The Internet transformed the business world.

Fin-tech startups, like Paytm and Google Pay, transformed the financial industry.

Ed-tech startups, like Byjus and Vedantu, transformed the education industry.

E-commerce startups, like Amazon and Flipkart, transformed the commercial industry.

But everyone thought that it can’t transform a low margin industry like retail.

Then e-tail startups, like Grofers, transformed the retail industry as well.

Grofers, which has now become one of the fastest-growing startups in India, took only 10 days to expand to 18 cities. They have 3 million app downloads and a user base which is growing 4X every month.

In this article, you’ll get to learn about Grofers’ digital marketing strategy and how they use digital platforms to scale their business.

If you prefer watching a video instead, then here is one I have created on the same topic:

#1. Use Google Search ads to attract potential customers

To grow your business, you have to sell more products every day and to sell more products you need more website visitors.

Google, being a search engine, is a great platform to bring potential customers to your website.

Businesses use Google search ads to target product-related keywords and therefore bring potential customers to their website.

However, this is not a wise move in the case of Grofers.

People looking for the product might just want to know more about it. For instance, a person searching for Women’s Horlicks may want to learn more about its ingredients. Showing ads to this audience is a waste of money.

Moreover, Grofers, operating in a low margin industry, should not use expensive ads (like Google search ads) to target a broad audience which consists of people who have no buying intent.  

To solve this issue Grofers is only targeting people who are searching for the product price.

For instance, look at the image below. When a customer searches ‘Women’s Horlicks price’, they will see the Grofers’ ad.  

Whereas they are not targeting product keywords like “women’s Horlicks” as you can see here:

#2. Use Facebook ads to get more visitors

Just as you target people based on keywords using Google ads, you can also target people based on interests while using Facebook ads.

But this is also not a wise move in case of Grofers because people who are interested in the product may not have buying intent.

So, Grofers use Facebook ads on special occasions only. For instance, they used this ad to target people during Holi:

#3. Retarget lost visitors with Facebook ads and Google display ads

After visiting the website, some people don’t complete the purchase. These people must be retargeted using Facebook ads as shown in the image below.

You cannot see the products in this image because it is a dynamic ad. This ad shows the same product which people saw on the website.

These ads also give offers to motivate people to complete the purchase.

Also, Grofers uses Google display ads to attract lost visitors by giving 40% discounts on first order. These ads show up on different websites and look like this:

#4. Optimize your website to rank high on Google

Apart from using Google ads and Facebook ads to get paid traffic, you can also use search engine optimization (SEO) to get organic traffic.

You have to make your website Google-friendly to get this free traffic.

Grofers has managed to rank high in Google search results and got a lot of traffic for keywords like “buy groceries online” as shown in the image below.

#5. Create an app to help regular customers

Having an app gives an alternate way to your regular customers. Apps are more user-friendly and create a better user experience compared to websites.

Moreover, your app users are more loyal and buy frequently from you.

And, you can reach out to app users through notifications without paying a dime.

That is why creating an app is a critical part of Grofers’ digital marketing strategy.

#6. Promote your app with Facebook ads

Creating an app is not enough. You have to promote it as well.

For this task, you have to again use Facebook ads, like Grofers is doing in the image below:

Notice that the call to action (CTA) button on this ad says “Install Now”. When users click on this button, the ad takes them to play store or app store.

Facebook shows this ad to mobile users only, and it optimizes it to target people who are most likely to install the app.

#7. Do app store optimization (ASO)

App store optimization (ASO) is the younger brother of search engine optimization (SEO). It involves optimising your app to rank high in the Play Store search results.

Grofers has optimized its app to rank high for keywords like “grocery online app”.

Because of these efforts, Grofers has 10 million app installs as of now.

#8. Continuously improve website and app

Just like retailers focus on improving in-store experience, e-tailers should focus on improving the website experience. 

To improve the website experience, Grofers use conversion optimization tools like Branch.

Moreover, to improve their website, they have started a contest called Bug bounty to award customers who point out bugs on their website.

Similarly, to improve the user experience/user interface (UI/UX) on the app, they are using four software development packages as shown in the image below.

(Source: Mighty signals)

Because of these efforts, people are spending more time on their website and app. The average visit duration on their website is 50% more than that of Big basket.

Also, people abandon their website less as compared to Big basket’s website. Data shows that the bounce rate on Grofers website is 4% less than that of Big Basket.

(Data source: Grofers data, Big Basket data)

That is why conversion optimization is an important part of Grofers’ digital marketing strategy.

Learn more about Grofers’ conversion optimization strategy here: Medium.com.

#9. Get more conversions by reducing resistance in the customer’s mind

Some people do not buy from you even if they are interested in your products and services.

In this case, you have to give them a little nudge to reduce the resistance in their minds.

Grofers have taken the following steps to do the same:

  • Grofers give their customers a 40% discount on their first order.
  • Customers get free delivery on orders above a certain amount.
  • Their customers can return, or reschedule their order.
  • Customers can pay after getting the delivery by opting for cash on delivery.

Because of these efforts, 12% of their customers (non-working women) are transacting online for the first time. (Data source: Yourstory.com )

#10. Create a membership program to retain customers and get better ROI

Retaining a customer is much cheaper than acquiring a new customer.

So, you have to make sure that existing customers keep using your service.

To do this, Grofers came up with a membership program: Smart Bachat Club, which gives a special discount and priority delivery to its members for a small fee.

Check out the club price listed separately for all products in this image:

So, people who join this membership become loyal customers.

Because of this program, Grofers is getting a higher customer lifetime value (CLTV) as compared to other companies.

#11. Upsell and Cross-sell

To get better margins, Grofers have to make people buy more every time.

So they have to increase their average order value (AOV).

To do this, Grofers use ‘suggestions section’ on the product page and cart page as shown in the image below.

Conclusion

So, these are the 11 lessons you can learn from Grofers’ digital marketing strategy.

I hope that you like this post.

Please let me know what you think about it in the comments.

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