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Delivery in Brazil: Performance and strategies to stand out in this channel

If there's one factor the pandemic has significantly accelerated this year, it's digital transformation . During this period, companies of all sizes and segments were forced to develop new sales and customer relationship channels , based on digital means.

As most businesses were closed for periods and saw a drop in revenue in the initial period, business owners had no alternative but to adapt to delivery, causing the demand for this type of service to increase considerably.

And it's a mistake to think this trend will only impact food companies. Today, iFood, one of the leading delivery apps focused on food delivery, also works for grocery stores, pet shops, and pharmacies. Some convenience stores and florists are even on iFood.

Therefore, the companies that will come out ahead in 2021 will be those that view delivery channels as another channel for interacting with their customers , evaluating and acquiring new customers.

With this in mind, we've created comprehensive material with relevant information about the delivery sector in Brazil and the factors you should focus on to improve relationships through this channel.

Let's go?

What is Delivery and how to use it strategically?

Although it may seem obvious to some people, the term delivery means 'delivery' in Portuguese, and in recent years, the term has become popular mainly among restaurants, becoming synonymous with ordering food online.

Although the term is directly associated with "food delivery," it can be used to describe all other types of delivery. To better understand the concept of delivery, check out some tips on how you can strategically utilize this service in retail.

#1 Monitor your online reputation through this channel

A 2018 survey by Reviews Trackers found that 70% of consumers use rating filters when searching for establishments, with the most common being 4- and 5-star ratings. In other words, businesses with ratings below 4 stars don't even appear in search results .

Most delivery companies already use this review system to evaluate their establishments, and this score becomes your business's virtual showcase for people who have never purchased from you. Therefore, it's essential to manage your customer reviews through this platform.

Harmo is the first and only review management platform in Brazil to be an official partner of iFood!!

Through our platform, you can monitor your brand's online reputation on the market's leading review sites , including iFood, Google My Business, Facebook, Tripadvisor, Yelp, and several others. Get consolidated data from all these channels in a single platform and ensure you respond to all your customers in a personalized manner and with your brand's signature tone of communication!

#2 Pay attention to the basic information about your business

Before taking various actions to attract customers to your delivery service, it's crucial to structure and complete all the basic information about your business. If users don't have a good experience, they're unlikely to return and won't recommend your establishment to others.

Therefore, always pay close attention to the delivery area, operating hours, and staffing for delivery orders. If the company expects to receive a large number of delivery orders, it's best to create a separate process and group dedicated to this function to avoid delays in deliveries or excessive wait times.

#3 Promote and update your customers through social media

Virtually everyone is present on some social network these days, so use this social media channel to share your business's news, along with your products and services.

#4 Personalize delivery drivers

Your delivery team can also be part of your delivery marketing strategy . Besides being trained to serve customers politely and kindly, they can promote your brand with printed materials and stickers on their uniforms or delivery backpacks, displaying the company logo, phone number, and even discount coupons to increase customer retention or acquisition.

Data on delivery in Brazil:

Between the months of April and June of this year (2020), spending on the main food delivery apps (Rappi, Ifood and Uber Eats) grew 94.67% in the period, that is, almost doubled in the comparison between January and May 2019. (Mobills)

Check out more data we've collected about the delivery sector in Brazil:

  • In the first quarter alone, James Delivery, a platform from Grupo Pão de Açúcar (GPA), grew 800% in total orders and increased the average ticket by 130% compared to the same period in 2019. Propmark
  • Delivery app downloads grew 25% during the pandemic. Valor Econômico
  • Delivery spending grew 60.67% in April compared to March. Growth continued to increase: 39.58% (in May) compared to April. iDinheiro
  • Amount spent per transaction increases by up to 90%. iDinheiro
  • On March 6, 2020, downloads of delivery apps (including food delivery apps) grew by more than 120% compared to the same date in 2019 in the country. Statista
  • Brazil was a standout in the Latin American delivery sector in 2020. The country accounted for almost half of the market, reaching 48.77%. It was followed by Mexico and Argentina, with around 27.07% and 11.85%, respectively. Delivery Much
  • iFood registered a growth of 116% between November 2018 and November 2019, reaching more than 26 million monthly orders.

Conclusion

As you may have noticed, delivery is much more than an online food purchase and delivery system. This service can and should also be used as a customer relationship and acquisition channel, and the trend is only set to increase due to the development of digitalization in the segment.

Delivery can be a great opportunity for retail companies , as long as they change the way they view the channel and start managing their online reputation as their digital showcase for acquiring new customers.

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