Why Retailers need to track their deliveries 🚚

Posted by Lucy Martin Jan 23, 2019 12:55:00 PM

Just a few years ago, online shoppers would happily wait a week or two to get their shopping. Today, thanks to companies like Amazon and ASOS, one-day shipping has become the norm. We have become so impatient that the majority of online shoppers expect their order status to be updated within a few hours, reports OSM Worldwide’s State of Online Shopper Delivery Expectations.

 

Personally speaking, if an online retailer doesn't offer shipping within a few days, I look around and find one that does. Customer expectations are very high, and growing. For online retailers, fast shipping and product tracking is increasingly necessary. An online retailer offering fast delivery is one essential part to track, but what about the actual delivery process? With an increase in online deliveries we expect to see growing problems with delivery. Whether that is an item being damaged, not being delivered or the wrong item being sent,  all of these could be the deciding factor in customer retention. 

 

In todays competitive market two trends are beginning to take shape; Convenience and Tech solutions. Convenience is part of Amazons business model, they offer recommendations and predict items according to previously purchased, because it's quick and hassle-free. Tech solutions looks into how technology can make online shopping for an everyday item a more exciting experience, and increase up-selling and customer loyalty. 

 

Online retailers will understand the lead generation flow on their e-commerce site as it's vital to know when your potential customer drops off, and why. However, it is now a crucial element to understand whether the delivery process of a previous sale is affecting future sales, as everyone knows there is no better/worse advertising than 'word of mouth'.

Below are four fundamental KPIs to tracking your delivery output;

  • On time in full delivery

    This is crucial to evaluate your delivery provider and to understand problems that may hinder an 'on time' delivery. Whether this includes weekend delivery, seasonal or bulk purchases, as a retailer you need to ensure you aren't offering something that is impossible to meet as proven in previous sales. 
  • Average days late

    Often an item will be ordered for a particular event, whether this is a night out or a special occasion. With a time constraint set in place by the customer, the average days late will affect the customer satisfaction and retention rate. If the retailer is able to understand the correlation between average days late and customer satisfaction, it is easier to calculate the impact this will have on each customer and act accordingly. 
  • Rate of returns due to shipment damage or shipment error

    Returns cost a company money, through the extra administration and shipping costs, it's a metric that every company wants to keep to a minimal. By analysing the return of damaged or error goods, a company is able to evaluate their delivery provider and seek alternative options if necessary.
  • Order picking accuracy

    Ensuring that a customer has received the correct goods is the key goals to customer satisfaction and retention. By keeping track and improving this KPI allows a company to evaluate their processes whether this is a manual or automatic one. 

If you wish to find our more about how KPI reporting can help your company, just get in touch! 

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Topics: support, marketing, kpi, Amazon, ASOS, Retail

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