How to Set up Delivery Zones in Food Delivery Businesses
22. January 2019
When setting up delivery zones, food delivery businesses are faced with a lot of critical questions. What exact areas should we target? Where are our most valuable customers? What POIs should we be earmarking? How quickly can we get our fresh produce to the customer’s table? How can we keep our customers happy? Thankfully, there’s a tool that helps answer all of these questions…and more.
Food delivery businesses have to deal with a lot of data. But all too often they don’t have the right tools to make the best use of it. Location Intelligence maps simplify the process. Instead of viewing hundreds of hard-to-interpret spreadsheets and graphs, you can bring all of your data to life with the help of user-friendly interactive maps. So how can location intelligence help professionals working in the food delivery industry? Let CleverAnalytics be your guide.
You might have the most skilled chefs, the freshest produce, and the most attractively branded carrier bags and napkins. But all of that will amount to nothing if you pick the wrong delivery zone. It’s the number one factor food delivery businesses need to get right. So what can food delivery businesses do to make sure they choose the right zone?
Choosing the right zone
Marking out a very large delivery zone might seem like an attractive prospect. A bigger catchment area means your food gets to even more customers, right? Not necessarily. The biggest mistake food delivery businesses make is when they choose the wrong zone. When delimiting delivery zones, food delivery businesses need to be specific. What the CleverAnalytics location intelligence mapping platform does is map out the distribution of orders by location, delayed orders and projected driving distances. It also visualises hypothetical circular zones that are determined based on how long it takes to get from A to B. You can compare the data from one zone with alternative zones. For instance, it might take 5 minutes longer for your couriers to travel to potential locations in one zone over another. Having this information allows you to weigh up the options and decide which zone suits your business model best. Plus, it means you can provide more detailed information to your team, leading to improved delivery times. By visualising these parameters, location mapping refines and optimises your delivery zone, enabling you to better service your tried-and-trusted, value-dense locations while making sensible decisions about which areas to target next.
Setting the right delivery parameters
So your customers love your food. But if they have to wait too long for it, the chances are they won’t order from you again. The golden rule is to set a maximum delivery time of no more than 30 minutes. Anything over that and stomachs start to seriously rumble. Getting within this time is key. Other factors to consider are delivery fees and minimum order prices. A smart choice is to set minimum order prices that increase depending on the distance from your delivery hub. And this is where a mapping solution can show you your zone according to these parameters. Now everyone in the food delivery industry knows that no customer likes delivery fees. But ditching your delivery fee doesn’t mean your business will take a hit. By setting a minimum order price, your customers will actually think they have a better deal and be motivated to order more, i.e. feel the need to add a side or fizzy drink to that pizza order. So if your main aim is to get the largest number of meals to as many customers as possible within the shortest time, location intelligence can help greatly.
Assessing the market potential
On the other hand, just because your delivery zone falls within a short radius from your restaurant doesn’t automatically mean it’s going to lead to more successful business outcomes. You need to know the demographic and geo-specific distribution of the zone you choose. For instance, you might have a marketing plan of attracting more office workers to complement your existing home-based customers. So you want to make sure your zone includes areas where there is a high concentration of business centres and offices. But you also need to assess the competition in the area. There may be a number of food delivery businesses just like yours that are located right next to these centres. CleverAnalytics maps visualise all of these factors to help you make an informed decision.