nextleap

Product Teardown
Recommendations in an App

Tanmay Mishra

NextLeap’s Learn In Public Challenge (5/6)

Company Overview

Dunzo is a hyper-local delivery service that delivers groceries Competitors

and essentials, fruits and vegetables, meat, pet supplies, food,

and medicines in major Indian cities. It also has a separate

service to pick up and deliver packages within the same city.

Dunzo helps users by saving their time and efforts in shopping

for groceries and other essentials and delivers them at the

users’ doorstep.

Valuation -
Rs 54.3 crore

$757M as on
Revenue in FY22
May 05, 2022

Rs 464 crore
8.3 million orders
Loss in FY22 in June 2022
User Persona

“Since me and all the my flat mates are

Rahul Dogra
working professionals and we don’t / Male, 28 years
have a lot of free time, we buy most of olK
our groceries and essentials from / Lives in
grocery delivery apps. It is really Bangalor!
convenient and helps in saving time / EngineeF
and efforts”
/ Single, Lives
with flat mates

/ Comfortable with using internet and gadgets like Tablet, Phone, Lapto
/ Used to buy groceries and other essentials from nearby local general store and sometimes asked
them to deliver at hom!
/ Pain Point: Doesn’t want to step out again and again to shop for items as shopping for daily essentials
and groceries is a tedious task and he wants to shop at his own convenienc!
/ Goals/Needs: Wants to buy groceries and other essentials and wants them delivered at home so he
can save time and efforts
 How Recommendations work
Recommendation systems are systems that use algorithms, to find similar items and similar customers,
based on their behaviors', and recommend items which the specific customer should like.

Fig. High Level pipeline of how a recommendation systems works

Collaborative filtering is an approach which Content based model works under the assumption
uses the assumption that users who bought that what customer liked/bought in the past,
similar items in the past, will also agree on would probably be liked/bought in the future.
new items.
 Importance of Recommendations

Increased Revenue - According to McKinsey, 35% of all Amazon purchases, and 70% of Netflix

purchases, are driven by their recommendation systems, and the start of using recommendations

significantly boosted their sales.

Higher Customer Satisfaction - This is the part where customer profiling comes in. By

profiling customers, we can better understand their behaviour and, consequently, better

understand their needs, or in other words, meet their needs, which finally can be rewarded

with higher customer satisfaction and loyalty.

Personalization - Items that are displayed on the home page based on the user’s preferences

and might be liked by users help in personalization and helps in creating an overall better

experience for users

 How Dunzo uses recommendations

Recommendations on
Recommendations on the
the basis of recent Recommendations on the
basis of past orders/order
ordering patterns basis of region
history of the user
across users
 Metrics for the feature

L2 Metric: Bounce Rate

#Total users visiting the Dunzo app/page % of people who click away from
Amazon.in after viewing page/app

#Total no. of users clicking on

recommended products L1 Metric: Purchase
Initiation Rate

#Total no. of users who click on

recommended products and add
them to cart

Conversion
Rate
North Star Metric

#Total no. of users who order the

recommended products
Thank
You!!