VIDEO | The Risky Game of Controlling Consumers’ Expectations

Last Mile & E-Com Event Latest Logistics and Supply Chain News Video Interview

Katie Langley, Global Sales Director at Doddle

Consumers have many choices at their disposal but how many of them serve the need for more efficiency and sustainability. We spoke to Katie Langley, Global Sales Director at Doddle, about the experience of Home Delivery vs Out-of-Home Delivery, which one serves companies and consumers better and what needs to be done to improve them both. We also look at how carriers need to speak to their clients to convince them to try Out-of-Home and make it a good option for consumers. Watch the full video now.

Katie, is the Home Delivery model broken?

Yes, I think it is. Originally it was set up to serve a good purpose but as e-commerce has grown and consumers’ expectations have changed, I think the model we have now is not a great experience for people. And it can also be really inefficient for drivers, carriers and retailers.

If it is a high value item then we should think about Home Delivery and add a great customers’ experience to it.  Then I think the model is relevant but we need to pay the associated costs of delivery.

But if it is a low value item, then I think carriers need to start changing consumers’ expectations. If the consumer does not need the item right away then maybe carriers should wait a few days and consolidate to be more efficient.

At the moment, I do not think consumers realise the impact having fast parcels delivered to their homes has on the business and the environment.

So how can it be improved?

One way of doing that for missed deliveries, for example, is to send the parcel to a collection point or a locker. Once the consumer goes to the locker they can actually experience the service and see that it is efficient and useful.

Another way of improving it is by setting up the right price point. Parcels should be priced according to when consumers want them delivered and their value, as I mentioned before. Carriers should be honest and give options to the consumers as well as how much each one will cost.

Charging the consumer is a good idea but it is also very risky. Not many would want to be the first one, right?

According to a survey we did at Doddle of merchants and their attitudes, many do not realise the positive impact Out-of-Home has on consumers, their business and the environment. Because of that they have not really been pushing it as an option in front of the merchants.

Another thing we noticed is that Out-of-Home delivery actually increases how much consumers spend per order. We think this is because people are more confident that they will receive the item at a convenient time for them.

Additionally, we found out that 44% of merchants would change carriers depending on the services being offered. This is something we work on with our carrier clients to present delivery times and options at the checkout in a clear way.

Out-of-Home delivery should be offered at the checkout with parity to Home Delivery and even as a preferred option because it is more cost effective.

I think once we start presenting the right information to people and how much it costs, they would make the right decisions.

What about returns? How do they fit in this?

We need to be honest and admit that returns are not going away but at the same time consumers’ experience with returns is very poor. Carriers really need to be able to provide an integrated returns platform for the merchant. You can then present it to the consumer and improve the satisfaction.

You can watch the full interview with Katie Langley, Global Sales Director at Doddle now.

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