The significance of ecommerce for CPG brands has been catapulted into the future and will continue to grow due to shifting shopper behaviors that focus on the ease, convenience and immediacy provided by online shopping, according to Kat Ussery, Director of Emerging Channels at The Mars Agency, who praised “the value that Gopuff can provide brands throughout the entire purchase journey” while conducting a Q&A with Mike Harp, the home delivery service’s Head of Brand Partnerships.
Currently operating a 24-hour service in roughly 600 U.S. cities, Gopuff’s mission is to be “the go-to solution for immediate, everyday needs” across a variety of CPG categories including household cleaners, food and snacks, OTC medicine and alcohol that consumers can obtain “from one place, delivered to your doorstep, within minutes,” explained Harp.
Gopuff’s mission is to be “the go-to solution for immediate, everyday needs” across a variety of CPG categories
The company’s “secret sauce” is its control of “every step in the last-mile delivery process” thanks to proprietary technology, an in-house product inventory, a network of 400 micro-fulfillment centers and stores (the latter through the late 2020 acquisition of the BevMo chain), and a fleet of delivery drivers.
Based on recent changes in consumer behavior the company has witnessed, Gopuff has identified four “big bets” that are driving its strategy:
1. “Relentlessly” improving the customer experience. While average delivery time is about 28 minutes now, 10 minutes is possible in some markets, Harp said.
2. Expanding category capabilities to cover all “instant needs moments, whatever they may be.” This is especially important as Gopuff’s users expand from the company’s original Gen Z base to encompass “multi-tasking parents” and other cohorts across different demographics.
3. Expanding the operational footprint, which will double in 2021 to include the New York City area and California, as well as to “dramatically” build out existing delivery zones.
4. Launching a retail media network, to offer a “predictable and repeatable ROI engine” that can connect brand experiences with immediate product delivery.
Overall, 36% of Gopuff’s orders are placed between 8 p.m. and midnight, with 9-10 p.m. being the busiest window, said Harp, in noting that the company is “seeing a lot of behavior that is incremental to other shopping trips.”
Courtesy of Path to Purchase IQ.
Watch the full discussion (30 minutes) below:
Kat Ussery is Director of Emerging Channels at The Mars Agency, where she stays on top of the latest trends to identify the best use cases for meeting unique brand needs. Though her experience at Nielsen working directly with Walmart marketers to her previous agency work with CPG brands, she brings an expertise in bridging traditional retail with cutting-edge ecommerce. Reach her at [email protected].