Last-mile delivery is one of the costliest links in all supply chains, but also – one of the most important to customers. 40%* consider delivery service a “must-have” feature for food and grocery products, but many of them are dissatisfied with their current last-mile experience. Now, when shopping habits of people around the world have changed and a lot more order groceries online, new and inexperienced vendors offer their last-mile delivery services, product safety during this process can be in danger.
Supply chain usually is made from several links, but the most costly and vulnerable is the final link – the way from retailer to customer. In the last few years and especially during Covid-19 pandemic customers have changed their behavior by ordering food online instead of shopping in stores. The problem is, with a rise in demand, many new business have started to offer delivery service without proper preparation. Studies show that 40% consider delivery service a “must-have” feature for food and grocery products, but many consumers are dissatisfied with their current last-mile experience
Higher customer satisfaction leads to higher spending, and research* shows that close to three-fourths of consumers are willing to reward retailers who get the last-mile experience right with increased spend and loyalty.
People who often order groceries online usually order fresh, chilled or frozen food – fresh produce is the biggest contributor to basket size. But this category offers the biggest challenge to delivery service providers because a lot of people have concerns that fresh produce like meat, vegetables, eggs or milk will be bad, because of the delivery time. That is making a challenge to delivery services – a lot of products are perishable, and if a customer gets those products already in bad condition, they will not shop in a particular shop ever again – the trust will be lost. As the study shows, if a customer is dissatisfied, 48% will stop ordering from a poor-performing retailer, but those who will continue to shop there will reduce their spending by 45%.
Shopping for groceries online has lagged behind other product categories largely because consumers are concerned about the freshness of their food. Every company that offers last-mile delivery can increase customer satisfaction with a well-considered last-mile delivery service – one thing that makes the most of the satisfaction about the retailer.
By 2021 51% of consumers satisfied with delivery services will place orders for food and groceries multiple times a week. For those companies that get it right, this offers a significant opportunity as 74% of satisfied customers plan to increase their spending by 12%. One part of customer satisfaction, of course, makes a wide assortment of the highest quality products for the best price, but the other part makes the last-mile delivery service’s success. There are easy ways to increase customers’ trust and loyalty in this process. For example, “Kedeon solutions” offers a last-mile grocery delivery monitoring solution that allows both parties – the retailer and the customer to see in what conditions (temperature, air humidity, etc.) the products have been, thus – how well the quality is ensured in the delivery process. Customer satisfaction, when seeing that their products are fresh and they do not pose risks because of inappropriate delivery, will definitely be increased by knowing that they have chosen a retailer that stands for their customer’s safety and are transparent about that.