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Effect of delays and poor delivery to the online customer

The consumer, online retailers and couriers around the world has quickly adapted to the current situation, with the COVID19 there has been an increase of growth in the e-commerce and has affected the delivery industry.

Questions such as: The impact of a poor customer delivery experience have on online sales. How does it affect the chance for that customer to shop again? How does it alter their recommendations? were asked at the Circuit these are the questions that the customers might want to know.

There are over 1,000 people that the Circuit surveyed to understand how consumers think towards online retailers that is associated with poor delivery and its impact on the sales.

Around 85% of the customers that shop online said that they would shop the same or more often online for the next 12 months compared to the previous 12 months which is great opportunity to the retailers but it would also increase the issues that the e-commerce currently experiencing.

Key findings at a glance

  • Poor delivery will drive down sales: almost three quarters (72.5%) of poor deliveries will result in a customer likely to stop recommending the retailer
  • The problem is bigger than many retailers realize: nearly a quarter (22.5%) of recipients are unlikely or very unlikely to complain if they experience a delivery issue
  • Recipient communications are relying on outdated platforms: over half (54%) of those who order online choose text when given a choice of notification platforms

Poor delivery and its impact on recommendations

For the customer to stop recommending the retailer will be almost three quarters (72.5%) of the poor delivery results. With this result there are at least (33%) of customers who shop online and experience an issue in the package delivery over the past 12 months which is a concerning figure.

Due to this issue, the same customers were ask ‘How likely are you to stop recommending a retailer following a poor delivery experience?’ at least 1 out of 4 (23.9%) would discouraged giving a recommendation. With this issue 26%of people have experienced a parcel to arrive late or early, while 13.6% have their parcel to e left in a unsecured location and around 13.4% received a damaged parcel. It is important for retailers and couriers to work together to reduce the cause of these three issues and give the customer a better experience and gain their trust.

The feedback gap

According to the research that the Circuit conducted around 22.5% of the customers will unlikely or very unlikely to complain if a delivery issue occurred such as delays, damaged goods, or late arrivals which makes the retailers to be unaware of this issue and thus miss the opportunity to resolve the issue and give the customers a positive experience.

A better communication between the online retailers and the customer is needed which would allow them to easily give feedback on their experience. With this the feedback gap would gradually disappear.

Customer Communication Preferences

Delivery preferences and how they would like to be notified of the deliveries were asked by Circuit to the customers and more than half (54%) of the customers who ordered online chooses text messages as their communication method and was followed by 29% on email method. This shows how out-of-date the delivery communication methods are. For the text method can’t do live updates or parcel tracking that apps does which means that the recipients can’t benefit from tech innovation aside from this texts are expensive.

The Future of Last-mile Delivery

Circuit believed that to solve these issues would be through a better communication between the retailers, couriers and customers who are currently acting independently. By removing the need for re-deliveries, surprise delays and parcels left out in the rain, everyone who is involved in the last-mile delivery (retailers, couriers and customers) must work together in one ecosystem.

Circuit has a route planners for delivery drivers that makes repetitive tasks such as planning the fastest route that is easy and reduces time on the road. As for the businesses Circuit has a team that would allow dispatchers to work together with multiple drivers, capture proof of delivery (PoD) and send a notification to the customers.

Article inspired by Circuit from Forwarder Magazine

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