Sentiment analysis to understand Customer Lifetime Value

Swiggy and Ubereats

Aparajita Srivastava 1 , Dr. Saikat Gochhait 2

Symbiosis Institute of Digital and Telecom Management, constituent of Symbiosis International (Deemed University)

Contact: saikat.gochhait@sitm.ac.in, WA: +91-8018332869, City; Pune-India

Abstract

Food delivery system had gained significant attention. Online food delivery system has further broadened the scope of food delivery services. Diminishing the pain points of customers, online delivery system is one of most attracted business in today’s time. Burden of travelling, wasting time has been overtaken by online food delivery options for various dishes from various restaurants. Users prefer taking their experience to social media that impact the business, customer’s trust and mould buying/purchasing habits. The change is an opportunity for targeted marketing. The research aims at finding social media influence in food delivery ecommerce ecosystem including decision making, marketing strategy, consumer behaviour analysis etc.

The analysis is based on the data received from brand24 online social searcher tool. In this paper author has tried to propose review of Swiggy and Ubereats on social platform based on sentiments in words in current lockdown era and post COVID era.

Keywords: – Food, Swiggy, UberEats, COVID

Reason of selecting the brands: –

Service industry has become main industry of 21st century. The needs and desires of the people has been taken care by hospitality industry over the time. It is very frequent to find customer loyalty and satisfaction as prime aspects in the hospitality industry which indeed are dependent on company meeting the expectations of the customers.

The global food industry market is huge. This service industry is expected to grow from $107.44 billion in 2019 and to $111.32 billion in 2020 at a growth rate of 3.61%. The slow growth in 2020 is mainly due to the economic slowdown across countries owing to the COVID-19 outbreak and the measures to contain it. The market is then expected to grow and reach $154.34 billion in 2023 at CAGR of 11.51%(According to grandviewresearch). The expansion of delivery aggregators such as Swiggy in Indian market and, Ubereats in global markets over the couple of year has contributed to the growth.

Swiggy has grown from 7 lakhs orders a day to 14 lakhs a day in just one year(Accroding to Swiggy’s website). The company was founded in 2014 and recorded a revenue of $120 Million in 2019. They serve only in India. Where Ubereats serves in more than 45 countries, was also founded in 2014, had recorded revenue of $1.46 billion in 2018 and is doing remarkably well in international boundaries with extraordinary investors backup. The comparison is indeed notable to understand the drivers, marketing strategy, users sentiments to drive such growth both the business.

Objectives: –

This research is mainly focused to identify the influence of social media and its analytics on food delivery applications and comparing the customer service and marketing strategy of Swiggy and Ubereats (Sasikala, 2018). The highlights of this research are mentioned as follows: –

  1. This research aims to understand CLTV based on social media activities of users
  2. It aims to understand impact of COVID19 in these business
  3. It highlights the influence of social media
  4. Focusses on elaborating current strategy, future plan of expansion
  5. Measures to be taken post Covid19

Covid19 has hit mostly every running business. Hospitality business is hit badly with 90% of business gone down. Even after this storm some business cannot be pulled down forever. Service industry, with innovative strategy can be brought back to place. Consumer trust can be gained with good marketing strategy. The study aims to conclude such strategies to drive positive sentiments for business.

Sentiment tools used in the study, why it was used

Sentiment analysis is the robotic mining of opinions and feelings from content through Natural Language Processing (NLP). Sentiment analysis is nothing but categorizing opinions in the given content or documents into “positive” or “negative” or “neutral”.

Social Searcher is a free Social Media Search Engine. It allows to search for content in social networks in real-time and provides deep analytics data. Users can search without logging in for publicly posted information on Twitter, Google+, Facebook, YouTube, Instagram, Tumblr, Reddit, Flickr, Dailymotion and Vimeo. Free users can also save their searches and set up email alerts. With the use of this tool we can track the sentimental reasons for the decline of Harley Davidson in Indian Market. Also by noting the feedbacks throughout the social media we can come to a conclusion about which brand is creating better impact on consumers both in India and around the globe. (‘About Social Searcher’,2020)

Brand24 is social media monitoring tool that gives you instant access to mentions about your brand across web. It is also another powerful social media analytics platform. The tool tracks keywords across different social media platforms, including Facebook, Instagram, Twitter, TikTok, YouTube, and Twitch. Based on the mentions, Brand24 calculates social media reach, the share of voice, and monitors hashtag performance.

Moreover, the AI-driven sentiment analysis will help one to protect one’s brand reputation, finding marketing insights, and improving one’s customer service. Getting started with Brand24 is handy enough where one creates a “Project”. It’s a pretty flexible setup, allowing us to search for things by either just typing in a list of keywords or by doing it in a more advanced way, specifying keywords to include and

exclude to make sure you’re not pulling in mentions that we weren’t looking for. We will use Brand 24 to generate snapshot reports of the respective companies to show us info graphic reports regarding the sentiment condition in consumer’s mind. (‘Brand 24’,2020))

Analysis report of the tool used with figures and diagram or chart

Infographics Snapshot

 

UberEats

 

 Swiggy

 

 

 

 

 

Analysis Report

1. Comparing the sentiments numbers across social media

 

UberEats

 

 

Swiggy

 

 

Swiggy and UberEats businesses have obtained a very positive response from the consumers and are still improving. A successful demonstration can be seen in the online food delivery platforms, here the time taken from ordering, to the food preparation, to its doorstep delivery is improving at an unbelievable pace. Despite stretching the delivery services, with the ever-improving technology and analytics, it will definitely improve. Nowadays these food delivery applications are one of the most popular applications in metropolitan cities and serving as hunger saviours, they are attracting millennials, young students, and

professionals. These businesses have invested a lot of capital in advertisements, discounts, and offers, to promote themselves, increase the market share, and improve their reach among masses.

One of the key exciting features on these services is that consumers can order various dishes from many such restaurants and enjoy the food at their comfortable place without investing extra time to visit the place and wait for the order to be prepared. (Nagpal, 2020)Additionally, they have enough freedom to explore menu for an eternity before placing an order without any curb to quench the hunger anytime. Few added attractions like quick order, excessive discounts, no limitation on order value, and acceptance of numerous payment options including credit card, debit card, net banking, digital wallets, and cash on delivery are cherry on top in its acceptance (Mogan, 2020). As usual, these applications are competing with each other in terms of process, discount offers, delivery, food quality, a wider range of vendors, and customer service points of view.

2.  Deep dive into understanding different aspects of consumers behaviour

 

Positives of UberEats

It can be seen that the bloggers play a major role in driving positive intention of consumers in UberEats brand. Bloggers share their experience in elaborated fashion. Therefore, it can be understood that Ubereats have been up to mark in satisfying customer. Further followed by web which could be in form of articles, content on website etc. Author suggest that UberEats can spend more in advertising and publish

innovative Videos to further increase consumer’s positive sentiments.

Positives of Swiggy

Swiggy again runs on review basis. Delivery network is one key factor in deploying good ecosystem for Swiggy. With customers being positive about their service till date, Bloggers are writing about their experience and maximum positive intention is drawn from blogs. Then web then News and go on. As said earlier even Swiggy can plan to spend more on advertisements to further drive positive notions in customer

Negatives of Ubereats

  UberEats delivery persona or some restaurant might have brought bad name for UberEats hence in news they have got a bad name. With information flowing like air these days some video might have gone viral on internet which is the reason by 28.7% negatives are drawn from web.

Negatives of Swiggy

Similar to UberEats, Swiggy some restaurant would have gotten infamous somehow which must have gone viral hence Swiggy might have been in news for bad reason.

3.   Most trending Hastags

 

UberEats

The above hashtags are the top 20 trending ones found from Brand 24 website. Among them we can see that the most tagged are the ones with current situation and it’s worth noting that it catches attention. This will help the brand to gain search optimization in search engine alongside UberEats.

Swiggy

The above hashtags are the top 20 trending ones found from Brand 24 website. Among them we can see that the most tagged are the ones with its brand name and it’s worth noting that the generic terms like “#paytm”, “#amazon” are also getting tags. This will help them over creating a visibility to wider audience.

Predicting the CLTV

Customer Lifetime Value: Customer lifetime value (CLTV) is one of the most important metrics to measure at any growing company. By measuring CLTV in relation to cost of customer acquisition (CAC), companies can measure how long it takes to recoup the investment required to earn a new customer — such as the cost of sales and marketing.

It can be calculated by:

Customer Lifetime Value = Lifetime Value × Profit Margin Lifetime Value = Average Value of Sale × Number of Transactions × Retention Time Period

Profit Margin= Can be determined from online reports

COVID 19 had affected both the companies and with lockdown hampering sales both tried to make a strong digital firm.

The COVID-19 pandemic and its after effects have hit online aggregators hard, particularly those depending on hospitality segments such as hotels, restaurants and air travel. While domestic flights have resumed after two months with a truncated schedule — bringing respite to several stakeholders including cab aggregators, which record a major chunk of metro operations from airport rides — hotels and restaurants are still not fully open for business. According to the investors, companies and restaurants, online food delivery orders for Zomato and Swiggy have dropped 70% in the last 10 days to under 1 million a day, as customers step back and top restaurants shut shop in the wake of a nation-wide lockdown to curb Covid-19 virus outbreak. The food delivery space has taken a massive hit, as it touched 3.2- 3.5 million deliveries in October and since then has slowed down and now taken a whooping dip. The hurt factors include rationalising of discounts and the sale of UberEats India to Zomato. In January, delivery volumes fell by about 7% after UberEats – which was doing about 470,000 orders a day – was sold to Zomato and stopped its independent operations. However, both platforms were able to maintain a 1-2% growth rate till pandemic led to the nation-wide lockdown.

Conclusion-

On the basis of finding from secondary research, it can be concluded that UberEats is the most successful food ordering online service in more than 45 countries. (Raina, 2019) Customers have reported that UberEats as most active online food delivery service availing maximum promotional offers in terms of discounts with courteous and professional delivery as well as supportive customer care. Further, discussing Ubereats and Swiggy can increase there sale as there are many reasons of purchase – Gain a truly global perspective with the most comprehensive report available on this market covering 12+ geographies, Understand how the market is being affected by the coronavirus and how it is likely to emerge and grow as the impact of the virus abate, Create regional and country strategies on the basis of local data and analysis, Identify growth segments for investment, Outperform competitors using forecast data and the drivers and trends shaping the market, Understand customers based on the latest market research findings, Benchmark performance against key competitors, Utilize the relationships between key data sets for superior strategizing etc.

References

Mogan, D. (2020). What will be the economic consequences of COVID-19 for India and the world?. Nagpal, M. (2020). Effective approach of sentiment analysis of food delvery apps.

Raina, A. (2019). POPULARITY OF ONLINE FOOD ORDERING AND DELIVERY SERVICES-A COMPARATIVE STUDY BETWEEN ZOMATO, SWIGGY AND UBER EATS IN LUDHIANA.

Sasikala, P. (2018). Sentiment Analysis of Online Food Reviews using Customer Rating.

https://www.marketwatch.com/press-release/online-food-delivery-and-takeaway-market-share-growth- size-trends-regional-overview-leading-company-analysis-and-forecast-to-2024-2020-06-10

https://www.igi-global.com/article/influence-of-social-media-analytics-on-online-food-delivery- systems/259386

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