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Want To Know How To Drive Customer Loyalty?

Furniture World News Desk on 10/24/2016


By Tony Nuzio, Founder/CEO of ICC


Dotcom Distribution has released the results of a recent study titled “Driving Customer Loyalty With Fast Delivery and Quality Packaging.” The study involved input from more than 500 online shoppers to learn how the entire delivery process from packaging to final delivery, impacts what they called “Customer Lifetime Value.” And, Customer Lifetime Value involves the factors that motivate consumers to remain loyal to a specific brand, an extremely important factor for all on line sellers of any product.

The survey results confirmed what most folks already know and that is online shoppers want fast delivery. This survey’s results however brought into focus several other key components online shoppers are concerned about. In addition to fast delivery, online shoppers also expect complete transparency throughout the order and shipping transaction, and for virtually the first time we heard they expect their products to be shipped with premium packaging. So, if the online shoppers do not get all of these attributes, they can easily switch to competitors who offer the best in all three categories. A word of advice from the survey, retailers and brands would be smart to invest in an infrastructure that provides their customers with a seamless and positive delivery experience in all three of these areas.

The Key Findings in the survey included the following statistics:

  • 87% of the online shoppers surveyed indicated that transit time was a key factor in influencing their decision to shop with a particular brand or retailer.

  • 67% of the survey respondents said they would even be willing to pay more money to get same day delivery if they needed the package for a certain deadline. (Something husbands are very familiar with)!

  • 47% said they would pay extra for same day delivery simply because they wanted the products they ordered as soon as possible. This could be driven by the Millennial Generation’s need for instant gratification.

  • 44% of the survey respondents indicated that fast delivery was even more important than the quality of the product they had purchased. This is an incredibly difficult statistic to absorb.

  • 47% of the respondents stated that they would choose not to purchase again from a retailer or brand if a previous purchase experience lacked insight into the status of their shipment throughout the fulfillment and delivery process.

  • 21% of the survey respondents indicated that the critical area for shipment transparency was while the shipment was in transit. Nothing new here.

  • 40% of those surveyed stated they would be more likely to purchase from a brand or retailer again if the packaging was “upscale”, while 60% said that “gift-like packaging” gets them excited about receiving the package. This is one of the first times we have seen packaging enter into the online buyers thought process.

  • 84% of shoppers that purchased luxury items would pay more for a shipment to arrive by a certain date compared to just 67% of all other customers, again no surprises here.
So after all of these results, the following question was asked, “how much extra would you be willing to pay to get same day delivery if you needed the package for a specific deadline.”

  • 34% said they would pay between $1.00 to $5.00
  • 44% said they would pay $6.00 to $9.00, and
  • 22% were willing to pay in excess of $10.00 for that same day delivery.
So, what conclusions can be drawn from this survey you ask?

  • It is crucial for brands and retailers to master e-commerce fulfillment so as to maximize sales and generate lifetime value from their customers

  • Fast shipping is valued by online shoppers as evidenced by their willingness to pay more for expedited delivery

  • Retailers and brands stand to lose customers to competing brands if they are not able to meet these expedited delivery needs of their customers

  • Customers expect complete transparency throughout the on line shopping and delivery process

  • Customers appear to be placing additional value on the packaging of the products when they are received, again something we have not seen before

  • Retailers and brands can learn from this survey’s results that if they do not have the infrastructure to provide all aspects that are important to the online shopper, their sales are sure to suffer

  • And finally, the survey results clearly point out that fulfillment and delivery have a direct impact on customer happiness and therefore customer loyalty. Without it “Customer Lifetime Loyalty” could be lost forever
Tony Nuzio is Founder & CEO of ICC Logistics Services, Inc. Since the company’s founding in 1975, Tony and his team have been helping companies reduce shipping costs and optimize the spectrum of logistics spending. Tony is also the Publisher & Editor-in-Chief of Logistics Strategies a popular monthly opt-in newsletter that reaches thousands around the world. With over 45 years of logistics expertise, Tony is a passionate logistics educator who has taught at Nassau Community College, the US Merchant Marine Academy and BOCES of Nassau County. In addition to higher education instruction, Tony has created logistics and transportation training programs for employees at several of the country’s biggest companies including Cahners Publishing, La-Z-Boy Chair Company, PPG Industries and the IBM Corporation. Considered a thought leader in the logistics industry, Tony has been published in several logistics and manufacturing industry publications including, Industry Week, Information Week and the Institute of Industrial Engineers. Tony is also the former publisher and editor in chief of the Transport De Regulation Report. Tony is a graduate of the Institute of Logistical Management and has held positions as a logistics professional for several organizations including Stauffer Chemical, Kennecott Copper and the Singer Company.