A recent study from Capgemini reveals that half of all consumers are willing to switch to a competitor who offers faster online delivery services for groceries. Retailers are trying to win the last-mile delivery race as the overall level of online ordering increases across the country, and consumers stand to benefit from this rivalry among companies.
Capgemini’s survey included 3,000 consumers from five countries and 500 supply chain executives from nine countries. The results showed that 40% of U.S. consumers already order their groceries online at least once a week, and this number may increase to 55% by 2021. Consumers also want faster online deliveries with 55% admitting that two-hour deliveries would increase their brand loyalty. Retailers have to focus on the last-mile delivery, which is the final part of the online purchase journey before the product ends up in the customer’s hands.
However, today’s consumers are not completely satisfied with online delivery services: 59% are not happy with the high prices, 47% do not like that same-day delivery is not an option, and 45% complained about late deliveries. Almost half of all the consumers in the survey would stop buying from the retailer if they were not satisfied with the delivery. Even the ones who would be willing to give the retailer another chance admit that they would cut their spending by 45%.
“Consumers increasingly want and expect faster and more frequent deliveries. This trend of convenient, online delivery is not going to go away, and there is an urgent need for retailers to develop a strategy for how they will meet these expectations. The good news from this research is that customers seem to be willing to pay more for this convenience, and there is a significant opportunity, both from a cost and loyalty perspective, for grocers and retailers that get it right,” Cynthia Fulk Lago, Vice President of Consumer Products, Fashion and Distribution for Capgemini, North America, said.
Fulk Lago explains that retailers need to take action to meet consumer demand for faster grocery delivery. Offering these quick delivery services, like two-hour and same-day delivery, will increase customer loyalty and satisfaction. However, to offset the high cost of speedy delivery, retailers can provide other fulfillment options like better in-store pickup that also meet current consumer demands. All of these individual decisions should tie into the broader plan for how to engage customers based on their specific needs and wants.
“The expectation of convenience is only going to increase, so retailers that are able to quickly adapt and capitalize on the demand for fast delivery and offer other omnichannel fulfillment options, while implementing innovative approaches for better profit margins, will come out on top,” Fulk Lago said.
Consumers should benefit from the competition among retailers as they struggle to offer better last-mile delivery services. Demands for more efficient and faster deliveries will continue to increase in the future, and companies who cannot meet customer expectations will be left behind.
Source: Forbes “New Capgemini Research Reveals Consumers Want Even Faster Online Grocery Deliveries“. (https://www.forbes.com/sites/lanabandoim/2019/01/26/new-capgemini-research-reveals-consumers-want-even-faster-online-grocery-deliveries/#5f2ed68f584d). Lana Bandoim. Jan 26, 2019