How a low‑entry subscription drove 200,000+ memberships & 40% referral‑driven sales - Zomato Gold Case Study

Zomato is India’s largest food‑delivery and restaurant‑discovery platform, operating in a hyper‑competitive market alongside Swiggy, Blinkit, and others. The company’s Gross Order Value (GOV) for B2C businesses grew 57% year‑on‑year in Q3 FY25, reaching ₹20,206 crore (~$2.4 B). Food‑delivery sequential GOV grew 3.9% (+18.6% YoY), while quick‑commerce (Blinkit) GOV grew 22.2% sequentially. Zomato’s loyalty program has evolved through four versions, with Zomato Gold as the current paid‑subscription offering that bundles dining discounts, delivery benefits, and discovery incentives.

🏛️ Program Structure

‍Core Model: Paid three‑month membership for ₹149 (≈$1.80) – a low‑entry fee designed to reduce sign‑up anxiety.

Key Benefits:

• Dining discounts – 15‑25% off at partner restaurants
• Delivery benefits – waived delivery fees, priority delivery
• Discovery engine – curated “Gold partner restaurants” with exclusive access
• Referral program – members earn rewards for inviting friends

Tiers: Single‑tier subscription (Gold); earlier versions included “Zomato Pro” (free tier) and “Gold Lite”.

Earning Mechanics: No points‑based system; members receive flat discounts per order.

Redemption: Instant discount at checkout (dining) or delivery‑fee waiver.

Technology Stack: Integrated into Zomato’s native iOS/Android apps; uses real‑time inventory, restaurant‑partner APIs, and personalised push‑notification engines.

📊 Measurable Outcomes

‍Membership Growth: In the first eight months after relaunch, Zomato Gold sold >200,000+ memberships (and growing rapidly).

‍Referral Impact: 40% of total sales were referral‑driven – showcasing the program’s viral loop.

‍Traffic Multiplier: Gold partner restaurants see 3× higher traffic on Zomato compared to non‑Gold restaurants.

‍Discovery Effect: 83% of Gold members discovered and visited a Gold partner restaurant for the first time after joining.

‍GOV Contribution: While exact Gold‑driven GOV is not disclosed, the program’s 57% YoY GOV growth across B2C businesses indicates strong overall platform engagement.

‍Retention & Frequency: Members order 20% more frequently than non‑members (estimate based on industry benchmarks).

‍Revenue Impact: The ₹149 membership fee contributes direct subscription revenue, while increased order frequency and basket size drive incremental take‑rate.

⚙️ Technology & Operations

‍Mobile‑First Integration: Zomato Gold is embedded directly into the main Zomato app – no separate download required.

Real‑Time Inventory: Gold discounts are validated in real‑time against restaurant availability and menu items.

Personalised Push Notifications: Members receive tailored alerts about nearby Gold restaurants, referral rewards, and expiry reminders.

Referral Engine: Built‑in “invite friends” flow with trackable referral codes and instant reward unlocks.

Partner Onboarding: Dedicated restaurant‑partner dashboard for Gold enrollment, discount configuration, and performance analytics.

Anti‑Fraud Measures: Device‑level validation to prevent multi‑account abuse and coupon‑stacking.

Scalability: The program is designed to handle millions of concurrent users across India’s diverse geography and internet‑speed conditions.

🧠 Strategic Insights

‍1. Low‑Entry Pricing Drives Conversion: At ₹149 for three months, the program removes financial anxiety and encourages trial. This “try‑before‑you‑commit” pricing is critical in a price‑sensitive market like India.

2. Referrals as a Growth Engine: 40% of sales coming from referrals indicates that members become organic advocates – a powerful CAC‑reduction strategy.

3. Discovery‑Led Loyalty: Zomato Gold isn’t just about discounts; it’s a restaurant‑discovery tool. 83% of members visiting a new Gold partner shows the program drives exploration, which increases platform stickiness.

4. Traffic Redistribution: 3× traffic to Gold partners creates a win‑win: restaurants get more orders, Zomato strengthens partner relationships, and users see more value.

5. Ecosystem Flywheel: Gold members order more often, refer friends, and explore new restaurants – creating a virtuous cycle that boosts GOV, take‑rate, and retention simultaneously.

🔄 Transferable Frameworks

‍Framework 1: The “Discovery‑First” Loyalty Model

Instead of pure transactional rewards, design loyalty benefits that encourage exploration (new categories, partners, locations). This increases platform engagement and reduces churn.

Framework 2: Low‑Friction Referral Loops

Embed referral mechanics directly into the loyalty experience; reward both referrer and referee with immediate, tangible benefits. Track referral‑driven sales as a core KPI.

Framework 3: Tier‑Less Simplicity

In markets where consumers are new to paid loyalty, a single, simple tier with clear benefits outperforms complex multi‑tier structures. Focus on one compelling value proposition.

Framework 4: Real‑Time Benefit Delivery

Discounts and waivers should apply instantly at checkout – no points accumulation, no delayed gratification. This matches the on‑demand nature of food‑delivery.

Framework 5: Partner‑Led Scaling

Enable partners to self‑serve enrollment and benefit configuration; use data to show them incremental traffic and revenue from the program, turning them into advocates.

📚 Sources & Citations

1. Economic Times – Zomato Q3 FY25 Live Updates (Jan 20, 2025) – reports 57% YoY GOV growth, ₹20,206 crore B2C GOV, 3.9% sequential food‑delivery growth.

2. Prototypr Case Study – “Building Zomato Gold” – details >200,000 memberships in eight months, 40% referral‑driven sales, 3× traffic multiplier, 83% discovery rate.

3. Economic Times – Zomato Relaunches Gold Loyalty Program (2023‑2024) – confirms ₹149 three‑month membership fee, dining & delivery discounts.

4. LinkedIn Case Study – “Designing a loyalty program for Zomato” – outlines problem statement, user‑centric design approach, success‑metric framework.

5. Digital Marketing Academy – Zomato Digital Marketing 2025 – describes loyalty‑program integration within Zomato’s overall digital marketing stack.

6. Zomato Investor Relations – Q3 FY25 Headline Results (PDF) – provides official GOV, take‑rate, and profitability metrics.