New Data Shows On-Time Delivery Is Key to Customer Loyalty

Who we spoke to

The 2021 consumer report is based on a survey conducted in partnership with YouGov of 8,737 retail and grocery customers in France, Germany, Japan, South Korea, the UK, and the United States. While we found some distinct differences between shoppers in these six corners of the world, logistics is the common thread helping win and retain customers no matter where you are in the world.

If you’re banking on your customers to make a repeat purchase from you, be prepared to offer acceptable delivery times and the product range they expect.

What triggers loyalty?

Not every nation has the same relationship with the triggers. Our research, for example, found that South Korea posted numbers above 80% in each loyalty trigger score, and a similar dynamic is found in the UK. Japan, however, came in below average in each one.

Looking at the global averages, however, makes it clear that certain factors are well within the control of supply chain managers. If you’re banking on your customers to make a repeat purchase from you, be prepared to offer acceptable delivery times and the product range they expect.

Even relying on the lure of excellent customer service alone isn't enough. In our analysis of what triggers loyalty, this long-held staple of retail is now less influential than order fulfillment and capacity.

The strategic responsibility of logistics is greater than ever before

The opportunity for logistics professionals is significant because, thanks to advances like warehouse automation, they now have even more power to improve three of the five loyalty triggers: fulfillment, product choice, and shopping experience.

What’s more, logistics can have an indirect influence on the remaining two: transparent pricing and customer service. On retail’s battlefield, our loyalty triggers are your secret weapon.

Knowing improvements in delivery times and accuracy could help retailers foster lasting, valuable relationships with new customers is one thing. Understanding how to implement that change is another.

Warehouse automation could be the 'game changer' retailers need

With e-commerce giants like Amazon setting the bar, confronting customers' expectations can be a sobering endeavor for the average retailer. So, how can warehouse automation help meet expectations to win over and retain customers? Systems like AutoStore, which can condense inventory by up 75%, can literally transform a retailer’s relationship with space. But such enhancements can do more than simply create room for inventory. These savings can also be used to overhaul the in-store experience. In simpler terms, automation provides limitless opportunities for retailers to strengthen and improve their relationships with customers. Introduce automation and you get all this:

• Increased efficiency
• Maximized up-time
• Full control of inventory
• On-time delivery
• Reduced environmental impact

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