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ACTION ITEMS

  • @Cunha, Ricardo @Ferreira Gomes, Raphael Find out how the information stored in LaunchDarkly gets transferred into a PLU

  • @Ferreira Gomes, RaphaelValidate if the “Glovo Service fee” effort made by Gui can be reused; or expand that effort to make it generic and accept the New Service Fee

  • @paula.winter@rbiberia.com Validate that Homeria is currently connected with Food Aggregators and Winrest to read the new service fee

  • @paula.winter@rbiberia.com doublecheck internally if it's planned a more granular setup of the fees -> this will generate a huge dependency on CI&T

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Delivery Fee: The basic cost to provide a delivery service. It has several possibilities and factors that can impact the calculation.

Service Fee (or Managment Fee): It can includes several variables can be included in this macro fee. Examples are: small cart, payment method, tier loyalty, company priorities, etc.

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Today is missing a relationship with a PLU that will facilitate the analysis and the job of the accountants on the new delivery fee structure (see example below). Generating a specific PLU for both fees (delivery and management) could be a good approach.

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d) Other

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variables to be considered (IMPROVEMENTS)

Today the delivery cost calculation is not taking into account other critical aspects of the delivery and management process that are impacting negatively the logistic and financial part of the delivery.

More informations here: https://www.figma.com/file/Bp8vIQlnoJMLyONqVQ4ACG/2023---Q4---%5BIBFEC-1137%5D---Dynamic-delivery-fees?type=whiteboard&node-id=0%3A1&t=rku4BIAcK07yt1pF-1

Info

Data on % of orders within each average check bucket:

  1. I’m grouping into 3 buckets according to what I saw in the figma file: orders < 10 EUR, 10 EUR < orders < 16 EUR and orders > 16 EUR

  2. Looking monthly at the past 6 months, on average:

                                                               i.      71% of all delivery orders have an avg check > 20 EUR

                                                             ii.      26% have an avg check between 10 and 20 EUR

                                                           iii.      3% have an avg check < 10 EUR

  1. A higher avg check could be being incentivized through the free delivery campaign but nevertheless data shows that majority of the users will already benefit from a free service fee.

  2. Given the avg check of delivery in PLK ES is 25 EUR, new service fees buckets would need to be defined to get a more optimized solution from a financial standpoint.

  3. Amplitude chart for reference: https://app.eu.amplitude.com/analytics/rbiberia/chart/e-q93tmghy

image-20240126-130215.pngImage Added

Success Metrics

  1. Average check increase (primary KPI)

  2. Conversion from cart > payment

  3. Conversion from cart > purchase

Events - draft

  1. Add property on Button Click event to account for Component.

i. This way we would be able to differentiate the CTR of add items button at end of order summary and add items at the service fees component and really understand feature engagement towards the intention to contribute to better check.

  1. Add a property on BE event eCommerce checkout called service fee tier where we would know what the tier users are are when they go to checkout (service fees labeled as tiers allows to be agnostic of financial model, whether is basket size, price, etc)

  2. Create an event called Service Fee Updated (TBD complexity and need) that would trigger when users add more items to cart which will allow them to move up on the service fee tier and pay less. This way we would know the feature success on improving check as well.

Acceptance Criteria

The new Service Fee will operate for Home delivery in app, web, call center and aggregators (with differentiated costs)

  • Web/App:

    • The two rates applied to each order will be shown in the order checkout and order details.

    • The checkout will show a breakdown of the management fee applied to each order.

    • It will be shown at checkout how much the customer is saving on handling and shipping fees when:

    • The creation of promotions will be allowed for all customers or from promotional codes at one or both rates, without losing the price information configured by default.

      • applied promotions at a general level (informing the application of the promo)

      • applied promotional code promotions (informing the application of the promo)

    • Ticket POS: print the two fees added to the order

    • The order total is greater than the first range defined at the shipping rate, when there are no promotions

    • The order total is greater than the first range defined at the management rate, when there are no promotions

    • The recommendations carousel will be added at checkout

  • Web/App Config:

    • Editable by channel

    • Editable by price range

    • Editable by restaurant

  • DMP and DOP: update all screens where the shipping rate information is already presented to also show the management rate

    • Ticket Home delivery: print the two rates added to the order

    • Home delivery report: update it to send the new management fee

Solution

Note

For this solution to work, it is required that the apply-quote-skip-delivery-fees feature toggle in LD is disabled. Currently, it is on for PLK ES. This feature flag discards any fee value coming from LD tiered-delivery-fees, including the new service fee.

There should be an additional fee to be shown, indipendently from the potential other ones existing.

  • SERVICE FEE is a variable fee that is related to factors that can impact indirectly the delivery. Factors can be various; for the MVP we will include the small cart size, a factor that is variable depending on the basket size.

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Info

IMPORTANT to mention regarding PLUS:

  • Check with Winrest if they are controlling PLUs and which architecture is needed from our side to guarantee the split of different PLUs

  • PLUs prices are split by price range and the cost can change for the PLU 

  • Same PLUs are used for all the different restaurants if in the same range.

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  • It will be possible to show the Service Fee for each type of service, not only delivery, and it should be possible to customize by restaurant.

  • In case of a discount code, it should affect exclusively the “Delivery fee”

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  • fees should be calculated on the value of the discounted amount. Example:

    • Cart with 24€, discount 50%, final amount paid 12€ →

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    • the fees should be calculated on the value of 12€

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  • A unique modal should communicate the different fees ranges and should be dynamic (considering that there could be restaurants with different fees ranges)

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  • In case of a promotion, the delivery fee information should be updated accordingly

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  • Both fees should be shown in the receipt page and the confirmation page - with or without the potential discounts applied (following the existing patterns)

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  • To configurate the fees the solution should be indipendent from the tech team and need to be managed by the Iberia market. Today there are potential solutions for that:

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  • The Service Fee will be shown also in the Call Center - to be worked once it will be released

  • The Service Fee will be shared with the Food Aggregators as well as per the image - OUT OF OUR SCOPE

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Design

https://www.figma.com/file/RtD0UFtwuwXx14lbLCAPlr/branch/4JKHiBl13JOyOqh88dSPkV/Burger-King?type=design&node-id=20699-1728&mode=design&t=FTZuxH1Fx45Yauim-0

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Info

Data on % of orders within each average check bucket:

  1. I’m grouping into 3 buckets according to what I saw in the figma file: orders < 10 EUR, 10 EUR < orders < 16 EUR and orders > 16 EUR

  2. Looking monthly at the past 6 months, on average:

                                                               i.      71% of all delivery orders have an avg check > 20 EUR

                                                             ii.      26% have an avg check between 10 and 20 EUR

                                                           iii.      3% have an avg check < 10 EUR

  1. A higher avg check could be being incentivized through the free delivery campaign but nevertheless data shows that majority of the users will already benefit from a free service fee.

  2. Given the avg check of delivery in PLK ES is 25 EUR, new service fees buckets would need to be defined to get a more optimized solution from a financial standpoint.

  3. Amplitude chart for reference: https://app.eu.amplitude.com/analytics/rbiberia/chart/e-q93tmghy

image-20240126-130215.pngImage Removed