Customer Service, Delivered: How Retailers’ Delivery Service Impacts Consumer Behavior
The global delivery service industry will grow to $343 billion by 2020. Delivery service companies are doing exceptionally well around the world. With more technological innovation, the market is also becoming highly competitive.
The modern-day consumers are technologically connected, and they’re firm believers in instant gratification. They also expect seamless delivery service and experience ease-of-use of the services. Courier companies hence have the mandate to make quality delivery service a reality.
There exists a significant disconnect between retailers and consumers in shipping expectations. While shoppers might want free delivery, retailers have to grapple with rising shipping costs. This, among other factors, impacts consumer behavior.
Read along for more details on how delivery influences consumer behavior.
1. Shipping Costs
It’s no surprise that many shoppers look forward to having their products delivered at no additional costs. Shipping costs are a significant aspect of online shipping, and retailers can work on improving on this front.
In looking for special deals, free or flat rate shipping deals have more preference than discounts and coupons deals. Despite the demonstrated benefits of offering free shopping, shoppers feel that retailers can still do better.
Shoppers also want to see an improvement in ease of returns and exchanges and online tracking. Free shipping has led some shoppers to recommend a retailer, more than timely delivery of the product.
Customers are willing to reward retailers for discounted shipping rates. In equal measure, it also means that they can punish retailers for charging higher-than-expected costs. This is one reason for shopping cart abandonment in most cases.
One mistake that retailers do is list shipping charges too late. This leads to 40% of shoppers abandoning their purchases.
2. Return Policies
Another essential factor that shoppers look for before purchasing is the return policy. A return policy that makes it easy for consumers to return the product increases the chances of purchasing. Companies with lenient return policies also tend to get more referrals from their shoppers.
3. Fast Delivery
Majority of shoppers want to have their products delivered as soon as they buy them. Fast delivery is one fact that influences a purchasing decision. Many consumers feel frustrated when a delivery service lacks accuracy and arrives late.
Retailers are still struggling with the growing demand for faster delivery. This may seem daunting, but it’s an approach they can use to exceed expectations. Timely delivery provides plenty of room to capture consumer loyalty.
The fasted growing expedited delivery option is same-day delivery. Consumers feel frustrated when they have to wait more than 24 hours to have their products delivered. Same-day delivery increases consumer loyalty.
Consumers want the delivery agent to display professionalism in their service. The level of professionalism of the agent has a direct reflection of the retailer. The last step in the purchasing process is receiving the package.
This last step has the highest potential to leave the most definite impression on the retailer. Strive to ensure it’s a positive and long-lasting impression.
5. Real-Time Tracking
It can be frustrating for shoppers not to know the status of their delivery process. Customers want to be kept in the know, being updated on each stage of the delivery process. They especially want to know when they can receive their parcel.
Unfortunately, only a few delivery service companies provide this service to their shoppers. This is despite the growing demand for tracking services by shoppers.
6. Package Care
It can be frustrating for a shopper to receive a package in less than its best condition. Sadly, it’s not uncommon for consumers to receive damaged packages. A customer places their possessions in the hands of a stranger, trusting them to deliver it securely.
As such, they need to be sure that it’ll get to them in the right condition. Having a parcel delivered safely is a sign of respect for the customer and their property.
The nature of the product in question largely influences how it’s handled. For very delicate items, use trusted dispatch services. Carelessness on the part of the delivery agent will cost a company a worthwhile customer.
8. Payment Method
Sometimes, shoppers will abandon their purchases because of the payment method the company provides. Some services demand that their clients pay for goods before delivery. Others receive payment after the delivery of the product.
In the case of payment on delivery, confirm if the agent is allowed to receive payments. Some agents don’t accept payment on behalf of retailers for security reasons.
In the case of payment before delivery, what mode of payment does the retailer accept? For card transactions, will clients feel safe using their credit or debit card online? Online sales are sensitive since they require the client’s personal data.
Customers will only reveal their data when dealing with trusted ecommerce sites.
Most delivery service providers cover only specific areas. Some can cover rural and remote areas, and others don’t. An extended geographical coverage goes a long way in enhancing customer satisfaction.
The expectations gap between retailers and shoppers is a significant opportunity for retailers. They should capitalize on it to improve their businesses. Overall, consumers expect quality and professionalism in delivery. They also hope that retailers will work towards reducing this gap.
Delivery Service – Final Thoughts
One of the areas that mainly affect ecommerce stores is delivery of purchased products. Unfortunately, there’s a large gap between retailers offer and what consumers expect. There’s a need for retailers to work on improving their delivery service to their customers.
Some of the crucial factors that influence the loyalty of clients include the shipping costs and payment methods. They also must consider providing tracking services for shoppers to monitor the status of their orders. Other important considerations are the area of coverage, professionalism, and quality.
Customers must also have the assurance that their packages will be delivered safely and in good condition. When all these factors come into play, it’s easy for retailers to gain the loyalty of their clients. The growth of a company all boils down to how it treats its clients.
Do you have any questions about professional courier services? Be sure to reach out to us.