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Improve Your Numbers: Software Solutions at Scale

Sunday, March 22, 2020 22:46

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Improve Your Numbers: Software Solutions at Scale

In order to maintain a healthy bottom line each year, businesses need to constantly find ways to attract new customers. Today, there’s a greater demand by customers for delivering goods to their homes. For years, companies like UPS and Federal Express have delivered packages. While it isn’t something new to have food deliveries, in this day and age, the demand is growing. Businesses can capitalize on higher demand by investing in software solutions at scale.

Effective Marketing

By listing your company on a website that attracts thousands of people each day, you can achieve additional sales. Make sure your business is taking advantage of all possible marketing avenues. Social media is critical but it’s more than just being visible. You also have to have a good reputation online. Businesses today can live and die by consumer reviews, so be careful how you respond to customer inquiries and complaints. The social media world is watching.

Expand Your Customer Base

Most customers live within 5 to 10 miles of the grocery stores, restaurants, and other food-based venues that they use. By using companies such as Instacart for groceries and Postmates and DoorDash for restaurants, your business can attract customers that live as far away as 25 miles. So, if you own a burger joint or steakhouse, you could benefit by supplying hot meals to people who otherwise won’t travel the distance or even know your business exists.

Improve Sales

You can improve your sales without the need for hiring additional help. For example, a customer wants groceries and uses the app on Instacart to select merchandise from your store. Then the company contacts drivers to see who wants to fill the order. The contractor then visits the store, purchases the items and delivers them to the customer.

How Online Companies Make Money

You, as the business owner, allow the company to list your store or restaurant on their app. The company receives on average a 20% commission from you and imposes a minimum fee on the customer for each order. These companies also have packages that customers can purchase which can include an annual membership fee.

Why Software Solutions at Scale Work

Customer service is essential to any business. Time is something that everyone values and many people simply don’t have the spare time to shop for groceries or leave their home to pick up a take-out order. Companies such as DoorDash capitalize on this market and the advantages benefit everyone. Customers can receive deliveries without leaving home and businesses can attract new customers, which improves sales.

The Way of the Future

As statistics show, millennials and generation X-ers embrace technology and convenience. Ordering just about anything online is a growing trend that’s not likely to end. While some companies continue to resist the use of third-party apps, most are adopting the practice. This is partly due to the benefits, which include an expanded reach and fewer paid drivers.

Will it Work for Your Business?

Third-parties, while offering a valuable service, can also end up costing your business a lot of money. A typical restaurant has a small profit margin per order. If you don’t increase your sales significantly by using a third-party for deliveries, the added cost may not offset the extra revenue created. Most of these delivery-based companies are relatively new. As time progresses they may end up reducing the commissions required of businesses out of necessity.

Using a third-party to advertise your business will extend the area of service and, as such, help enhance your current marketing strategies. It can also improve your sales by large numbers. On the downside, there’s no guarantee that you’ll benefit from the added sales in your wallet.

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