Alok Kejriwal As customer acquisition costs soar, quick commerce platforms in India increase investments in targeted performance marketing to stay competitive.
Quick commerce platforms in India are intensifying their focus on performance marketing, spurred by a sharp rise in customer acquisition costs. The cost to acquire a customer has surged from Rs 400-450 to over Rs 800, compelling companies to refine their marketing strategies. Performance marketing enables brands to target consumers more precisely, offering measurable returns on investment, making it essential as the market becomes more competitive.
As quick commerce continues its rapid growth, fueled by the demand for instant delivery services, the increased costs have pushed platforms to allocate substantial resources towards customer acquisition. “The escalating expenses tied to acquiring customers are forcing companies to double down on their marketing efforts, ensuring they can retain and expand their user base,” said a digital marketing executive.
This shift reflects broader changes in consumer behavior. In dense urban areas, where quick commerce thrives, customers are prioritizing convenience over traditional retail. “The high population density and fragmented supply chains in cities make quick commerce an attractive solution,” explains K Ganesh, Founder & Partner at Growthstory.in. With venture capital backing the sector’s growth through discounts and reduced delivery fees, platforms are capitalizing on the trend, particularly for groceries and niche products.
Experts like Shiv Shivakumar, Operating Partner at Advent International, highlight the vital role of technology in bridging the gap between brands and consumers. With the digital landscape evolving, the ability to execute precise, targeted marketing campaigns will be key to staying ahead in the competitive quick commerce sector.
As quick commerce companies continue to scale, performance marketing will likely remain a cornerstone of their strategies, especially in an environment where customer acquisition costs are expected to stay high.
