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Pre-order App pickpack Increases ARPU by 6.2x

Food pre-ordering app uses Neura integrated with Braze to drive more purchase conversions.

Revenue in the global digital ordering and delivery market reached $94.4 billion in 2019, with an estimated annual growth rate of 9.3%. Currently, a whopping 60% of restaurant digital orders occur through mobile apps. The trend is here to stay, with 31% percent of American adults saying they use third-party delivery services at least twice a week.

Within this growing market, pickpack’s mission is to connect people with stores in their surroundings and build a superior ordering experience to save time and evade stressful situations in everyday life. Using pickpack’s mobile services, customers can pre-order at restaurants and stores, pay conveniently via the app, and pick up the order at a desired time. When picking up, customers can skip the queue and take the order directly with them.

At the same time, pickpack offers restaurants and physical retailers a platform to offer their products online and benefit from digital services, which significantly boosts customer satisfaction, operation efficiency, and average purchase value.

Challenge

With the growing amount of competition in the digital food ordering and delivery space, pickpack’s primary goal is twofold: to increase purchases per user, and to increase average purchase value, ultimately with the goal of increasing gross profit.

Prior to using Neura, their main strategy for driving users to complete purchases was their weekly promotional campaigns. These campaigns were typically sent on Tuesdays mornings at 10:30am based on the logic that if someone wants to pick up lunch at noon, they should begin thinking about what to order and complete their purchase by 11am. Hence, pickpack assumed that sending a promotional message at 10:30am would effectively remind users to open the app and ensure their chosen meal is ready in time for lunch.

As pickpack continues to compete in a highly saturated market, their major priority is making sure that they are the top-of-mind choice and that they establish long-term loyalty with users. Given the high level of competition in the space, pickpack understood that the most important KPI to focus on was increasing average meals per user per period of time.

Taking Action

In order to increase the number of purchases, pickpack tested moving away from time-based campaigns to using context-based campaigns by leveraging Neura. Instead of being sent on a specific day and time, these smart, adaptable campaigns were triggered by real-world moments and tightly corresponded with user availability to drive higher conversion rates.

 

To do this, Neura analyzed pickpack’s users’ engagements and purchases to identify the best real-world contexts to engage with each user.

 

The users were split into two groups: one group acted as the control and received the original time-based campaigns, while the experimental group received the campaign based on real-world context provided by Neura.

 

For instance, analyses of pickpack’s Braze campaign data showed that engaging with users as they started walking to a new location or when they arrived at a restaurant increased the likelihood that they would engage with the campaign. This subtle change resulted in a 2.7x higher conversion rate compared to time-based campaigns.

 

After integrating Neura, pickpack was able to use these insights to quickly create highly personalized push campaigns. Within one week, they were up and running with the first campaign, and they expanded to similar campaigns in the following weeks. The results were similar across each of the first three campaigns, with each resulting in a significant improvement in engagement, conversion rates, and average revenue per user (ARPU).

Results

Campaigns powered by Neura led to increased performance compared to time-based campaigns. Here’s a breakdown of the results from a selected campaign:

+2.7x

Conversions

  • 4.84% of Neura-enabled users made a purchase within 7 days of the campaign vs. only 1.8% of the control group.

 

That’s a 2.7x increase in completed purchases.


+93%

Engagement

  • 17.98% of Neura-enabled users started a session within 3 days of receiving the message vs. only 9.28% of non-Neura users.

 

That’s a 93% increase in the number of app sessions.


+6.2x

Average Revenue per User (ARPU)

 

ARPU for Neura-enabled users was 6.2x greater than the ARPU for non-Neura users.


Tobias Nentwig
CEO and Co-Founder

Why Work with Neura

"By using Neura to target our registered users with automated re-engagement campaigns via Braze, we were able to increase the number of purchases by 2.7x, lifting ARPU by 515%. This is a significant improvement that happened quickly and didn’t require us to interfere with or change our existing campaigns, thus eliminating any extra overhead or work for us in managing our campaigns."

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