Do you want to start a grocery delivery business from home? If YES, here is a complete guide to starting a grocery delivery business with NO money and no experience.
Okay, so we have provided you an in-depth sample grocery delivery business plan template. We also took it further by analyzing and drafting a sample grocery delivery marketing plan backed up by actionable guerrilla marketing ideas for grocery delivery businesses. In this article, we will be considering all the requirements for starting a grocery delivery business. So put on your entrepreneurial hat and let’s proceed.
Table of Content
- Why Start a Grocery Delivery Business?
- 1. Understand the Industry
- 2. Conduct Market Research and Feasibility Studies
- 3. Decide Which Niche to Concentrate On
- 4. Know Your Major Competitors in the Industry
- 5. Decide Whether to Buy a Franchise or Start from Scratch
- 6. Know the Possible Threats and Challenges You Will Face
- 7. Choose the Most Suitable Legal Entity (LLC, C Corp, S Corp)
- 8. Choose a Catchy Business Name
- 9. Discuss with an Agent to Know the Best Insurance Policies for You
- 10. Protect your Intellectual Property With Trademark, Copyrights, Patents
- 11. Get the Necessary Professional Certification
- 12. Get the Necessary Legal Documents You Need to Operate
- 13. Raise the Needed Startup Capital
- 14. Choose a Suitable Location for your Business
- 15. Hire Employees for your Technical and Manpower Needs
- 16. Write a Marketing Plan Packed with ideas & Strategies
- 17. Work Out a Reasonable Pricing for your Services & Products
- 18. Develop Iron-clad Competitive Strategies to Help You Win
- 19. Brainstorm Possible Ways to Retain Clients & Customers
- 20. Develop Strategies to Boost Brand Awareness and Create a Corporate Identity
- Creating a Suppliers/Distribution Network for your Grocery Delivery Business
Why Start a Grocery Delivery Business?
As an entrepreneur, your core responsibility is to provide solutions in terms of products or services in exchange for a fee. This simply means that if you want to venture into any business, it should be a business that is set to provide solution to people’s need. It could be people in your immediate environment, your country or on a global platform especially via cyberspace.
It is a known fact that it is challenging starting any business, but one business that you can start with little challenges is a grocery home delivery business. A grocery home delivery business is a business that involves helping your clients shop groceries and get it delivered to them in their homes or offices or any location they want it delivered.
With this type of business, you can choose to own a Grocery Store if you have the financial capacity to or you can choose to operate without a grocery store. The bottom line is that you should know how to source for groceries and how to get them delivered to your customers.
The truth is that starting a grocery home delivery business is a profitable business, it is a very easy business to start and it is not capital intensive. Getting the right products that people want to buy and good record/stock keeping are the secrets of running a grocery home delivery business. A grocery home delivery business can be run offline from a conventional retail store or online on an online e-commerce retail site.
So, if you are serious about starting your own grocery home delivery company, all you need do is to read this article and you will be well equipped. You can start your grocery home delivery company from a small town in the United States and if you are consistent and creative, it won’t be too long before your brand becomes a nationally recognized brand and your distribution network spreads across the length and breadth of the United States of America especially if you decide to go into franchising.
Starting a Grocery Delivery Business from Home – A Complete Guide
1. Understand the Industry
The Grocery stores industry including grocery home delivery and supermarkets, account for the largest share of food sales in the US. in 2013. Grocery stores and grocery home delivery services accounted for 90 percent of the country’s food and beverage sales, while supermarkets accounted for 95 percent of the total grocery sales. The food retail industry is a high-volume, low-margin business, with cutthroat competition from all quarters.
It includes grocery stores, grocery home deliver services and supermarkets, as well as convenience stores. The staples offered at these stores make the industry non-cyclical. In addition, grocery stores, grocery home delivery services and supermarkets offer an alternative to restaurants during tough economic times, as buying groceries for home cooking is one alternative.
Buying prepared foods, which are new higher-margin offerings at grocery stores cum grocery home delivery services, is an additional alternative to restaurants. However, offering new higher-margin items such as gourmet foods, prepared foods and general merchandise is making this industry more cyclical than in the past, creating pressures on revenue during the recent economic downturn.
Small chains and independent grocers still dominate this industry, but national chains such as Kroger, are increasingly growing in dominance. Mass merchants such as Wal-Mart are competing with grocery stores cum grocery home delivery services at their ‘supercenters’ by offering lower prices through lower cost structures. Wal-Mart is now the world’s No. 1 seller of groceries.
Warehouse clubs such as Costco and SAM’S CLUB (owned by Wal-Mart), can also compete on price by selling in large bulk. Supermarkets have responded to these threats by building larger ‘superstores’ and also engaging in home delivery services.
The truth is that conventional supermarkets are grocery stores with over $2 million in revenue, and with an average square feet of 15,000. Grocery stores that have less than $2 million in annual revenue sell almost entirely packaged and perishable goods, and are mostly independently owned.
Superstores are supermarkets with about 30,000 square feet, averaging $12 million in revenue. They often have an extended selection of food and nonfood items, with specialty departments such as florists, delis, bakeries, banking, pharmacy, and video rentals. Combination stores are hybrids of superstores and drugstores under one roof, with an average of 55,000 square feet.
The grocery stores cum grocery home delivery services industry (supermarkets inclusive) is a major sector of the economy of the united states which generates a whooping sum of 2 billion annually from more than 42,539 outlets scattered all around the United States of America.
The industry is responsible for the employment of well over 2,624,650 people. Experts project the Supermarket and grocery industry to grow at a 1.4 percent annual rate. The establishment in this industry that has a dominant market share in the United States are; Albertson, Kroger and Publix Super Markets Inc.
It is a fact that an estimated two-thirds of the United States’ gross domestic product (GDP) comes from retail consumption of which the supermarket and grocery stores industry contributes greatly. This is why the United States of America’s economy is measured with the yardstick of how well the retailing business is fairing in the U.S. In essence, when there is an unstable economy, purchasing power drops and it impacts the retailing/grocery stores industry negatively which may result in the closure of some supermarket/grocery stores.
In recent time, the retail landscape has seen tremendous changes in the last 20 years; it has grown from the usual mom and pop outlets to a more organized and far reaching venture. The introduction of franchise and online stores make it easier for a retailer to reach out to a larger market far beyond the areas where his physical store is located. Hence the increase of grocery home delivery businesses.
Over and above, grocery home delivery services business is indeed a profitable business venture and it is open for any aspiring entrepreneur to come in and establish his or her business; you can choose to start on a small scale without a store or you can choose to start on a large scale with standard grocery store and strong online presence.
2. Conduct Market Research and Feasibility Studies
- Demographics and Psychographics
The demographic and psychographic composition of those who consume groceries cut across all genders; male and female above 18 years with the financial means to order for groceries hence the demographic composition for a grocery delivery company is all encompassing.
The truth is that when it comes to selling groceries, there is indeed a wide range of available customers. In essence, your target market can’t be restricted to just a group of people or business, but to all households within your business location.
So, if you are thinking of starting a grocery delivery company then you should make your target demographics all encompassing. It should include households, restaurants, hotels, motels, fast food restaurants, assisted living homes, nursing homes, hostels, dormitories and camp houses et al in and around the neighborhood where your grocery delivery company is located.
3. Decide Which Niche to Concentrate On
It is important to state that there is no known niche area when it comes to grocery delivery business. Every player in this line of business is basically involved in the delivery of groceries as requested by their customers. On the other hand, some grocery delivery companies may decide to own a grocery store or may decide to operate without a grocery store. Some may decide to operate online and others may decide to operate both offline and online.
The Level of Competition in the Industry
The truth is that no matter the level of competition in an industry, if you brand and promote your products or business properly, you will always make headway in the industry. Just ensure that you distribute the groceries that are in demand in your business location and you know how to attract and reach out to your target market.
But over and above, there are several grocery delivery companies scattered all around the United States. So, if you choose to start your own grocery delivery company in the United States, you will definitely meet stiff competitions amongst supermarkets and food hubs within your business location. Besides, there are larger grocery delivery companies that determine the trends in the industry and you should be ready to compete with them for customers.
4. Know Your Major Competitors in the Industry
In every industry, there are always brands that perform better or are better regarded by customers and the general public than the others. Some of these brands are those that have been in the industry for a long time, while others are best known for how they conduct their business and the results they have achieved over the years.
These are some of the leading grocery delivery cum wholesale distribution companies/brands in the United States of America and in the globe;
- Amazon Fresh – Amazon’s grocery-delivery service
- America Grocer
- Austin Grocer
- Big Apple Grocer
- Blue Ribbon Foods
- Coborns Delivers
- Door-to-Door Organics
- Fresh Direct
- Gopher Grocery
- Groceries – Express
- Homeland Delivery
- Max Delivery
- My Brands
- One Click Grocery services
- Pink Dot
- Planet Organics
- Roche Bros.
- Schnucks Express Connection
- Suburban services
If you are looking towards successfully launching a business and maximizing profits, then you need to ensure that you get your economic and cost analysis right and try as much as possible to adopt best practices in the industry you choose to build a business in.
The grocery delivery business is not a Green business, as a matter of fact; you will come across several vans and trucks of grocery delivery companies all across major cities in the United States of America. So, if you are mapping out your economic and cost analysis, you should carry out thorough market survey and costing of the required amount needed to purchase distribution vans/trucks and also the cost to successfully run the business.
Over and above, if you are considering starting a grocery delivery/wholesale distribution business, then your concern should not be limited to the cost of purchasing distribution vans/trucks, but also on branding and on how to build a robust clientele base. The truth is that if you are able to build a robust clientele base, you are sure going to maximize profits in the business.
5. Decide Whether to Buy a Franchise or Start from Scratch
If you are looking towards starting a grocery delivery company, you would have to start from the very scratch because you can hardly get a franchise of a grocery delivery company to buy. It is a business that is open to all and sundry.
Besides, starting a grocery delivery company from the scratch is less stressful when compared to other small scale businesses that usually require detailed groundwork before launching the business. With a grocery delivery company, you should just try as much as possible to secure a distribution van/truck, build business relationship with grocery stores and manufacturers and then leverage on every marketing tool within your disposal especially the internet when it comes to marketing your grocery delivery services.
Please note that most of the big and successful grocery delivery/wholesale distribution companies around started from the scratch and they were able to build a solid business brand. It takes dedication, hard work and determination to achieve business success and of course you can build your own grocery delivery/wholesale distribution company brand to become a successful brand with corporate and individual customers in your city and from all across the length and breadth of the United States of America if you choose to become a distributor of groceries all across the United States of America.
6. Know the Possible Threats and Challenges You Will Face
If you decide to start your own grocery delivery company today, one of the major challenges you are likely going to face is the presence of well – established grocery delivery companies in your business location. The only way to avoid this challenge is to create your own market.
Some other challenges and threats that you are likely going to face is economic downturn; if the economy is in bad shape, history has it that businesses such as grocery delivery and the likes usually struggle to maintain their old customers or even welcome new customers.
So also, unfavorable government policies can also hamper the growth of your grocery delivery company. There is nothing you can do as regards this threats and challenges other than to stay positive that things will work out well for you.
7. Choose the Most Suitable Legal Entity (LLC, C Corp, S Corp)
- Best legal entity to use for this type of business
When considering starting a grocery delivery company, the legal entity you choose will go a long way to determine how big the business can grow; some grocery delivery companies design their business for neighborhood market, some for city wide market, while others for national market via franchising.
Generally, you have the option of either choosing a general partnership, limited liability company which is commonly called an LLC, or a sole proprietorship for a grocery delivery company. Ordinarily, sole proprietorship should have been the ideal business structure for a small – scale grocery delivery company especially if you are just starting out with a moderate startup capital in a small neighborhood.
But people prefer limited liability Company for obvious reasons. As a matter of fact, if your intention is to grow the business and deliver groceries all across the United States of America and other countries of the world via franchising, then choosing sole proprietorship is not an option for you. Limited Liability Company, LLC or even general partnership will cut it for you.
Setting up an LLC protects you from personal liability. If anything goes wrong in the business it is only the money that you invested into the limited liability company that will be at risk. It is not so for sole proprietorships and general partnerships. Limited liability companies are simpler and more flexible to operate and you don’t need a board of directors, shareholder meetings and other managerial formalities.
These are some of the factors you should consider before choosing a legal entity for your grocery delivery company; limitation of personal liability, ease of transferability, admission of new owners, investors’ expectation and of course taxes.
If you take your time to critically study the various legal entities to use for your grocery delivery company with the ability to sell franchise and distribute groceries all across the United States of America, you will agree that limited liability company; an LLC is the most suitable. You can start this type of business as limited liability company (LLC) and in future convert it to a ‘C’ corporation or an ‘S’ corporation especially when you have the plans of going public.
Upgrading to a ‘C’ corporation or ‘S’ corporation will give you the opportunity to grow your grocery delivery company so as to compete with major players in the industry; you will be able to generate capital from venture capital firms, you will enjoy separate tax structure, and you can easily transfer ownership of the company; you will enjoy flexibility in ownership and in your management structures.
8. Choose a Catchy Business Name
When it comes to Choosing a name for your business, you should be creative because whatever name you choose for your business will go a long way to create a perception of what the business represents. Usually it is the norm for people to follow the trend in the industry they intend operating from when naming their business.
If you are considering starting your own grocery delivery company, here are some catchy names that you can choose from;
- Gina Grocery Home Delivery Services®, LLC
- Mary Jones Grocery Delivery Company, Inc.
- Sherly Boston Grocery Home Delivery Company, LLC
- Merry Go Round Grocery Delivery Company, Inc.
- Mark & Mack Grocery Delivery Company
- Duke Bernard & Sons Grocery Delivery Co., Inc.
- Triple Bee Grocery Home Delivery, Inc.
- The Vintage Group Grocery Delivery Company, Inc.
- Shoppers Delight Grocery Delivery Company, LLC
- Aunty Jessica Grocery Delivery Company, Inc.
- Pentagon Vans Grocery Delivery Group, Inc.
9. Discuss with an Agent to Know the Best Insurance Policies for You
In the United States and in most countries of the world, you can’t operate a business without having some of the basic insurance policy covers that are required by the industry you want to operate from. So, it is important to create a budget for insurance and perhaps consult an insurance broker to guide you in choosing the best and most appropriate insurance policies for your grocery delivery company.
Here are some of the basic insurance covers that you should consider purchasing if you want to start your own grocery delivery company in the United States of America;
- General insurance
- Health insurance
- Liability insurance
- Credit insurance
- Motor vehicle insurance (comprehensive insurance)
- Deposit insurance
- Workers Compensation
- Overhead expense disability insurance
- Business owner’s policy group insurance
- Payment protection insurance
10. Protect your Intellectual Property With Trademark, Copyrights, Patents
If you are considering starting your own grocery delivery company, usually you may not have any need to file for intellectual property protection/trademark. This is so because the nature of the business makes it possible for you to successfully run the business without having any cause to challenge anybody in court for illegally making use of your company’s intellectual properties.
But if you just want to protect your company’s logo and other documents or software that are unique to you or even jingles and media production concepts, then you can go ahead to file for intellectual property protection. If you want to register your trademark, you are expected to begin the process by filing an application with the USPTO. The final approval of your trademark is subjected to the review of attorneys as required by USPTO.
11. Get the Necessary Professional Certification
When it comes to this business, you do not need to have any formal training or special certification before you can be allowed to start a grocery delivery company. All you need is informal training that will expose you to the in and out of the grocery delivery processes.
On the other hand, if you come across any form of certification that can aid you to conduct your grocery delivery business pretty well, then by all mean try and pursue such certification.
12. Get the Necessary Legal Documents You Need to Operate
The essence of having the necessary documentation in place before launching a business in the United States of America cannot be overemphasized. It is a fact that you cannot successfully run any business in the United States without the proper documentations. If you do, it won’t be too long before the long hand of the law catches up with you.
These are some of the basic legal documents that you are expected to have in place if you want to legally run your own grocery delivery company in the United States of America;
- Certificate of Incorporation
- Business License
- Tax Payer’s ID/Tax Identification Number
- Business Plan
- Non – disclosure Agreement
- Commercial Vehicle Operator’s Registration
- Appropriate driver’s licenses for drivers (Commercial driver’s license (CDL)
- Assistant’s license for assistants
- Proof of ownership, proper identification and vehicle license
- Copy of license for the service support facility (warehouse) and/or a recent inspection report
- Employee Handbook
- Employment Agreement (offer letters)
- Operating Agreement for LLCs
- Insurance Policy
- Company Bylaws
- Memorandum of Understanding (MoU)
- Building License
- Franchise or Trademark License (optional)
13. Raise the Needed Startup Capital
Starting a grocery delivery company can be cost effective especially if you choose to start on a small scale with just one distribution van distributing for just one grocery wholesaler or grocery store covering a small neighborhood. Acquiring a distribution van is part of what will consume a large chunk of your startup capital, but if you choose to start the business on a large scale with fleets of distribution vans, then you would need to source for fund to finance the business because it is expensive to start a standard large scale grocery delivery/wholesale distribution company.
No doubt when it comes to financing a business, one of the first things you should consider is to write a good business plan. If you have a good and workable business plan document in place, you may not have to labor yourself before convincing your bank, investors and your friends to invest in your business.
Here are some of the options you can explore when sourcing for start – up capital for your grocery delivery/wholesale distribution company;
- Raising money from personal savings and sale of personal stocks and properties
- Raising money from investors and business partners
- Sell shares to interested investors
- Applying for Loan from your Bank
- Pitching your business idea and applying for business grants and seed funding from donor organizations and angel investors
- Sourcing for soft loans from your family members and your friends
14. Choose a Suitable Location for your Business
When it comes to choosing a location for your grocery delivery company, the rule of thumb is that you should be guided by the demand for such services, the number of grocery delivery companies, grocery stores and supermarkets et al and easy access to grocery wholesalers, food hubs and farmers et al. Of course, if you are able to start your grocery delivery company in the right location, you won’t struggle to make headway with the business.
The location you choose to start your grocery delivery company is key to the success of the business, hence entrepreneurs are willing to rent or lease a facilities in visible locations; locations where the demography consist of people with the required purchasing power and lifestyle.
If you make the mistake of starting your grocery delivery company in an area where you can hardly find standard grocery stores, supermarkets, food hubs and outlets where groceries are retailed or close to residential estates, you will struggle to grow the business.
Most importantly, before choosing a location for your grocery delivery company, ensure that you first conduct a thorough feasibility studies and market survey. The possibility of you coming across similar business that just closed shop in the location you want to open yours can’t be ruled out. This is why it is very important to gather as much facts and figures before choosing a location to set up your own grocery delivery company.
These are some of the key factors that you should consider before choosing a location for your grocery delivery company;
- The demography of the location
- The demand for groceries in the location
- The purchasing power of residents of the location
- Accessibility and road network of the location
- The number of grocery delivery companies, grocery stores, supermarkets, food hubs and other outlets where groceries are retailed in the location
- The local laws and regulations in the community
- Traffic, parking and security
15. Hire Employees for your Technical and Manpower Needs
On the average, there are no special technologies or equipment needed to run this type of business except for Point of Sales (POS) Machines and relevant software applications. You will also need computers/laptops, internet facility, telephone, fax machine and office furniture (chairs, tables, and shelves) amongst others and all these can be gotten as fairly used.
You would need a distribution truck or van for this kind of business and you would have to procure one. In some cases, depending on the agreement you reached with a grocery production company, grocery store, supermarket and food hubs et al, they might provide you with their own branded truck or van that you can use for the distribution of groceries to your customers.
As regards leasing or outright purchase of a warehouse facility, the choice is dependent on your financial standing, but the truth is that to be on the safe side, it is advisable to start off with a short term rent/lease while test running the business in the location. If things work out as planned, then you can go on a long – term lease or outright purchase of the property but if not, then move on and source for other ideal location/facility for such business.
When it comes to hiring employees for a standard grocery delivery/wholesale distribution company, you should make plans to hire a competent Chief Executive Officer (you can occupy this role), Admin and Human Resources Manager, Merchandize Manager, Warehouse Manager, Sales and Marketing Officer/Distribution Van Drivers, Accounting Clerk, and Cleaners. These are some of the key employees that you can work with. On the average, you will need a minimum of 5 to 10 key staff members to run a medium – scale but standard grocery delivery/wholesale distribution company.
The Service Delivery Process of the Business
When it comes to distribution of products, there are no hard and fast rules about it. Basically, it is the duty of the merchandize manager or marketing manager to help the organization source for grocery stores, supermarkets, and food hubs to help distribute their products.
They go out there to source for good wholesale distribution deals and they also ensure that they do not only distribute at the right prices that will guarantee them good profits, but also ensure that they distribute or deliver grocery brands that are in demand in their business location.
Once the deal is sealed, the marketing executives cum distribution drivers either load their trucks directly from the grocery stores, supermarkets and grocery manufacturing and packaging company or from their warehouse and then go around town delivering directly to clients based on their demand.
Once the products are distributed, they either collect money on delivery or they come back later to collect their money. Usually there will be a business agreement between the grocery manufacturing and packaging companies, and the grocery delivery company can access credit based on their capacity.
For instance, a grocery delivery company can deposit $10,000 to a grocery manufacturing and packaging company, and they can have access to goods worth over $20,000. So also, stocks are taken after the close of business every day and account are balanced. This will enable them place demand for more groceries from grocery manufacturing and packaging companies.
It is important to state that a grocery delivery company may decide to improvise or adopt any business process and structure that will guarantee them efficiency and flexibility; the above stated grocery delivery company business process is not cast on stone.
16. Write a Marketing Plan Packed with ideas & Strategies
- Marketing ideas and strategies
Normally, running a business requires that you should be proactive when it comes to marketing your goods or services. If you choose to launch a grocery delivery company, then you must go all out to employ strategies that will help you attract customers or else you will likely struggle with the business because there are well – known brands determining the market direction for grocery delivery industry.
So, when you are drafting your marketing plans and strategies for your grocery delivery company, make sure that you create a compelling personal and company profile. Aside from your qualifications and experience, it is important to clearly state in practical terms what you have been able to achieve in time past as it relates to grocery delivery services and the people you have worked for. This will help boost your chances in the market place when sourcing for grocery delivery contracts.
As a matter of fact, your marketing strategy should center on reliability, swiftness, safety, pricing, secured payment platform, and above all excellent customer service. You should ensure that whenever your customers hire your services they will get excellent service. The truth is that if you are able to put the above stated in place, you won’t struggle to retain your old customers and at the same time win over new customers.
Businesses this days are aware of the power of the internet which is why they will do all they can to maximize the internet to market their services. In other words, a larger percentage of your marketing effort should be directed to internet users; your website should become your number one marketing tool.
These are some of the marketing ideas and strategies that you can adopt for your grocery delivery company;
- Introduce your grocery delivery company by sending introductory letters alongside your brochure to households, restaurants, hotels, motels, fast food restaurants, assisted living homes, nursing homes, hostels, dormitories and camp houses et al in the neighborhood where your grocery delivery company is located
- Advertise on the internet on blogs and forums, and also on social media like Twitter, Facebook, LinkedIn to get your message across
- Create a basic website for your business so as to give your business an online presence
- Directly market your services
- Engage in roadshows in targeted communities from time to time to sell market your services
- Join local grocery delivery company associations for industry trends and tips
- Provide discount days for your customers
- Advertise our business in community based newspapers, local TV and radio stations
- List your business on yellow pages ads (local directories)
- Encourage the use of Word of mouth marketing (referrals)
17. Work Out a Reasonable Pricing for your Services & Products
One key factor that will help you distribute your groceries at rock bottom prices is to purchase your products directly from the manufacturers in pretty large quantities. The truth is the higher the quantity of items that you purchase directly from the manufacturers, the cheaper you tend to get them.
Another strategy that will help you distribute your groceries at the right price is to ensure that you cut operational cost to the barest minimum and channel your efforts towards marketing and promoting your brand name. Asides from the fact that this strategy will help you save cost, it will also help you get the right pricing for your products.
You can also try as much as possible to work with independent contractors and marketers; it will help you save cost of paying sales and marketing executives.
18. Develop Iron-clad Competitive Strategies to Help You Win
The availability of different sizes and brands of groceries in your truck or warehouse, your business process and of course your pricing model are part of what you need to stay competitive in the industry. If you are into the distribution of different brands of groceries, then it is advisable that you create a catalogue that shows the various groceries that you distribute and their prices.
Of course it doesn’t pay you to always carry all the brand of groceries that you distribute along with you when you go out there to market. That is why a good catalogue is needed for effective and efficient marketing. You can also print and distribute a business card that clearly states the kind of business that you do.
Another possible competitive strategy for winning your competitors in this particular industry is to build a robust clientele base. Over and above, ensure that your organization is well positioned, key members of your team are highly qualified and your products can favorably compete with the some of the best in the industry.
19. Brainstorm Possible Ways to Retain Clients & Customers
When it comes to business, no matter the industry that you choose to pitch your tent in, one of the easiest ways to increase customer retention and perhaps attract new customers is to produce results and satisfy your customers always. If your customers are satisfied with your products and services delivery, they can hardly source for alternative service providers or products.
If you can continue to distribute assorted groceries from different manufacturing and packaging companies, and your customer service delivery is top notch, then you won’t struggle to maintain loyal customers.
Ensure that you offer your customers incentives if you want to retain them and of course continue to generate repeated sales from them and also to attract new customers.
Part of what you need to do to achieve this is to track progress, results or outputs with the aim of improving on them quickly as the case demands. When it comes to managing your customers and building loyal clientele base, you should purchase a customized CRM software.
With a customized CRM system, you can easily stay in touch with your clients (you can carry out quick survey, you can introduce new products and prices to them without any hitch, you can felicitate with them on their birthdays and other anniversaries, you can keep track of their progress, you can send bulk sms and customized e – mails and above all, you can easily receive compliant and feedback from them).
20. Develop Strategies to Boost Brand Awareness and Create a Corporate Identity
If your intention of starting a grocery delivery company is to grow the business beyond the city where you are going to be operating from to become a national and international brand by opening chains of grocery delivery companies and franchising, then you must be ready to spend money on promotion and advertisement of your brand.
No matter the industry you belong to, the truth is that the market is dynamic and it requires consistent brand awareness and brand boosting cum promotion to continue to appeal to your target market. Your corporate identity has a lot to do when it comes to building a profitable business.
Here are the platforms you can leverage on to boost your brand awareness and create corporate identity for your grocery delivery company;
- Place adverts on both print (newspapers and health magazines) and electronic media platforms
- Sponsor relevant community based events
- Leverage on the internet and social media platforms like; Instagram, Facebook, Twitter, YouTube, Google + et al to promote your services
- Install your billboards on strategic locations all around your city or state
- Engage in roadshows from time to time in targeted neighborhoods to create awareness of your grocery delivery company
- Distribute your fliers and handbills in target areas
- Contact households, restaurants, hotels, motels, fast food restaurants, assisted living homes, nursing homes, hostels, dormitories and camp houses et al in the neighborhood where your grocery delivery company is located informing them about your business and the products you distribute
- List your grocery delivery company in local directories/yellow pages
- Advertise your grocery delivery company in your official website and employ strategies that will help you pull traffic to the site.
- Position your Flexi Banners at strategic positions in the location where your grocery delivery company is located
- Ensure that all your staff members wear your branded shirts and all your vehicles and trucks/vans are well branded with your company logo et al.
Creating a Suppliers/Distribution Network for your Grocery Delivery Business
In order to successfully run a grocery delivery company, you must establish good business relationship with grocery stores, supermarkets, food hubs and manufacturers of groceries et al. Of course, you would need steady supply of groceries in order to remain in business.
The fact that you are an independent grocery delivery/distributor means that you can distribute different brands of groceries at the same time to your clients. The truth is that you stand the chance of making great sales and profit if you deal in varieties of groceries.
What you need to do is to work with the report you generated from your market survey so that you will be properly guided on the grocery stores, supermarkets, food hubs and manufacturers of groceries et al that you need to talk to in order to become their distributor.
In some cases, you might have to create another market channel for yourself especially when the grocery stores, supermarkets, food hubs or manufacturers of groceries et al already has a distributor covering a certain area in the state.
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