Why Q-Commerce is a Treasure Chest for Organizational Data Analysis

According to a survey by Oracle, the arrival of COVID-19 resulted in an increase of 18 percent in the number of people all around the world who had attempted online grocery shopping, with over three quarters of them selecting delivery over pickup when given the option. The most recent entrants into the Quick Commerce (Q-Commerce) market have their sights set on becoming the market leaders in the last-mile delivery of goods to customers who value the convenience and instant gratification that comes with speedy delivery: this strategy gives companies access to significant amounts of data that reveal consumer preferences and behaviors.

Why Q-Commerce is a Treasure Chest for Organizational Data Analysis

As Mr. Rogers and Mr. McFeely from the classic children’s television show “Mr. Rogers’ Neighborhood” might have sung, “if there’s anything you want, if there’s anything you need, there is an instant delivery service ready to bring it to you with speed,” there is a delivery service that can bring anything you want or need to you quickly. Investors have been investing billions of dollars into the rapid commerce market ever since the COVID-19 pandemic began. This industry is one in which entrepreneurs offer speedy delivery of groceries and common home items within minutes.

Traditional shops that are unable or unwilling to change run the risk of being reduced to nothing more than warehouses for delivery services that are in a better position to acquire consumer loyalty and collect data insights: consumer packaged goods (CPG) firms who have already launched their own direct-to-consumer (D2C) services may profit from further investigating the Q-Commerce market in order to reach closer to their target audience of consumers.

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What exactly is “Q-Commerce”?

Typically, when people talk about quick commerce, they are referring to services that allow clients to receive relatively minor items in under an hour. But the vast majority of the new companies offering quick delivery make it a point to fulfill orders in fewer than 30 minutes on the dot, and some of them even guarantee to do so in under 10 minutes. Because of this, these kinds of services are able to accommodate the impulsive purchases made by clients who, for example, require infant formula or toilet paper in a hurry.

Some of these rapid delivery services will pick up your order from local restaurants, grocery stores, or pharmacies and then deliver it to you. Others run their own network of warehouses, which are also known as “dark stores” or “micro fulfillment centers,” in which they temporarily keep goods that they have acquired directly from retailers or wholesalers.

In order to keep such delivery time commitments, it is typically necessary to have a larger number of delivery personnel as well as warehouses that are located within a smaller radius. Unfortunately, the expanding number of instant delivery services often run at a loss because of the aforementioned limits, in addition to the fact that consumer fees in the highly competitive q-commerce industry are either very low or nonexistent. In addition, it is not obvious how businesses based on q-commerce will be able to generate profits in the long run.

But this has not prevented instant delivery businesses from receiving hundreds of millions or possibly billions of dollars from investors in 2020 and 2021, when they will be rapidly expanding into major areas throughout the world. It’s possible that major tech companies, large retailers, and consumer packaged goods firms are also interested in developing or acquiring services of this kind.

Insights from the Data Provided by Q-Commerce

Regardless of whether they are making immediate profits or not, companies that specialize in instant delivery are sitting on growing mounds of first-party customer data about what consumers want and when they want it. When a consumer who resides at a particular address decides to add an item to his or her online shopping basket, an instant delivery company can be aware of this fact immediately. This is due to the fact that customers have a definite requirement for something—whether it be late-night snacks or fresh diapers for the baby at two in the morning—and they require those products immediately.

These first-party customer data from the Q-Commerce market can be utilized for a variety of applications, including the following:

  • It is helpful to provide individual-level feedback on the browsing and purchasing preferences of customers, since this can help modify in-app recommendations to engage current customers as well as potential customers.
  • Empower predictive insights about the type of future client purchases, the quantity of those purchases, and the timing of those sales. These analytics can help optimize inventory management, arrange efficient delivery schedules, and influence decisions regarding workforce scalability.
  • Develop consumer packaged goods data insights on individual brands, which will assist the CPG business in making future adjustments to products or improving marketing efforts.
  • Make it possible for data analytics to uncover patterns in the behavior and preferences of customers, which can be helpful for other business choices and marketing strategies involving third parties.

By comparison, retail grocery stores or pharmacies may only know what combination of things a client purchases in-person during a weekly shopping trip, and this is only the case if the customer is enrolled in a loyalty card program at the store. Even while the epidemic has pushed some CPG firms to develop new online services that sell directly to customers, the conventional method that CPG brands have used to gather first-party customer data insights has been to rely on surveys and interactions with their customer service departments.

The Prospects for the Future of Q-Commerce

A consumer movement toward online grocery shopping has coincided with the growth of Q-Commerce, which marks one of the next important milestones in the evolution of e-commerce. This transition occurred throughout the pandemic. Instant delivery services may be among those who are best positioned to capitalize on the inflow of first-time online buyers who are looking for rapid delivery in the middle of these changes.

Business Insider Intelligence projects that by the end of 2024, at least 55 percent of consumers will have tried shopping for groceries online within the United States alone. This prediction is based on data collected just from the United States. In the same vein, research from Nielsen reveals that between 2019 and 2020, sales of consumer packaged goods in the United States made via the internet increased by $63 billion, with the food and beverage industries being the primary drivers of this growth.

According to a survey conducted by Oracle, seventy percent of consumers anticipate buying their groceries online as frequently or more frequently as they have been doing so during the COVID-19 epidemic. Such online shopping habits may prove to be sticky long after the COVID-19 threat has subsided.

Organizations are able to gain powerful data insights from customers at the precise moment when people are deciding to purchase a fresh assortment of snacks or restock some household essentials by tapping into big data from the Q-Commerce market. This enables organizations to better serve their customers. However, in order to make the most of this opportunity, instant delivery startup companies and their partners will need to nurture or seek out data science teams who are knowledgeable on how to make the most of data analytics software and techniques such as Machine Learning.

Quick commerce: the delivery revolution

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