Welcome to 2020 – The World of the new “Delivery Economy”

January 16 2020
Delivery Economy

         * On Demand * Speed * Choices * Simplicity * Transparency

 Isn’t it amazing how quickly things change these days? Just a few short years ago, satisfying the customer merely meant providing them with a comfortable and attractive atmosphere in which to shop, and highly responsive sales associates to meet their every need.

Not so anymore. Providing a great customer experience has always been the hallmark of a successful business. But today, customers’ expectations have changed dramatically due to new technologies. It’s now an on-demand world, with customers expecting speed, choices, and simplicity. Hence, the emergence of the new Delivery Economy, and both retailers and logistics company best take note.

A few other things have become important in this new Delivery Economy. Now customers have added low cost and transparent delivery to their list of demands. Apps like Uber have spoiled the consumer. They don’t just offer traditional delivery information, but very up-to-the-minute tracking capabilities. According to recent research, customers are seeking this type of transparency with all their brand interactions.

In prior commerce models, customers made their shopping decisions based on their personal budget, then factoring in the shipping costs. Enter Amazon into the marketplace. With free and same or next day delivery available, if customers don’t get free shipping from their brand, they may choose to shop elsewhere. And they are more willing to pay extra to get their product sooner. In recent surveys, sixty percent of consumers say they will pay more to get their product sooner. That wouldn’t have happened a few years ago.

On demand delivery affects both B2B and B2C. While consumers want what they bought and want it quickly, ninety four percent of business purchasers admit that they expect that same service and delivery experience for their business purchases as well.

And here’s an interesting effect of this new economy—customers now say that the delivery experience affects their overall impression of the brand as much as the product itself. Hence, companies have to select their delivery partner very carefully, and many are switching to regional carriers such as LSO instead of the traditional national companies. With the same or better service, accessible personal customer service, lower costs, less damages, and a much more pleasant and user friendly experience, it’s a no-brainer choice for shipping managers.

Companies are incorporating the Delivery Economy into customer experience strategies, and brands need close alignment with all those effecting the customer delivery experience. This partnership will dictate which brands will be most competitive in the future.