A new study from the Capgemini Research Institute has highlighted the need for greater investment in “last mile” delivery logistics as the final leg before a product lands in the customers’ hands.
In their survey, 40% of customers currently order groceries online at least once a week, which is expected to reach 55% by 2021. Forty percent of customers classify delivery services as a “must have” when purchasing food and grocery products, with 20% prepared to switch retailers if this is not provided.
Evolving consumer behavior is also fueling greater immediacy in purchasing with 59% of customers purchasing products online when they need them, rather than waiting until the weekend to buy in-store.
Fast and effective last-mile delivery increases customer spending and loyalty. Encouragingly, 74% of satisfied customers intend to increase spending by as much as 12% with retailers they frequently purchase from. The majority (82%) of customers have shared positive experiences with friends and family, and just over half (53%) would even be willing to purchase a paid membership for a good delivery service.
However, despite 55% of customers expressing that offering two-hour deliveries would increase loyalty, only 19% of firms currently provide this compared to 59% of firms that offer a delivery time frame of more than three days.
The report finds that consumers are not satisfied with the current state of last-mile delivery with 59% stating high prices, 47% non-availability of same-day delivery, and 45% stating late deliveries as being the driving factors of ‘delivery dissatisfaction.’
The report found that 97 percent of organizations believe that current last-mile delivery models are not sustainable for full-scale implementation across all locations. As such, they must be viewed as a key investment for 2019.
Similarly, 73% of consumers expressed that having convenient time slots available was more important than receiving deliveries quickly.
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