Australian businesses have done a good job at shifting their habits towards the digital sphere however a lot of businesses still haven’t fully grasped the new opportunities that on-demand delivery provides.
Delivery feels like it has always been a necessary evil for businesses; it is rarely seen as an opportunity to improve customer experience or to attract new customers. Business owners tend to forget that the customer experience doesn’t stop at the check-out but rather the customer’s door. Over time, customers have grown to expect services that work for them and not the opposite.
Here are some typical frustrations customers get when it comes to deliveries:
- I’m expecting a product that is being shipped from Wollongong and I live in Sydney – that delivery will take 2 days – If you were canoeing from Wollongong to Sydney it would take less time
- I’m expecting a parcel to arrive at home – the times at which the postman comes are precisely the times when I am at work – Shoulda taken a day off
- I want to buy a dress online for a party tonight – No can do – Shipping takes 2 days minimum
These frustrations have been around forever but as technology improves, customers are becoming increasingly demanding, as they should might I add.
As people’s lives get busier, they expect more convenience, and when you can provide that to them, they will love you forever (well, maybe not forever, but you get the idea).
The continued discontentment with delivery services as well as changing customer expectations have birthed a new breed of delivery services globally. People want stuff quicker and they want to have a better experience when receiving it.
When you think about it, it’s not that complex;
A) Give your customer the option of quick on-demand delivery
B) Make it arrive when and how you said it would
C) Your customer’s happy
D) The customer buys again and more frequently
E) Life time value of the customer goes up
F) You make more money.
Bottom line is: it’s all about options. Offer the customer two types of delivery: a standard one and an express one.
Let the customer decide what service they value more. If you offer the customer the option to get their item delivered in 2 days or in 2 hours, you’d be surprised how often they’ll choose the latter and they’ll have no issues paying extra for it too.
We now have plenty of case studies of businesses that have started offering on-demand delivery through Sherpa and have since then seen their customer orders increase dramatically. Some businesses are making thousands of dollars extra over a quarter because they started offering on-demand delivery as a premium option.
Don’t make the critical mistake that a lot of businesses owners make by underestimating what their customers are willing to pay for convenience.