You are a PM at a food delivery firm. Your data analyst comes up to you and tells you that there is a spike at breakfast, dinner and lunch time. However, at lunch, the conversion is 2% when compared to dinner and breakfast which is 10%. How would you go about solving this problem?
- Rohit Kumar
Clarifying questions to the data analyst:
1. Over what period of time have you observed this? – to find out if this is a problem generated after any new changes in the customer journey or for any external factor like other competitive offers?
2. What was the conversion rate for lunch before this analysis was done? – Has it increased for the others and decreased for lunch? – to understand if the conversion rate with lunch has always been this low
3. During which stage of the order journey customer is dropping off during lunch?
I.Now I would consider the customer journey and understand how it is different when someone orders a lunch vs dinner or breakfast using our app.
Usually breakfast and dinner would be ordered from residence while lunch would be taken at office..often in short time in between meetings. The item search + delivery time + path to be travelled inside office premises to get the parcel would be higher during lunch. ( Assuming food delivery is opted majorly by ppl staying outside home for work)
If this hypothesis is tested and comes out to be true..then the food delivery app might consider corporate tie ups inside canteens to solve this issue.
If there is issue with payment process time, a delayed payment option can be included during lunch.
Metrics to be considered:
%of active users who orders for breakfast and dinner but skips lunch order( doesnot open the app at all)
% of active users who proceeds for lunch order but drops off in the middle
Conversion rate of lunch during weekends
II. Next, are competitor brands offering something during lunch which seems like a tempting offer?
A temporary offer inclusion of similar sort ongoing in other apps can be a small test for this
III. Is food menu to be blamed?
%of item search during lunch showing no result
In that case an option to give suggestion for dish inclusion when not found can help
Tie up with restaurants which provide such items can help too
Out of these 3, we should first check with problem I and III, and based on the test result confidence value go ahead with one. The competition check is required but can be temporary as well based on offers..and if we are seeing an overall performance better than competitors, point II should be checked only if I and III Fail.

Amazon