Growing your business with better delivery discusses how providing good delivery experiences is important for customer satisfaction and retention. It outlines that consumers want fast, convenient delivery options like next-day and click-and-collect. Choosing the right carrier and automating order routing can help meet consumer needs while reducing costs from failed deliveries. Communicating delivery status and being reachable helps give customers peace of mind.

1. Growing your business
with better delivery
18th April 2017

2. Overview
• Impact of a bad delivery
• What consumers are looking for
• Making money from carriage
• Choosing the right service
• Automation and routing
• Delivery communication
Private & Confidential

3. Craig Lee – Head of National Sales, GFS
• 17 years industry experience in the express parcel
market and postal sector
• Previously worked for TNT Post (PostNL), FedEx UK,
DPD and UK Mail
• Commercial expertise across global logistics and
supply chain
• Joined GFS in 2013

4. Impact of a bad delivery
Unsure order will arrive in time
Delivery cost
Don’t offer the delivery service I need
Won’t click buy Won’t order again
No idea of progress of order
Difficult to reschedule
Late delivery
What will the consumer remember – Hassle!

5. What consumers are looking for
Source Shutl

6. Speed
41% of consumers
stated “fast delivery”
as a key reason they
would stay loyal to a
retailer
Manhattan Associates, 2017

7. Convenience
Popularity of Click and Collect on the rise:
Click and
Collect up by
20% from
2015
British Retail Consortium, 2016

8. Consumer A
“I have a long commute
on the train everyday, so
it’s easier for me to collect
parcels from the train
station on my way home
from work.”

9. Consumer B
“As a consultant, my
working schedule can
be varied. I need to
pick a delivery date or
a morning slot to make
sure I am at home to
receive my parcels.”

10. Consumer C
”I am a student and I
don’t want to pay more
than I have to for delivery.
My parcel can arrive
anytime as I know that
me or my housemates will
be at home to receive it.”

11. Benefit of offering choice and convenience
Standard or next day delivery – no good for consumers A + B
Don’t miss out on sales, carriage is a profitable opportunity
Standard, next day, timed and click + collect
Good for consumers A+ B + C
Next day and AM slot – no good for consumer A

12. Make money from carriage

13. Giving the right impression
Providing clear delivery timescales
– reduces incoming queries
Consumer actively involved in the delivery
- increases first time delivery success
Reduces consumer frustration
Keep potential redelivery or return to sender charges to a
minimum

14. Cost of poor delivery
Consumer Retailer
Failed first delivery - rearranged £29.5m £39.5m
Failed first delivery – collection by customer £105m £0
Late delivery £79.7m £122.3m
Failed delivery/ lost order/ cancellation of
order leading to loss of customer goodwill
and loss of customer
£9.7m £274.5m
Total £224.4m £436.5m
Overall industry cost by scenario
IMRG Valuing Home Delivery Review 2016

15. Consumer Retailer
Failed first delivery - rearranged £2.28 £6.10
Failed first delivery – collection by customer £8.11 £0
Late delivery £1.99 £6.10
Failed delivery/ lost order/ cancellation of
order leading to loss of customer goodwill
and loss of customer
£4.19 £118.06
Total £17 £130
Overall industry cost by event
IMRG Valuing Home Delivery Review 2016
Cost of poor delivery

16. Choosing the right carrier and service

17. Choosing the right carrier service
• Light weight
• Loss cost
• Fits through letterbox
• Light weight
• High cost
• Larger than letterbox

18. • Expensive
• Urgent
• Larger than
letterbox
Choosing the
right carrier
service

19. Choosing the right carrier service
• Heavy
• Bulky – Long lengths
• Several boxes
• Delivery to residential
addresses

20. Simplify and Automate
• Choice up front
• Importing orders – reduce errors with automated transfer
• Routing rules
• Size of items
• Weight of items
• Cost of service
• Claims value

21. Axminster Tools & Machinery
Able to correctly present
delivery options for over
17,000 SKUs

22. Communication
• The consumer will always link the delivery experience with
your brand
• Take away the unknown and communicate with your
customer throughout the delivery journey
• Parcel tracking and regular updates gives the consumer
peace of mind, while increasing first time delivery success
One in four British consumers (23%) say poor communication has
caused them to miss a delivery in the past 12 months Engage Hub, 2017

23. Communication example

25. Handling delivery queries
• Ensure you understand your carriers procedures
- How to contact them
- Number of delivery attempts
- Any additional charges
• Monitoring shipments
- Identify problems
- Chase carriers for responses

26. Summary
• Listen to the consumer - not everyone wants the same delivery service
• More choice to increase sales
• Choose the right carriers and services for you
• Automate to reduce human error
• Communication - be memorable for the right reasons