Food Delivery App Grew LTV by 12% and reached 500% ROAS

Company

Rocket is an international food delivery app launched in 2018. By the end of 2021, the company already operated in 8 European countries — including the Netherlands, France, Spain, and Portugal — and had 1M+ downloads.

Tasks

Mobile Push is a primary channel for Rocket's customer communication. As their customer list snowballed, different groups started to require different approaches. Rocket agreed to implement deep segmentation and send personalized pushe notifications depending on the customer preferences and order history.

The primary tasks:

1. Convert more app users into paying customers.
2. Reactivate inactive customers.
3. Grow sales through personalized offers.

Solution

Our cooperation with Rocket began in January 2020. To meet their challenges, we proposed to use segmentation by event parameters. Data on orders were directly transferred to Reteno and available for real-time segmentation.

To complete each task, we created particular segments and campaigns.

Relevant Communication with Loyal Customers

Loyal clients are a core of your business who advocate your service and bring new customers. Communication with them is based on personalized offers and discounts to keep them interested in the company.

Long-time customers typically have established preferences. For food delivery clients, these preferences mostly apply to a cuisine or place. To meet the needs of each category, we built the following segments.

• Place fans regardless of the city who had made more than three orders at this place in the last three months. This segment received promotional content or discounts on orders at this particular place.

• Fans of a certain cuisine in a certain city who had made the corresponding orders in the last three months. People ordering Japanese, Italian, or Chinese cuisine often stick to their preferences, so this segment received discounts on orders of the corresponding cuisine.

Retention and Growth of Repeat Sales

To keep the conversation going with the existing customers, we built two segments.

The first segment included customers who made an order without a promo code (discount) for the period/all time in the city of N/in all cities. Such an approach is important as even the most loyal ones require occasional incentives to keep the interest going.

The second segment included customers who had intended to buy but hadn’t finished the order.

The workflow for this segment started in 2 cases:

• Customer made an order 24 hours ago and didn’t complete it;

• Customer made an order 5 days ago and didn’t complete it.

Customer LTV Growth

To increase customer lifetime value, we built the following segments:

• Customers who had made orders worth less than N for the period/all time in the city of N/in all cities.

• Customers who had made orders worth more than N for the period/all time in the city of N/in all cities.

Results

Reteno helps Rocket implement profitable retention strategies and build personalized customer communication with different segments.

• The AOV increased by 16% on average.
• LTV has grown by 12% and keeps on growing.
• ROI reached 152% and continues to grow monthly.
• ROAS brings on average $5 profit per $1 of investment.