The rising popularity of on-demand delivery apps, coupled with a growing number of same-day delivery options, is reshaping customer expectations and has moved delivery to the core of the new customer experience, according to a new report from project44, a global provider in visibility for shippers and logistics service providers.
The new report from project44, "The Delivery Economy and The New Customer Experience," is based on a blind survey of over 750 consumers and a survey of 500 marketing executives. This shift in expectations is ushering in the "Delivery Economy" — the pervasive sentiment in which customers expect low-cost, fast and highly transparent delivery of goods — and irrevocably changing the customer experience.
Key findings from the report outline exactly how expectations have shifted, explore the influence of on-demand delivery apps, and uncover the brand impact of falling short, including:
- 85 percent of marketers now say that delivery is moderately to very important to their brand and customer experience.
- 74 percent of consumers say that when a package isn’t delivered when expected, it hurts their impression of the company.
- 52 percent of consumers say free or discounted shipping is one of the most important factors in their purchase decision and gave shipping the same emphasis as the price of the product.
- 94 percent of people who make purchases for their company said they expect the same level of focus on customer satisfaction as when they’re making personal purchases.
- 65 percent marketers also cited good customer service as a core driver of purchase decisions, but only 25 percent of consumers agreed.
- 71 percent of consumers say on-demand delivery apps are re-shaping consumer expectations for how they want all of their online purchases delivered.
- 56 percent of marketers cite delivery and transportation companies and supply chain/shipping departments (47 percent) among the top three stakeholders to deliver the best customer experience.
"We find it very telling that consumers give the same weight to delivery as they do to the price of a product in their customer experience," said Jett McCandless, Founder and CEO at project44. "With the rapidly growing use of on-demand delivery apps and same-day delivery services, customers aren’t just buying a product, they’re buying an entire experience. The Delivery Economy is here to stay, and will continue to have a vast influence on B2C and B2B expectations in the short- and long-term."
"One of the biggest draws of on-demand delivery apps like Postmates and Instacart is that customers know where an order stands, can map the route, and know down to the mile and the minute when a product will arrive at their door," said Elaine Singleton, VP of Supply Chain at Technicolor. "Brand leaders and marketing departments should be partnering with key internal and external stakeholders like sourcing, inventory, logistics, and transportation carriers in order to gain control of these new customer experience, and truly succeed in the Delivery Economy."
Posted by Veronica Silva Cusi, news correspondent
project44 is the world’s leading advanced visibility platform for shippers and logistics service providers. project44 connects, automates and provides visibility into key transportation processes to accelerate insights and shorten the time it takes to turn those insights into actions. Leveraging the power of the project44 cloud-based platform, organizations are able to increase operational efficiencies, reduce costs, improve shipping performance, and deliver an exceptional Amazon-like experience to their customers.
Published: Friday, August 16, 2019
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