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After several years of spectacular growth for “fast trade” or q-commercial, just a glance at the tech sector headlines will tell you that the industry is facing some serious setbacks. This is due to a combination of a complex macroeconomic landscape for businesses and the impact of the cost of living crisis and impending recession on people’s wallets.
But not a cause for panic, this should be seen as a cause of opportunity in the field of e-commerce. With a few q-commercial For players running out of breath in the race for delivery, it’s essential to adapt and diversify their offerings — moving to multi-category in particular.
Food will always be here and in demand, and we’ve recently seen many delivery companies move into the grocery store space to meet the needs of a changing customer base. But why should we stop there?
Whether it’s flowers or pharmaceuticals, what’s next for commercial q can certainly make a big difference in the survival and success of companies in what you might aptly call a “The Hunger Games”. It can also change the landscape of q-commercial As we know it.
To ensure that we stayed on top of our customers’ needs and remained relevant, we needed to focus on the hidden gem that separates our field from the high street: Data.
Why data is important to q-commerce
A part of ecommerce These challenges lead to many demands on the attention of business owners. For example, Glovo has a four-sided marketplace consisting of customers, partners, brands, and couriers. Add speed to the equation and the stakes are even higher.
97% of US data executives say data science is important for staying profitable, while 82% say their company’s management should be concerned about what mismatched data models could mean for the future. of the company.
This second indicator will be of particular interest to q-commerce. Declining demand shows how much the sector needs to reconnect with consumers and their needs.
As a web design and marketing expert Atul Jindal wrote in VentureBeat recently, “Data is no longer an option… Accessing, interpreting and using it effectively has become the difference between life and death for modern online retail.”
The ability to turn data strategy, as Atul puts it, “raw, meaningless data into valuable, meaningful insights… [guiding] business processes, from decision making to strategy making” is why we have invested in such a powerful strategy of our own and work with the data grid model.
Before that, our data set-up struggled to scale with the growth of the company, and it ultimately didn’t help with business performance.
With the data grid, we take a decentralized approach that is vital to managing data at scale, and if we want to move with speed, both in our operations and in distribution, we need a data strategy worth the price of gold. This can be the same for any business, but for e-commerce it is integral to its existence.
With this in mind, I look at some of the issues e-commerce faces and how data can help not only keep the industry at the forefront, but also diversify its offerings to help ensure its long-term future and its relevance.
Securities and products
a giant 75% of all supply chain management professionals looking to improve their inventory management practices. The act of tightening its grip on having too much and too little inventory has lost its safety net due to recent global tensions over inflation and supply chains.
When it comes to q commerce, by relying on data, players can optimize inventory management and ensure they are stocking products that consumers want — an even more important consideration. more important for the Cook Room and the micro fulfillment centers (MFCs) it relies on to provide typically short delivery windows.
But without a detailed understanding of consumer preferences, these stores are playing tricks and likely won’t be able to supply the most demanded items. Not ideal when McKinsey’s report that 30% of consumers expect goods to arrive within the same day.
It’s not just about convenience, though. Through improper inventory management, some e-commerce players may spend double what they earn every delivery by moving heaven and earth to meet the needs of customers.
Some q trading companies have sought to absorb this cost by offering their capabilities as a service. But this will only be a short-term fix. Instead, it is essential that q-commerce applies the right data to create a path to profitability. And, as mentioned before, to branch out into areas beyond retail and grocery, such as pharmacies, etc., while diversifying their inventory over the long term.
After all, in the world of q-commerce, there is still a lot to discover.
Understand customers better
Part of changing your inventory and inventory, of course, is understanding your customers on a better level. Customer data is the holy grail in the service industry and is the most important element of e-commerce when compared to brick-and-mortar retail.
But as demand for e-commerce dwindled, we needed to make sure we met exactly what the customer wanted beyond the item itself.
More than a half (59%) of consumers believe that personalization affects their overall purchasing decision. If q-commerce is still an on-demand service, it needs these kinds of metrics and positions itself as a service defined not only by speed but also by its ability to personalize.
As we have discovered, the customer has changed a lot since the rise of e-commerce two years ago. Now we need to reset. Does express delivery now still constitute what it did 24 months ago? Could it even be related to a certain transaction? Without asking these questions, we could be guilty of promising a particular service before a real need is identified.
That doesn’t mean it will be one size fits all. The shape of e-commerce also depends a lot on geography. Local nuance is key to staying relevant, even for a global company. For example, our experience in Nairobi tells us that because heavy traffic can delay deliveries within the city and with a greater need for groceries than takeout, deliveries are still possible. practicable because there is no risk of hot food getting cold.
Q-commerce should leverage customer data from person to person, country to country, to make sure it’s the right service — and if not, ask yourself what you can do to improve it. way.
Maintain a positive working environment
In the rush to deliver goods at lightning speed, one of the risks that e-commerce companies face is leaving people behind desks or on the street to make deliveries.
But companies cannot compromise their commitment to providing a supportive work environment because their promises to customers go above and beyond. Especially at a time when layoffs in the tech sector are becoming commonplace.
Thus, data has a role to play in introspection. Implementing a robust data strategy certainly means less stress for workers as their productivity is boosted while decision-making is fine-tuned. And, when it comes to specific couriers, routes are optimized to help them avoid repeating their steps.
But data goes even further and can benefit your culture, too. For our own great growth, we are keen to maintain a positive work environment and ensure that we do not lose our identity or our voices get lost in the noise.
This is why we conducted an internal survey to provide important data on how employees feel about factors such as compensation, career development and diversity, equality and inclusion. import. Like all data, this data needs to be used; are transformed into insights that are used to inform not only the status quo but the direction we are headed. This way, we can ensure business success doesn’t come at the expense of employee happiness.
Knowing what data e-commerce companies need to survive in the “Game of Thrones” is only half the job. Any successful data strategy must address four data user concerns: lack of reliable data, quality and availability issues, discoverability, and bottlenecks.
Only then can we build a platform that enables data-driven decision making and ensures that commerce q is not left to the garbage heap of great technology.
Whether it comes from orders, customers or colleagues, data has a lot to tell us. Building a listenable strategy is the key to making better business decisions with faster insights. And with this, despite the headlines, the future could be very bright for commercial q.
Daniel Alonso Moreno is the vice president of QC Commerce at Glovo.
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