Expanding Merchant Network and Driving Market Growth
CASE STUDY
Company: Postmates
Industry: On-Demand Delivery & Logistics
Key Challenge: Expanding market presence by growing the merchant network and driving customer acquisition in the Northeastern markets
Challenge
Postmates aimed to rapidly grow its merchant network and increase customer acquisition in the highly competitive New York and New Jersey markets. The main challenges were:
Increasing the number of merchants to provide customers with diverse delivery options.
Enhancing brand visibility and acquiring new customers in a crowded urban market.
Solution
Expanded the merchant network, formed strategic partnerships, and drove customer acquisition through guerrilla marketing and targeted growth campaigns.
Merchant Network Growth:
Merchant Acquisition Campaign: Led a merchant acquisition initiative that resulted in a 35% increase in the number of merchants on the platform, providing customers with more options and increasing order volume.
Partnership Development: Developed strategic partnerships with local businesses, enhancing service offerings and boosting market presence.
Community Engagement & Growth Initiatives:
Street Fleet Marketing Strategy: Created and launched the “Street Fleet” marketing strategy, focused on community engagement and enhancing brand presence in high-traffic areas. Due to its effectiveness, the strategy was later adopted nationwide.
Targeted Promotions & A/B Testing: Launched targeted growth campaigns and conducted A/B testing for promotional offers to maximize effectiveness, drive customer acquisition, and balance supply and demand.
Results
Merchant Network Expansion: Increased the total number of merchants by 35%, expanding customer choices and enhancing the platform’s value.
Customer Acquisition Growth: Boosted customer acquisition by 146%, significantly increasing market penetration in New York.
Nationwide Recognition: The “Street Fleet” marketing approach proved so effective that it was rolled out to other regions nationwide.
Key Takeaways
Expanding a merchant network is critical for providing diverse delivery options and improving platform value.
Creative, community-based marketing efforts are highly effective for building brand recognition in competitive urban markets.
Data-driven testing of promotional efforts helps drive customer acquisition and maximize marketing impact.