New research from supply chain solutions provider JDA Software finds consumers will switch to different retailers if home delivery or store-pickup processes are fraught with errors or delays.
New research by the supply chain solutions provider JDA Software suggests consumers will penalize companies that can’t fulfill online orders accurately and on-time during Black Friday and Cyber Monday.
The research, based on a survey of more than 1,000 U.S. consumers, found that 50 percent of consumers indicate that they will be unforgiving of retailers who provide less than satisfactory online home delivery experiences, while one in three said that convenience is a major factor when placing an online order.
Forty-five percent of consumers identified late delivery as the most common issue related to a poor online home delivery in the last 12 months. Among that group, 48 percent would be unlikely to shop with that 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.
“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.”
The survey also found that roughly 35 percent of consumers have used a retailer’s “buy online pick up in store” service in the last 12 months, with 60 percent of those consumers citing avoidance of home delivery charges as the biggest reason for doing so.
Out-of-stock situations are a frustration for shoppers in-store and online, with 53 percent saying they are equally frustrated, 26 percent saying it’s more frustrating when an item is out of stock online, and 21 percent saying it’s more frustrating in-store.
Report: Consumers unforgiving of holiday fulfillment errors
