Why Same-Day Delivery is a Win-Win for Consumers and Retailers

Dropoff’s annual survey aims to uncover shoppers’ motivations and expectations surrounding delivery. This year’s findings shed light on startling insights that should be on every retailer’s radar. Consumers’ delivery expectations are rapidly increasing, but their experiences are actually declining. Meanwhile, trust in crowdsourced peer-to-peer delivery providers remains staggeringly low.

It’s obvious retailers are struggling to keep up with the rising demand for faster delivery. However, there’s plenty of opportunity to capture customer loyalty when delivery is done right. So, how is delivery done right? The survey results point to what consumers really want, where retailers are currently falling short, and how delivery experiences affect purchase decisions. Let’s dig in.

What Consumers Want

In our survey of 995 U.S. consumers who have purchased items online for delivery, 43 percent of respondents expect companies to have much faster delivery times than last year. That number is up from 35 percent in 2017. And speed alone isn’t all they desire. Seventy-five percent want a more professional delivery service, and 88 percent want the ability to track shipments in real time.

To make matters more urgent for retailers, nearly a third of consumers now say they feel frustrated when a company doesn’t offer same-day delivery. We also found there’s a big discrepancy between how soon consumers want to receive items and how quickly they actually receive them. This spans many product lines, with the biggest discrepancies showing for healthcare products; appliances; and clothing, shoes and accessories.

What Consumers Experience

Despite their rising expectations, consumers are experiencing a decline in the quality of service provided by many carriers. Seventy-eight percent of consumers have received late deliveries (up from 70 percent in 2017), and 56 percent have received damaged packages (up from 42 percent in 2017). This decline is also consistent for incorrect or damaged items as well as packages going missing altogether. It’s therefore not surprising that the results show a decline in carrier trust in the last year.

Given the prevalence of crowdsourced peer-to-peer delivery services, it was surprising to find that only 14 percent of consumers trust them, and that number had only slightly increased from 2017 (13 percent). It’s evident professionalism is important to consumers, so retailers must be selective when partnering with third-party providers to outsource the delivery of their products.

Delivery Experiences Affect Purchase Decisions

Mediocre delivery experiences influence whether consumers will shop with a brand again. The data shows consumers believe it’s the retailer’s responsibility to choose a delivery partner that represents their brand and customer service values. Consider the following:

• 57 percent of consumers wouldn’t purchase from a retailer again if the delivery person was unprofessional;
• 79 percent of consumers wouldn’t purchase from a retailer again if the delivery was damaged; and
• 69 percent of consumers wouldn’t purchase from a retailer again if the delivery was late.

While getting delivery right is important, it’s clear that same-day delivery is worth it. Seventy-four percent of consumers say they would be more likely to purchase from a retailer again after receiving same-day delivery. Furthermore, same-day delivery options would encourage one in two consumers to shop online more often. It’s clear there's huge potential to drive return on investment by offering same-day delivery at checkout.

Standout Consumer Segments

Various consumer segments have even higher expectations and desires for same-day delivery. If any of these are part of a retailer’s target market, it’s important to note just how much higher their expectations are — and how much more likely they are to pay for the convenience.

For example, 54 percent of millennials have paid extra for faster delivery in the past year. This compares to 39 percent of non-millennials. Luxury shoppers are 80 percent more likely to feel frustrated than the average consumer when same-day delivery isn’t an option. Early tech adopters, including those that make purchases using smart watches and digital assistants, are more likely to abandon an online purchase if the delivery options aren’t fast enough (60 percent of early tech adopters vs. 51 percent of non-early tech adopters). In addition, they're more than twice as likely to have paid extra for same-day delivery in the past year (27 percent vs. 11 percent).

It’s clear delivery options and quality play a major role in consumers’ purchase decisions. When done right, retailers stand to gain a lot, from attracting new customers to driving brand loyalty. However, getting delivery right isn’t easy.

Sean Spector is the CEO of Dropoff, which is modernizing the standards of same-day delivery by offering businesses a superior experience built on convenience, reliability and unmatched customer service.