Foodhub delivers +86% basket conversion uplift using MoEngage’s AI-powered customer engagement solution

Online food delivery and takeaway app, Foodhub, has improved conversions and reduced basket abandonment, partnering with MoEngage, the insights-led customer engagement platform.

Founded in 2008, Foodhub is now the UK’s third largest online food delivery service, which offers customers exclusive deals on online takeaways and food deliveries through its network of 30,000+ restaurant, takeaway and Quick Service Retail (QSR) partners.  When customers use the Foodhub app to order, they not only benefit from the exclusive deals but also enjoy lower menu prices. This means shoppers can get even more value when ordering takeaways or food deliveries, with pricing on average 20% cheaper than other food ordering platforms.  As well as seeing significant growth in the UK, Foodhub has also expanded internationally..

On a mission to connect customers with their favourite foods, customer-centricity sits at the heart of Foodhub’s brand values.  Accordingly, it wanted to build deeper levels of customer insight and personalisation to grow app usage and encourage repeat custom, while reducing customer churn.

Having selected MoEngage as its Customer Engagement Platform (CEP) in 2022, Foodhub now leverages MoEngage’s predictive AI-powered segmentation and RFM (Recency, Frequency, and Monetary) model to auto-segment customers based on their behaviours.  It then uses this segmentation to personalise promotions to individual users across SMS and in-app channels.  This not only powers conversions among active users, but it also helps Foodhub identify and re-engage lapsed customers, reducing churn, as well as deploying basket recovery re-engagement campaigns, which encourage basket abandoners to complete a purchase.

By unlocking customer insights, Foodhub has used these insights to enhance CX, which has led to a +86% increase in basket conversions.  Dynamic use of personalisation through the MoEngage CEP has led to an increase in Average Order Value (AOV), up +10%.  Foodhub has also leveraged basket recovery re-engagement campaigns to drive down basket abandonment by 38%.  Additionally, Foodhub has increased customer activation, when users move from app download to placing their first order, to +25%.

Dhananjayan Sekar, Head of Digital Marketing at Foodhub, commented: “MoEngage’s comprehensive analytics, segmentation tools, and excellent customer service have dramatically improved our top and bottom-of-funnel metrics.  We couldn’t be happier about our partnership with them.”

Jason Smith, VP of EMEA at MoEngage, commented: “As the ultimate expression of personal taste, switched-on takeaway and food delivery businesses, such as Foodhub, understand the importance of hard-baking personalisation into the buying experience.  By turning customer insight into actionable marketing engagement, and with clever application of AI and automation in its segmentation, Foodhub has created meaningful customer journeys that power performance.”

 

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