Leveraging Geospatial Analysis for Business Expansion: A Case Study of Instacart
Applicable Industries
- Retail
About The Customer
Instacart's customers are primarily individuals who use the company's app for grocery delivery and pick-up services. These customers value the convenience of having their groceries delivered to their doorstep and the ability to choose from a wide variety of retailers. The company's use of geospatial analysis has made it more likely for customers to see their preferred grocers when they log onto the app, encouraging them to try the service and spend more. The company's customers also include retailers who partner with Instacart to reach new customer bases and generate incremental revenue.
The Challenge
Instacart, a grocery delivery and pick-up service, was facing a challenge in its business expansion strategy. The company's approach to connecting retailers with customers was conservative, limiting its growth potential. The company was not fully utilizing the potential of its app to connect customers with their preferred grocers, which was affecting customer engagement and spending. Furthermore, the company was not fully capitalizing on the opportunity to help its retail partners reach new customer bases. The challenge was to find a way to be more aggressive in their growth strategy, increase customer engagement and spending, and help retailers reach new customers.
The Solution
Instacart turned to geospatial analysis to address these challenges. By using geospatial analysis, the company was able to identify areas where they had been overly conservative in their approach and make a case for a more aggressive growth strategy. This involved making it more likely for customers to see their preferred grocers when they log onto the app, thereby encouraging them to try the service. The company also used geospatial analysis to offer a wider variety of retailers, encouraging customers to place more orders throughout the month. For the retailers, this approach provided an opportunity to reach entirely new customer bases, leading to incremental revenue and deepening relationships. Looking ahead, Instacart plans to continue using geospatial analysis to push the frontier of who and where they serve, varying service levels, pricing, and other elements based on customers' locations relative to stores.
Operational Impact
Quantitative Benefit
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