2nd November, 2015
On Wednesday 21st October I attended the MetaPack partner day being held at the British Library. It was a great event with speakers from MetaPack and elsewhere in the industry, covering the importance of all aspects of the delivery cycle as well as potential future industry innovations, from delivery within the hour using services such as Uber, through to mobile 3D printing services coming to your door and 3D printing the ordered item – pretty exciting stuff!
When you consider some of the key statistics presented at the event, such as “40% of consumers stating that delivery has been a barrier to purchase”, “40% of customers saying they look at delivery and returns info before making the decision to shop” and “70% of consumers say a good delivery experience will make them return shoppers”, it becomes very clear that a great delivery strategy is imperative to any successful ecommerce operation.
For me, the key takeaway of the event that applies to all online-retailers was to better consider the ‘disruptive generation’. This 18-24 year-old age bracket report a significantly higher percentage of poor delivery experiences than older age brackets. As a demographic it is unlikely that they are receiving a different level of service to other age groups, so therefore it must be caused by a mismatch between expectation and reality of service. The typical 18-24 year old is not worried about any of the preconceived ideas and issues regarding delivery that have been established over the last 10 years or so. They are also willing to spend more to get better service, which is very telling given that they have the lowest amount of disposable income.
So how can we ensure that we service the disruptive generation, as well as all other generations, as effectively as possible?
o Allow them to choose a preferred carrier – A previous bad experience with a particular carrier may become a barrier to checking out.
o Provide options regarding delivery location, for example, delivery to home or to a parcel shop for collection.
o Be flexible with delivery slot dates and times, as delivery to home during business hours is simply not convenient for approximately 50% of customers.
Obviously cost to the retailer has a significant impact when it considering the implementation of different carriers and services, however, remember that the disruptive generation are happy to pay for the service they want. Therefore it really makes sense to at least consider them. And whilst your key market may not consist of the 18-24 year olds, remember that every year a percentage of that age bracket are moving up into the next, and you can guarantee their expectations won’t have fallen in that time – and the younger generation moving up into that 18-24 year old age bracket are only going to get ever more demanding!
I’m looking forward to finding out what the next big innovation will be!