Delivered to Your Door: The Digital Age of Shopper Marketing
Among the many changes to the retail industry throughout the COVID-19 pandemic, the way people shop for everyday essentials has shifted drastically. Though consumer behaviors have historically taken years and widespread cultural movements to change, the COVID lockdowns gave on-demand delivery a necessary boost in what seems like overnight. For years, apps such as DoorDash, GrubHub, and UberEats have used creative ways and clever narratives to persuade customers into paying their additional service fees in return for convenient delivery service. As our world was suddenly forced to cope with a global pandemic, the last mile delivery space instantly transformed from merely a want to an everyday need.
Success stories of double and triple-digit growth in product sales on these platforms are inspiring more brands to introduce on-demand delivery into their existing services. In addition to what the brand is already generating via traditional eCommerce and retail, the on-demand delivery sales are purely incremental. Possibly the biggest factor attracting new brands to this space is the increased frequency and rapid growth in impulse purchases by consumers. Whether it’s a grocery item, household product, or late-night snack, people are becoming increasingly comfortable clicking the ‘submit order’ button at the bottom of their screen.
Like all media and marketing investments, tapping into this new space comes with many challenges and questions. With last-mile delivery being such a fresh and fast-changing market, there is no single tried-and-true formula for brand success just yet. Despite this lack of a blueprint, there are certain considerations not to be missed when CPG brands venture into this world of on-demand delivery.
I. Channel of Sales
There are multiple ways to utilize delivery service apps when expanding into on-demand eCommerce. One of the common ways is establishing a virtual store. By having a stand-alone store selling products specifically from a certain brand or company, brands have the advantage of owning their equity and having more control over brand messaging. Another method is tapping into retailers that carry the products to leverage the already existing distribution networks and storefronts.
When deciding which sales channels work best for a brand, one major consideration is the effort required. Creating a virtual store involves building a new brand from the ground up, including raising awareness and acquiring new customers. Though these efforts can often take years and large marketing budgets to accomplish, the brand gains the advantage of controlling all facets of marketing. Having authority when establishing the brand’s aesthetic, tone, or even sales calendar can be crucial for brands that do not want to be overlooked in a sea of products at retail storefronts.
II. Tactics and Testing
As many brands begin to realize the potential of on-demand delivery, the competition is becoming increasingly fierce. Delivery service partners typically utilize ongoing promos and incentives to encourage trial and frequent ordering. It is also important that brands leverage different tactics available to attract new customers to their platforms.
Available marketing tactics can often include offers such as free delivery or 20% off the entire order once the cart reaches X amount or includes X product. With so many options, it can seem overwhelming when deciding where to start. The key is setting a test-and-learn agenda to gather key metrics that will allow you to compare performances across tactics and placements. Regularly summarizing learnings can be helpful in order to continue investing in tactics that best fit the overall business. It’s also important to capitalize on key marketing moments throughout the year, such as holidays. This allows brands to take advantage of the already-generated momentum from larger platform marketing.
III. Data and Tracking
Though delivery service apps have been around for almost a decade, the marketing offerings are still in a developmental stage. For brands that are used to advertising on traditional publishers and search engines, this is a new territory that has little-to-no benchmarks or history for reference. On the bright side, brands have the unique advantage of helping to build the roadmap by testing out new ad formats and placements on various platforms.
Just because the space and products are relatively new, this doesn’t mean that brands should blindly jump in. Although certain traditional marketing metrics are not yet available for delivery service apps, brands must still map out the data points and metrics they consider to be must-haves or nice-to-haves. With a clear picture of data prioritization, brands can work alongside delivery service apps to achieve the ideal data environment required to unlock new shopper opportunities and marketing potential.
Today is an exciting time to be a brand marketer on the shopper side. For the first time, consumers can experience an ad impression and have products in hand within an hour. This new journey for both consumers and brand marketers allows us to observe, participate in, and reap the rewards of this growing space. Succeeding in this unknown territory will require trial-and-error, an agile mindset, and quick decision-making. With time, the on-demand delivery space and the marketing within it will become growth drivers for business, not just a line item on the cost sheet.
