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Same Day Delivery and Customer Retention

ShipTrack BlogPost same day delivery and customer retention

Meeting Customer Demands With Home Delivery and Shipment Trackers Increases Satisfaction

Retailers around the world have spent decades optimizing the in-store experience for their customers, but with the incredible rise in e-commerce in past years, they’re now working to optimize the at-home experience for online shoppers. What they’re discovering is that home delivery and, increasingly so, same-day delivery are major factors in customer satisfaction and retention.

Effects on Retailers in Same Day Delivery and Customer RetentionEffects on Retailers

In the e-commerce world, retailers are no longer competing based solely on prices and products offered, since competitors often offer the same brands at comparable prices. So how do customers decide which online retailer will ultimately get their business? Decisions are often based on product availability, added convenience, and quality of service.
As a retailer, you know that customers today are demanding added value and services—for example, in the form of same-day delivery and shipment trackers. With the right logistics software and home delivery processes, your company could offer these services while increasing close rates, reducing logistics costs, retaining existing customers and even generating new ones. The trick, of course, is determining the level of resources to dedicate to these customer demands without compromising revenues.

Negative Effects of Static Models in Same Day Delivery and Customer RetentionNegative Effects of Static Models

Currently, most companies offering home and same-day delivery do so using a static model, with no ability to make updates in real-time based on customer demand. When a customer makes an online purchase, they are generally given a choice of a few scheduling options, often with long delivery windows based on assumptions about what the level of demand might be during that time. Since it is difficult to estimate the resources required, and these delivery schedules can’t be dynamically updated to reflect current conditions and conflicts, retailers and customers alike are left with inaccurate schedules, and these delivery windows aren’t often met. This not only inconveniences the customer, but often means lost revenue for businesses.

This approach has many limitations, and risks a higher rate of customer dissatisfaction. A precise appointment is considered an exceptional added value, especially when the completion of the delivery is dependent on the customer being home. Since the point of delivery is often the only experience that an e-commerce customer will have with your brand, your ability to meet the customer’s schedule is often a deciding factor in making the sale.

Optimizing Delivery Routes in Same Day Delivery and Customer RetentionOptimizing Delivery Routes

The solution for companies looking to offer same-day delivery and shipment trackers to their customers is to create and optimize the delivery route when the product is being purchased. This allows the customer to make an informed decision based on preference and schedule and allows the retailer to offer more services and incentivize the customers to consider more attractive choices (with regards to price, time, and environmental impact, thus increasing revenue). The ability to continuously update routes as orders flow in allows retailers to create more precise routes and schedules, ensuring on-time completion and proper use of resources.
Understanding the needs of your customers and meeting them throughout the buying and delivery process will ultimately result in more sales and less costs over time. When customers are confident they can receive their product when they want it, reduce shopping cart abandonment, and offering current, real-time data via a shipment tracker can increase customer trust. Many logistics providers are making these options, and more, available to companies of all sizes.

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