What is Direct-To-Consumer through hyper-local, and why opt for it?
by Ordering on Jul 1, 2022 3:17:53 PM
Are you thinking of starting an on-demand online delivery business? Or maybe you already have an existing franchise? Having a direct-to-consumer platform is a great way to expand your business and lower your costs.
What is a hyperlocal model? The hyperlocal direct-to-consumer platform refers to a business that reaches out to a specific geographical location and creates a consumer niche, based upon that location.
Since the beginning of the pandemic, many businesses started opting for an on-demand delivery platform out of necessity, since they could no longer welcome walk-in guests.
However, for many restaurant owners, online delivery became a blessing in disguise, as they were able to reach out to an even higher number of customers in their local area, than they normally would.
What are the benefits of having a hyper-local, direct-to-consumer business?
In-depth understanding of the customer’s needs
Because of its proximity, a hyperlocal business knows its clients' habits, personal preferences, and choices better than a large eCommerce player, resulting in a higher quality of products and services.
Having a hyperlocal business is like opening a window into your customer’s everyday routines and habits.
If you examine your target market, it is possible to find close patterns about your customer’s favorite menu items, and times when they order the most, as well as take advantage of any local holiday and festivity, in order to run a special marketing campaign.
In addition to knowing your customer better, going hyperlocal means that you also know the area better! This is particularly important when running an online delivery business, which relies on timely delivery to the customer.
For example, a local food delivery business would have a greater understanding of traffic and infrastructure, in specific city districts. This would be an opportunity to surpass the competitors, by offering the fastest delivery in the area.
Convenience for the local community
Our society is gradually moving away from cramming their schedules to the fullest, to saving time on everyday chores, in order to spend quality time with family and friends.
As a result, consumers are willing to use developing technologies to simplify their daily lives and save time, such as purchasing groceries, laundry services, or cleaning services online.
A few years ago, paying for those services through an app, was deemed an unnecessary luxury. However, nowadays, on-demand services and goods, are seen as a reasonable investment by both customers and business owners.
Speed and geolocation
Hyperlocal businesses can attain speeds that traditional eCommerce markets cannot match because they are only a few meters or kilometers away from their customers. Take, for example, a meal that is delivered in minutes while still hot.
Geolocation is more than just showing up in your consumers' search results. As a hyperlocal on-demand delivery company, location data is an essential component of the delivery process.
Geolocation can be used to track your clients' spending patterns in terms of time and quantity, as well as manage inventories based on this information in order to minimize overstocking and reduce expenses.
Hyperlocal firms, such as Amazon last mile, use geolocation data to correctly forecast delivery times and get the 'last-mile' delivery right.
Transparency and personal service
Better customer service and direct communication with buyers are possible with more thorough access to customer data and fast communication.
Having a hyper-local pizza delivery service, for example, allows for the implementation of specific payment methods that are preferred by local customer niches, as well as the implementation of unique campaigns or social media integration, such as simply ordering through WhatsApp, which works perfectly on a regional scale.
In addition, in the event of complaints or disruptions during the ordering and delivery process, a hyperlocal business is able to act fast.
Since everything is happening on a local scale, the customer is able to contact the restaurant directly, without having to wait for many days to receive their money back, or to correct a mistake in the delivery.
What are the first steps to launching a direct-to-consumer hyperlocal business?