A recent industry survey highlights the financial and strategic benefits of same-day delivery for retailers, despite the high costs associated with its implementation.
Expensive Yet Beneficial
Implementing same-day delivery comes with a hefty price tag, but it’s an investment that pays off. A survey conducted by Roadie, a crowdsourced last-mile delivery company, involving 150 industry leaders, reveals that same-day delivery is not just a luxury but a necessity in today’s fast-paced market. While it shouldn’t be the sole focus, it’s a critical component of a comprehensive delivery strategy.
Financial Upsides
Retailers offering same-day delivery have observed significant financial gains. Nearly a third of the surveyed retailers reported over a 10% revenue increase. The key advantages include heightened customer satisfaction (80%), sales growth (70%), and better customer retention (66%). Long-term commitment to same-day delivery is common, with 63% of companies providing it for over three years and 68% reporting a consistent year-over-year ROI increase.
Beyond the Bottom Line
The survey also sheds light on less tangible benefits. Insights gained from same-day delivery services have led to better decision-making regarding product and service offerings (65%), expansion into new areas (59%), and more efficient use of warehouse space (54%). These factors contribute to strategic decisions about distribution facility locations, logistics investments, and labor management.
Communication is Key
Despite the allure of rapid delivery, retailers must not neglect communication with customers. Issues like package theft underscore the need for timely updates on shipment status. Marc Gorlin, Roadie’s CEO, suggests that the delivery experience for large items should be as transparent as tracking a pizza delivery, reducing the likelihood of failed deliveries and associated costs.
Strategic Investment
The initial setup cost for same-day delivery, often in the six-figure range, is offset by the long-term strategic value it provides. Gorlin emphasizes that the investment not only yields a sustained ROI but also enhances customer service. Offering a variety of delivery options, including same-day, caters to diverse customer needs and preferences.
