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AI-Powered Life-Cycle Optimization: Rappi Achieves 30% ROAS Growth and 11% More Repeat Customers with Voyantis AI
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Highlights
Rappi, a world-renowned food delivery, marketplace, and super app, offers diverse food and grocery delivery services in Latin America, fostering entrepreneurial growth and impactful user experiences.
Kartik Gandhi, Rappi’s CMO, 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.
On Google campaigns, the company initially used a Cost Per Acquisition (CPA) model focused on a user’s first order. They aimed to adopt a tROAS strategy with Predictive LTV to prioritize future value and repeat shoppers. Another opportunity was to maximize growth by improving the conversion rate from installs to active customers or driving more purchases through upsell.
They partnered with Voyantis to advance this new strategy. Voyantis developed customized predictive models for Rappi, focusing on value-based segmentation and pLTV at D90. Complementing this effort was AppsFlyer, their trusted MMP.
Rappi conducted an A/B test in Mexico, its largest market, using Universal App Campaigns (UAC) to test Voyantis’ predictive LTV. They also used a Voyantis model to predict future orders for first-time and existing payers, powering a lifecycle campaign with Braze.
Using Voyantis Predictive AI solutions and AppsFlyer for measurement, Rappi achieved significant growth improvements across their user base and customer lifecycle stages, including a 21% reduction in CAC and an 11% increase in repeat purchasers.
“Before partnering with Voyantis, our growth decisions focused on optimizing for a user’s first order. Voyantis transformed our approach by emphasizing repeat orders and providing user-level guidance on promotional spend to maximize conversions. Their prescriptive AI enhanced our paid media, activation, upsell, and retention strategies.”
The Challenge
Your funnel without Voyantis
Your funnel with Voyantis
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Kartik Gandhi, Rappi’s CMO, 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.
On Google campaigns, the company initially used a CPA stratgey focused on a user’s first order. They aimed to adopt Value-Based Bidding (VBB), leveraging tROAS and Predictive LTV to prioritize future value and repeat shoppers.
Rappi sought a trusted partner with expertise in value optimization to assist with predictive model building and effectively transmitting 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 Pilot
- Voyantis built customized predictive models for Rappi, including one to predict customer lifetime value (pLTV) at D90 from the first order.
- Rappi conducted an a/b test in its largest market, Mexico, utilizing Universal App Campaigns (UAC). The control campaign optimized for cost per first-order with a tCPA bidding strategy, while the test campaign optimized using Voyantis’ signal and VBB.
- For activation, 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.
- For upsell, 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.
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“We aimed to transition from attracting one-time shoppers to nurturing repeat buyers and enhancing retention. Collaborating with Voyantis was pivotal in advancing this ambitious objective, giving us an impressive +30% gain in ROAS.”
How does it work
Data Processing & AI prediction model
Voyantis’ AI engine 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.
Privacy First
Voyantis takes privacy and compliance very seriously. Voyantis leveraged only Rappi’s non-PII, anonymized data for this model.
Google and Meta Orchestration
User-level predictions are fed to Google via its server API, enabling campaign optimization for tROAS. The model was also leveraged to send personalized offers with Braze.
Quality Verification
The model is continuously tested and verified by the Voyantis AI engine to ensure highly accurate future predictions and adapt to Google algorithm updates. This guarantees that all acquisition and lifecycle management efforts remain effective and continuously improve.
The Impact
The results of the pilot clearly indicate the advantage using value predictions for improving campaigns outcomes.
ROAS Uplift
UAC Campaigns
In UAC campaigns, the partnership between Rappi and Voyantis led to a 30% boost in ROAS and a 21% reduction in Customer Acquisition Cost (CAC), while also acquiring 54% more users MoM.
Activation Campaigns
In activation campaigns, Voyantis helped Rappi convert more users from registration to orders, resulting in a 10% increase in orders, while also improving utilization of their promotional budget. This allowed Rappi to drive conversions more efficiently.
Upsell Campaigns
In upsell campaigns to boost their monetization efforts, Rappi saw a 11% increase in order rate and an 11% increase in returning purchasers, demonstrating the success of Voyantis’ segmentation models in driving user engagement and repeat purchases.
“It’s great to have a partner who understands how to tap into your different growth and CRM platforms to optimize their performance. Voyantis demonstrated expertise in relaying signals to Google for app campaigns and optimizing activation and upsell efforts for campaigns we ran with Braze. They knew exactly how to partner with AppsFlyer to help us on mobile campaigns. When you start seeing 11% more returning users and 15% more orders, you know you’re heading in the right direction.”
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