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The Impact of Late and Inaccurate Deliveries on Customer Loyalty

Posted on 12.07.2014

Late and inaccurate retail deliveries have a significant impact on consumer loyalty according to a new study from Voxware.

The study, which surveyed 500 consumers on their expectations for delivery of items they purchase online or by phone, found that 69 percent of respondents are much less or less likely to shop with a retailer in the future if an item they purchased is not delivered within two days of the date promised. Moreover, 16 percent of respondents will abandon shopping with a retailer altogether if they receive an incorrect delivery just one time, and 14 percent will do so if they receive a late delivery just one time.

Other noteworthy data found that 86 percent of respondents claim that their expectations for correct and on-time delivery for items that they purchase online or by phone are unsurprisingly higher during the holiday season. Additionally, the majority of consumers still expect delivery within three to six days when retailers are providing free shipping, with 45 percent expecting their holiday purchase to be delivered within 4-5 days and 36 percent expecting their holiday purchase to be delivered within 5-6 days.

“As desktop, tablet and mobile shopping continue to rise, so do consumer expectations for speedy, accurate delivery,” said Keith Phillips, President and CEO, Voxware. “Retailers cannot afford to deliver products later than their promised delivery date, or send incorrect items altogether –not even once. These results prove that any inaccuracies or slight delays customers experience will result in a loss of brand loyalty across all of a retailer’s channels and therefore severely impact bottom lines. That’s why it’s essential for retailers to modernize their warehouses with technology that enables them to successfully address new omni-channel demands. Most inefficiencies and errors occurring in the supply chain happen at the moment of order selection in the warehouse.  By optimizing the supply chain at the beginning, in the warehouse, retailers can provide a better customer experience that keeps customers happy and coming back.”

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