Black Friday is one of the biggest dates in the retail calendar. Last year it was estimated that £810 million was spent on the last Friday of November. Meanwhile forecasters predict that sales in the UK could reach £1 billion this year. While the potential rewards for retailers are great, the day also comes with a unique set of delivery challenges.
Last year several major retailers were beset with delivery problems which had far reaching repercussions for the overall customer experience. In the age of social media, customers are just one click away from giving retailers a public dressing down with huge reputational knock-on effects. Now with less than three months to go until Black Friday 2015, and high profit margins at stake, there are a host of delivery factors that retailers must consider in order to avoid a boom and bust Black Friday.
Set realistic delivery expectations:
One of the main draws to Black Friday is that consumers get large discounts, so retailers need to prepare for the obvious impact this has on sales and subsequent delivery volumes. The consumer demands last year were unprecedented but now retailers know what to expect and can prepare for it. Nearly two thirds of consumers cite poor delivery standards as the worst thing that can go wrong with online shopping and our research shows that 23.5 per cent of respondents said that they had already used social media to complain about these services. A good delivery partner will have analysed the lessons from 2014 and will scale up the delivery operation to meet with demand, so that customer service isn’t compromised.
Recognising the demands that these significant additional volumes have in the delivery supply chain, it is also key that Retailers manage their client expectations from the outset in terms of setting the delivery aims. It is far better to perhaps extend the delivery commitment in the period immediately after Black Friday by 24/48 hours for Standard Deliveries, than over promise and under deliver. Engaging with their delivery suppliers will also help to ensure that everyone is as prepared as possible to manage the huge increase in parcel volumes that occur.
Consumer convenience:
Convenience is a core part of good customer service. Consumers have more ways to receive their goods than ever before. For example, Network Rail recently announced the nationwide roll-out of store pick-up points within stations nationwide. Previously, offering a sole, standard delivery service may have been sufficient but now other options such as trackable and express deliveries are essential to appeal to a wider audience. With trackable delivery the timing of each stage in the delivery process is recorded enabling the item to be traced at any point from despatch to door. In this way, any processing delays can be easily identified and dealt with.
Recognise returns:
In addition to working out how items will be delivered, it’s also vital to consider how you might get them back, should the need arise. A good returns system is something that many companies can forget to implement or implement poorly. If customers find it difficult to return goods, it’s likely that they may look to a competitor next time. Research by Harris Interactive shows that 85% of customers say they will stop buying from a retailer if the returns process is a hassle and, conversely, 95% will return to the same catalogue or internet retailer if the process is convenient.
Identify new buying trends:
It was recently announced that Twitter is testing a new way to discover and buy products online. Meanwhile Pinterest, the photo sharing social media platform, has started to roll out a buy button on pins. These advancements give retailers even greater visibility leading to higher customer engagement with the aim of driving sales. Increased sales mean more deliveries, which can only be supported by strengthening fulfilment and distribution solutions. By partnering with a third party expert, retailers are better placed to not only keep up to date with the latest innovations but also to judge which ones might fit their business and how the delivery and fulfilment processes will be affected.
Management of multiple purchases
With an estimated spend of £810 million during Black Friday 2014; retailers must be prepared for the prospect of multiple purchases per consumer on their sites. By leaving a specific time window after an order is placed and before the fulfilment process starts it gives customers the chance to go back and purchase other items during the day, these can be incorporated into one package. This is not only convenient for the customer but it also reduces shipping costs.
When it comes to mailing and delivery services, seasonal peaks place huge demands on retailers. Therefore it is essential that retailers anticipate these peaks with any potential perils. Customers don’t like delayed or unsuccessful deliveries, and in the competitive ecommerce market means customers can easily defect if they are unimpressed with the service they receive. By engaging with a third-party expert with the necessary knowledge contacts and expertise, retailers can truly capitalise on the financial rewards available on Black Friday 2015.
By Paul Galpin, Managing Director at P2P Mailing.
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