The online shopping industry is enjoying continued success, but this does not come without hurdles and challenges for retailers operating in this highly competitive market. The huge shift towards online spending is putting enormous pressure on retailers and their delivery partners to deliver great customer experiences – and neither can afford to fail in their mission, since consumer demands are higher than ever.
In 2015, online retail parcel volumes rose by 15.7% as a whole for the year, with more than a billion parcels delivered, according to the IMRG MetaPack UK Delivery Index. This growth in the market has fuelled a period of large-scale development in the industry, as customers – and therefore retailers – demand more convenient, reliable and trusted services.
Today’s delivery firms are quickly adapting to provide a range of services that satisfy customers’ delivery needs, and they are also working hard on their communication capabilities to ensure that customers are kept better informed and updated. According to IMRG, better returns management, the wider adoption of third party click-and-collect services, and the wider provisions of in-transit delivery information are all key priorities for retailers in 2016.
From the convenience of choosing a delivery slot that suits them, to the ability to track deliveries in-transit, customers now have more control over their delivery than ever before. If these services are delivered correctly, retailers will be able to deliver a much more personalised experience and customers are more likely to feel satisfied. This level of customer control and personalisation is the future for retailers and logistics firms alike, and should therefore be a key consideration in delivery strategies.
Even though existing convenient collections services like click-and-collect are likely to remain very popular, there will always be some products for which they simply don’t work. Likewise, there will be many customers who would prefer to have the product delivered to their door – despite other delivery options being available. For this group, the option for same day deliveries – and in some cases within an hour or two – has become much more common. Whilst this level of flexibility is clearly attractive to consumers, the fact that these services are now commonplace means that consumers now expect to pay less for them – something that is often not a sustainable business option for couriers in the current climate.
So, how should retailers work better with their delivery partners to better manage the customer experience in 2016 and beyond? Firstly, education is essential. Retailers not only need to understand the specifics and limitations of the delivery options they offer, but must also ensure that these details are clearly communicated to customers. For example, if a large or heavy item requires a two-man service for it to be safely and successfully delivered, this needs to be offered – and explained – to the customer at the point of sale. After all, customers that are left to shift a bathroom suite from the kerbside simply because they didn’t realise a two-man service was the most suitable are unlikely to be satisfied with their shopping experience.
At the same time, retailers and their delivery partners need to work hard to avoid any unnecessary costs. This not only requires meticulous route planning to maximise capacity without overloading delivery networks and schedules, but also the consideration of green delivery methods. The use of bikes and smaller vehicles in city centres – or the use of innovative low-emission vans – can help delivery companies lower their carbon footprints and also save on costs. By embracing innovations like these, whilst ensuring that customers’ needs are at the front of their mind, retailers and their delivery partners will be able to improve the customer experience throughout 2016 and beyond.
