Consumers have different expectations when it comes to sustainability of home deliveries, according to a consumer sentiment study by Descartes on sustainable home delivery techniques.
The good news regarding preferred delivery options by customers is that they tend to be less expensive options for delivery companies. As Chris Jones, EVP, Descartes, explains, the problem and opportunity for retailers is to acknowledge that consumers demand sustainable delivery options and that offering choice results in happy customers and a stronger bottom line while benefiting the environment.
The report essentially emphasises that many consumers have sustainable delivery personas. Retailers can use a variety of delivery personalities to boost customer loyalty and top and bottom-line success. But what are delivery personas? The idea of buyer personas is well-known in the retail industry as a technique to increase sales by catering to various customer buying experiences. Home delivery falls under the same category. Customers are happy when they can choose the delivery option that is most in line with their expectations and needs since they have different expectations for home delivery.
In Descartes’ work with top retailers, four delivery personalities were identified relating to the promptness and accuracy of home delivery:
Some customers are particularly price-sensitive and would accept the slowest delivery service if it reduces the costs. They don't mind whether the delivery happens throughout the day and are ready to wait days for the goods.
Standard package deliveries are quick, but they are not always scheduled at the time of purchase.
This is how most products, including clothing and other small items, are delivered. These clients don't mind if the box is left on the doorstep at some point during the day since they are delighted with the quick delivery cycle.
This category covers large objects. These customers appreciate a limited time frame more than they value speed.
For example, a refrigerator purchase for a kitchen makeover is made in advance, but the delivery date is close to the installation date. If the item were to be delivered too soon, it would take up space in the customer's house for weeks and run the chance of being damaged until the project was ready for its installation.
This is a group of customers that value their money but value their time more. They won't wait around all day for their delivery since they want it as soon as possible.
For instance, these may be high-value replacements or impulsive purchases. These clients are also the most inclined to pay for the privilege, and it only takes a small number of them to significantly reduce the cost of delivery as a whole.
The survey highlighted that these customers desire eco-friendly delivery options and are flexible in their delivery preferences when those options are connected to sustainability initiatives. For example, 54% of respondents said that they would be ready to put up with longer lead times for ecologically friendly delivery.
• Half of the respondents indicated that grouping orders for delivery on a certain day of the week (50%) or when the shop made deliveries in the region (47%) sparked their interest.
• Nearly half (48%) want the retailer to suggest the most eco-friendly shipping choice.
By lowering the number of deliveries they must make, boosting delivery density, better planning deliveries with longer lead periods to increase efficiency, and directing consumers to eco-friendly—and less expensive—delivery choices, retailers have the chance to cut their delivery costs. Additionally, different personalities can be coupled with the sustainability persona. Finding the most environmentally friendly choices, for instance, for deliveries when "time is their money" or "parcel mindset" apply.
For others, environmentally friendly delivery was so crucial that 20% of respondents indicated they would be willing to pay more. The percentage rose to 27% among Millennials and members of Gen Z. Even if this may not seem like a large number Descartes has worked with retailers that have generated millions of GBP by charging more for premium delivery services.
Customers prefer environmentally responsible delivery choices, but 42% of those polled also wanted retailers to explain any potential environmental impacts of their delivery options. The logistics sector as a whole (i.e., parcel carriers, LTL carriers, dedicated last mile service providers, etc.) will need to be able to calculate the carbon footprint of their delivery services and do this dynamically for retailers.
Consequently, sustainability is an important delivery persona choice.
The shift retailers need to make in order to use delivery personas is to give up their rigid, "one size fits all" approach to home delivery and provide customers with a variety of delivery options that are priced appropriately, allowing customers to choose the delivery option that best suits their needs at a price they are prepared to pay.
In the same way that businesses may lead customers while they shop, they can likewise lead customers when they select a delivery option. According to the report, over half of the respondents urged shops to use the most environmentally friendly delivery methods. How frequently do customers want businesses to offer service choices that genuinely reduce a retailer's expenses? Descartes chose the title of their white paper on the research to be "Retailers: Sustainability is Not a Challenge, It's an Opportunity" for this very reason.
All fields marked with * are mandatory.
Please complete the below form to enable you to download the 'Sustainability is Not a Challenge, It’s An Opportunity' research report as a download.