How to Increase Conversion Rate on Delivery Apps

For most food delivery businesses, optimizing conversion rate on delivery apps usually become a priority project at some point in a brand's lifecycle.

There’s lots of ways to improve conversion rate so let’s break it down.

What is the food delivery app conversion rate?

The formula to calculate delivery app conversion rate is:

Conversion Rate = (Total Number of Menu Views / Number of Orders Placed) × 100

Whilst the formula is simple, collecting the data is sometimes a challenge. Depending on the delivery app you are optimizing for you will have to collect data manually from the portal in whatever they make it available.

Steps to Calculate the Conversion Rate:

1. Find the total number of orders:

This is the total number of successful transactions or orders made through the app within a specific time period.

2. Determine the total Number of menu Views:

This is the total number of unique users who viewed your menu/product listing with the app during the same period.

3. Apply the Formula:

Divide the number of orders placed by the total number of app visitors. Then, multiply the result by 100 to get the conversion rate as a percentage.

Calculating conversion rate automatically

Since conversion rate is such an important metric in delivery app optimization, it’s often useful to start using a dedicated system that, amongst other things, will track your conversion rate automatically.

This especially the case when dealing with multiple brands, locations and delivery apps - where manually calculating, and then tracking, the rate is extremely time consuming.

Depending on the delivery apps you are working with, consistently tracking conversion rate can be hard - and sometimes even impossible.

Delivery app marketing software surfaces and processes data that is sometimes not available directly in the delivery app portal.

Explore how Revly automatically keeps track of key delivery app metrics >>>

Why does the conversion rate on food delivery apps matter?

It’s not an exaggeration to say that conversion rate is one of the most important metrics in all of delivery app operations and marketing.

This is because:

A healthy conversion rate indicates an overall healthy listing.

When the conversion rate is high it often indicates:

• The images, menu offering and content is of high quality
• The product offering resonates with the people in the delivery area
• The brand equity is strong

A high conversion rate has a wide range of benefits for a food delivery business that impact the whole business funnel, from awareness and marketing costs, all the way down to revenue and profit.

Let's look in more detail at the benefits:

Higher conversion rate improves organic visibility on the app.

Conversion rate is one of the factors delivery apps use to rank your listing inside the app.

Businesses that convert menu views to orders at a high rate clearly meet the requirement of the app users and therefore are prioritized in search results.

A higher ranking in the apps means your listings are shown to more users, more often.

Higher conversion rate lowers marketing costs

When you run delivery app ads using CPC bidding you are ultimately paying per menu view. The “click” of cost per click is another way of saying menu view.

Since your paying for menu views, the higher the conversion rate of your listing, the more revenue you generate per click.

Higher conversion rate positively impacts profitability

Because there are high variable costs in food delivery operations - commissions, marketing, COGS etc, profitability and margins are impacted by the efficiency of the delivery app funnel.

The rate at which you convert views to orders is a key part of that funnel. A difference in conversion rate of 5% can be the difference between a profitable or a loss making delivery business.

How to improve food delivery app conversion rate

Improving your delivery app's conversion rate is all about understanding the psychology of app users, the preferences of the target market, marketing strategy, and bringing it all together with excellent content.

Make your pictures POP

We eat with our eyes. Great food photography is the most important content on delivery apps for turning a menu view into an order.

The first thing your customers see are the pictures of your food. High-quality, appetising images can make a big difference.

Pair these visuals with clear, concise descriptions that highlight what makes each dish special. This combination helps customers quickly understand what they’re ordering and makes them more likely to hit that “Add to Cart” button.

Create Combos That Appeal to Different Customers

Offering combo meals is a smart way to appeal to different customer segments. A key part of Improving conversion rate is having a product that matches what the customer wants.

This is where clever use of combos comes in.

Whether it’s a family meal, a meal for two, or a solo option, combos can offer value and convenience. Also consider how seasonality plays into your conversion rate strategy.

Creating a custom combo tailored to hot months of the year is also often a winning idea for many food delivery businesses.

Customers love getting more for their money, especially when it feels tailored to their needs.

Match High Rating with Low Delivery Time

Combine a 4.5 rating with a 30 minute delivery time.

This combination of rating and time is a powerful motivator for people on delivery apps.

High ratings and fast delivery times together tend to drive a much higher conversion rate. A strong rating (ideally 4.5 stars or higher) builds trust, while quick delivery (within 30 minutes) ensures that customers receive their food hot and fresh.

Focusing on these areas can significantly boost your app’s reputation and conversion rate.

Optimize Your Menu Structure

Your menu should be easy to navigate, with the best-selling items and popular combos prominently displayed. Consider adding a “Chef’s Choice” section or highlighting top items at the top of each category.

This helps guide customers toward choices they’re likely to enjoy, making it easier for them to decide.

Run Limited Time Offers

When your goal is increasing conversion rate and sales quickly, go for limited time offers to create a sense of urgency and FOMO.

Limited time offers are a common marketing option in delivery apps and can be used strategically to drive a higher conversion rate.

Provide Clear Tags, Taglines, and Nutritional Facts

Transparency is key when it comes to food. Clear tags like “Vegan,” “Gluten-Free,” or “Low Calorie” can help customers quickly find what they’re looking for.

Including nutritional facts, especially for health-conscious customers, adds an extra layer of trust and can influence their decision to order.

Offer Customization Options aka Modifiers

Customers appreciate the ability to customise their orders. Whether it’s removing an ingredient or adding an extra, giving customers control over their meal can lead to higher satisfaction and more repeat orders. Make sure your menu offers easy-to-use modifiers to accommodate these preferences.

Modifiers are non-negotiable when it comes to high performing delivery app listings and should be baked into any menu strategy.

Maintain Competitive Pricing

Delivery app users are comparison shoppers and it’s no secret they are also highly price sensitive. Price is too high and no matter what else you do your conversion rate will go down.

Hitting the sweet spot on price and value will do wonders for your conversion rate.

Ensure your prices are competitive through market research and competitor monitoring, such as discounts for first-time users or loyalty programs for returning customers. These offers can make your app more attractive compared to the competition.

Improve customer reviews and ratings

You won’t be shocked when I say high ratings are crucial to maintain a high conversion rate on delivery apps. Below a certain threshold of ratings, conversion rate declines rapidly.

In general, remaining at or above a 4.5 star rating is required to be in the top 20% of restaurants with a high conversion rate.

From a metrics-driven, delivery operations perspective, the three most important factors that go into a high delivery app rating are

Order Accuracy‍

Implement rigorous quality control checks before orders leave the kitchen. Digital order management systems like Deliverect and Grubtech are vital to ensure precision in preparation and packaging, and train staff on the importance of verifying every detail against the customer's order.

Delivery Time (Metric: On-Time Delivery Rate):

Optimize kitchen workflows to reduce prep time, and closely monitor real-time delivery logistics to minimize delays. Consider adjusting your delivery range based on peak times to maintain a high on-time rate and make sure to set realistic delivery time expectations.

Food Quality Upon Arrival

Invest in high-quality, insulated packaging that preserves temperature and presentation. Conduct regular audits of how your food fares during delivery by testing different packaging options and monitoring customer feedback. Adjust menu items if necessary, focusing on dishes that maintain their integrity during transport.

Monitor and measure conversion rate over time

Tracking the conversion rate for all your locations tells you where to get the highest impact. To consistently improve conversion rate you need to actively track it, and be able to compare different time periods.

Run marketing campaigns, or make profile changes, track results, and test again.