Delivery options

Historic Delivery Standards
In the past, catalogue retailers, with business models based on the wide availability of credit, dominated the home delivery market. These retailers tended to attract consumers who were cash poor and time rich and their customers were relatively undemanding when it came to the delivery standards they found acceptable. According to MetaPack’s Delivery Excellence Survey of 130 websites, many online retailers have yet to move away from delivery services that belong to the catalogue era and many still offer very limited options that place the emphasise on low-cost over convenience: • 60% of retailers have only one delivery option, and a further 20% have just two • The most common service is an unspecified delivery window such as “3 to 5 working days” • Only 1 in 10 retailers allow the customer to choose a date for delivery However, recent analysis has shown that two thirds of online expenditure is by people who are cash rich and time poor. Although this segment is now well serviced by online grocers, insufficient convenient delivery options are available for customers wishing to make non-food purchases online.
Poor Poor

Mosaic defines 11 UK Lifestyle groups based on a number of criteria, including age, location, family status, income and employment. These groups reflect the breadth of the population from Urban Intelligence” (students with time but less money) to “Symbols of Success” (both partners working, with money but less time). These lifestyle groups can then be plotted against these two key dimensions of time and wealth, creating four distinct segments.
Time / Wealth / Segment Value
Rich
Urbun Intelligence Suburban Comfort

Time

Ties of Community

Symbols of Success

Happy Families

Wealth
Source: Mosaic, Hitwise, MetaPack Analysis

Rich

In order to meet the needs of the widest range of customers, the range of delivery services offered by online retailers should normally include economy services with wide time windows, premium services with narrow time windows, and options such as nominated day, morning, evening and weekend delivery. The shopper is then more likely to find a delivery option that matches their lifestyle. This increases the likelihood of first time delivery success.
Services Per Segment
Rich

2-3 Day Service Time

Next Day Delivery

Premium Service
(Named Day, Time slots, Evening, Saturday)

Poor Poor

Wealth
Source: Hitwise, Mosaic, MetaPack Analysis

Rich

For more information call 0207 843 6720 or visit www.metapack.com

Crafting the Perfect Delivery Proposition
Creating a viable delivery proposition requires three factors to be carefully balanced –convenience for the customer, margins for the retailer and simplicity. Using MetaPack DMS, retailers are able to balance all 3 of these: • DMS CarrierLink enables retailers to use a range of carriers giving a greater number of convenient options • DMS ServiceLink presents these to the web front end allowing customers to choose a convenient option in a simple automated menu • DMS CarrierLink can then selects the most cost effective carrier to protect retailer margins

Example for best practice delivery options (prices are illustrative):

Select a Day Available Services
All Day: Mon-Fri 9am – 5pm Mon 31 / 01 Tues 01 / 02 Wed 02 / 02
Thurs 03 / 02 Fri 04 / 02

Next 7 Days >
sat 05 / 02 Sun 06 / 02

£5 X X

£4 £8 £8

£4 £8 £8 FREE

£4 £8 £8

£4 £8 £8

X £10 X X

X X X X
Select Location

Morning: 9am – 12pm Evening: 5pm – 8pm Standard Service 3-5 Working days Local Collect

Collect at a location that’s convenient for you Delivery Charge: £4

MetaPack Ltd The Lightwell 12/16 Laystall Street London EC1R 4PF t +44 (0)20 7843 6720 f +44 (0)20 7843 6721 www.metapack.com

MetaPack

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