About BAEMIN Vietnam

BAEMIN is a young, fun-looking Food delivery app that has been operating in Vietnam for around 4 years. BAEMIN was competing with other competitors to win the market shares, and we are working on different solutions to win the hearts of the users

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New business expansion

BAEMIN aims to position itself as a lifestyle brand for young urban professionals. We designed, curated, and delivered convenient solutions (food, grocery, accessories, cosmetics, etc.) for people's busy lives.

The current app is focusing only on Food; we want to let users know about the new business and service we provide.

Needs of marketing and sales

• Marketing wants to have more activities to engage and retain users.
• Sales want to have a better home screen to help promote Partner Merchants

The feedback from Users (NPS/CSAT surveys)

• Users are less likely to explore promo collections in a hurry. Also, they feel overwhelmed by similar promo types and feel lazy to explore these.
• When users are actively looking for promotion, most collections are applicable for big-value orders (80-100k/order).

The problems of current design

• Overwhelmed with promotion collections
• Create the expected behavior of promo focus.
• Doesn’t highlight other businesses.

Let’s have a look at the data

Users are using the Search or Categories icon or the Nearby Merchants most of the time to find food.

This chart explains which sections are the most selected by our users. Here it clearly shows that users mostly choose the icon section (category icons) or the Search bar. The next most selected section is Nearby Merchants

How about the current exploration experience of the apps operating in the Vietnam Market

• Full of promotional collections and discounted prices displayed to attract users.
• Very promotional driven design

What do we want to achieve?

Improve the profitability of orders by increasing the AFV per order and reducing the CPO (cost per order), also ensuring the experience of users when browsing and finding the food they want

Improve the experience by understanding our users, leads to improvement of business metrics – We can be different to deliver better values by diverting from the unsustainable promotional design, by providing a better and tailored experience, we hope users will keep user BAEMIN to order food.

Our approach

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1.Understand different segments

Why?

Not every user cares much about the promotion. They want to quickly find foods or discover the right food to order. If we want to provide better service, we need to understand the needs of different segments of users.

Objectives

• Identify different user needs and categorize into user groups
• Identify the eat-out journey of each segment so that our Product Design team can better design the layout, structure,. and flow of the app

Method

In-depth interviews to gather users’ motivations, goals, and pain points.

Criteria

• Age group: 23-30
• Gender: Male/ Female
• Location: 2 big cities (HCMC and Ha Noi)
• Income: age range 23-25: from ~US$900; age range 26-30: US$1,200
• Occupation: office workers, freelancers, self-employed,...

The insights we get from in-depth interview

There are 6 segments of users

The Foodie and Bargain Hunter: most promo-driven, their final decision depends on the discount amount on the order.

Quality Seeker and Health Enthusiast: The most important factor is to find the right food for their needs.

Convenience Seeker & The Safe Player: care about placing the order ASAP from familiar restaurants to ensure the quality of the meal.

2.Quantifying the insights

Why?

We want to measure the distribution of each segment and compare what they say (the attitude) versus what they do (the behavior).

Objectives

By understanding both attitudinal insights and behavioral data, we would be able to design the best experience for each user segments

Method

Combining 2 methods: Survey (attitudinal) and Data logs (behavioral).

Criterias

• Current BAEMIN users
• Age group: 23-30
• Gender: Male/ Female
• Location: 2 big cities (HCMC and Ha Noi)
• Income: from ~US$900

The results from the survey

Bargain Hunter is the most popular user segment, followed by The Foodie, which accounts for 28% and 19% of BAEMIN users. Convenience Seekers, Quality Seekers, Health Enthusiast and Safe Player have lower contribution.

3.Now, we Map the results with behavioral user data

Average Spending

We asked users about their average spending for ordering food online and compared it with their actual spending (median) on BAEMIN.

A gap exists between actual spending on BAEMIN and the user's willingness to spend for food delivery. This gap is significantly bigger for the Quality Seeker, Health Enthusiast, and Convenience Seeker segments. The 3 other segments have a smaller gap.

Order Frequency

Quality Seeker and health Enthusiasts are spending the most and having the highest order frequency among all segments.

The Correlation between exploration time and decision making

The Foodie and Quality Seeker are two segments that often decide what to eat after opening the app, so they often spend much time browsing food/ resto on the app, which makes them easily influenced by attractive photos/advertising/promos.

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Design Solution

Goals & Metrics

Primary Goal

Increase the number of orders with fewer promotions – We want to increase profit by increasing the number of orders with less promotion applied

Primary Metrics

• Maintain healthy average order frequencies: 4 orders per user a week.
• CPO: reduce to below xx.xxx VND
• Maintain or improve the Conversion rate

Secondary Goal

Ensure each segment finds foods based on their needs – We want to maintain a healthy number of users segment visit BAEMIN and keep ordering the food based on their needs.

Secondary Metrics

• Increase the number of daily visits of different segments
• Increase the accumulation of the order value that is above 100k
• Reduce time to convert for each segments

Hypothesis Driven Design

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