Rappi Achieves 30% ROAS Growth and 11% More Repeat Customers
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By the numbers
Overview
Company
Rappi is Latin America's leading on-demand super app that delivers food, groceries, liquor, convenience items, pharmacy essentials, flowers, and more to over 30 million users in 200 cities.
Industry
Consumer Apps, Delivery
Headquarters
Bogota, Colombia
Campaign Type
Google App
Snapshot
World-renowned food delivery, marketplace, and super app, Rappi offers diverse food and grocery delivery services in Latin America, fostering entrepreneurial growth and impactful user experiences.
CMO Kartik Gandhi saw an opportunity to drive growth by focusing on customer value, gaining a strategic edge, and further strengthening Rappi's current position as a market leader. Another opportunity was to maximize growth by improving the conversion rate from installs to active customers or driving more purchases through upsell.
Rappi partnered with Voyantis to advance this new strategy. Voyantis developed customized predictive models, focusing on value-based segmentation and predicted LTV at Day 90 (D90). Complementing this effort was AppsFlyer, their trusted MMP.
Impact at a glance
Achieved 30% ROAS uplift
on Google App Campaigns
Reduced CAC by 28%
while acquiring 54% more users MoM
Increased orders by 10%
through activation optimization
Grew repeat purchasers by 11%
via upsell campaigns
Achieved 90% model accuracy
predicting customer LTV at Day 90
The challenge
The company initially used a tCPA model in Google campaigns, focused on a user's first order. They aimed to adopt a tROAS strategy with predictive LTV to prioritize future value and repeat shoppers.
Rappi sought a trusted partner with expertise in value-based bidding to assist with building predictive models and effectively transmitting them as signals to Google. Expertise in optimizing Google App Campaigns was particularly important to them. They also needed help turning acquired users into repeat customers, those who order again and again.
The solve
Build customized predictive models
Voyantis built customized predictive models for Rappi, including one to predict customer lifetime value (pLTV) at D90 from the first order. Voyantis's platform analyzes Rappi's unique customer behaviors and attributes, correlating them with repeat order trends over a 90-day period from the first order. This enables the creation of a specialized prediction model tailored specifically for Rappi, using only non-PII, anonymized data.
Test value-based bidding in Mexico
Rappi conducted an A/B test in its largest market, Mexico, for its Google App Campaigns. The control campaign optimized for cost per first-order with a tCPA bidding strategy, while Voyantis’s campaign optimized using value-based bidding. User-level predictions are fed to Google via its server API, enabling campaign optimization for tROAS.
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Optimize activation with predicted future orders
Rappi tested a model predicting the number of future orders from non-paying users, as well as offer sensitivity, tailored to the users' likelihood of future engagement. The model was also leveraged to send personalized offers with Braze.
Drive upsell through lifecycle campaigns
Rappi implemented a model predicting the number of future orders for both first-time and existing payers. This strategy focused on customer value segmentation and offer sensitivity, executed as a lifecycle campaign using Braze.
Ensure ongoing accuracy
The model is continuously tested and verified by the Voyantis platform to ensure highly accurate predictions and adapt to Google algorithm updates. This guarantees that all acquisition and lifecycle management efforts remain effective and continuously improve.
Voyantis’ impact
30%
increase in ROAS
28%
reduction in CAC
11%
increase in repeat purchasers upsell optimization
10%
increase in orders activation optimization
Google App campaigns
The results clearly indicate the advantage of using value predictions to improve campaigns outcomes. The partnership between Rappi and Voyantis led to a 30% boost in ROAS and a 28% reduction in CAC, while also acquiring 54% more users month-over-month.
Activation campaigns
Voyantis helped Rappi convert more users from registration to orders, resulting in a 10% increase in orders, while also improving the efficacy of their promotional budget. This allowed Rappi to drive conversions more efficiently.
Upsell campaigns
In upsell campaigns, Rappi saw a 11% increase in order rate and an 11% increase in returning purchasers, demonstrating the success of Voyantis's segmentation models in driving user engagement and repeat purchases.
