Product Requirements & Strategy: Leveraging Challenges for Growth at Deliveroo 🚀

The Challenges program at Deliveroo serves as a strategic tool aimed at enhancing customer engagement and driving long-term growth.

1. Understanding the Challenges MVP Strategy 📊

The initial stages of developing a product often involve extensive foundational work. For the Challenges feature at Deliveroo, the strategy document serves as a comprehensive outline that merges both strategic planning and design aspects. This document is pivotal as it encompasses business opportunities, engagement strategies, and a thorough competitor analysis aimed at fostering input from senior leaders.

The Challenges program aims to engage with the existing user base more effectively. Recent data indicates that a substantial portion of Deliveroo's customer base does not exhibit habitual ordering behaviors, which presents an opportunity for growth. By creating an enticing framework of challenges, the platform aims to nudge customers into forming new ordering habits.

2. Identifying the Opportunity: Why Focus on Customer Engagement? 📈

The primary challenge Deliveroo faces is the lack of habitual usage among its customers. Research shows that only a fraction of users consistently engage with the platform, prompting the need for a targeted approach to elevate customer interactions.

Creating engagement through Challenges serves multiple purposes:

• It allows for tailored customer interactions.
• It increases the likelihood of customer retention and fosters loyalty.
• The program aims to systematically reinforce ordering habits that correlate with higher customer lifetime value (CLV).

To implement an effective solution, the company produces structured and repeatable challenges targeting specific user behaviors, thereby enhancing engagement and boosting overall business performance.

3. The Mechanics of Challenges: Essential Components 🔧

Each Challenge is constructed from six integral building blocks that work collectively to achieve the desired outcomes:

1. Use Case: Defines the scenario in which the Challenge is applied (e.g., weekday, breakfast).
2. Target Audience: Identifies which users the Challenge will be aimed at, focusing on those showing low ordering frequency.
3. Required Orders: Specifies the number of orders required to complete the Challenge.
4. Completion Period: Determines the timeframe in which the Challenge must be completed.
5. Promotional Mechanic: Outlines how the Challenge will incentivize participation (e.g., discounts, rewards).
6. Incentives: Engages users with financial or non-financial rewards, motivating them to participate in the Challenge.

By adhering to these guidelines, Deliveroo can effectively motivate users to engage more frequently with the platform. For instance, a Weekday Challenge could incentivize users who have not ordered recently on weekdays to place a set number of orders within a specific timeframe.

4. Learning from Experience: Adapting to Challenges 🌟

Not all strategies yield the expected results on the first attempt. A significant learning opportunity arose during the implementation of the Challenges program when a last-minute change to the enrollment method resulted in lower user participation than anticipated. This serves as a reminder of the importance of validating changes through testing before committing to broader implementation.

The initial success of a previous approach, which employed automatic enrollment, provided valuable insight that informed the reversion to the original method. This adjustment not only restored user participation but also underscored the inherent risks associated with untested changes in a launch setting.

5. Moving Forward: Scaling and Future Engagement 📅

While the Challenges program presents a promising pathway for fostering customer engagement, scaling the initiative requires meticulous planning and coordination across all levels of the organization. The success of this feature depends on collaborative efforts from product, marketing, and operational teams to ensure that promotional strategies do not overwhelm users and that every engagement opportunity adds tangible value.

To successfully manage this initiative, it becomes vital to:

• Conduct periodic reviews and gather feedback on the effectiveness of conducted Challenges.
• Remain agile and adaptable to consumer behavior changes while scaling the program.
• Identify key metrics that denote success, focusing on user-level frequency, retention, and financial sustainability.

Through strategic and well-coordinated efforts, Deliveroo stands poised to leverage the Challenges program as a growth driver, promoting deeper customer engagement, unveiling new use cases, and ultimately enhancing overall business performance.