How to ace last-mile delivery as a customer satisfaction touchpoint

Photo credit: sentavio / 123RF Stock Photo.

With ecommerce sales growing in Southeast Asia, retailers are eager to provide their services to consumers across borders to tap the opportunities. At the same time, the evolution of technology has empowered consumers and, consequently, increased their expectations from ecommerce retailers. It is then vital for retailers to keep pace with rising customer expectations to get ahead of their competitors.

With a growing, relatively young consumer population, online retail sales are projected to hit US$2.7 trillion by 2020. Millennials are influencing how retailers are servicing this growing consumer base. No longer are consumers just looking at reliability and timeliness of last-mile deliveries, they are now demanding greater choice, control, and flexibility from ecommerce retailers.

The role of logistics

Shoppers have grown to expect reliable delivery and are now demanding greater control over logistics at every touchpoint. This signals that retailers must no longer see logistics only as a means to complete the final mile delivery, but as a competitive advantage as well.

Based on our Pulse of the Online Shopper survey, tech-savvy shoppers are transforming the ecommerce scene. We found that in order to meet their customers’ needs, retailers will have to redesign the entire transaction process. Those that take a holistic approach and use logistics to shape the customer experience—from pre-purchase, purchase, to post-purchase—will stand out.

Pre-purchase

Consumers want to get the complete picture before evaluating if they are getting the best value for their purchases. Switching between online and offline channels, consumers look at the amount of product information available, customer reviews, and the range of products offered when choosing a retailer.

Even at the research stage, consumers are already looking at delivery options when evaluating their purchase decision. We found that nine out of 10 of consumers review a retailer’s return policy, and more than half do so before purchasing. To remain competitive, retailers have to provide a consistent experience across all online and offline channels and provide detailed product information, including a clear return policy.

Purchase

Consumers also desire free shipping. Many retailers are aware of this. But how do you reconcile the consumer’s desire to get free shipping and the actual costs?

Rather than offering one- or two-day delivery speeds, retailers should find the threshold of how long consumers are willing to wait to receive free shipping. Our study found that more than eight in 10 Asian consumers are willing to wait an additional three to five days to receive free shipping. This gives retailers greater allowance to manage between speed and costs while satisfying the consumers.

Logistics play the biggest role at the point of purchase. Without complete information on the expected delivery times at checkout, every six in 10 of consumers will abandon their shopping carts. Retailers can mitigate this situation by working with a logistics provider and offer guaranteed delivery options to give consumers peace of mind.

Post-purchase                                                                                                            

A customer’s experience does not end after the product is delivered. Shoppers are also increasingly demanding improved return processes and delivery alerts.

Innovation is key