Report makes ‘grim reading’ for retailers and carriers
Following the recently released Which? report rating the best and worst delivery firms, Stuart Higgins, retail partner at LCP Consulting said last mile fulfilment is the new retail battleground.
“The fact that Which has found that a quarter of consumers have had problems with online shopping deliveries in the past 12 months isn’t surprising,” he explained.
“As recent LCP research across major UK retailers has shown over a third have seen an increase in delivery related complaints, and almost half see the need to change carriers as a result.”
In the Which? survey specialist photography retailer Wex Photographic came out on top with a customer score of 91%, scoring top marks for deliveries as well as product stock and the usability of its website. DIY.com (B&Q) was at the bottom of the table scoring 47%.
Which? has also launched a campaign to Stamp Out Dodgy Deliveries, reflecting ongoing consumer dissatisfaction.
Which? wants retailers to:
• Provide specific time-slots for deliveries on a named day.
• Inform customers of the estimated delivery time on the day of delivery by phone, email or text.
• Ask customers to specify at the time of purchase what to do if the delivery is unsuccessful.
Its research also revealed 17% of people complaining of parcels being late, 3% that parcels were not delivered while 2% complained of damage.
LCP’s Stuart Higgins (pictured) cautioned retailers not to over-focus on the front end at the expense of fulfillment.
“How likely are customers to return when the experience doesn’t match the promise? Failing to prioritise home delivery to align with the front-end retail brand promise is risking major customer dissatisfaction and footfall loss.
“The moment the delivery driver carefully hands you your package – or unceremoniously dumps it on your doorstep – is the crucial last step in the customer journey. Fulfilment colours the customer’s overall perception of a brand, and retailers need to realign the delivery and packaging of their goods so that it is consistent with their brand messaging.
“This Which? report will make grim reading for many retailers as even the best carriers are only achieving an 83% customer satisfaction level.”
Retailers are hoping that Click & Collect could relieve some pressure on deliveries for the crucial Christmas period.
Indeed many retailers would prefer to replace home delivery with Click & Collect as the preferred method of getting product to consumers. It is easier, cheaper and in some cases it brings customers to stores, where they may spend further.
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Nick Miller, head of FMCG at consultant Crimson & Co, said: “While a move to Click & Collect will no-doubt be welcomed by retailers keen to do away with overly complicated delivery strategies, it’s imperative they use this opportunity to re-evaluate existing supply chains and source partnerships which ultimately provide greater convenience for the consumer.”
Miller’s comment as Amazon struck a deal with Smiths News to offer a same-day collection service.
“While the growth of click & collect has been a welcome one for retailers it is by no-means a full-proof plan. For those organisations looking to embrace it, it’s imperative that they review their existing supply chains and source partnerships which complement their business,” added Miller.
Paul Doble, chief sales and marketing officer at delivery firm DX does not think Click & Collect will impinge on the dominance of home deliveries at a macro level this Christmas, but sees it having an impact.
“We may see instances of free Click & Collect versus chargeable home delivery that tempt the customer into the store. The main barrier to Click & Collect is simply that there are still a relatively low number of online checkouts that offer facilities such as CollectPlus. For the moment at least, shoppers welcome the convenience of delivery to the home as long as the price is right, the service is quick and efficient, and doesn’t require them to be in to sign for it.
“This Christmas, the industry will be more competitive than ever. Several large carriers have opened additional hubs and others are offering delivery on Sundays; the net result being that some firms will be aggressively increasing their delivery volumes.”