In retail, few experiences have the potential to damage a company’s reputation like a failed delivery. But did you know that one in 20 online orders never make it to their intended location? This is an extremely worrying statistic for retailers – and for their customers.
Working closely with independent research company Loudhouse, have just released our latest PCA Predict report Fixing Failed Deliveries: Improving Data Quality in Retail – and we made some very interesting discoveries. Our research was conducted by surveying over 300 retailers and over 2,000 consumers across the UK, US and Germany.
Here are some of our key findings…
It’s costly for retailers
65% of retailers say that failed or late deliveries are a significant cost to their business.
In fact, the average cost of failed deliveries per retailer is almost £200,000 a year. Expensive business! Even if the failed delivery was actually down to the courier, 78% of consumers still expect the retailer to resolve the issue.
And it isn’t just financial costs that make up the consequences of a failed delivery. Retailers should also consider the damage to their reputation that can occur. For example, 57% of consumers would avoid using a retailer again if they had a negative delivery experience. Let’s not forget that negative experiences are widely shared on social media, and have the potential to be reached by thousands, if not millions of people – who may then form a negative opinion of your brand based on what they have heard.
It’s annoying for consumers
We’ve all been there: waiting for our new purchase to arrive only to be faced by the fact that it isn’t coming. Whether it’s late or doesn’t turn up at all, it’s a huge cause of frustration for shoppers, and they are likely to think twice about using your company again.
A huge 62% of consumers have experienced a late or failed delivery. However, what many consumers don’t realise is that according to 80% of retailers, they are to blame for failed deliveries. This is due to the fact that they enter incorrect address data in the checkout – perhaps because they are in a hurry, not concentrating properly or just make a simple typo.
Interested in learning more about the implications of failed deliveries? Get your free copy of Fixing Failed Deliveries: Improving Data Quality in Retail.