How a seed NYC grocery delivery app lifted second orders from 38% to 57%

Second order within 30 days up from 38% to 57%: 2,114 of 3,708 first-time customers from sprint weeks 9–13 ordered again, against 38% for May–June customers and 39.1% for a 10% holdout in the same weeks. The decision that drove it was fixing the first order before marketing the second: pre-approved substitutes and automatic refunds cut bad first orders from 18% to 7%.

Written by Emma Park

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The company and program

ClientA seed-stage New York grocery delivery app.
StageSeed
IndustryNew York consumer app: grocery delivery
TimelineOne 90-day growth sprint, July 6 – October 4, 2026. 30-day windows read through November 3
ChannelsiOS and Android app, push, SMS, email
TeamA dedicated Kiko growth lead plus agents for event audits, cohort reports, experiment write-ups and first drafts of push copy. Client side: one mobile engineer, one backend engineer and the ops lead

The approach

We kept 10% of new customers on the old experience for the whole sprint, so every result is read against a holdout from the same weeks.

TestHypothesisComparisonDecision rule
First-order accuracyA missing item or a substitution nobody approved is the main reason a first-time customer doesn't come backSubstitutes pre-approved at checkout plus automatic refunds for missing items, vs. the old flowShip if bad first orders fall below 10% without adding more than 5% to picking time
Opt-in momentCustomers say yes to notifications when the message is about their driver, not a promotionOpt-in ask on the order-tracking screen ("Text me when my driver is 5 minutes away") vs. at signupKeep the arm with higher opt-in if unsubscribes within 30 days stay under 5%
Reorder and timingA one-tap "reorder your last basket" sent when the household is due to restock beats a day-3 promoReorder push on days 5 and 9 vs. a "we miss you" promo push on day 3, 50/50Keep if second order within 30 days rises at least 3 points on a 2-week read
Second-order offerWaiving the $3.99 delivery fee moves as many people as a discount, for less moneyFree delivery on a second order within 14 days vs. $10 off a second order, 50/50Keep the offer with the lower credit cost per incremental second order against the holdout

What we changed

  1. Weeks 1–2: audit and baseline. One metric: second order within 30 days. 18% of first orders had a missing item or an unapproved substitution, and those customers came back 21% of the time against 42% after a clean order.
  2. Week 3: fix the first order. Pre-approved substitutes at checkout and automatic refunds for missing items went live for the treated group.
  3. Week 5: move the opt-in ask. The push and SMS prompt moved from signup to the order-tracking screen.
  4. Week 6: one-tap reorder. A "reorder your last basket" button on the home screen, plus pushes on days 5 and 9 that open straight into it.
  5. Weeks 7–8: offer test. Free delivery beat $10 off on cost per incremental second order and shipped to every treated customer from week 8.
  6. Weeks 9–13: hold and measure. No new changes. Weekly cohorts read at 7, 14 and 30 days; sprint review at day 90.
Product results in PostHog’s dashboard layout, comparing the before and after cohorts shown in the results table. Recreated from the case-study results; account details omitted.
Product results in PostHog’s dashboard layout, comparing the before and after cohorts shown in the results table. Recreated from the case-study results; account details omitted. View full report

The results

Before: 6,410 first-time customers from May–June 2026. After: 3,708 treated first-time customers from sprint weeks 9–13 (August 31 – October 4). The holdout over the same weeks ordered again 39.1% of the time, so about 18 of the 19 points are incremental. Delivery-fee credits cost $10.46 per incremental second order.

MetricBeforeAfterChange
Second order within 30 days38%57%+19 pts
Second order within 14 days25%47%+22 pts
First orders with a missing item or unapproved substitution18%7%−11 pts
Push or SMS opt-in among first-time customers41%68%+27 pts
Median days from first to second order128−4 days
Cohort comparison in PostHog’s dashboard layout, using the same before and after periods as the results table. Recreated from the case-study results; account details omitted.
Cohort comparison in PostHog’s dashboard layout, using the same before and after periods as the results table. Recreated from the case-study results; account details omitted. View full report

What didn't work

  • $10 off a second order. It lifted the 30-day rate about 1 point more than free delivery, but cost about 2.5 times as much per incremental second order, and those customers placed fewer third orders. We dropped it.
  • A weekly basket subscription at first checkout. 2% took it, and it slowed checkout. We removed it in week 7.
  • Two Queens neighborhoods. Delivery windows there kept slipping, and their second-order rate stayed at 44%. That is an ops problem, and no product change fixed it.

What we learned

  • Fix the first order before marketing the second one. The cleanest lift came from customers who got everything they paid for.
  • Ask for notification permission when the message helps the customer, then use it for the reorder.
  • Keep a holdout for the whole sprint, so the result is a number the board can trust.

Frequently asked questions

How much does a 90-day retention sprint like this cost?

There was no paid media. The only spend beyond the sprint was client-funded delivery-fee credits, at $10.46 per incremental second order against the holdout. Kiko's 90-day sprints start at $10,000 a month.

How long before the second-order rate moved?

The first-order fix shipped in week 3 and the winning offer in week 8. Weeks 9–13 ran with no changes so the 30-day windows could close, and the full read came at day 90.

Would this work for a Series A meal-kit or restaurant delivery app?

The first-order accuracy fix and the restock-timed reorder transfer to any repeat-basket product. The free-delivery offer only works with a small fee; at $3.99 it cost $10.46 per incremental order. Slipping delivery windows need an ops fix.

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