3 Things Location Intelligence Can Do for Food Delivery Businesses

Barbora Ambrůzová
@CleverAnalytics

Location, location, location! Every day we’re presented with situations in which we need to search for the right directions. It could be a scenario as simple as finding the best route from your home to a restaurant you’ve never been to. What most of us do is look up Google Maps or a similar app, input the information and start the search. This is the most basic form of location intelligence.

But how can location intelligence be helpful for businesses? Finding the right location is a problem most businesses are confronted with on a daily basis. For instance, you own a pop-up coffee van business and you’re now looking for the next location to set up shop. Knowing where your potential customers live is going to be crucial in making that decision. Similarly, utilising effective geomarketing and tailoring the types of products you offer to your potential customer base are factors that can significantly contribute to your business expanding in the right areas.

To explain location intelligence in a bit more detail, let’s start with a definition. Location intelligence is the process of exploiting spatial data and obtaining meaningful insights in order to solve particular location-specific problems. The most general of these problems is usually connected with finding the right place. In other words, basically answering any question that starts with the word WHERE.

Availability of Chinese, burger and vegan restaurants within a specific urban zone.

 

Let’s take an example of a food delivery business which depends greatly on knowing where its target customers are. This is where location intelligence can contribute in multiple ways.

 

A hungry vegan at 9pm is an opportunity

Food delivery businesses usually deliver to addresses where their customers live or work. Therefore, one of the most important things for the customer is knowing which types of cuisine are available in given areas of the city and at what times. Take Linda, the hungry vegan. It’s 9pm, it’s been a long day and she’s had no time to cook. So she wants a takeaway. Only thing is there’s no vegan restaurant in her area. But a food delivery outlet that changes its delivery parameters, such as delivering vegan cuisine at the right time to Linda’s home, can make a huge difference. A case like this also represents a prime opportunity for growth.

Insights and context = satisfied customer

Every business needs to extract actionable insights from its data in order to act wisely. Location-specific data is no different. Knowing exactly which areas of the city your customers live in helps to get the most out of your business and provides you with greater context. Similarly, obtaining detailed knowledge about your customers allows you to prioritise particular areas and improve your marketing efforts.

Where do your most valuable customers live? Filtering customers by the number of orders they have made.

 

Having information about, let’s say, areas which have experienced delayed orders or being able to filter customer satisfaction ratings via maps will inevitably enhance your business, not to mention giving you more satisfied customers.

Customer satisfaction order ratings for particular restaurants.

 

Map of delayed orders in general and for specific restaurant.

Up to speed on delivery zones?

One of the more obvious, but nonetheless crucial, aspects of the food delivery business is delivery zones. As shown in the mapview below, delivery zones can be analysed and overlaid from different points of view. The graphic shows different delivery prices for different areas which, when combined with turnover-based location performance, can lead to better planning decisions.

Map of delivery zones set up by delivery prices.

 

Location intelligence streamlines the way businesses process information. Graphs and charts are all very well, but visualising all of that data on maps gives you a completely different perspective. The many variables businesses have to contend with can at times seem overwhelming. But acting strategically and making more informed decisions only happens when you get the right answers.

 

             

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