August 13, 2019

Report: The delivery economy is here

Report: The delivery economy is here

Demand for fast, seamless delivery is changing the customer experience across B2C and B2B supply chains, tech firm says.

By DC Velocity Staff

The popularity of on-demand delivery apps and rise of same-day delivery options is reshaping the customer experience in both business-to-consumer (B2C) and business-to-business (B2B) environments, according to a report from logistics software provider project44, released August 6.

The Chicago-based firm surveyed more than 750 consumers and 500 marketing executives and found that changing service expectations are helping to usher in the "delivery economy," in which customers expect low-cost, fast, and "highly transparent" delivery of goods. Key findings show that a failure to deliver on time hurts a company's reputation and that consumer expectations are quickly translating to the business-to-business world. The study also found an increased emphasis on transportation and supply chain departments for delivering the best customer experience.

"With the rapidly growing use of on-demand delivery apps and same-day delivery services, customers aren't just buying a product, they're buying an entire experience," according to Jett McCandless, project44's founder and CEO. "The delivery economy is here to stay, and will continue to have a vast influence on B2C and B2B expectations in the short- and long-term."

Survey findings include: 

  • 85% of marketers now say that delivery is moderately to very important to their brand and customer experience. 
  • 74% of consumers say that when a package isn't delivered when expected, it hurts their impression of the company.
  • 52% of consumers say free or discounted shipping is one of the most important factors in their purchase decision and gave shipping the same emphasis as the price of the product.
  • 94% of people who make purchases for their company said they expect the same level of focus on customer satisfaction as when they're making personal purchases.
  • 65% of marketers also cited good customer service as a core driver of purchase decisions, but only 25% of consumers agreed. 
  • 71% of consumers say on-demand delivery apps are re-shaping consumer expectations for how they want all of their online purchases delivered.
  • 56% of marketers cite delivery and transportation companies and supply chain/?shipping departments (47%) among the top three stakeholders to deliver the best customer experience.

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