion.
In the case of Swiggy, this is crucial to measure as Swiggy runs promotion on different
channels. Each channel has its own expense. Swiggy can calculate the promotional life for
each channel and look at was the investment in each channel effective. If not, they can
reduce the budget in that channel and increase the marketing spend in those channels from
which Swiggy gets maximum promotional lift.

13. Cost per Acquisition – This is a metric to track whether the marketing expenses were worth
it in terms of how many new customers were acquired. In terms of Swiggy this is important
cause whenever Swiggy launches a campaign it is a cost and they do so to increase brand
awareness and increase the customer base. But if the number of new customers did not
increase so as to make the investment break even, the marketing campaign is a fail.
Therefore, keeping a track of cost per acquisition is very important.

14. Churn Rate – It is very important to bring on-board new customers but is also important to
retain existing customers. This metric measure how many customers after using the
product/service for the first time stop using it. This metric is important for a business like
Swiggy because it’s important to know which of their customers are leaving and should
understand why. Maybe the first-time users are leaving because the app does not give them
adequate value or maybe the old customers are leaving because there is nothing much for
them anymore on the app. Thus, knowing which customers are leaving will help Swiggy
device a better marketing action to retain those customers.

15. Net Promoter Score – This metric helps in measuring the customer satisfaction level. If the
NPS score is high this means that the customers are happy with the service/product. For
Swiggy, this is an important measure as it will give them a real time update of how good
their service is and what needs to be done in order to make it better.

16. Average Delivery Time - The faster deliveries are accepted in your restaurant, the faster the
kitchen will be able to prepare the order and - finally - the faster the order will get picked up
and delivered to the customer. Swiggy claims an average delivery time of 37 minutes which
is the fastest in India.

17. Meal rating (customer satisfaction)

How customers rate their experience with the food.
How customers rate their experience with the delivery driver.
How customers rate their experience with the delivery platform.
18. Total weekly orders, % orders completed, % orders failed – It is metric which will help in
know how the food orders are being managed. How many of the orders which are being
placed are completed successful and how many are failed may it be because of
unavailability of food item or cancellations by the restaurants.

19. Number of support tickets opened; number of support tickets closed - More is usually
better—unless it’s the support tickets opened. We’ll hope our delivery and app is easy
enough to use that people won’t have as many questions for our support team.

20. Average Time to resolve - Everyone hates waiting for an answer, and our customers are no
different. There’s almost no way to make a customer’s day better than to respond
quickly after they write to us with a problem.

21. Revenue/Employees - It is an important financial ratio calculated by

dividing revenues generated for a specific period by the number of employees in a
company. It helps as a measure of average financial productivity for each employee of the
company. For Swiggy it turns out to be 1.3M excluding the number of Swiggy delivery
executive.

22. Inventory turnover ratio - It shows how effectively inventory is managed by comparing cost
of goods sold with average inventory for a period. For Swiggy for FY2017 it was 10.016.

23. Lifetime Value (LTV) - Lifetime value formulas will help us assess whether we’re paying too
much for—or getting a good deal on—our customers, given the value they bring to your
company.

24. Stickiness - The stickiness ratio shows how often users come back to your app. The higher
the percentage, the better. It means you have more MAUs (Monthly Active Users) sticking
around long enough to become DAUs (Daily Active Users).

25. Average Revenue Per User - This metric tells you how much revenue is being generated on
average. This figure is important because it tells you the overall value a single user brings to
your app.

26. App star rating Metric – Rating of App in the app store. Regardless of how much you invest
in all other aspects of your app, if it’s poorly rated on the App Store or Google Play, it will
end up driving potential users away.

27. Order Accuracy - The Perfect Order Rate is another highly important logistics metric when it
comes to your supply chain efficiency. It measures the amount of orders that are processed,
shipped and delivered without any incidents on its way. The higher is this rate, the better it
 is for your business. You will lose less money with returns of inaccurate or damaged goods,
and increase the level of satisfaction of your customer base.

28. YoY growth in Revenue – This metric helps in measuring how our Topline is growing as
compared to previous year. Swiggy scores a 232% surge in revenue in FY18 at Rs 442
crore.

29. Monthly order run rate - Order run rate is essentially calculated on the basis of week’s (in
some cases day too) volume in a given month that witnesses maximum orders. Swiggy
processes about 27-28 million orders every month.

30. % of orders from cloud kitchens – Cloud Kitchen helps brands by being closer to customers
and by bringing down the cost of setting up a cooking facility. Cloud kitchens can also take
customers' orders and deliver them for food brands. This helps in Brand building as well as
decreasing delivery time.