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Study: Delivery Time Plays Major Role in Consumer Loyalty

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It started with Amazon Prime’s promised two-day delivery, then came the same-day option that saw retailers promising to bring a blouse to your desk before dinner downtown that night. Naturally, these offerings shaped a consumer who isn’t willing to wait.

A new survey by Shopatron, a leading provider of cloud-based order-management solutions, identifying the relationship between shipping time and the likelihood of a consumer loyally backing a brand, found that 87 percent of orders arriving in five days or less could generate a “promoter.” A promoter is a shopper who is more likely to be a repeat buyer, a brand evangelist and who will exercise word of mouth marketing.

For goods delivered after the five days, the number of potential promoters drops to 66 percent.

In short, to the fastest shipper go the shoppers.

The distance from fulfillment centers to the customer directly affects shipping time, and after analyzing more than 28,000 customer satisfaction results, Shopatron found that shipments fulfilled by the brand itself were, on average, significantly slower and shipped from further distances than those executed by a retail partner.

Forty-five percent of retailers who did ship orders out were within 300 miles of the customer, and dealers were 47 percent closer to customers than warehouses or distribution centers.

“Retailers and brands should consider partnering with a dealer network and utilizing retail storefronts in addition to their own warehouses and distribution centers,” Shopatron founder and CEO Ed Stevens said.

By doing so, Shopatron says brands can reduce shipping times by 20 percent with ship-from-store capabilities, enable in-store pick-up at retail fulfillment locations and tap into retailer expertise in direct-to-consumer fulfillment.

“It will allow retailers and brands to significantly cut down on shipping distances to their customers, which will ultimately reduce shipping times and increase the number of promoters for their organization,” Stevens said.

Infographic by ecommerce.shopatron.com.

Shopatron Shipping Times

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