Millennial consumers need an easy, cost-effective way to order frequently because they often work long hours and don’t have time to prepare meal even one time a day.
“For someone like me who basically uses their service every day, and sometimes multiple times a day, I feel that delivery fee on a per order basis is too high. 60KD is around how much I am paying per month just in delivery fees”
“I can not comprehend why I have to pay so much fee for each delivery. It is just a matter of time Carriage will lose loyal customers like me if new competition comes in"
Help the users by providing a subscription feature thereby reducing their delivery costs. Additionally, impact higher user retention - capture and make exit costs high for high value customers.
Peer study was done on the international market. However, we found them not very suitable for the Kuwait market. Thus, we came up with solutions for subscription tiers/plans.
Stakeholders from management, product, development and design came together to brainstorm on the problem at hand. We consciously decided to approach the solution in 2 stages.
As this was the first time this feature was being implemented in Kuwait by any E-commerce provider, there was a need to test the waters.The idea is to release version 1 of the subscription model as a free feature for a short period and make users get used to it.
As the service was free to subscribe during the trial period, more than 60% conversion rate was observed for active users.
Based on further data analytics for this period, we came up with 3 subscription tier levels. The idea is to encourage users to Sign Up for the subscription tier level which was based on their frequency of orders.
It is important to make multiple iterations for any concept. The advantages and drawbacks of each of the designs are clear only when we look at multiple options.