JDA Centiro Customer Pulse 2016

Minimum order values have driven 31% of UK online shoppers to abandoning their cart according to a survey by YouGov sponsored by JDA / Centiro. The JDA / Centiro Customer Pulse 2016 Report also found that 29% of online shoppers have bought more items in order to meet those thresholds.

The report also showed that ‘last mile’ issues seem to be a major concern in 2016. There has actually been an increase in UK adults experiencing problems with online orders. 53% have said that they experienced a problem with an order in the last 12 months, where 47% did in 2015. Late deliveries and missed deliveries are still the biggest issues.

“Raising minimum order values and charging for Click & Collect orders is a big consideration for retailers as they look to boost the profitability of their online operations. However, as our research findings show, retailers must recognise that different customers are reacting differently when such restrictions are thrust upon them. This split in reactions suggests retailers need to segment their customers in order to tailor services offered to them,” said Jason Shorrock, vice president, retail strategy EMEA at JDA.

“Last-mile delivery and collection issues continue to be major pain points for many retailers, and solving these problems is both an economic and operational challenge. Retailers are making considerable investments in their delivery and collection offerings, yet at the same time the majority of customers still expect the fulfillment of online orders to be free of charge.”

One thing of note is that 60% of survey respondents said that the retailer – not the delivery company – should be responsible for resolving delivery problems. In getting the problem resolved, 66% said that they had a good experience but 26% had a poor experience.

“Retailers need to be more confident in their last-mile capabilities, otherwise these issues will continue to reflect poorly on the overall brand experience customers receive. This is one of the reasons we have seen the likes of Amazon bring more of its delivery function in house over the last 12 months,” commented Niklas Hedin, CEO of Centiro. “Today there are greater pressures on retailers’ delivery capabilities than ever before and if customers’ expectations aren’t met, they will simply shop elsewhere in the future. Through improved visibility into delivery networks retailers can help ensure that customer promises are kept. In the future, predictive analytics will also help retailers and delivery companies pre-empt problems before they happen, taking the customer experience to the next level.”