Challenges of using data in delivery services

Carolina Huertas
August 30, 2022 – 06:00

Food delivery orders grew from 30.40% in 2019 to 54.80% in 2021 (Credit: Shutterstock)

In 2021, food for delivery and online grocery shopping were the categories with the highest growth in the number of consumers in e-commerce, according to research by C
National Federation of Retailers (CNDL) and Credit Protection Service (SPC Brasil). The data show that the first rose from 30.40% in 2019 to 54.80%, and the second from 9.20%, before the pandemic, to 30.30% last year.

In this post-social isolation era, how can companies use data to improve this service that is now receiving more attention? André Santa, head of new business and marketing for Latin America at Intellibrand, explains to Medium and message:

André Santa, Head of New Business and Marketing for Latin America at Intellibrand

André Santa, Head of New Business and Marketing for Latin America at Intellibrand (Credit: Disclosure)

Medium and messageHow is data currently being used by the delivery platform industry?
André Santa – ANDIndustries, mainly food and beverage, whose presence in the channels of bars and restaurants is extremely relevant to business, increasingly require the need to understand their positioning within the FSA (delivery platform) and through them understand how their products and brands are present in the store itself. Based on this need, these industries look to Intellibrand for one of our products, Intellifoods, which aims to promote information and strategic insights in this segment. Through Intellifoods, for example, it is possible to understand which restaurants have a current brand, which of them do not sell their products (which opens the opportunity for new business for the commercial team), analyze whether your pricing strategy for the channel makes sense, as well as analyze the quality of its content within each restaurant/bar, for example.

M&M – How to use data to improve sales performance?
Santa ClausBased on the information collected by Intellifoods, in addition to allowing industries to increase their customer base, understand where you are not present and can search for a new point of sale, they can improve the quality of their content, strategically analyze the prices of their products by region, monitor whether a business partner has available combinations products in their menus. Acting directly at all points of opportunity, our customers can work with large networks or even small outlets (not part of a structured network) that are often very relevant to their business. Through the information presented in several Intelliffoods reports, our customers can, for example, structure incentive campaigns for their employees, focusing on improving their presence in this type of channel and consequently more sales.

M&M – What difficulties do companies have because they are not yet using this data?
Santa Claus – In most cases, it is difficult to work with data and interpret it. In this sense, in addition to the very technology that is necessary to bring important information to our client, the Intellifoods product itself brings several reports and graphs that help our client in strategic decisions, we have a Service Team, completely specialized in the client’s business, as well as a team of data scientists who they want to be business partners. We understand that more than offering technology, it is actually being that business partner and helping our client to extract the best insights and interpret data in the best possible way.

M&M – Where does Brazil stand when it comes to digital retail technologies compared to the rest of the world? Are we late?
Santa Claus – In a recent survey conducted by EDGE (a sister company of Intellibrand, both belonging to the Ascential group), Brazil, like others in Latin America, is in what we consider to be generation 2 stores, that is, where retail chains operate with predominantly physical sales. Other countries such as the USA, Germany, the United Kingdom, Japan and South Korea are already in the 3rd generation, that is, where the representation of sales in digital stores is practically 50/50 with physical stores. The most interesting thing is that China (which, like Brazil, is a developing market) is currently the only country in the world that appears in the 4th generation of commerce, where the majority of sales take place in e-commerce. In short, today Brazil is one of the countries that is heading directly towards a new level of trade, behind the US, Japan, Germany and the UK, which are super-developed countries. Another interesting fact worth noting is that Latin America should be the region with the highest growth rate in e-commerce by 2025 (10.4%), ahead of North America, Europe and the Middle East/Africa, behind only Asia, due to the level of China’s maturity in this context, which apparently increases the number (estimated growth of 12.8%), according to the same study conducted by EDGE.

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