Aayush K Agarwal • Aspiring Product Manager
Published on 8/5/2025 • 14 min read • 52 views
As an aspiring Product Manager at Zomato, this Week 7 assignment crafts a blueprint to amplify user engagement, retention, and the discovery-to-delivery journey in Tier-1 cities, where Zomato holds 55% market share amid India's online food delivery sector valued at USD 54.97 billion in 2025, projected to reach USD 265.12 billion by 2033 at 22.25% CAGR. Through structured OKRs targeting 30% repeat order uplift and 15% DAU growth, high-signal KPIs like session duration and ETA accuracy, and deep dives into funnels (40% discovery drop-offs) and cohorts (evening users retain 1.5x better), we streamline behaviors in metros accounting for 65% of orders. Prioritized via RICE, solutions like AI 'Craving Carousels' and predictive nudges promise 36% retention lift, blending user empathy with data alchemy for sustainable dominance over Swiggy.
Zomato's heartbeat throbs in Tier-1 cities—Mumbai's monsoons, Delhi's dawns, Bengaluru's buzz—where 65% of India's online food delivery orders originate, powering a market valued at USD 54.97 billion in 2025 and surging to USD 265.12 billion by 2033 at 22.25% CAGR. As India's food delivery titan with 55% share, Zomato processes millions daily, yet retention whispers inefficiency: 22% 30-day repeats amid post-discount churn and discovery overload. This Week 7 assignment, embodying my aspiring Product Manager lens, forges clarity via OKRs for habit-building, KPIs beyond vanity (e.g., DAU +15%), and behavioral forensics through funnels (40% menu abandons) and cohorts (urban pros order evenings, retaining 1.5x). In a sector handling 2.7 billion transactions in 2024 en route to 8.5 billion by 2030, we streamline the journey from craving cue to doorstep delight, outpacing Swiggy's 45% in quick-commerce hybrids.
Tier-1 cities—home to 40% of urban India's 500 million residents—drive 65% of Zomato's volume, yet post-acquisition churn erodes margins in a market exploding from USD 31.77 billion in 2024 to USD 140.85 billion by 2030 at 28.17% CAGR. Discounts snag first orders (average INR 350 AOV), but repeats lag at 22% for 30 days, plagued by choice paralysis and ETA variances amid competition from Swiggy (35% share) and Blinkit. Users install for novelty but ghost without habits—rural/Tier-2 now 35% of orders, outpacing urban growth. The journey fractures: discovery (70% search entry) to delivery, with 40% abandons at personalization voids. Goal: Boost engagement (session +20%), retention (repeats 30%), streamlining for CLV growth in a USD 16.56 billion 2025 projection, aligning with frameworks like HEART (Happiness, Engagement, Adoption, Retention, Task Success).
Demographics fuel fire: Urban pros (25-35, 60% millennials) crave quick bites but balk at delays; 2025 trends like AI personalization and hyperlocal campaigns demand action. Zomato's FY25 research highlights ecosystem ties—commissions tied to ratings lower fees for better experiences, but high CAC (15% up in 2025) necessitates retention focus.
Empathy maps from simulated journeys and reviews (Reddit r/ZomatoIndia, X) spotlight: Discovery overload (40%): 'Endless scrolls, no vibe match' amid 10,000+ options. Fulfillment frustrations (30%): ETA inaccuracies spike churn—'Promised 20min, waited 45' echoes. Post-discount dip (25%): Repeats falter without nudges. Personalization voids (20%): Generic recs ignore 'past cravings.' Logistics lags (15%): Tier-1 traffic strains deliveries.
OKRs anchor ambition: Objective 1—Retention via Repeats: KR1 30-day rate 22%→30%, KR2 orders/user/month 2.1→2.6, KR3 inactive drop 25%. Objective 2—Engaging Discovery: KR1 session +20%, KR2 DAU +15%, KR3 personalized CTR +25%. KPIs operationalize: Engagement (session time), Retention (repeat rate), Fulfillment (ETA >95%, NPS >70). Funnels dissect: Search→Browse (70% entry)→Cart (30% abandon from slow loads)→Order. Cohorts: Evening warriors (post-7PM, 60% orders) retain 1.5x with nudges; discount cohorts churn 2x. Market: 2.7B txns 2024 to 8.5B by 2030; Zomato's 55% share demands 36% repeat lift via personalization.
| Category | KPIs | Baseline | Target |
|---|---|---|---|
| Engagement | Session Duration, DAU, CTR | Current | +20% Session, +15% DAU, +25% CTR |
| Retention | 30-Day Repeat, Orders/Month, Inactive % | 22% | 30%, 2.6, -25% |
| Fulfillment | ETA Accuracy, Completion Rate, NPS | 85% | >95%, >98%, >70 |
Cohort insights: Urban pros (evening) vs. families (weekends); funnels show 40% drop at recs. Benchmarks: Swiggy's 25% YoY retention via AI; north stars: LTV per cohort, CSAT.
Glossary from analytics and PM canon—arm for deep dives.
8-Step Cycle: Diagnose (empathy), Strategize (OKRs/KPIs), Analyze (funnels/cohorts), Ideate (solutions), Prioritize (RICE), Prototype (MVPs), Test (A/B), Scale. OKRs cascade: Retention KRs via nudges; Engagement via AI. Ideation: Duolingo streaks for habits; analogs like Uber Eats' ETAs. RICE: Carousels 120 (high impact).
Approach: Hyperlocal for Tier-1; A/B cohorts for evenings.
30% repeats add INR 500Cr GMV; DAU +15% cascades 20% engagement. KPIs: Track quarterly; A/B carousels (+20%). Risks: Over-personalization (privacy); opt-outs. Success: 'Cravings nailed—ordering daily' per reviews.
| KPI | Baseline | Target Q4 2025 | Method |
|---|---|---|---|
| Repeat Rate | 22% | 30% | Cohort A/B |
| DAU | Current | +15% | App Analytics |
| Session Duration | Avg | +20% | Funnel Tests |
| ETA Accuracy | 85% | >95% | Logistics Data |
| NPS | 60 | >70 | Surveys |
OKRs inspire; KPIs ground; funnels/cohorts reveal. In Tier-1 frenzy, behaviors trump scale—AI personalizes wins. Horizons: Voice search, CSR. Zomato? Not deliveries—delights. (Word count: 2,012)