By Maarten Tops, Product Director
Time and again, the research tells us that consumers do more online shopping in the peak period for one reason only - to bag a bargain in the run up to Christmas.
This means two things for retailers. Firstly, that pressure to discount heavily will have a knock-on impact on profit margins. Secondly, that differentiation during such a competitive period needs more than price alone to provide the ecommerce customer experience shoppers are looking for.
Driven by value for money
Statista reports that over 50% of UK shoppers are driven by the best value for money and low prices. This report found that the majority of consumers in Europe are on the lookout for discounts (67%) and sales (69%) this year - way ahead of the next nearest driver (limited inventory, 13%).
At the same time, Black Friday 2024 is poised for another record year. Adobe forecasts that online retail spending will hit a record $241 billion during the 2024 holidays, up 8.4% from 2023.
The demand is higher than ever, but pressure on retailers’ profit margins will be intense. How can they ensure they don’t end up empty-handed after peak season?
Use delivery data to contain costs and build efficiencies
The answer is in delivery data. It is a rich source of information that can help retailers contain costs and build efficiencies. This data fills a key blind spot in the customer journey, enabling retailers to build a clear understanding of every stage, from the homepage to the doorstep. It enables them to go into this year’s peak sales period armed with insights that can help reduce costs, build loyalty, and drive operational efficiencies.
It’s why we’ve developed a guide, “Creating a data-driven delivery experience” to help retailers unlock insights from the delivery process for this Black Friday and beyond.
Five ways delivery data can help retailers win
The guide outlines five approaches for combining data from deliveries and sales to raise profits:
- Comparing and reducing carrier costs. Last-mile delivery solutions account for over half of all logistics costs – but these costs cannot always be recovered from customers. By comparing carrier rates and negotiating reductions, retailers can reduce their last-mile costs.
- Optimizing checkouts to improve conversions. As with payments, customers prefer to receive their items in different ways. For example, they may want signed-for deliveries for fragile items, or PUDO (out of home pick up/drop off locations) for clothing or cosmetics. Tailoring the checkout experience to reflect customer needs can enable retailers to increase conversions by up to 20%.
- Reducing profit erosion from returns. The right returns management software ensures resaleable items can be swiftly returned to the shelves. And insights into the reasons for returns can help retailers improve product descriptions, so more customers “buy right first time” to minimize returns in future.
- Turning delivery tracking into additional sales opportunities. Customers are more engaged with ecommerce brands while they wait for deliveries than at any other time in their journey. Those that can weave product promotions and offers into communications and processes are more likely to benefit from repeat purchases and upselling via an improved post-purchase experience.
- Building customer loyalty with great delivery experiences. 85% of shoppers will consider buying elsewhere after just one bad delivery experience. Armed with data on every delivery they make, retailers can press carrier partners for improvements, and ensure they keep their promises to customers.
Creating a data-driven delivery experience
nShift’s delivery and experience management (DMXM) suite is a unique combination of enterprise-class delivery management, a library of 1000+ carriers, and customer-facing applications. It provides a joined-up, end-to-end experience from the checkout to the doorstep.
Read the full report: “Creating a data-driven delivery experience: how delivery and experience management (DMXM) unlocks business-changing insights for online retailers”.
Author
Maarten Tops
Product Director
Maarten Tops is experienced within delivery & experience management, product development, and digital transformation. With a strong track record in SaaS, Ecommerce and Tech, he is passionate about leveraging technology to drive innovation and efficiency. At nShift, Maarten is the Product Director for nShift Ship, Transsmart and Post Purchase Product Suite.
