Rarely in history have consumer habits undergone such a dramatic transformation as witnessed over the last five years. A convergence of factors—ranging from the global pandemic to the surge in eCommerce penetration—have reshaped the landscape of retail. These events, individually significant, have collectively ushered in a revolutionary era where consumer expectations are higher than ever, and their tolerance for subpar experiences lower than ever before. This shift presents both challenges and opportunities, with delivery emerging as the next frontier in retail.
The Impact of Delivery on Consumer Loyalty
Recent research conducted alongside Jarden sheds light on the pivotal role of delivery experience in shaping consumer loyalty. The study revealed that delivery ranks second only to price in influencing consumers’ brand selection online. Shockingly, one in two Australian consumers stated they would not shop with a brand again following a poor delivery experience, highlighting the critical importance of optimising the post-purchase journey. With 86% of Australians having shopped online in the last year, the significance of delivery in driving customer satisfaction and retention cannot be overstated.
The Rise of eCommerce and the Amazon Effect
The exponential growth of eCommerce, accelerated by the pandemic, has reshaped consumer behaviour and expectations. Amazon, with its unparalleled infrastructure and customer-centric approach, stands as the epitome of excellence in delivery services. Its disruptive strategy, characterised by fast, reliable, and often free delivery, has set a benchmark for the industry. With Amazon’s ambitious plans to replicate its success in Australia, traditional retailers and carriers face increasing pressure to adapt and innovate.
Optimising Delivery: A Strategic Imperative
In this era of heightened competition and evolving consumer demands, optimising the delivery experience is no longer optional but imperative for retailers and carriers alike. The concept of consumer-centric delivery, characterised by speed, reliability, transparency, and environmental sustainability, emerges as the key to unlocking long-term competitive advantages. By viewing delivery not as the end of the journey but the beginning of a retention strategy, businesses can foster customer loyalty and drive growth.
The Role of Collaboration and Data in Driving Efficiency
To meet the evolving demands of consumers and navigate the complexities of modern supply chains, collaboration and data-driven insights are essential. By leveraging our NowGo technology, retailers and carriers can optimise delivery routes, maximise drop density, and minimise environmental impact. Through strategic partnerships and a focus on route optimisation, the industry can unlock the full potential of existing resources and drive sustainable growth.
Looking Ahead: Embracing Change in the Retail Landscape
As the retail landscape continues to evolve, adaptation and innovation will be key to survival and success. By prioritising consumer-centric delivery and embracing collaboration, retailers and carriers can not only meet but exceed the expectations of today’s discerning consumers. The time to invest in modern, efficient, and collaborative supply chains is now. Together, we can shape the future of eCommerce in Australia and usher in a new era of customer satisfaction and loyalty.
Download Rob Hango-Zada’s keynote slides from the Retail Supply Chain Summit April 2024