Analysis provided exclusively to My Business has revealed the extent to which customers are demanding “new age” delivery options – and the impacts on businesses that fail to deliver them.
Research commissioned by Zoom2u found that two-thirds of Australian shoppers are more likely to buy from a company that offers so-called “new age delivery options”, which includes live tracking, the ability to contact the delivery driver and even a three-hour service.
Some 27 per cent of the 1,000 Australian adults surveyed in June said such an offering “significantly” enhances their likelihood to choose one business over another that did not.
In fact, close to half admitted they have been influenced specifically by the available delivery options when determining whether to complete a purchase.
The findings demonstrate the sense of immediacy that has rapidly become the cultural norm, and the greatest limitation that online sales have over those made in-store.
Zoom2u’s CEO and founder Steve Orenstein said the figures demonstrate that speedy, interactive deliveries can be the make or break factor for SMEs operating in a highly competitive marketplace.
“Especially in today’s current retail climate, finalising sales is more important than ever,” he said.
“This research highlights that by adopting delivery options that are powered by innovative technology, businesses have the potential to increase their number of orders by 66 per cent, which can be the difference between a thriving business and shutting up shop for many.”
My Business was granted access to the raw data, and found plenty of interesting comments about the level of importance many consumers are placing on speedy, interactive delivery options.
Here are the common factors influencing shopper behaviour:
1. Make delivery free or at least cheap
The standout bugbear for customers was the cost of delivery. Customers noted that steep delivery prices were wiping out any discounts offered by the business, or even costing more than the goods themselves.
“Some delivery prices affect my shopping with some stores as it adds so much to the cost that any savings at that outlet are lost,” one said.
“[I] usually choose free delivery companies or free delivery when a certain number or money value purchased,” replied another.
“Some furniture items cost more to deliver them than the purchase price, so it has been uneconomical to purchase these items,” added a third.
2. Faster is better
Despite the above comments about delivery cost, the price is not the be all and end all.
“I will pay more for faster service,” said one respondent.
Others too noted that speed is one of, if not the, most important factor when determining which businesses to spend their money with.
“I want things quick if I buy them,” commented one.
“When I want an urgent delivery and it is not offered, I move on to someone else who offers it,” said another.”
3. No delivery, no sale
Some businesses do not offer their customers the option of delivery at all. And if this comment is anything to go by, this is directly losing them business:
“Some companies only have pick-up. This is hard when your only form of transport is a motorbike.”
4. Delivering as instructed
One survey respondent suggested they have had difficulty in getting shipments delivered as per their instructions, stating that “assurance that the goods will be received as instructed is needed.”
This can be particularly important when it comes to perishable goods, minimising theft when deliveries are made when the recipient is not at home, or simple factors such as closing on-site gates and being alert to pets.
Adam Zuchetti is the editor of My Business, and has steered the publication’s editorial direction since early 2016.