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Customer Experience Management

What Customers Value in Last-Mile Delivery

We analyzed several companies to better understand how they approach last-mile delivery. And to help identify the values customers want from delivery.


We analyzed several B2C companies to better understand how they approach last-mile delivery. And to help identify the values customers want to get from their delivery experiences.

Specifically, we looked at:

  • The types of deliveries customers want to use
  • How much they’re willing to spend on delivery
  • What kind of delivery services they expect to receive
  • The characteristics of top performing last-mile deliveries
  • And more

Now it’s time to share what we’ve discovered.

Our summary findings are as follows:

1. 90.4% of customers value price, speed, convenience, efficiency, and friendly service above all else.

2. Only 11% of companies offer more than one type of delivery service (besides standard delivery).

3. 68% of customers prefer home delivery to any other kind of delivery method.

4. It takes companies on average 3-5 business days to deliver orders (excluding food, beverage, or grocery delivery services).

5. When it comes to grocery, food, and beverage delivery 58% of customers don’t want more than 40 minutes to receive their orders.

6. 84% of companies were able to keep doing business after COVID-19 if they started offering last-mile delivery services.

7. 71% of customers are content with the cheapest delivery option available to them.

8. Only 41% of customers don’t mind paying extra for delivery, if it means they’ll receive a better delivery experience.

9. As much as 95% of consumers would choose free one-day delivery as their ideal delivery option.

10. If the market trend continues, there will be a 78% increase in last-mile deliveries in cities by 2030.

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What Customers Value Most from Last-Mile Delivery?

With the global COVID-19 pandemic, consumers have become more demanding than ever.

But despite the rise in order volumes, customers still want to receive a quality service.

People want to have more control over when, where, and how they receive goods.

They also want to be involved in the delivery.

They expect companies to be transparent about it.

And despite the rising pressure, they still want a pleasant experience at their doors.

These values are redefining the last-mile delivery as:

90.4% of customers value price, speed, convenience, efficiency, and friendly service above all else.

Speed

Customers want speed.

If two companies offer the same products at the same price, the time it takes to deliver them will decide which company the customer chooses.

Only a decade ago, next-day delivery was a luxury reserved only for the urgent courier business.

Amazon’s last-mile delivery was a game-changer after they introduced same-day delivery.

72% of Amazon deliveries are fulfilled within 24 hours for all of their customers.

And according to PwC’s Global Consumer Insights Survey:

As much as 41% of customers don’t mind paying an extra fee for same-day delivery.

One of the fundamental trends in the B2B last-mile delivery is the window for delivery.

It is declining with more and more customers favoring same-day delivery.

Same-day delivery or next-day delivery wouldn’t be possible to fulfill without the help of delivery management software.

Last-mile delivery software enables companies to use route optimization algorithms that ensure that drivers complete most deliveries in the least amount of time.

It takes you less than 30 seconds to plan or adjust routes and delivery schedules.

Taking different variables such as driver availability, delivery windows, location proximity, driver availability, etc. into consideration, enables deliveries to be completed as fast as possible and eases last-mile delivery businesses to keep up with the high customer demands.

Speed and convenience of delivery are the heart of last-mile delivery trends.

Convenience

Another thing customers value is convenience and last-mile delivery can give them that.

They need to have more convenience from each delivery.

Actually, according to a survey from 2020 convenience is among the top three things customers value in a quality experience.

Usually, companies send a confirmation email with an approximate date and time of the delivery. For instance:

Thank you for your purchase. Your item will arrive within 2-3 business days.

But is this convenient?

Not really, because in this case, the customer needs to stay at home and wait for the order not knowing when exactly it’s going to arrive.

Even though an average customer wants his order delivered fast he also wants to choose the time of delivery arrival.

Letting customers choose the most convenient time and date of the delivery gives them a chance to plan their time.

And they don’t have to worry about missing their order, which is also good for companies because it minimizes the chance of returns.

Price

It’s not a secret that companies that are offering free shipping are preferred by customers.

Even though it’s a relatively new phenomenon, it became quite popular quite fast.

We are not going to lie, free shipping is now something customers expect when shopping online.

In fact, 93% of customers prefer free shipping to any other type of discount.

Customers are more likely to shop with your company if you’re offering free delivery,

The whole concept of free shipping reduces friction and gives you a good brand image.

Also, if your competitors are offering free delivery, and you aren’t, you’ll fall behind.

Efficiency

Customers expect high service levels and a great experience. If you want to maintain this, you will need advanced optimization.

When the last mile is well optimized, the chances of something going wrong are way smaller.

That’s why the e-commerce business, it’s crucial to have a lean operational process that meets service and efficiency requirements.

You do that by creating optimal routes and sequences for deliveries in each route which helps your delivery to be fast.

When looking at last-mile delivery services, it is important to confirm that they will enable you to achieve the necessary efficiencies across your entire last-mile ecosystem.

This means everything from operations to drivers, and finally to end customers—with the core of business focused on the last mile.

Friendly service

96% of all customers say customer experience is an important part of their loyalty to a brand.

That is why when working on last-mile delivery logistics it’s crucial to think about how friendly your service is.

Last-mile gives you a chance to keep your promises, deliver orders accurately and on time which provides a consistently good customer experience.

With the help of last-mile delivery software, customers can have direct communication with drivers which helps to keep a friendly relationship with your customers.

The driver app enables your driver to address the customer by name. Or chat with customers before they arrive at the destination, with quick reminders:

Hi John,

Your order is just 15 minutes away.

See you soon!

And, this kind of attention customers love and need.

You simply must focus 50% of your efforts on building a quality experience for your customers with every completed delivery.

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What Else Do Customers Value from Delivery?

As we mentioned at the beginning, this list isn’t short. After seeing what customers value the most about last-mile delivery, it’s time to see what else they do customers value from delivery.

We shall take a closer look at:

Delivery Tracking

When shopping people want to feel, touch, smell or see what they buy, that’s why some people still refuse to use delivery service.

That’s why customers want to track the status of their orders.

By giving your customer a chance to check the progress of their delivery you’re actually giving them greater control and they feel on top of the situation.

Customers value visibility because they want to know where the package is at different stages of its journey to their house. Yep, It’s that simple.

They also don’t feel left out of the process which is important and involves them.

Of course, last-mile delivery tracking or any other delivery track and trace, especially if we’re talking about live tracking requires the use of advanced technology.

Multiple options

According to delivery statistics, people want at least three delivery options besides standard delivery (usually 2-day delivery).

If you take a look at Amazon’s shipping options for their Prime users you will see that Amazon has 20+ delivery options available.

Sometimes a lot of options can lead to choice overload, but offering a few different options is something you need to include in your business.

Some of the most popular on-demand delivery options include:

  • Same-day delivery
  • Next-day delivery
  • Free delivery
  • No-rush delivery (5-day or 7-day delivery)
  • Weekly delivery (i.e. on Fridays)
  • Local delivery
  • Custom delivery

Customers love to have options, and you should make sure your company offers them.

Personalized delivery experience

Collecting vital information about customers can shape your delivery.

It gives valuable insights into customer requirements. And one such emerging requirement is personalization.

Creating a personalized delivery experience for your customers is crucial for survival in the age of empowered customers.

Hi John,

Your order is ready for delivery.

It will arrive today at 3 PM.

Thank you for choosing our company!

This kind of personalized message makes customers feel important and well-treated. At the end of the day, we all like a bit of attention, right?

Notifications alert

Sending notifications before the drop-off is a perfect way to ensure customers never miss a delivery.

Life is unpredictable, so even if customers picked the time of the delivery, things can change.

That it’s why you need to remind them about it and a quick SMS and email reminder 24- hours before arrival is the way you can achieve this.

On the other hand, customers value notification alerts, people like to get updated about their order or just simply reminded.

For a truly memorable experience, you can also send another notification one hour before drop-off.

Up-to-date technology

Up-to-date technology has transformed consumer habits. Apps, mobile devices, automation, etc. allow customers to get exactly what they want at the moment they need it.

New digital technologies have begun a shift in customer expectations and the result is a unique kind of modern buyer.

Nowadays consumers are constantly connected, app-native, and aware of what they can do with technology.

Because of all the opportunities that arise from using up-to-date new technology, customers are often rare in their digital customer experience first - it’s crucial to have that in mind.

Finally, all the last-mile delivery opportunities wouldn’t be possible with up-to-date technology.

Loyalty programs

Customers love loyalty programs. According to UPS, 81% of all online shoppers take part in some kind of loyalty initiative.

Typically, product discounts are the most valuable benefit of joining a brand’s loyalty program

Customers are also increasingly looking for different alternatives when it comes to these programs.

Loyalty program users also care about reward choices, flexible redemption policies, and simple-to-use platforms more than the value of the reward itself.

Customers want their brands to understand what they want and deliver a more value-driven experience, now more than ever before.

Being Transparent

If you want to nurture a trusting relationship with your customers it has to be built around openness and transparency.

Transparent delivery is what customers value. By providing a tracking link you let your customer monitor their order.

They get all the important information like the progress of each order in the delivery life cycle as well as its physical location on the map.

If you are 100% transparent about the entire delivery process your customers are going to be loyal.

Social responsability

Social responsibility is important to customers.

The beliefs and values that drive a company’s brand became more important as people are more aware of the impact their buying decisions can have on the world around them.

Businesses need to demonstrate social responsibility and take stances on current social movements.

Bear in mind, that more than half (or 59%) of people are likely to stop shopping at a company that supports an issue they disagree with.

Feedback

Customers love to give their feedback.

And, you need to listen to their feedback. In any delivery operation, regardless of the industry, this is the key to providing a quality customer experience.

By asking your customers to give feedback you make them believe that their opinion is truly valued.

When the customers feel listened to, they begin to have positive implications with your brand which can only benefit your business and lead to more sales.

Brand Image

Brand image matters. A lot.

It’s important to understand that brand image is way more than a logo that identifies your product, business, or service.

Today, brand image is a mix of the associations consumers make based on every single interaction they have with your business.

Not being able to fulfill last-mile delivery or not allowing your customers to choose the form of the delivery, will affect your brand image.

The brand image goes beyond branding, it makes an impression, builds credibility and equity, and tells a lot about how you do your business.

Human interaction

Even though we’re living in the technology era, the need for human interaction is still strong.

Especially now when the whole world is facing a pandemic and social distancing.

Empowering drivers to talk to your customers is what helps build and nurture quality relationships.

Giving them the ability to talk to your customers directly before delivery can help you win them over.

How to Improve the Value of Your Delivery?

Improving the value of your delivery isn’t possible without the use of technology.

Delivery management software can help you better manage customer expectations.

And we can help you get there.

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