New data from same-day delivery firm Dropoff shows the holiday season is a particularly pivotal time for brands to win or lose customer loyalty based on delivery experiences. According to analyst firm eMarketer, online holiday sales are expected to reach $95 billion as Americans purchase holiday gifts, ranging from retail items to food and grocery and floral, that require delivery. To get millions of purchases to customers, brands rely on delivery service providers and logistics to ensure the right product reaches the right customer in the right condition and on-time.
Dropoff’s study revealed that 89% of consumers say they are concerned about their holiday gifts arriving on time and 83% are concerned about their holiday gifts arriving damaged. While these may sound like concerns about delivery companies, in fact, the study uncovered that customers reward and blame brands for the respective successes and failures of holiday deliveries. Specifically, when delivery goes smoothly, 96% say it reflects well on the brand/retailer. And when delivery goes poorly, 94% blame the retailer, while as few as 42% blame the delivery provider.
“With so many brands and retailers in the market today, consumers have more options than ever and will take their business elsewhere if they have a bad brand experience,” said Sean Spector, CEO of Dropoff, in a news release. “Retailers can no longer have delivery mishaps and they need to start looking at their delivery partners as extensions of their business to ensure their values are carried out from customer purchase all the way through delivery.”
The study also shows that the holiday season, in particular, is a time when brands can improve or lose loyalty: 87% agree that that when ordering a gift, receiving the correct item, in the correct condition and on time is even more important than when purchasing something for themselves. Respondents also reported being 17% more likely to recommend a brand during the holiday season than during any other time of the year.
Additional findings include:
- Retailers take massive losses in brand loyalty due to bad delivery—Holiday shoppers reported being 28 times less likely to recommend a brand that delivers a gift damaged and 35 times less likely to recommend a brand that delivers a gift late.
- Increasing loyalty requires retailers to exceed customer expectations—Surprising and delighting customers during the holiday can have a big effect. Respondents reported being 22% more likely to recommend a brand that upgraded their order, 12% more likely to recommend a brand that offered free delivery, and 7% more likely to recommend a brand that delivered their gift faster than expected.
- Retailers can win big by accommodating last minute shoppers—64% of holiday shoppers reported they will be doing at least some last minute shopping this holiday season and 87% of those say they would be more likely to purchase from a brand offering same-day delivery.
Source: PRWeb; edited by Richard Carufel