Recently Grofers (now Blinkit) roughly delivered 125,000 orders in India. By operating in just over 30 cities!
Most households have switched to online grocery delivery for grocery shopping. All this is due to the after-effects of the pandemic.
To add to it, Market experts anticipate that the trend will strongly continue in the future. So simply, it has reshaped the global economy. But on the other hand, it has made the survival of retail stores more challenging.
It is sometimes better to be on the other side of the coin. But this requires quite a few concrete reasons: why a grocery delivery app is beneficial for your business. So let's discover them in this blog and help you take the first steps towards your grocery app development.
Some facts about the Grocery Delivery Market
- Instacart, Walmart Grocery, and Shipt have seen their daily downloads surge by 218%, 160%, and 124%, respectively, from February to Sunday, March 15, 2020. (Apptopia)
- The global food & grocery sector reached US$8,045 billion in 2017, and it is forecast to grow at a CAGR of 6.8% over the next five years to reach US$11,204.5 billion by the end of 2022. (Global Data Analysis and Forecast)
- By 2022, almost 10% of all grocery sales will likely be made online. (Global Data Analysis and Forecast)
- During the week of March 22, nine days after the US declared a national emergency, 37% of US adults said they were digitally shopping for groceries more often. (CivicScience)
- 62.6% of consumers said they bought groceries online from Amazon in the past 12 months, compared with 52.3% for Walmart, 22.9% for Target, 15.2% for Costco Wholesale, 13.9% for The Kroger Co. (multiple store banners), and 13.2% for Whole Foods Market. (Coresight Research)
- 26% of shoppers surveyed, or 6% of all consumers, say they have been placing online grocery orders more than once a month (Google/Bain, U.S.)
Benefits that a grocery delivery app can provide
Provide More Value to Customers
A grocery delivery app has a significant influence on your customer base. Today, customers are likely to interact with business apps four out of five times. In addition, customers expect brands to be available on the net. Thus a grocery delivery app becomes vital for business expansions.
Moreover, increasing audiences, the app builds stable relations with brands. At the same time, the brands reward their regular customers through loyalty programs or discount coupons.
A grocery delivery app provides better access to the offered goods and services. Customers fancy convenience, and an app provides direct access to your store. Almost half of the mobile app users rely on them for shopping. To complement it, an easy and simple interface adds significant value to your app and hence offers value to customers.
Build a Stronger Brand
Customers never switch their mobile phones off, even for a day. So, it becomes a channel to build a stronger brand. By brand, we don't mean a Walmart megastore; it can be a virtual brand- AmazonFresh. Your grocery delivery app offers more value to customers while customers revert to their loyalties.
Intersecting with traditional marketing techniques like TV or whitepapers, branded apps excel in the category. Further, without any branding efforts. However, the more branding elements (logos, colors, combinations, and more) you include in your grocery app, the better you create your brand image.
Connect Quickly With Your Customers
A store owner would recognize that queues make people frustrated. But a grocery app can help if you are to delight customers each time. With apps, customers have the privilege to order groceries at their convenience, comfort, and ease. No more rush hour shoppings!
Further mobile apps are far more reliable and personalized than websites or other channels. Just log in with contact details, place an order, and track sales. Besides, grocery delivery apps help employees to connect faster to customers and fulfill orders, thus improving customer satisfaction. App integrations with an advanced chatbot (Botpenguin) can help improve customer services and sales navigation efficiency.
Create a Personalised Marketing Channel
Whenever a business goes digital, especially a mobile app, your marketing team accesses tons of valuable customer resources (contact details, locations, preference, etc.). That can be incorporated in developing marketing strategies. Moreover, your marketing can rely and trust on such data.
Your grocery delivery app also allows you to deliver successful marketing campaigns better than other channels. Push notifications boost conversion( by 110%), retain customers(by 70%) and encourage purchases(customer lifetime value by 50%). Studies in this segment reported that push notifications increase opt-in-rate by 70%, while email marketing by 5%.
Opera reported that in-app ads generate an average 1.53% click-through rate compared to mobile Web ads with a 1.12% click-through rate. Further customers tend to engage promptly through in-app offers.
Offer Better Customer Service (CX)
Customers who had a very good experience are 3.5x more likely to repurchase. And 5x more likely to recommend the company to their kin. Making it a make or break for your business.
However, a grocery delivery app offers better customer service. Customers get to serve themselves at their own pace. At the same time, an on-demand mobile app development company embeds machine learning that helps apps to filter or recommend groceries promptly. Also, apps feature real-time feedback that helps remove hitches and improve CX. In addition, they reduce costs in customer services. Thus a grocery delivery app stirs up sales.
Provide Customer Insights
Analytic tools integration with your grocery delivery app turns it into an insight powerhouse. They are carting a winning marketing strategy. Customers are willing to share their information if your app offers them value. Often the metrics that matter is- daily, weekly and monthly users; retention rates, user demographics (age, gender, device, etc.), and downloads and uninstalls.
Further, you can conduct in-app surveys and incentivize, reward users in return. Once you have all the information and data, you are ready to make strategies that revolve around actual customers, hence giving a potential lead in your grocery business.
Have a Competitive Edge in Your Business
In this challenging economy, a retail grocery store keeping up in the market is a rare sight. However, a grocery delivery app helps you to cope in an ever-changing market. Several studies in the role of mobile in businesses suggest that for instant communication and reliance, customers have shifted to mobiles. Approximately 80% of the world's population uses smartphones, spending around 3.3 hrs a day.
Therefore the importance of mobiles in businesses can't be ignored. With your grocery delivery app, you are a step ahead. You offer doorstep delivery, catering to instant services, 24/7 orders, and more, and provide an edge in your niche.
Provide a Unique Stake in the Market
Two consecutive stores in the streets sell the Oreo chocolate cookies for three dollars and nineteen cents. What is the difference? Customer experience. However, it can be improved. Then we conclude that the retail stores cannot be differentiated. But to stay ahead of the competition, you may want to offer your customers some unique services.
Herein a grocery delivery app comes! Brand marketing can be difficult for small businesses. In comparison, a mobile app packed with unique features can fulfill your desires. Features like push notifications, click-to-call, analytics, and so on keep customers engaged over the app.
After a purchase, customers tend to abandon an app and even uninstall it. However, push notifications keep users driving into the app to make purchases. Click to call has the faster conversion of leads to sales. In comparison, analytics helps you to understand customer behaviors and improve marketing hiccups.
We have mentioned some of the advantages of a grocery delivery app.So, what have you decided? Getting a grocery delivery app like grofers or not? This is the right time to enter the market with more and more customers wanting to get onboard and order groceries online. Who knows, your business might be the next Instacart or Blinkit.