Last-Mile Expectations

Did you know that 68% of consumers say fast shipping would lead them to place an online order? This isn’t too surprising. Amp up the stakes to free, same-day delivery and the results are mind-boggling: e-commerce providers can get triple the conversion rate and six times the order volume according to research from Accenture.

What is driving these stats? Changing customer behavior.

Customers are turning to e-commerce shopping more than ever. About $1 in every $5 spent on all retail purchases continues to come from e-commerce activity, according to a Digital Commerce 360 study. At the same time, customers are conditioned to expect instant gratification. Today we can opt for at-home delivery, with many of our groceries and other essentials being delivered in an hour or less. Despite the fact that the delivery network is completely different, consumers anticipate a similar level of speed and efficiency from Posts, too. But how is that possible to achieve?

The answer lies in transforming the last mile. Our CEO, Brody Buhler, spoke about the crucial need for last-mile delivery at the recent Post Expo 2021 event. In case you missed it, below we’ve outlined what a modern last-mile delivery network might look like, why it’s important, and three things you can do to exceed customer expectations.

Modern Last-Mile Delivery

For every Post, courier, or retailer, last-mile has never been more important because it is the last step in getting packages to the customer’s door on time. Our expectations for speed and convenience have been reinforced with companies like Uber Eats, Getir, Zapp, Jiffy, and many others like them who offer delivery of everything from groceries to everyday items in minutes. These companies offer near-instant gratification.

Customer Expectations

One way e-commerce providers and retailers can keep up with customer demand and improve delivery speeds is by having more inventory stored locally—closer to the customer. In fact, 90% of all orders in 2021 are expected to be fulfilled by local stores. This presents a huge opportunity for post and parcel organizations to offer the solutions retailers are looking for. But traditional Post delivery networks were not designed to offer this speed of service.

3 Tips for Faster Deliveries

Posts that can transform to meet this need will improve their competitive position, enhance customer experience, and grow market share. While it can seem like a daunting task to reshape your delivery strategy, it’s become a must-have, rather than a nice-to-have. Here are three ways to start reinventing last-mile delivery:

1. Repurpose the delivery depot – Today, delivery depots can be set up almost anywhere to accept local parcels which your Post can include on the right routes. Robotics and supporting technologies will help make use of these smaller spaces which are closer to the customer. Having a network of these smaller hubs makes delivery much simpler, more manageable, and much faster.
2. Achieve continuous delivery – There are so many variables that can disrupt routes, from traffic to weather, to the sheer volume of parcels. To mitigate these risks and deliver packages on time, Post can leverage new route optimization technologies to add collections from retailers and deliveries to customers while en route, all throughout the day. Solutions like Riposte Track, Trace, and Last-Mile Delivery can help. These platforms enable real-time dynamic optimization of parcel delivery routes all while giving customers real-time visibility, proof of delivery, parcel intercept, as well as the ability to modify delivery instructions for a parcel while it is still in transit.
3. Redefine your role in the ecosystem – Posts won’t be able to function in the same way moving forward, particularly as customer expectations escalate. And instituting new delivery depots, streamlining operations, and implementing continuous delivery will certainly help. But if Posts don’t own or would prefer not to build their own infrastructure, they can also identify and build relationships with partners who are in this ecosystem and can help them execute their plans.

Fast, Last Mile Deliveries

With the surge in e-commerce activity and heightened customer expectations, the last mile is absolutely critical to get right. Retailers want improved sales growth, share of wallet, loyalty, basket size, net promoter score, and purchase frequency. Fast, last-mile delivery can help retailers and Posts are in the best position to seize this opportunity. Discover how you can embrace and profit from a more modern last-mile delivery solution by contacting Escher Group today.