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JDA Survey: Consumers unforgiving of holiday fulfillment errors 

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JDA Survey: Consumers unforgiving of holiday fulfillment errors 

November 9, 2015 by PLA Editor

The omni-channel consumer is here and this holiday season, their expectations will not only affect the impending Black Friday and Cyber Monday shopping rush, but also shape how their purchase decisions are made throughout the year.

In the new JDA 2015 Consumer Survey of than 1,000 US consumers conducted by JDA Software Group, 50 per cent of consumers indicate that they will be unforgiving of retailers who provided less than satisfactory online delivery experiences, landing some businesses on the “do not shop, naughty list” this holiday season. Additionally, 1 in 3 consumers disclosed that convenience is a major factor when placing an online order.

Retailers who can’t meet expectations risk losing 33 per cent of shoppers to a competitor that offers a convenient or streamlined shopping experience – not only during Black Friday and Cyber Monday, but also in purchase decisions throughout the year.

“The biggest challenge for retailers today is finding the balance between keeping customers content while maintaining profitability to meet their needs in an increasingly omni-channel world,” said Wayne Usie, senior vice president of retail at JDA. “It’s no longer sustainable for businesses to sacrifice profit margins in an effort to deliver customer satisfaction and meet demands. Instead, businesses need to take on a more holistic view of their logistics and fulfillment strategy to make better informed decisions that will not only provide a consistent omni-channel experience to customers, but more importantly, turn a profit.”

Striking that right balance is proving difficult for many retailers, as shoppers’ sentiments throughout the JDA survey were mostly unfavourable of past experiences. These experiences are remembered when customers decide on which retailer to make their future purchases, and carry even more weight during the holiday season. Based on the JDA survey, nearly 1 in 4 shoppers have opted to “Buy Online, Pick Up In Store” (BOPIS) as it felt more convenient than delivery. However, nearly 40 per cent of those shoppers experienced an employee-related issue with this service; the most commonly stated issues were that the store staff took a long time or were unable to find their order in the store or store system.

These common pitfalls negate the anticipated convenience of the BOPIS services and could land retailers on consumers’ “naughty” list. JDA uncovered results that are predictive of how businesses may fare this Black Friday and Cyber Monday season, based on the customer experience they delivered during the past year.

This includes consumers identifying late delivery as the most common issue related to a poor online home delivery experienced in the last 12 months (45 per cent). Among this group, 48 per cent would be unlikely to shop with the offending retailer during a peak time, such as Black Friday or Cyber Monday, displaying a lack of trust in the retailer’s ability to fulfill their needs. This ultimately results in a loss in sales for the retailer during such a highly anticipated spending season.

While shoppers expect convenience throughout the retail experience, most are outright unwilling to pay for it, leaving retailers searching for ways to respond to consumer demand and still remain profitable. For 62 per cent of online shoppers, their biggest frustration was having to pay for return postage and packaging. In fact, over 50 per cent of all shoppers consider the ease of returning items to retailers “very important” to where they make online purchases, while only about 10 per cent view it as “not important.”

It’s also significant to note that “Door-Buster Deals” are still a major factor for 50 per cent of consumers when deciding where to shop for Black Friday and/or Cyber Monday. In today’s world of convenience and options, shoppers have little patience for obstacles from retailers that prevent them from obtaining an item. This sentiment holds true across all channels – whether that obstacle is an out-of-stock experience, late home delivery, or difficulty obtaining a product at pick up.

Retailers must create and deliver a consistent, excellent omni-channel experience to avoid any customer frustrations, or they may pay for it during peak shopping season. “These survey findings speak to the importance of having an omni-channel retail strategy in place, not only during peak shopping seasons such as Black Friday, but also throughout the year. After all, consumers have high expectations on when, where, and how they make and receive their purchases,” said Usie.

“In a highly competitive marketplace, it is critical for retailers to intelligently configure their supply chains and how they use their staff, stores and inventory to fulfill consumers’ orders quickly, while also remaining profitable.”

Other Topics: Air & Cargo Services, air cargo, Air Cargo Asia, air cargo freight, Air Forwarding, air freight, Air Freight Asia, Air Freight Logistics, air freighter, air freighting, Air Logistics Asia, Air Shipping Asia, airlines cargo, airways cargo, asia cargo news, cargo aviation, e-commerce, JDA

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