Flexible Value PropositionFlexibilizando a proposta de valor

Client
AB InBev | Zé Delivery
Designing with
Growth Team
Revenue Team
Operations Team
Last Mile Team
Flexible Value Proposition Team
Services
Service design, Discovery, Operations, Experimentation
Date
2023
ContextContextoZé Delivery (AB InBev) wanted to connect its D2C app with Ambev’s B2B logistics network, opening a new revenue stream through the supply chain.O Zé Delivery (AB InBev) queria conectar seu app D2C à rede logística B2B da Ambev, abrindo uma nova fonte de receita pela cadeia de suprimentos.
ProblemProblemaConsumers only had on-demand, cold delivery. Could a cheaper scheduled delivery, with warm drinks and bigger packs, create value without hurting the core experience?Os consumidores só tinham entrega sob demanda e gelada. Uma entrega agendada mais barata, com bebidas em temperatura ambiente e packs maiores, poderia gerar valor sem prejudicar a experiência principal?
My roleMeu papelLed the service design and continuous discovery with Growth, Revenue, Operations and Last Mile: interviews, shadowing, benchmark, offer rules, seller and courier touchpoints, usability tests and experiments.Liderei o service design e a discovery contínua com Growth, Receita, Operações e Last Mile: entrevistas, shadowing, benchmark, regras da oferta, pontos de contato de vendedores e entregadores, testes de usabilidade e experimentos.
OutcomeResultadoPilot shipped in 2 São Paulo dark stores (fill rate 18% → 40% in 3 weeks). Data reframed scheduling as an acquisition lever and led to a Delivery Model component, A/B tested with 4,400+ users.Piloto no ar em 2 dark stores de São Paulo (fill rate de 18% para 40% em 3 semanas). Os dados reposicionaram o agendamento como alavanca de aquisição e levaram ao componente Modelo de Entrega, testado em A/B com mais de 4.400 usuários.

To connect Ambev’s D2C and B2B operations (Ambev is part of AB InBev, the world’s largest brewer), our goal was to design a Flexible Value Proposition: a scheduled delivery service in the Zé Delivery app, fulfilled through Ambev’s logistics network. It would open a new revenue stream through the supply chain, and let us sell Chopp Brahma on the platform.

Part 1 of 2Parte 1 de 2

Launch the serviceLançar o serviço

1

Diverging: Empathizing with data

• Market size opportunity
• Gather research available
• Shadowing (field research with non-users)
• User interview

2

Defining the journey

• Benchmark
• Ideation and iteration
• Operations setup
• Usability testing

3

Converging: building and measuring

• Operation setup
• Metrics defining
• Business rules
• Rollout

Big picture: where online drink sales are growing

Pure playersPure players (marketplaces)
Amazon, Mercado Livre, Magalu, Frubana
5.7×2021 → 2023
R$10mm2021
R$37mm2022
R$57mm2023
Planned delivery todayComo vendem entrega planejadaCategory pages that sell the advantages; order value changes with the delivery optionPáginas de categoria que vendem as vantagens; o valor do pedido muda conforme a entrega
E-retailersVarejo online
Pão de Açúcar, Carrefour, Americanas, Clube Extra
−6%2021 → 2023
R$48mm2021
R$42mm2022
R$45mm2023
Planned delivery todayComo vendem entrega planejadaPriced scheduling, delivery windows, room-temperature itemsAgendamento pago, janelas de entrega, itens em temperatura ambiente
Quick commerce / DTCQuick commerce / DTC
Zé Delivery (Ambev DTC) · benchmark: Rappi
+21%2021 → 2023
R$556mm2021
R$655mm2022
R$673mm2023
Planned delivery todayComo vendem entrega planejadaOn demand, cold and fast. Rappi charges for scheduled slots; Zé had no schedulingSob demanda, gelado e rápido. O Rappi cobra pelo agendamento; o Zé não tinha agendamento

Online drink sales by channel, R$ mm (each card on its own scale). Pure players are the fastest-growing channel and already sell planned, cheaper baskets. That is the share a flexible value proposition could win back, using Ambev's B2B logistics.Vendas online de bebidas por canal, em R$ milhões (cada card na própria escala). Os pure players são o canal que mais cresce e já vendem cestas planejadas e mais baratas. É essa fatia que uma proposta de valor flexível poderia recuperar, usando a logística B2B da Ambev.

Service characteristics:

✔ Warm beverageBebida em temperatura ambiente

✔ Free shipping on next day delivery / schedule

✔ Promotion / Low price to persuade the user

✔ Mixed portfolio

✔ Charged delivery with fixed window / hours

Building rapport: understanding the value of Shipping service to the consumer via moderated interview

Context: We need to analyze in depth the user’s perception of using the term ‘shipping’ in the app

Research objectives: Measure the perception of value in relation to the ‘Delivery’ service. Understand the pains and desires around delivery, and why consumers see it only as a cost, through qualitative interviews.

Design decisionDecisão de design
Who I wanted to talk toCom quem eu quis conversar
1Non-usersNão usuáriosnever orderednunca pediram
2New usersNovos usuáriosfirst ordersprimeiros pedidos
3Recurring usersUsuários recorrentesorder regularlypedem com frequência
4Zé loversZé loversheavy usersheavy users

The whole user lifecycle, from people who had never ordered to heavy users.O ciclo de vida completo do usuário, de quem nunca pediu a quem pede sempre.

Intro - icebreaker 🧊

• How long have you been ordering drinks per app?
• How is your day when you order ? Do you plan a event?
• How many orders do you place per month?
• Do you usually order from any other delivery service?
• What is the worst part of buying from the market?
• Have you ever abandoned an order because of the delivery fee?

Feel and think questions 💭

• What do you feel when you see us change the word Shipping to Delivery in the app?
• What are your thoughts on Zé Delivery’s delivery service?
• What do you think of Zé’s delivery time?
• How can a delivery service add value to you?

Listen and see questions 👂🏼

• What is your perception of the values ​​described when closing orders?
• Have you ever discussed delivery fees by ordering drinks with friends?
• The information in the app is enough for you, do you miss something?
• How was the experience with Zé’s delivery people?

Does and Talk questions 🗣️

• Would you accept paying less for a delivery without prioritization (one or two days, with no defined time window)?
• Would you accept to pay more for a priority or turbo delivery, being sure that you would receive it in the stipulated time?
• If you find the same product in Zé, in an advertisement / market communication: you buy it in Zé or in the Market (with a Delivery value of R$5.49). Why?
• Have you ever had problems with weight, or had to place an order again because of the volume of orders under the guidance of the store?
• Rate Zé Delivery’s service from 0 to 10

Patterns 🔎

– We observed that 16 of 20 participants believe that Zé can add value with the delivery service. This means that we can test different variable models.
– We observed that 12 of 20 participants do not discuss the value of deliveries when they are among friends. This means that there are different use cases to explore.
– We observed that 3 of 20 participants plan their purchases. This means that they do them casually, through stimulation (offer).
– We observed that 10 of 10 participants feel that they need some improvement in the delivery journey. This means we can test flow and route planning improvements.
– We observed that 16 of 20 participants prefer not to buy at the supermarket, for convenience. This means that they think the value of the product is more important than the delivery.
– We observed that 18 of 20 participants understand the values ​​described when closing orders. This means that the existing information in the app is clear to the user.

Insights 💡

– Based on the subject that we can add value to the delivery service, an insight is: planned, turbo and standard (bundled) deliveries are valid hypotheses.
– Based on the subject that delivery value is not discussed in a social occasion, an insight is: we can test different options associated with planned events.
– Based on the issue of purchasing without prioritizing delivery, an insight is: we can add this value proposition to the planned delivery.
– Based on the subject that the user can choose for shopping places, an insight is: we should focus on Zé’s differentials and add them as value.

Important transcriptions 🔊

Ordering from my house today the delivery is practically turbo, but depending on the place I am, if it is urgent, a big order, I believe I would pay a slightly higher fee.

Interviewee 1 · The urgent orderer

I think that Zé Delivery does not have a scheduled delivery, I think this must be a great demand because the planned purchase helps, many times the person is not in the place

Interviewee 2 · The planner

I think there is a lot to improve in the the follow-up status knowing where the delivery person is, because he informs "a delivery is finalizing", but this finalization can take 10 or 20 minutes.

Interviewee 3 · The tracker

It's more casual, but usually I always order something at Zé because I prefer beer or to see promotions, like after a tiring day at work. Even if I'm not going to drink and there's a good promotion, we ask to stock.

Interviewee 4 · The deal hunter

Operations Setup: generating value proposition

It’s all about validating a logistics business model integrated with Ambevtech / Bee’s, so we need to propose to the consumer offers with the same characteristics in both ecosystems, and also carry the insights gathered on the interviews. See the 6 decisions below:

We selected 13 SKUs for this category, using varied criteria (from NAB to Ready Drinks instead of only Beer). This point comes from the observation of user research – if they stock and order scheduled products, they have adherence in different kinds of categories of products.

We defined a limit for the number of packs, to not overload the shipping process and to not represent a problems between DTC x B2B clients. With a cheaper offer, users could benefit for different reasons.

Warm, not cold, drinks: validating savings on refrigeration, one of the highest costs in the supply chain, and matching the AmbevTech / BEES model.

Regular fees, so as not to interfere with other promotions and initiatives on the app, clearly selling items with discount due the temperature of the products.

Considering 2 business models, divided by casual and scheduled orders (and the respective sub-categories), we decided to move forward with the next day model, delivering orders by 5pm within a 10km radius from the store.

Online payment only, ensuring we would not lose money on undelivered items, wrong address and cancelled orders.

New use cases study: analyzing the complexity and defining the starting point

Test locations

Dark store Jabaquara

• Expanded radius (serving South of SP)
• Delivery time from 10am to 5pm
• DS service radius: up to 6km (current average ~4km)
• Receiving orders until 0am
• Using cars on operation

Dark store Brás

• Expanded radius (serving the West and Central Zone of SP)
• Delivery time from 10am to 5pm
• DS service radius: up to 6km (current average ~4km)
• Receiving orders until 0am
• Using motorbike on operation

On siteEm campo
Yves on site at a Zé Delivery dark store
Beer fridges inside a dark store
Dark store front desk

On site at Zé Delivery dark stores.Em campo nas dark stores do Zé Delivery. Cold-first infrastructure that a warm, next-day offer had to fit into.Infraestrutura pensada para o gelado, onde uma oferta em temperatura ambiente, no dia seguinte, precisava caber.

Ideate and Prototyping

Design decisionDecisão de design

Built as a mask over the existing appConstruído como uma máscara sobre o app atual

To test the hypothesis fast with low dev effort, we didn’t build a new flow. We versioned the current Home: same UI, same code, only the content replaced.Para testar a hipótese rápido e com pouco esforço de desenvolvimento, não construímos um fluxo novo. Versionamos a Home atual: mesma UI, mesmo código, só o conteúdo trocado.

1Banner at the topBanner no topoOpens the next-day showcase, so the offer is announced before people start browsing.Abre a vitrine de entrega no dia seguinte, anunciando a oferta antes de a pessoa começar a navegar.
2A new category, tagged and discountedUma nova categoria, com selo e descontoWe created a new category across the Zé Delivery app. Its SKUs carried a “Temperatura ambiente” (room temperature) tag on the photo, with the % discount logic built in.Criamos uma nova categoria em todo o app do Zé Delivery. Seus SKUs levavam o selo “Temperatura ambiente” na foto, com a lógica de desconto (%) aplicada.
3Banner at the end of the flowBanner no fim do fluxoResults data showed people lacked information about the new delivery, so a closing banner repeats when and how the order arrives.Os dados de resultado mostraram falta de informação sobre a nova entrega, então um banner no fim do fluxo reforça quando e como o pedido chega.

Why it mattered:Por que importou: low dev effort meant more pace, so hypotheses could be tested and versioned in short cycles.pouco esforço de desenvolvimento significou mais ritmo, para testar e versionar hipóteses em ciclos curtos.

21 prototyped and tested screens

240 min of moderated usability test recorded

2 flows validated progressively

5 ongoing improvements made during the process

Five scheduled push notifications across different days and times

Seller interface, receiving information about the Next Day Delivery with a new component
Outgoing order, printing the information in the delivery invoice to inform the courier and the sellerPedido em rota: as informações saem impressas na nota do pedido, para o entregador e o vendedor
Part 2 of 2Parte 2 de 2

Solution discoveryDescoberta de solução

1

Diverging: Assisting the operation

• Operational failures
• User behavior
• Area coverage
• Ongoing learnings

2

Transforming data to insights

• Closing numbers
• Screen recordings
• Quantitative research
• Next Steps

3

Converging: Scaling the operation

• Preventing cancelled orders
• Avoiding Address mistakes
• No-code and Low-code testing
• Handover new user flow

What went wrong? What went well?

• A considerable increase of Fill Rate metric 📈
• 57% of cancelled order by consumers ❌
• 80% of cancelled order due timing ⏱️
• 14% of cancelled by order expired 👀
05/25 - 06/18

Operation learnings:

• Expired orders made us build a bot to automatize the acceptance;

• Concentration of the test in a single store with a radius of 10KM (centralization);

• A dedicated Van doesn’t correspond to the total volume of orders;

• Stocking warm products is a challenge

___

Consumer learnings

• Consumers did not understand the new purchase occasion (high cancellation rate);

• Occasion needs to be built over time, consumer enters Zé for quick orders (low adherence / number of orders);

• Basket/mix does not differ from the casual occasion.

Screen recordings: watch real users navigating (UXCam)

Sessions recorded: 3.866

Average navigation time from login to checkout:
3 to 5 min*

Most visited sessions:
Beers card, Search box and Banners

Behavioral analysis: Users are casual orderers. They look for price advantages, better delivery conditions and the lowest cost. Sessions are short: they open the app already deciding what to buy, and time on the showcase goes to finding cheap products, knowing the order will arrive fast. Our hypothesis: today’s users are loyal to what the app already offers, not to the new value proposition.

Note: cancelled orders had an average wait of 30 min: users expected an immediate delivery and cancelled when it didn’t arrive.

Click paths:
• Main showcase
• Next day Showcase
• Checkout
• Payment
• Order Detail
• Order List

Time to research: investigate the boundaries of the test

Context: We need to understand the impact and visibility of the new feature to users.

Research objectives: Measure the perception of the ‘Schedule’ feature. Understand how many users noticed it and how many considered using it, through quantitative research.

Who I wanted to talk to: New users, recurring users and Zé lovers in São Paulo

Quantitative survey · São Paulo usersPesquisa quantitativa · usuários de São Paulo
Never noticed the schedule featureNunca notaram o agendamento
77%
Noticed itNotaram o recurso
23%
Of those, considered schedulingDesses, consideraram agendar
28%
Scheduled an orderAgendaram um pedido
5%

Discoverability, not the offer, was the first bottleneck.O primeiro gargalo foi a descoberta do recurso, não a oferta.

Ideating on the cancellation and adoption problem

Considering all the data above, we ran a workshop with the Revenue, Operations and Last Mile teams on two points, order cancellation and adoption, to hypothesize end-to-end solutions along the user flow (from login to receiving the order).

First step: Solutions
Second step: Objections
Third Step: Reforge ideas

Hypothesis A · a new Delivery Method sectionHipótese A · uma nova seção de Modelo de Entrega

To upsell the feature and according to all benchmark that was made, we decided to propose a new component under the Address selector called Delivery Method, in the beginning of the flow. The idea here is to create a new section, offering users different delivery choices, and making room for new features as we evolve a future vision to Zé Delivery app.

Hypothesis B · tabs with a one-line promiseHipótese B · abas com a promessa em uma linha

Trying to be more ‘straight to the point‘, we designed hypothesis B keeping the component at the beginning of the flow, but instead of a new area, only a tab component with a supporting information ‘receive tomorrow with discount’. The purpose here is to test a more engaging version, eliminating one step of the flow.

How to decide: No-code and Low-code testingComo decidir: testes no-code e low-code

To roll out the best hypothesis, we developed 2 tests: one is no-code, and another is low-code for quick validation.  The first, a usability test, the second, a Fakedoor disguised as a ‘teaser’ – both in the limit of the MVP area (São Paulo State). The point is: we need to move forward with data, statistically saying.  Crossing the number, we would ‘roll the dice’ on the best hypothesis.

Non-moderated usability test 📲

Method:

The test launched on August 3 (Thursday) at 12:00 in São Paulo State as an A/B: we split the base and sent one prototype hypothesis to each half. We evaluated:

– Address changing
– Selection of delivery model
– Understanding the value proposition (warm beverage, delivered next day until 5pm)Compreensão da proposta de valor (bebida em temperatura ambiente, entregue no dia seguinte até as 17h)

Who I was talking to:

– Active, recurring, C0, Zé Lovers, Drinkers and Cross* users

Engagement numbers:

Hypothesis A – 2124 accesses, 27% conclusion rate (549 users), 5m 15s average conclusion time

Hypothesis B – 2293 accesses, 30% conclusion rate (651 users), 3m 35s average conclusion time

Results:

Task 1 · Change the address: completion
Hypothesis A · componentHipótese A · componenteHypothesis B · tabsHipótese B · abas
Completed
57%
50%
Dropped / skippedDesistiram / pularam
43%
49%

907 of 1,587 completed on A vs 795 of 1,578 on B. (A’s average time is skewed by idle sessions, so time is not compared here.)(O tempo médio da A é distorcido por sessões ociosas, por isso não é comparado aqui.)

Task 1 · “How easy was it to change the address?”
0 · too complicated0 · muito difícil12345 · easy5 · muito fácil
Hypothesis A
7%12%74%
Hypothesis B
7%15%70%

959 answers on A, 876 on B.

On completion and ease, we see a small difference pointing to Hypothesis A as easier for changing the address.
Hypothesis B always wins on 'Time to complete', but...
Task 2 · Change the delivery model
Hypothesis A · componentHipótese A · componenteHypothesis B · tabsHipótese B · abas
Completed
74%
84%
Avg. time on taskTempo médio na tarefa
48.9 s
19 s

700 completions on A vs 725 on B.700 conclusões na A contra 725 na B.

But B always loses on ease: fewer people rated changing the delivery model as easy.
Task 2 · “How easy was it to change the delivery model?”
0 · too complicated0 · muito difícil12345 · easy5 · muito fácil
Hypothesis A
9%16%68%
Hypothesis B
6%10%16%63%

762 answers on A, 760 on B.

And now, the decision-maker data: Hypothesis A is considerably easier to understand when we talk about Value Proposition (warm beverage, delivered next day until 5pm)E agora, o dado decisivo: a hipótese A é bem mais fácil de entender quando falamos da proposta de valor (bebida em temperatura ambiente, entregue no dia seguinte até as 17h)
“How would your order be delivered?”
Hypothesis A · componentHipótese A · componenteHypothesis B · tabsHipótese B · abas
With discount
38%
56%
Next day, by 5 pmNo dia seguinte, até 17h
28%
10%
Room temperature (warm)Temperatura ambiente
9%
7%
All of the aboveTodas as anteriores
26%
27%

641 answers on A, 711 on B. Only A made the next-day promise land: 28% vs 10%.Só a A fez a promessa de dia seguinte ser entendida: 28% contra 10%.

Design decisionDecisão de designConclusion: Hypothesis A comes out ahead on user comprehension. There is an assumption that the micro interaction in the component may have helped in this cut, and also an extra step in the flow helped the user to better understand the value proposition.

Fake door (Disguised as teaser) 🆕Fake door (disfarçada de teaser) 🆕

Method:

To fast validate and generate quick learnings, we developed a strategy to fragment the engineering process: instead of producing the whole flow, taking time and effort, we decided to deliver only the first part of it – the Delivery Model component. The objective: implement a fake door, measuring clicks per unique login, and cancellation problems (due address changing).

KPIs:
Order Cancellation (WtW)
Average clicks per unique user

Current top barBarra superior atual
Hypothesis A top barBarra superior · hipótese A
Hypothesis B top barBarra superior · hipótese B

Results and Next Steps

What shipped: the next-day service ran for 3 weeks in two São Paulo dark stores, with fill rate climbing from 18% to 40% as we fixed operations. Then the Delivery Model component shipped as a fake door, crossing live clicks and cancellations with the usability results (Hypothesis A was 2.8× better at explaining the promise).

What it changed: we showed stakeholders that scheduled delivery would not grow order volume among today’s users, who come to Zé for cold, fast and cheap. Its real lever is new users: planned-purchase shoppers who buy from marketplaces today. That reframed the initiative from a feature into a new segment.

What I’d do differently: test discoverability (a fake door) before the operational pilot. It would have saved a round of cancelled orders.

O que foi ao ar: o serviço de entrega no dia seguinte rodou por 3 semanas em duas dark stores de São Paulo, com o fill rate subindo de 18% para 40% à medida que ajustávamos a operação. Depois, o componente Modelo de Entrega foi lançado como fake door, cruzando cliques e cancelamentos reais com os resultados de usabilidade (a hipótese A foi 2,8× melhor em explicar a promessa).

O que mudou: mostramos aos stakeholders que a entrega agendada não aumentaria o volume de pedidos dos usuários atuais, que buscam o Zé por bebida gelada, rápida e barata. A verdadeira alavanca são os novos usuários: quem planeja a compra e hoje compra em marketplaces. Isso transformou a iniciativa de uma funcionalidade em um novo segmento.

O que eu faria diferente: testar a descoberta do recurso (uma fake door) antes do piloto operacional. Teria evitado uma rodada de pedidos cancelados.

Thank you for your attention!