The next logical step for delivery platforms is to reduce or eliminate fees to lure in more hesitant consumers. But that’s not always financially feasible when delivery companies depend on that revenue. Manufacturers, however, can step in and offer coupons for free delivery to encourage consumers to buy more of that company’s products through the delivery service.
Manufacturers can tap a relatively new advertising platform to provide delivery companies with the added revenue that will enable them to reduce or eliminate the fees themselves. The advertising is mutually beneficial: In addition to becoming a new, dependable revenue stream for delivery companies, manufacturers have fewer competitors on an Instacart app as compared to in-store advertising and promotions.
Having derived 15% of its current revenue from this new strategy, Instacart has benefited from the company partnerships. If manufacturers find they derive the same benefits, this partnership strategy could be a new trend for manufacturers in grocery delivery. Nestle U.S. vice president Rui Barbas told Bloomberg that the company was “happy with the results” of two campaigns for free delivery on Digiorno and Haagen-Dazs products that Nestle ran with Instacart last year.
In another tech-savvy effort to reach consumers, Coca-Cola is introducing mobile apps this spring that will enable consumers to earn rewards points they can redeem for free drinks and other perks through Coca-Cola vending machines. In addition to capitalizing on the growth of mobile and driving consumers to its vending machines, Coca-Cola can collect valuable consumer data for targeted remarketing efforts.
Source: Food Dive