Delivery is the key

As a consultant most of my time has been spent in store making sure that sales are optimised in the store. That is still a key element for success, but the up and coming need for many retailers revolves around delivery to their home. Customers used to be happy that they would have to wait a few days for a delivery to their home. That has all changed, they now expect it the same day and this has created a new emerging industry…home delivery. ASDA, the UK retailer announced same day delivery and is causing other retailers to rethink their model. Retailers that do not have a same day delivery service are now being perceived as failing in their customer service. Research will tell you they also have a reduced sale per customer as same day delivery retailers find it easier to increase the average sale per customer. As a retailers we now need to optimise the “at home experience” as well as the in-store experience. The consumer today is shopping for service and delivery as well as product and price and as a result more and more retailers are offering “same day delivery”. This is a challenge You need to ensure that you can maintain the profit margin You need to enhance the delight factor for the consume The delivery needs to be part of the experience and the last” touch point” lies with the delivery person. Many retailers are still relying on rigid delivery schedules that require customers to be at home at a set time rather than the customer decided on when they are available. It is this style of delivery that is now being rejected by consumers. Large retailers are investing in “continuous optimization at point of ordering” using expensive computer modelling. As a small retailer this may not be practical, but the team need to brainstorm how same day delivery can be offered professionally and profitably. It will be one of the keys for the future.