Voxware, the independent Voice-directed solutions provider, has released research highlighting how late or inaccurate deliveries impact consumers' future decisions to shop with a retailer online, by phone, or in the store.
Five hundred consumers were surveyed on their expectations for delivery of items that they purchase online or by phone during the holiday shopping season and beyond. Highlights include:
- 69% of respondents are much less or less likely to shop with a retailer online or by phone for future purchases if an item they purchase online or by phone is not delivered within two days of the date promised
- 75% of respondents intend to have more holiday purchases delivered directly to them this holiday season than last holiday season
- 86% of respondents noted that their expectations for correct and on-time delivery of items that they purchase online or by phone are higher during the holiday shopping season
- 16% of respondents will abandon shopping with a retailer altogether if they receive an incorrect delivery just one time
- 14% of respondents will abandon shopping with a retailer altogether if they receive a late delivery just one time
Expectations for Speedy, On-Time Delivery
Respondents answered how quickly they expect a retailer to deliver an item that they purchase online or by phone assuming the retailer is using standard shipping:
- 4% said 1-2 days
- 42% said 3-4 days
- 44% said 5-6 days
- 10% said 7 or more days
Also, 69% of survey participants answered that they are less likely to shop with a retailer online or by phone for future purchases if an item they purchase from that retailer online or by phone is not delivered within two days of the date promised.
Late deliveries impact not only future online and phone purchases, but future in-store purchases as well. Respondents were asked how many times they would need to receive an item that they purchased online or by phone later than the promised delivery date before abandoning shopping with that retailer altogether:
- 14% said 1 time
- 54% said 2-3 times
- 19% said 4-5 times
Respondents Have Little Patience for Incorrect Deliveries
In addition to having high expectations for on-time deliveries, respondents are also unforgiving for incorrect deliveries. Respondents were asked how many times they would need to receive an incorrect item that they purchased online or by phone before abandoning shopping with that retailer altogether:
- 16% said 1 time
- 52% said 2-3 times
- 18% said 4-5 times
Further, 54% of respondents noted that up to 10% of the items that they have purchased online or by phone have arrived later than the delivery date, while 54% responded that up to 10% of their items have been incorrect due to retailer error (for example, the retailer shipped the incorrect size, color, product, etc.).
Holiday Delivery Expectations
Expectations for delivery time during the holidays are similar to expectations at other times of the year. Therefore, although retailers are addressing significantly more order requests and delivering substantially more packages, the vast majority of consumers still expect delivery within three to six days assuming the retailer is providing free shipping:
- 45% of respondents said that they expect holiday gifts purchased online or by phone to be delivered within 3-4 days
- 36% of respondents said that they expect holiday gifts purchased online or by phone to be delivered within 5-6 days
Retailers, however, have less room for error during the holidays. Of the survey participants, 86% noted that their expectations for correct and on-time delivery of items that they purchase online or by phone are higher during the holiday shopping season. Also, 75% of respondents stated that they intend to have more holiday gifts delivered directly to them this year than during last holiday season. When asked what percentage of the holiday gifts they purchased last holiday season were delivered directly to them versus bought in store, they answered:
- 15% said up to 10%
- 30% said up to 25%
- 31% said up to 50%
- 14% said up to 75%
- 6% said up to 100%
Therefore, although half of respondents had between 50-100% of their holiday gifts delivered directly to them last holiday season, retailers can expect even more direct-to-consumer orders this year.
"As desktop, tablet, and mobile shopping continue to rise, so do consumer expectations for speedy, accurate delivery," said Keith Phillips, President and CEO, Voxware. "Retailers cannot afford to deliver products later than their promised delivery date, or send incorrect items altogether –not even once.
These results prove that any inaccuracies or slight delays customers experience will result in a loss of brand loyalty across all of a retailer's channels and therefore severely impact bottom lines. That's why it's essential for retailers to modernize their warehouses with technology that enables them to successfully address new omni-channel demands.
Most inefficiencies and errors occurring in the supply chain happen at the moment of order selection in the warehouse. By optimizing the supply chain at the beginning, in the warehouse, retailers can provide a better customer experience that keeps customers happy and coming back."