CSCMP's Supply Chain Quarterly
Logistics
August 18, 2019
Forward Thinking

Report: The delivery economy is here

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

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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