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Blinkit's Growth Strategy to Increase Retention

There's a concept called "Frequency of Use". This decides how frequently someone uses your product.


The higher the frequency = the more the money you'll make off of them.


There's another concept of new users and returning users. If users repeat purchases, your lifetime value from that customer increases.


The higher the lifetime value = the more money you have


Blinkit is a quick commerce platform that delivers products within 10-30 minutes. They maintain dark stores in densely populated neighborhoods.



BlinkIt's Strategy to bring returning customers


Look at what Blinkit shows.



And what Amazon shows for the same search query.




Notice a difference?


They sell small packs. And don't let you buy in bulk, by default.


The default matters. And, they also prevent you from ordering more.



Granted, they're a quick commerce company with deliveries that happen on bikes and dark stores that can house only limited inventory.


But the change is huge because:

1) I'll have to buy more frequently and open their app often

2) I'll have to ask someone else in my family to sign up too to order more

3) To get 'free delivery', I'll be tempted to add other stuff in my cart that isn't a necessity.


Funny enough, they are almost as cheap as the wholesale rates. Especially for items that sell most on Amazon (eg, garbage bags).


Thanks for reading! You can find more such PLG examples on this site. I'll also add to this article over time :)

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