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On-Demand Delivery: Becoming The New Norm

On-Demand delivery is quickly becoming the new norm across all sectors of the industry. In a world where a meal is a click away, and a doctor’s visit is on the other side of your computer screen, we now expect things to be handled for us, exactly when it works for us – and retail is no exception.

Along with exceptional customer service, personal shopping and bespoke tailoring, on-demand, same-day delivery is one of the best ways to provide a superior experience. The on-demand delivery market (especially for CPG/FMCG) has seen some major growth in the last few years.

Today, almost all the key players in major markets are providing same day or express (2-3 hours) delivery as a check-out option, and leveraging this is going to be crucial for brands to gain a competitive edge.

Although the current trends are mainly CPG/FMCG brands, same-day delivery across all categories will see major growth in the coming years.

Click & Collect Holding The Key For Omni-Channel Conversions

In a world of omnichannel shopping, the ‘click and collect’ model gives consumers the ability to research, select, order and pay for products online, then pick them up in store. In today’s digital world, big box retailers have embraced the change of turning their national off-line stores into fulfilment centres. Almost all the major retailers in the U.S. now have a click & collect service, where the customers don’t even have to get out of their cars once they make a delivery appointment online or via their apps.

Having the option to order online and collect in-store is a key mechanic for keeping consumers on the path to purchase. Researchers found that 17% of shoppers said they would abandon a purchase if click and collect were not available from a retailer, and a further 28% said they would look to buy the same product from another brand or retailer that did offer this delivery option.

“We’re saving customers time by leveraging new technology and connecting all the parts of our business into a single, seamless shopping experience: great stores, easy pickup, fast delivery, and apps and websites that are simple to use,” Walmart U.S. President and CEO Greg Foran. 

So how can brands leverage on-demand delivery?

As retailers look to the future of their eCommerce strategies, the importance of establishing and optimizing click and collect runs far deeper than the immediate benefits of reducing costs and increasing revenue.

Focusing On Offline Locators

It’s important to start investing in having your product available in stores at locations where key retailers have started offering an online click & collect. By communicating to your consumers across all channels (website, ads, social, campaigns etc) that this option is available, is key to closing the loop in connecting the online and offline.

Take this example:

  • Mary decides she wants a new pair of headphones, she searches online for the pair she wants, to land on a brand’s website.
  • After researching everything she needs to make her choice, she clicks on their ‘Where to Buy’ button to find the closest, in-stock retailer to pick it up from (i.e. Target).
  • Half an hour later Mary has walked down to her local Target and returned with her new headphones, with no distribution.
  • The best part? The brand knows that this instore purchase was from their online campaign, as Mary bought it through the offline locator.
  • Voila!

Offering a dynamic Local ‘Where To Buy‘ vs the traditional “Find us” maps or stockists on the websites is becoming a popular trend amongst major brands. Having an offline locator on your campaigns can help connect the dots for your online vs in-store products. Consumers can now see which retailers stock the specific product they want, how close the store is, plus, if it is in stock.

Focusing On Distribution Options

Currently, in the eCommerce world of delivery, there are two main distributor options: pure-play (i.e. Amazon Prime) and final-mile delivery (i.e. Instacart & Shipt).

Though almost 100% of U.S. consumers can purchase groceries via pure-play e-commerce, many categories currently do not work with the final-mile options.

Meanwhile, a physical retail footprint is required to make click and collect work, which is one of the main reasons why Amazon purchased Whole Foods last year.

As a result of this acquisition, many grocers have partnered with delivery service providers like Instacart and Shipt to expand their e-commerce presence and make their online operations more profitable. Even Walmart recently started to partner with Postmates for the final-mile delivery.

Brands need to ask themselves will a partnership with the likes of these pure-play retailers and final-mile delivery options help cater to consumers needs when they are looking to purchase a brand’s product?

A partnership with these distributors will also help brands to understand the trends and insights for the local demand for their SKU’s.

Here’s an example of how Kellog’s is using the pure-play option to catering for their omnichannel shopper by providing ‘Where to Buy’ options across their branded content and sites.

 

 

Interested in finding more about on-demand delivery and how having an omnichannel approach for your customers is key to conversions and brand loyalty? Book a demo with one of our experts to learn more about closing the loop between offline and online sales.

Or, if you just want to find out more about creating an exceptional consumer experience, download our eBook ‘The Digital Impact On The Consumer Experience: How To Get It Right’.

Aditya LabheOn-Demand Delivery: Becoming The New Norm