Know About Hyperlocal Business Model and it’s benefits
In this fast pacing world, people are quite busy working on different things at once. It leaves them with less or no time for other tasks that requires them to purchase things from a store. To make their life easier, Hyperlocal Business Model is here.
What is the Hyperlocal Business Model?
Hyperlocal is a buzz word that means something that is in your vicinity. It could be a store, spa, or service. To make it more understandable, think of someone who is more active. You call them a hyperactive person. Similarly, hyperlocal means something which is more close to you.
Hyperlocal Business Model caters to a small and closed group of people. Platforms like Swiggy, BigBasket, Zomato, Ola, etc are some of the examples of hyperlocal business models. The latest emerging business is Dunzo, a delivery app which delivers your things from one place to the other.
These types of business models focus on customer satisfaction by delivering the products at their doorstep within minutes. With the advent of digital media and delivery applications, hyperlocal delivery is only going to rise. It’s easy for people to get their products delivered with a tap on their phone. This is beneficial for everyone as it saves not only time but also the effort that goes in travelling to the store and standing in a queue.
How does it work?
Here are a few things that are required to start a Hyperlocal startup or a business.
– Mobile App
First things first, without having a product to sell, you can’t really start a business. It’s important to select the products that you would like to sell, be it grocery, clothing, food or others.
When you’ve finalized the product, the next step is to tie up with the local vendors or retailers. Work with them on a commission-based model. So, for every purchase that happens, you get a marginal commission for the product that is purchased.
This will benefit the local retailers as they’ll get more visibility and sales through your app. With hyperlocal marketing, you too can make a profit with the increasing number of sales.
In a recent study reveals that 95% of the students use smartphones, while 64.3% of them use it for at least an hour. It clearly shows that the usage of mobile phones has increased dramatically over the years.
Having a proper mobile application is the first step towards setting up a successful hyperlocal delivery business.
Apps that provide good user experience perform better as it makes the user easy to navigate through the options. In order to create a good customer base, a user-friendly app is all that you require.
Partnership with retailers is done. A delivery app is ready. But what’s the use of it when there’s no logistics to make the delivery?
A proper functioning logistics is what helps in organizing, equipping and delivering the product to the customer.
One way of doing this is to have your own logistics that include warehouses (where the products are stored), transportation, supply chain management and delivery personnel. The other way which is easier comparatively is to tie up with a third-party logistics provider. This will save you from all the headache that goes in handling the logistics.
Now that everything from products to a mobile app to delivery and management is set, make sure that you pay attention to customer satisfaction. Flipkart has had many cases where a wrong product was delivered to the customer. See that it doesn’t happen the same way, and that’s why it’s vital to have good hyperlocal logistics.
Benefits of Hyperlocal Business Model
- Hyperlocal On-Demand Delivery is beneficial for local retailers as they can sell their products without having an app of their own.
- Customers get the benefit of scrolling through different products from different retailers right from the comfort of their homes.
- Spending on hyperlocal marketing is effective for businesses due to small geographical areas.
- Given the narrow-based model of the business, it’s easy to control quality and inventory. It is thereby focusing more on customer satisfaction.
With entrepreneurs coming up with hyperlocal business ideas catering to different needs of the customers, hyperlocal business models are only going to thrive in the future. The user experience of the app and the quality of the product are going to be a determining factor in the success of this business model.