The Last Mile Matters: Why delivery experiences are critical to customer retention
We’re buying more online than ever before. Retailers have spent years optimising the online checkout journey, but for many customers the real moment of truth comes after they click “buy”. Customers expect to receive their items quickly and efficiently, but in many cases, this isn’t happening.
Delivery problems are increasingly common
Delivery issues are commonplace, with over half (58%) of UK consumers who’ve received a delivery in the last six months experiencing a problem. Clothing and/or footwear (43%) and grocery (30%) were the sectors where consumers were most likely to report delivery problems.
Outsourcing fulfilment to courier companies is now standard practice. Just 9% of deliveries are made by retailers’ own delivery teams, many of these in the grocery sector. However, even where fulfilment is outsourced, poor delivery experiences can still have significant consequences for retailers.
Poor delivery experiences are damaging customer retention
That’s because nearly 3 in 10 customers (28%) who experienced a delivery issue say they are unlikely or very unlikely to order from the same retailer again. This rises to 41% among those whose items weren’t delivered or went missing, and 36% among those who had a poor customer service experience when trying to resolve the issue.
For many customers, the retailer remains responsible for the overall experience, even where fulfilment is outsourced. Poor delivery experiences therefore risk damaging both customer retention and future purchase behaviour.
Reliability, communication and choice matter most
Picking the right delivery partner is unmistakably important, and retailers need to consider the customer experience alongside cost. The most common complaints include items not being delivered or going missing (23%), deliveries arriving late (21%), and items being left somewhere other than a nominated safe place (20%). Retailers therefore need to work closely with fulfilment partners to improve reliability and communication, helping ensure deliveries arrive on time and as expected.
When asked what would improve their delivery experience, customers were most likely to say better communication and responsiveness from the delivery company’s customer service team (31%), followed by customers being able to choose their preferred delivery company (28%).
Retailers can still recover goodwill when things go wrong
But all is not necessarily lost, and retailers can rescue situations through goodwill gestures when the delivery experience has been less than ideal:
For example, a refund on the delivery fee can be especially effective in improving the experience for customers whose delivery didn’t arrive on time (32%), wasn’t delivered or went missing (32%) or was left in an inappropriate location (34%).
A refund or discount on the original products customers ordered can be effective in improving the experience of those whose items weren’t delivered or went missing (34%).
Vouchers can be effective in improving the experience of those whose items arrived damaged (32%).
What does this mean for retailers?
The last mile matters: retailers need delivery partners that reflect the experience they want customers to have. Poor fulfilment experiences risk damaging repeat purchase and brand preference.
Customers still blame the retailer: even where fulfilment is outsourced, shoppers continue to hold the retailer responsible when deliveries go wrong. Fast resolution and responsive customer support therefore remain critical in limiting dissatisfaction and retaining trust.
More delivery choice could become a differentiator: over a quarter (28%) of consumers want to choose their preferred delivery provider. Offering that flexibility may help retailers stand out, particularly among customers with strong views about certain courier companies.
Goodwill gestures can help recover trust: where issues occur, delivery-fee refunds appear particularly effective for late, missing or misplaced deliveries (32–34%), while product discounts/refunds (34%) and vouchers (32%) can also help improve the experience.
Increasingly, consumers see delivery not as a separate logistics function, but as part of the retailer experience itself. As online competition intensifies and switching becomes easier, the post-purchase experience will play an increasingly important role in customer retention and brand trust.
To explore how delivery experiences are shaping customer expectations and retailer performance, get in touch with The Harris Poll UK.