According to a recent study, consumers list “convenience” as one of the top three most important purchasing factors besides “price” and “quality of goods”. Convenience starts with the online shopping experience but doesn’t end when a customer clicks the ‘buy’ button.
Amazon has set a high bar for the consumer delivery experience. The Prime delivery experience is so consistently reliable, fast, and convenient that customers are drawn to it as a part of their online ordering promises. The challenge is that most brands don’t have the same scale or resources available, often leaving a disconnect between consumer expectations and the real-life delivery experience.
Nearly half of sellers already spend more than 10% of the total order value on shipping. Another third is spending 6-10%. The overriding question is how to provide a differentiated delivery experience without breaking the bank. Here are six things to consider.
Provide Delivery Speed and Cost Options
When it comes to shipping, customers consistently want fast and free. A recent survey from Coresight shows a 10.5% increase in cart conversions and 9% increase in repeat sales when fast (2 day or less) delivery is available. Another survey from Shippo shows nearly 3 in 5 shoppers won’t convert their carts without a free shipping option. To maximize cart conversions, customers need options. At the minimum, brands should offer a free option and one or more expedited choices. Working with a last-mile delivery provider with a free 2-day or faster delivery option is often the sweet spot. The key is to keep it simple but also provide each customer with a choice of service levels and costs.
Diversify Carriers
Shippers need options too. Brands can’t deliver in today’s world without using one of the national carriers, but they don’t have to give the traditional carriers all their business. No single carrier is the best option for every parcel in every market. A multi-carrier strategy is quickly gaining traction because it allows brands to optimize service levels and cost at a more granular level. Especially during peak season, by moving volume to a variety of carriers, shippers can reduce costs or stay below thresholds that trigger surcharges from national carriers. Diversifying carriers also provides shippers with greater flexibility and capacity in a tight market.
Keep Delivery Date Promises
As a seller, missing a promised delivery date is one of the most significant adverse impacts a brand can have. “Consumers identify delivery dates as one of the most essential pieces of information they want at checkout, but less than half of retailers provide it,” according to Shippo. The inability to provide an accurate delivery window is often a technological issue; having the technology to support giving a date can be a differentiator for a brand. Don’t over-promise - if the delivery will take three days, tell the customer three days, not two or 2-3. Then, keep that promise.
Deliver Transparency
Once they click the ‘Buy’ button, consumers want transparency - real-time data showing exactly where their package is and when it will arrive. They want real-time communication through their preferred channel - SMS, in-app, or email. The standard “your package is en route” email or SMS message is a relic from another era. Unfortunately, it’s the best many carriers can do. Make sure you’re using a carrier with the technology to meet your customers where they are and keep them updated on their status in real time. If consumers have a better window into when their package will be delivered and can plan their day around it (especially if porch pirates are an issue), and they are more likely to order from that shipper in the future.
Sort Out Problems
What happens when your carrier hits a snag like a wrong gate code or unmapped address? Does the package immediately get tossed in the truck to return to the warehouse, or is the carrier committed to resolving issues on the first attempt? Exceptions can cost brands money and goodwill. And what if a customer wants to make changes on the fly or provide special instructions? There are two questions any carrier needs to answer—do they have the technology to manage these situations, and do they have the will to go the extra mile for the customer?
Consider Sustainability
Your customers are looking to you to provide more sustainable products and business practices. Your last-mile providers should be able to meet that demand. While the media focus is on alternative fuel vehicles, the full migration to those vehicles will take decades. In the interim, tech forward providers can leverage purpose-built technology to reduce the carbon footprint of every package delivered by optimizing vehicle utilization and reducing the miles traveled on the delivery vehicle (route optimization).
Customers crave convenience, and as the marketplace influence of Millenials and Gen-Z continues to grow, the demand for convenience will continue to grow. In today's competitive landscape, the delivery experience can be a key differentiator for brands, helping to meet rising consumer expectations. By offering options for delivery speed and cost, diversifying carriers, keeping delivery promises, and ensuring transparency, shippers can significantly enhance customer satisfaction.
Addressing issues promptly and considering sustainability further strengthen a brand’s commitment to quality service. While not every company can match the scale of Amazon, these six strategies allow shippers to provide a seamless, reliable and differentiated delivery experience, ultimately building trust and fostering customer loyalty. In a world where consumers have a growing list of choices, the delivery experience can become a differentiator for your brand.
