Ahead of the upcoming holiday shopping season, the delivery management company nShift is urging retailers to make deliveries a key part of the customer experience, to use deliveries as a marketing opportunity, to minimize emissions, and to use returns in a more strategic way.
According to nShift, three out of four consumers agree that they would stop doing business with a retailer that fails to meet their expectations. Conversely, if a retailer succeeds in delivering on its promises, it can expect higher conversion rates, increased customer loyalty, and repeat purchases.
– Today, customers expect a wide range of delivery options, and offering them increases conversion rates. The more delivery options retailers have available, the more packages they can ship during peak season. This naturally leads to higher revenue, says Mattias Gredenhag, CTO at nShift.
Delays, missed deliveries, and lost or damaged items cause a great deal of frustration for customers, especially as holidays such as Christmas approach. According to nShift, consumers are most engaged while waiting for their orders, and with the right incentives, they’re more likely to make additional purchases. This presents opportunities to generate upselling, for example, by promoting special offers.
– Customers also expect to see what steps retailers are taking to minimize their environmental impact. “Tracking emissions data at the individual shipment level can help retailers set realistic goals for reducing emissions and clearly communicate their net-zero efforts to customers,” says Mattias Gredenhag.
Use returns strategically
Customers also expect simple and flexible returns. However, if the terms are too generous—such as offering immediate cash refunds to everyone—returns can lead to significant losses. Retailers can minimize the costs of returns by using tools that allow them to tailor return offers to different customer groups. And with the right return process, they can convert 30 percent of returns into exchanges, thereby reducing the impact on their profit margin. Mattias Gredenhag explains:
– A more tailored returns strategy, in which a range of offers is targeted at different customer groups, can make a big difference. These offers might include alternative products for exchange or invite customers to the store to see and try out the options for themselves. In cases where customers abuse return policies, retailers can charge a fee. At the same time, retailers should make returns even easier, with refunds processed in a matter of seconds.
