Swiggy Growth Strategy: Raising the Long-Run Value of Each Customer Relationship

You are a product manager at Swiggy, the Indian food delivery and quick-commerce platform. You are asked how you would increase customer lifetime value: how much a customer is worth to Swiggy across the whole time they keep using it. Define the metric you would move, decide where to focus, propose and prioritize initiatives, and explain how you would tell whether they worked. ```hint Factor the metric Write lifetime value as a product of a few factors, then ask which factor is weakest for the customers you choose; that tells you what kind of initiative will move it most. ``` ### Clarifying Questions - Does "customer" mean the people who order on the app, or also restaurant partners and other businesses on the platform? - Should lifetime value be counted on gross order value, on Swiggy's revenue, or on contribution margin after discounts and delivery costs? - Is the scope food delivery alone, or does it include Instamart and Swiggy's other services? - Is there a known problem behind the ask, such as rising churn, or is this an open-ended growth question? ### What a Strong Answer Covers - A working definition of lifetime value for Swiggy, broken into factors, with a stance on whether it is measured on revenue or margin - Customer segments compared, with one chosen and the reason it offers the most headroom - Pain points or behaviors that cap that segment's value, each tied to the factor it suppresses - Initiatives compared on lifetime-value impact, effort and effect on unit economics, ending in a clear priority - Leading indicators that can be read quickly, the lifetime-value measure they predict, and guardrails that catch gains bought with subsidies ### Follow-up Questions - Lifetime value takes a year or more to observe. How would you decide within a few weeks whether an initiative is working? - A membership raises order frequency among members but gives up fee revenue from people who would have ordered anyway. How would you tell whether it raised lifetime value? - How would your plan change if the goal were lifetime value per restaurant partner instead of per ordering customer?