November 9, 2023

Unlocking Success: The Optimal Demand Generation Strategy for Local On-Demand Grocery


The emergence of on-demand grocery has transformed the landscape of the online grocery sector. In the post-pandemic era, consumers now anticipate the ability to use a mobile app to order groceries online and collect them or have them delivered within minutes with utmost precision. 

To offer this service, specialized fulfillment-only facilities such as back-of-store micro-fulfillment centers have emerged worldwide, with numerous grocers, convenience store operators, and newcomers establishing these stores in various global locations.

However, for those contemplating the introduction of on-demand grocery services in areas where they lack a pre-existing base of digital customers eager to place orders – whether it's facilitated by a back-of-store micro-fulfillment center, a drive-thru fulfillment center, or within a physical store – alongside ensuring fast and accurate fulfillment, success hinges on the implementation of a well-structured and hyper-local demand generation strategy.

In this blog, we'll explore the key components of an optimal demand generation strategy for new on-demand grocery locations.

Know Your Target Audience

The first step in any effective demand generation strategy is understanding your audience. Identify your ideal local customers and tailor your marketing efforts accordingly. For on-demand grocery, your audience could include busy urban dwellers, parents seeking convenience, and tech-savvy shoppers depending on the location of your service. Understand their preferences and habits to better serve their needs.

Leverage Online Marketing

Invest in online marketing channels to reach potential customers. Utilize social media advertising, pay-per-click (PPC) campaigns, and email marketing to promote your local on-demand grocery offering. Highlight the convenience, speed, and freshness of your services to attract tech-savvy and time-conscious customers.

Partner with Local Influencers & Businesses

Explore potential partnerships with local influencers, bloggers, or food enthusiasts who can provide reviews and endorsements for your on-demand service. Their support can effectively introduce your services to a wider audience. Additionally, consider ways to integrate local businesses, such as collaborating with a nearby bakery or coffee shop as part of your offering.

Invest in Local Advertising

Consider local advertising, such as posters or flyers in nearby neighborhoods, to target customers who prefer supporting local businesses. Highlight your on-demand grocery's proximity and its benefits for the community. If you have a physical store, explore the option of including a QR code on your receipts, guiding customers to your on-demand grocery app.

Offer Promotions

Entice potential customers with special promotions and discounts. For example, you can offer first-time users a discount on their initial orders or provide a referral discount when they introduce a friend. These incentives can encourage trial purchases and help retain loyal customers over time.

Provide Excellent Customer Experience

Customer experience is paramount in demand generation, and it goes hand in hand with the need for fast and accurate fulfillment – a crucial aspect that OrderGrid specializes in. Provide efficient and friendly support to ensure customers have a positive experience. Happy customers are more likely to become brand advocates and recommend your on-demand grocery to others.

Gather and Showcase Reviews

Positive reviews and testimonials from satisfied customers can go a long way in building trust and generating demand. Encourage customers to leave reviews and display them prominently on your website and marketing materials.

Monitor and Adapt

Continuously analyze the results of your demand generation efforts. Keep an eye on essential performance metrics, including traffic, conversion rates, and customer retention. Utilize data from zero search results to enhance your product offerings and spotlight trending items. Use these insights to refine your strategy and make necessary adjustments. 


An optimal local demand generation strategy is essential for the success of on-demand grocery. By knowing your target audience, leveraging online marketing, optimizing SEO, partnering with local influencers, offering promotions, providing excellent customer service, showcasing reviews, investing in local advertising, and monitoring your progress, you can effectively generate demand and drive growth for your new on-demand grocery locations. Stay adaptable and responsive to evolving customer preferences to ensure long-term success.

At OrderGrid, we empower you to deliver exceptional on-demand grocery experiences that drive customer loyalty. Reach out to us today and schedule a demo.

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