Rappi Solves All Customers' Delivery Needs In LATAM
There's a delivery app for pharmacy needs, another for groceries and yet another for prepared food, each with varying reliability. The team behind Rappi knew there had to be a more comprehensive solution. Founded in 2015 in Colombia, Rappi is the first on-demand delivery platform in Latin America that allows customers to order almost anything.
Providing A Seamless Account Creation Experience
From the beginning, Rappi built its product with user acquisition in mind; thus, they incorporated Facebook Login aiming to provide customers with a seamless account creation experience and lower the barrier of entry. Customers who used this account creation option over email also proved to be more profitable as their average order value is 35% higher.
As they grew, Rappi ran customer acquisition promotions, which had the unintended consequence of high account duplications. Thus, the team saw the need to update its solution and eliminate account creation with email. Instead, they incorporated Account Kit to their customer account registration infrastructure, which allowed them to verify customer's phone numbers. They were able to subsequently reduce fraud and charge backs related to those duplicate accounts.
What's more, the passwordless account creation proved to be valuable in keeping customers; the team saw 2 times the retention rate 4 weeks after the initial account creation among people who used the phone number registration alternative. Additionally, these customers spent 60% more time per month in the app than others.
Most recently, Rappi incorporated the latest Account Kit features like phone call verification and Facebook Notification in case the SMS network is unreliable. With the simple SDK update, the team saw a 2% lift in login success rate.
“With Facebook Login and Account Kit we were able to speed up the registration and significantly increase the conversion rate from download to registration.“
Juan Pablo Ortega, Co-Founder of Rappi
Leveraging Facebook Analytics To Reach Key Audiences
As Rappi expanded from one city to another and country to country, it was essential for them to understand their customers, including the most practical audiences to target. The team was able to use rich audience insights data to understand which customers who purchased most frequently, and had the highest average purchase value. They leveraged the rich insights from Facebook Analytics to inform their ad campaigns and acquire the high value customers through look-alike audiences. In fact, they found 65.2% higher amount spent per purchase from customers acquired through Facebook ads than through other channels.
The team was also able to take advantage of funnel and event metrics to make product modifications based on market response. For example, when they expanded from Colombia to Mexico, they initially followed the same inventory model in similar grocery store services. With Facebook Analytics they were able to measure conversion rates and test how to best allocate their inventory. Rappi has since seen a 5% lift in conversion rates for customers who searched for an item and purchased it.
Rappi now makes all deliveries possible in Colombia, Mexico and Brazil. As they expand, they hope to continue testing new Facebook products to support their growth.
higher average order value for people who register using Facebook Login
retention rate 4 weeks after sign up for accounts created using Account Kit
more time spent in the app with customers who register using Account Kit
higher average order value from customers acquired through Facebook ads compared to other customers
Facebook Products Used