Executive Summary
Grubhub is a prominent online food delivery marketplace connecting diners with local restaurants. It operates in Chicago, Illinois, and has expanded its services globally. As a leader in the food delivery industry, Grubhub faces competition from other delivery platforms. To maintain its market position, Grubhub needs to enhance its customer service and address common complaints and issues. This report highlights several areas where Grubhub can improve its customer service. Firstly, it emphasizes the importance of providing 24/7 AI assistance and food insurance, ensuring round-the-clock support and addressing issues related to food quality and delivery errors. Secondly, it suggests improving communication with customers by addressing unanswered complaints, language barriers, and providing accurate information. Training programs and tools should be provided to customer support representatives.
Additionally, the report recommends implementing a robust feedback system to gather customer input and promptly address concerns. It also suggests introducing a grading system for delivery drivers, allowing customers to choose drivers based on performance, thus ensuring efficient and reliable deliveries (Wilk, 2008). The report also touches upon marketing strategies, pricing, inedible food issues, and delivery operations. It emphasizes the need for comprehensive marketing campaigns, competitive pricing, and resolving inedible food complaints to enhance customer satisfaction. The report provides valuable insights into improving customer service for Grubhub. By implementing the recommended strategies Grubhub can enhance customer satisfaction and solidify its position as a leading food delivery platform. These recommendations will contribute to Grubhub’s growth, customer loyalty, and success in Illinois and beyond.
Introduction
Grubhub is an online food delivery marketplace; it connects diners with various restaurants in their local area, allowing them to order meals for pickup or delivery (About-Grubhub, 2023). Grubhub’s customer service is a critical aspect of its business model. This research paper will identify essential elements to consider for providing effective customer service in the context of online ordering, the best way to contact the customer service team, and how to utilize customer feedback to improve its service (Customer service and how to improve it, 2023). The steps to improve customer service include analyzing common complaints and problems to identify areas for improvement in the ordering and delivery process (Friedman, 2018). With the competition for food ordering services, we seek to explore and inform you on the best way to elevate your business.
Background
Mike Evan and Matt Maloney saw the need for more online delivery information, and using a paper menu was standard for restaurants. They carefully studied what was then their parent company, Eat Takeaway, before developing another online platform to make ordering easier. After that first year, GrubHub and Seamless Company merged and went public in 2014. In 2015, GrubHub began to offer delivery capabilities to its partners (Better Business Bureau, 2023).
Grubhub has restrictions on the restaurants in which they offer their services. According to Forbes, “Non-partnered restaurants are those who do not have an agreement with Grubhub and have not given their permission to be included. The company has mentioned that other delivery services are doing this, so they are trying to stay competitive.” There are also accusations that Grubhub lists some restaurants that are not partnered with them, which leads to confusion and longer wait times for customers. To resolve this, Grubhub must ensure they partner with the restaurant listed.
Many complaints from BBB stated that the customers needed to receive their meals promptly. For example, this customer said, “4 separate orders where restaurants made food- was prepared for a driver- the driver was a no show after making me wait 1 hour even to consider a cancellation – this most recent time I was told that I had too many refunds to be given back what I had spent”. This case demonstrates adverse customer experiences due to delivery delays until customers consider cancelling their orders. This could lead the company to lose customers, affecting its revenues and profitability.
Main Analysis
Ordering out makes profound sense for someone who had intense hours working behind an office desk. On top of being easy to order and very convenient, GrubHub has provided unlimited free delivery on orders over twelve dollars and access to endless restaurant offers. Customers may easily report problems and get help via the platform’s mobile app and website. Impactful customer service significantly impacts client loyalty.
Marketing Strategies
Effective public marketing is a comprehensive strategy that engages the public and promotes a brand, product, or service through appealing marketing campaigns. Grubhub also does well with promoting their business. However, increased competition and inflated prices will require consistent growth and adaptation and offer discounts and cross-promotions with assorted brands and restaurants.
Great public marketing goes beyond advertising and uses various methods to connect with the target audience, tell a captivating story, and build brand awareness. To this end, Grubhub relies on many marketing channels, such as social media, email campaigns, and collaborations with local dining establishments or national brands (Sarkar, 2014). By telling appealing and relatable stories, it positions itself as a hassle-free food delivery and takeout option.
Customer Service Support
One primary recommendation that can help Grub Hub improve is improving upon customer service support. After combing over 1000’s of reviews, many are about unanswered complaints. Consumers have reported a language barrier with the customer support person and false information being told to the customer. Grub Hub must
provide the proper tools and training programs for their employees to respond efficiently and adequately to customers’ needs, understand their problems, and work to a solution that satisfies and emphasizes the customer (Adams, 2012). A practical and skilled customer support service team is crucial to maintaining customer loyalty, increasing revenue, and maintaining the company’s success.
Pricing & Inedible Food
For Grubhub to improve customer satisfaction, they must find ways to reduce prices of meal costs but still maintain profit. Many reviews stated that the prices were high, and the food received was inedible to consume. Grubhub works with companies to choose meal prices, so the pricing is partially up to Grubhub. However, GrubHub can work on offering discounts that reduce the prices of the total meal cost. Grub Hub could also offer bundle deals or even a rewards program so that when a certain number of points are achieved, customers can take a certain percentage or dollar off their meal (Thomas, 2022). As for customers receiving inedible food, many customers were not satisfied with receiving $5 back or a reorder because it had already been a nuisance to place and receive the order.
Delivering Food
Therefore, to avoid having to give refunds or orders, Grubhub should offer free carriers to drivers to prevent spills or food spills. They could also monitor from which restaurants the most complaints are received about mishandling food because the restaurant could also be at fault. Grubhub could notify the restaurant of the protests and ensure food is appropriately delivered to customers. Another improvement could be to remove priority ordering and employ more drivers, which would help with the demand for orders and improve the time it takes for an order to be picked up and received by the customer. To avoid any food being delivered to the wrong address, GrubHub could offer an in-app GPS that the consumer could use to pinpoint exactly where the food needs to go. Due to technological flaws, operating systems must be at their top velocity to ensure customer satisfaction.
Background Checks
The background check is one of the essential components of Grubhub’s operations. It is among the crucial factors contributing to providing secure and safe services for customers, restaurant partners, and themselves (Idolgin, 2022). It starts with a person applying to be a Grubhub driver who plays a significant part in the company’s risk management strategy. This check examines local, state, and federal criminal databases for evidence of the applicant’s criminal background relating to violent or dishonest behaviors. In addition, it scrutinizes the applicant’s driving records to determine whether the individual can qualify as a deliverer. The assessment covers prior driving offenses, collisions, and the driver’s license suspension. Individuals with a history of reckless driving and numerous traffic violations could be barred from being part of Grubhub’s fleet. The company sets strict driving standards to ensure its drivers are responsible and can safely deliver customer orders (AppsRhino, 2022). This demonstrates a focus on the customer, a good knowledge of consumer behavior, and a strong safety and security culture.
Global Operations
Operating in over 30 countries makes GrubHub a global player in the food delivery and ordering industry (Lindsey, 2023). The company has a strong presence in North America, Europe, and Australia and wants to expand its operations into new countries (Johnson, 2023). They have increased access to restaurants and diners, whether at home or in the office, and restaurant owners love it (Grubhub,2022). And because of this, new jobs were created to deliver the food diners were craving. In 2020, when the most significant wave of sickness caused by COVID-19 hit America, GrubHub found ways to help communities provide food. This allowed businesses to stay open and provided a safer way to order food and limited contact. Recently, they began serving convenience stores and bodegas because it is a natural extension to add necessities to the platform. GrubHub’s customer service is a critical aspect of its business model, aiming to ensure customer satisfaction and loyalty.
Recommendations
After extensive research, we have developed a few recommendations that should aid Grubhub in improving its customer service procedure.
- Providing a 24/7 AI Assistant can significantly improve the business (Sarkar, 2014).
- A) Availability: AI assistants are available 24/7, unlike humans.
- B) Efficiency: AI assistants can handle multiple inquiries simultaneously.
- Food Insurance is a way to manage risks associated with the business.
- A) Protection against damage or loss: cover the food for such losses.
- B) Liability coverage: Sick customers of food can sue the company, and this can cover legal and any damages fees.
- Choose their delivery driver.
- A) Familiarity: If a consumer has had a positive experience with a particular driver, they might prefer to choose that driver again.
- B) Ratings: If drivers have ratings, consumers could choose the driver with the highest rating for the best service.
- Improving the communication system is crucial.
- A) Problem resolution: If there is an issue with an order, effective communication can help resolve it quickly (Watsky, 2022).
- B) Feedback System: Implement a system for customers to provide feedback, helping the company identify improvement areas.
Conclusion
Grubhub’s customer service is a critical aspect of its business model, aiming to ensure customer satisfaction and loyalty. It employs various strategies such as easy-to-use ordering platforms, prompt response to inquiries, and efficient problem resolution. However, like any service, it has its challenges. If Grubhub can begin implementing these improvements, the company will be able to receive better reviews and remain a top competitor within the food delivery industry (MultiVu, 2023). Grubhub must improve customer service support, pricing, inedible food, and delivery. Despite these occasional setbacks, Grubhub continually strives to improve its customer service, implementing feedback systems and training programs for its staff. The company’s commitment to customer service is evident in its efforts to maintain a positive relationship with its customers, which is crucial for its success in the competitive food delivery industry.
References
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Sarkar, S. (2014, February). Integration of Touch Technology in Restaurants. International Journal of Computer Science and Mobile Computing, 4. pp. 721-728. Grubhub Revenue and Usage Statistics (2023) – Business of Apps
Thomas, A. (2022, December 13). Revisiting your menu pricing? use these three methods to strategize like an expert. Grubhub for Restaurants. https://get.grubhub.com/blog/menu-pricing-methods/
Watsky, D. (2023, February 15). What delivery app has the lowest fees? We did the math to find out. CNET. https://www.cnet.com/home/kitchen-and-household/cheapest-delivery-app-for-2023/
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