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Introduction:
Before our ambitious leap into the digital realm with Jiffy Software, our roots were deeply entrenched in the grocery shop with in-house delivery. That was the time when we gathered the most valuable experience in eCommerce.
In spring 2021, as we prepared to launch our delivery service in London, we entered a highly competitive market dominated by big players like GetIr, Deliveroo, and Uber. Our goal was not just to compete, but to stand out with a unique strategy.
Our Initial Strategy
To attract customers, we focused on offering the best delivery terms in the market. This meant providing free delivery with no minimum order value for the first 30 days of usage, a significant advantage over our competitors who charged £2 for delivery and required a minimum order of £10-£30 for free delivery.
Data Analysis and Insights
After operating for about a month, we gathered substantial analytics data. We observed that while users frequently ordered items like sweets and drinks, there was less demand for perishable goods like bread, eggs, and vegetables. Our service was primarily used for leisure rather than essential shopping. The average order value was between £5-£7, but both the number of orders per customer and customer retention rates were high.
Rethinking Our Approach
Faced with the challenge of increasing the average order value without impacting other key metrics, we conducted market research and competitor analysis. We decided to introduce a new delivery fee structure: a delivery charge of £1.99, with free delivery for orders over £10. This pricing still positioned us as one of the most affordable services in the market.
Implementation and Communication
To roll out these changes, we developed custom software tailored to our needs, updated our design, and refined our communication strategy. We informed our customers about the upcoming changes, maintaining a 30-days free delivery option for all users, thus keeping our promise.
Results and Expansion
Within 1-2 months, all users transitioned to the new terms. Remarkably, the number of orders per customer and retention rates did not decrease; instead, the average order value nearly doubled. This success was attributed to well-executed processes, effective communication, expanded product range, and high service quality. Now, our users were not only ordering treats but also essential items like milk, eggs, cheese, baby food, and more.
Conclusion
Our journey in the London delivery market demonstrates the power of strategic planning, customer-centric approaches, and continuous improvement. We've not only adapted to the market but have also set new standards in the delivery service industry.