Metrics question

How would you increase customer lifetime value for Swiggy?

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What this question tests

Understanding of lifetime value drivers in a food delivery marketplace and how to move them with product changes.

How to approach it

  1. Break CLV into its drivers: order frequency, average order value, and customer lifespan before churning.
  2. Identify the biggest lever for a food delivery app, likely order frequency, since AOV and lifespan are harder to move quickly.
  3. Propose increasing frequency through personalized recommendations and habit forming triggers like weekly reorder prompts.
  4. Propose increasing AOV through smart upsells at checkout, such as add a drink or dessert suggestions.
  5. Propose extending lifespan through a loyalty program with tiered benefits for repeat customers.
  6. Define success as a blended CLV metric tracked over a rolling 6 month cohort, with frequency as the primary driver watched.

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