Food industries have seen fierce competition over the last decade. However, every owner is figuring out how to stay ahead of the competition. Food industries began to adopt cutting-edge technologies to improve their services. Data analytics and data science are at the top of the list of advanced technologies.
Only the food industry attempts to comprehend consumer behavior, taste, and preferences. Users who order food online or in a restaurant expect to receive delicious food at a reasonable price and have high expectations of the food. Food delivery apps are evolving in tandem with the food industry. According to one study, 60% of consumers judge food quality.
Data Science and Data Analytics enter the picture and play an important role in meeting users' expectations. Enterprises are leveraging Data Analytics to discover precise food industry analytics to grow their business, stay on top of trends, and cut costs. Data science aids in precisely identifying the needs of the customer. It aids organizations in the collection and analysis of data, which aids in the detection of trends and patterns.
The innovations provide creative solutions to industry problems while also resulting in positive developments in the food industry. Furthermore, technology is increasingly important for food delivery startups. According to a report, the food delivery market is expected to reach $5 billion in 2019 and $15 billion by 2023 because they require more data to understand customer demand and preferences regarding food delivery.
The following are some of the reasons why food delivery startups use data science and analytics:
Improve Delivery Time and Cost-Effectiveness
Food delivery is one of the reasons why the food industry is growing. The food delivery service that brought restaurants to customers' homes made the customer experience more manageable and efficient. However, food delivery is a difficult problem to solve because it involves balancing a good customer experience with high productivity in delivering orders.
Data Science and analytics enable them to save time and money. So, if any unforeseen circumstances arise, they will know what to do and will encourage them to deliver on time and as expected. Customers should not have to wait for their food for an extended period of time.
1. Analyze customer behavior
Big Data Analytics and Data Science are well-known for the data that can be used to forecast customer behavior. Every food delivery startup has a social media platform where they upload content, announce new offers, and so on. However, if something happens, the first target will be social media. You cannot simply disregard customer feedback on social media. It's the first place they'll criticize.
Customers' attitudes toward your brand can be measured using Big Data Analytics. Big Data Analytics software can analyze your food delivery performance and customer reaction.
Big Data Analytics software will collect and analyze all of the brand's comments on various social media platforms such as Twitter, Instagram, and Facebook, among others. Based on the data provided, you can then make business decisions. A detailed explanation of this can be found in the IBM-accredited data science course in Pune.
2. Increase your delivery ROI
According to the survey, food delivery provides a better return on investment. As a startup food delivery company, you must understand the expected return on investment. Several decisions are made based on data using data science and analytics.
Previously, several large companies in the United States, including Starbucks, McDonald's, and others, used big data analytics to improve the customer experience. They collect information on what and when customers order and whether or not they require personalized offers. It enables them to provide what customers need and the type of food delivery they prefer.
Data analysis enables them to understand the trend and act by the most recent trends and preferences. You must use this method to succeed if you are a startup food delivery company.
3. Promotion based on location
Every food delivery service travels a certain distance. The reason for this is obvious: the food delivery person cannot be everywhere at the same time, and if the person went ahead, they would be unable to deliver food on time.
The advantage of Big Data Analytics is that it allows the food-tech company to target customers by using real-time location and timing. Location-based promotion has several benefits, including real-time data and the tracking that businesses receive.
Food delivery companies have used location intelligence to determine zone-specific cancellation rates, determine the proportion of demand and supply of food and delivery managers in a given area, and estimate delivery and restaurant step sizes.
4. Demand Following Smart Algorithms
A food delivery app can forecast the customer's next order using a smart Big Data algorithm. It's easier than you think; by analyzing a user's previous browsing history and observing their past order data, the food delivery app can predict whether the customer is likely to order again or not.
A food delivery app that uses predictive analytics can accurately predict how many customers will order, especially during a specific time of day or week, as well as from where and what.
The predictive analytics algorithm can predict what customers are likely to want and where the food is most frequently ordered in the city or state. It gives you a clear picture of where your food delivery is going and whether it is a success or a flop with customers.
With the increasing demand for food delivery, startups and food delivery companies will need to employ Big Data Analytics and Data Science. Data Science can cover a wide range of topics, from delivery rate to food preparation time and delivery routes. For more information on analytics tools and techniques, visit the data analytics course in Puneand become a certified data analyst in top MNCs.