A definitive toolkit for brands to understand and improve on the customer experience
We’re ready with the third edition of the RedSeer Shadowfax Delivery Delight Index this month. Since its inception, the DDI has evolved into a toolkit that brands use to benchmark customer satisfaction driven by the delivery experience, and use to dive deeper into how they’re performing in comparison with segment leaders across parameters.
‘Over the last year, hyperlocal grocery delivery has become a very competitive space. DDI report – especially benchmarking against peers on key metrics is really helpful in keeping track ofour delivery levels and competition in the market. Looking forward to DDI-3.’
- Big Basket
Abhishek Bansal, the CEO and co-founder of Shadowfax reflected, “The decision to share our learnings in the form of an index came as an organic extension of our commitment to drive industry-wide excellence.”
eCommerce has evolved,with online becoming mainstream. Our research shows that online retail penetration has increased from 3% in CY 19 to 5% in CY 20 and is further expected to reach 11% by CY 25. Given the scale of standardization of product and centralized control on UI/UX, delivery experience is becoming a key differentiating factor for brands/platforms to improve customer satisfaction.Factors like slot delivery, ease of exchange and smooth returns, and doorstep quality checks, are crucial in enhancing the customer experience and driving volumes for brands.
Anil Kumar, founder & CEO, RedSeer Consulting, says, “As the ecosystem is gaining momentum, the number of shoppers from tier 2+ cities account for half of the annual online shoppers. Both e-tailers and logistics firms are constantly innovating on their delivery models and infrastructure to serve these customers faster in a cost-effective manner.”
Several emerging, and digitally native brands depend on 3PL logistics to ensure faster delivery, as opposed spending on building and managing a captive logistics network. The increasing share of3PL also underscores the importance of regular monitoring of the delivery experience. There is, what we can call, a ‘democratisation of delivery’ with brands reporting success stories, leveraging eCommerce-focused 3PL partnerships to enhance their customers’ delivery experience.
‘As a leading social commerce platform, we work with a huge network of sellers and end customers. Delivery experience is now central to customer delight. DDI provides crucial insights into the rapidly changing customer expectations.’
Amazon, 1mg, Pharmeasy, Grofers, Swiggy, Zomato, Dunzo, Flipkart Supermart, Decathlon, DMart, Mi, and Zivame emerged as the champions of the second edition of the Delivery Delight Index, owing to their agile supply chain and better control on delivery process.
Some insights from the RedSeer Shadowfax Delivery Delight Index 2
● Flipkart Supermart stood out on the Delivery Delight Index as compared to the rest of Flipkart
● Electronics and Apparel have come out quite clearly as categories that are losing out on speed compared with customer expectations
● Decathlon, MI, ITCare leading the charts on delivery experience score
● Total cost of customer acquisition is going down substantially as a result of superior delivery delight metrics
The Delivery Delight Index is focused on helping brands improve their delivery experience score and create higher lifetime value per customer for the brand. Here’s taking a look at some interesting trends we observed in the second edition of the Delivery Delight Index:
● With the economy opening up, the sale period in October-November saw fulfilment centres, sort centers, and distribution centers choking up
● There is an increasing trend of outsourcing in the hyperlocal segment to manage the peak orders as well as to provide desired customer experience at low cost
● eTailing has shownthe fastest growth across all sectors
As online shoppers achieve digital maturity, their expectations are shifting from discount led parameters to convenience and delivery related parameters. The increase in customer base from Tier 2+ cities paves the way for brand partnerships with 3PL players to answer the demand. The added push from D2C eCommerce has led brands to also explore 3PL partnerships in warehousing and dark stores, ensuring a much faster reach to the customer.
The upcoming, third edition of the Delivery Delight Index maps leading industry players based on the delivery experience of their e-commerce consumers, and analyzes the importance of express deliveries across categories amongst the consumers. It will enable users to assess the relative positioning of their brand/platform in terms of delivery experience vis-à-vis leaders in the space, and take measures to improve customer satisfaction.
You can access the Delivery Delight Index 2 here.