The term ‘last mile’ refers to the final stage of the supply chain, wherein goods move to their final destination. It sounds simple enough, but the last mile presents a lot of complex challenges for retailers if not managed correctly. For example, if a customer is not kept informed with their order delivery time or date, there’s a significant chance they won’t be available to accept it. Equally, upon the event of an issue – such as a delay, the recipient may miss their window to receive the package. There’s also human error to manage – such as packages being delivered to the wrong place. So, needless to say, managing the last mile effectively is really important for retailers.
Arguably, the last mile is most important because of the opportunity it represents. That’s because 84% of shoppers are unlikely to buy from a company again after a bad last mile delivery experience. Meanwhile, 98% of consumers say delivery is important for brand loyalty. Also, 55% of consumers will switch to a competing brand if it offers a faster delivery service. On the other hand, 74% of satisfied consumers intend to increase purchase levels by 12% with their preferred retailer. What’s more, 53% of satisfied customers would be willing to purchase a paid membership for delivery services.
Customers don’t buy products
This tells us that customers don’t simply buy into the brand, nor their product offering. Customers buy into the experience that you offer. As a result, enhancing the experience you deliver to your customers will create stronger relationships. Impressing your customers with outstanding, recognizable experiences will allow you to enjoy long-term loyalty.
What’s the standard of last mile delivery?
So how can you enhance the last mile experience you deliver? Our latest research found that 80% of retailers end communication with the customer immediately after the dispatch notification. Instead, they rely on the carrier to communicate. However, 24% retailers direct their customers to a branded track & trace page. But, unfortunately for those retailers, 27% of tracking pages led to an error message. The good news is that this leaves a lot of opportunity for retailers to go the extra mile during the last mile.
Outstanding last mile experiences
Shipping is the most emotional stage of the customer journey, so retailers need to take control. By owning the end-to-end customer journey, retailers are able to uphold a higher standard experience. With parcelLab, brands can create a communication workflow that keeps them close to their customers, with messaging tailored to their own look and feel. You know your customers better than we do, that’s why our solution puts you in control. To see our solution in action, I recommend you book a demo. Or, if you have a specific question, feel free to contact our team.