Retail online marketplaces often face an uphill climb to profitability. Though the market shows steady growth, the costs associated with online deliveries, customer returns and processing orders have traditionally squeezed already tight margins. In India, grocery retail is an enormous market, but ultra-thin margins and high capital costs have challenged players in this sector.
A major player grocery start-up Bigbasket, which earns 80 percent of revenue from returning users, works with two of the most effective channels for cross-selling and category promotion: e-mail marketing and push notifications. The company understands that winning requires a sustained focus on cross-selling, up-selling and category promotions, as items such as higher-margin private labels, in-house brands and other household goods can cover for the typically low-margin business.
However, these channels come with inherent disadvantages like users having the option to opt-out of receiving messages altogether. This can prevent messages from reaching parts of BigBasket’s user base.
The company decided to use Google’s App campaigns for engagement (ACe) to connect effectively with its users across YouTube, Search and AdMob. It also relied on the raw data and analytics provided by analytics platform AppsFlyer to continually power its campaign insights and inform its creative and investment decisions.
“Without AppsFlyer, we wouldn’t be able to draw the right conclusions,” says Varun Vijayaraghavan, Digital Marketing Manager, BigBasket. “Given the granularity of the data, it is important for us to dissect our campaigns and determine where to allocate our budget.”
Moreover, all data from BigBasket’s re-engagement campaigns are broken down by channel in AppsFlyer to better understand the individual effectiveness of Google Ads channels. For instance, re-engagement generated a large number of impressions and views on YouTube, allowing BigBasket to put more investment towards creatives and video production.
AppsFlyer also helped BigBasket understand how often each user would shop on the app, thus allowing them to segment their base according to purchasing frequency.
By determining from the data which audiences to select, the team could also tailor their creatives to fit the intended viewers. Another key finding on optimizing ROI was that videos should mention the main proposition within the first five seconds.
Reportedly, BigBasket's revenue grew 36 percent, from Rs 2,802.6 crore in FY19 to Rs 3818.2 crore in FY20. Its expenses also increased by 31 percent, from Rs 3,365.2 crore to Rs 4,411.3 crore in the same period.