Using online courier services for effective last mile delivery

For any business the last mile delivery i.e. the final step where the package is delivered to the customer is the most significant. Consumers increasing preference for same day delivery is putting pressure on the eCommerce and on-demand companies to improve their last-mile delivery. The solution lies in the new age online courier service. 

63% of consumers use online buying because they find retail stores and public transport crowded during rush hour (Capgemini). It is difficult to take out time and go out to pick what they want to be it groceries or food. Similarly, if they want something to be picked which are not in the catalogue of the online delivery store, delivery services like Pidge help them deliver it at their doorsteps by providing courier pick up.

The last mile expectations (Capgemini)

1. Customers want delivery services. 1 in 5 customers may switch or have switched the service provider because of the non-availability of delivery services. Today’s urban population which is living in a nuclear set up find it difficult to take time out every day to go out and buy stuff. Therefore they rely on on-demand courier services for the courier pick up and delivery. 

1. Customers want to be able to shop at their leisure. They want to select what they want and either order one day delivery or schedule it for later. According to a report by the Internet and Mobile Association of India (IAMAI), India ranks at number 2 on the number of active internet users. Everyone has a smartphone and is addicted to it. People want convenience and ease of ordering. They want to book courier online in their free time and schedule it as per their availability. During busy day time, they may not be able to place their orders therefore maximum usage is post office working hours. 

1. Customers want faster deliveries. On-demand delivery and courier services like Pidge offer 60 minutes courier pickup from home guarantee with instant delivery post pick up. The future of delivery is to be a fast courier service that can meet the quick needs of the customers.

Who are the customers who book courier online?

1. Growing urban population - As per McKinsey’s report “India’s urban awakening: Building inclusive cities, sustaining economic growth”, by 2030 India’s growing urban population 590 million people by 2030. They are the ones using these services the most. People living in urban areas are tech-savvy and rely heavily on technology to meet their fast courier service needs.

1. Millennials - 49% of customers are in the age group of 18 to 34 years. (National technology readiness survey). These customers are tech-savvy and aware. They believe that tech should make life easy and be convenient to use. Like having an app to book courier online as well as track the package throughout the process of courier pick up till it is delivered.

1. Have medium to high income - As per McKinsey, for getting same day delivery or instant delivery, almost 25% of consumers are willing to pay significant premiums. That’s possible if the income supports the expenditure. This share is expected to increase because the rising younger consumers are more inclined (just over 30%) to use same day courier services over regular delivery.

As per Deloitte’s report on the Indian Express Industry, in the next 5 years, the Indian express industry is expected to grow at a CAGR of 17%. The contribution of the Indian express industry to the international express industry will be more than 2.5% by 2022. Are the courier companies equipped to handle the increased demand?

What steps should be taken to meet customer expectations?

Faster Delivery - Faster delivery is the only way ahead to increase customer loyalty. Google mobile searches related to “same day shipping” has grown 120% since 2015 (Research from Think with Google). It is pushing all the e-commerce and on-demand companies to switch to same day delivery options. 

Customer Satisfaction - If the customers are satisfied they are more likely to purchase frequently than unsatisfied consumers. Meeting customer expectations becomes critical. As per Capgemini's report on The last-mile delivery challenge, “74% intend to increase purchase levels by 12% with their preferred retailer”. If the customers are satisfied they are retained and keep coming back for your services. The greatest reason for customer satisfaction is a fast courier service and one day delivery.

Better services - When consumers get courier pickup from home and get delivery at the doorsteps they feel satisfied and spend more. As per the report customer satisfaction, 55% of customers are willing to increase their loyalty for the company which offers professional courier service; if they get better delivery options like – faster delivery service in 2 hours. As of now, only 19% of companies offer 2 hour or faster delivery services.

Loyalty programs - Satisfied consumers are willing to pay more. As per the same Capgemini report “53% would be willing to purchase a paid membership for delivery services”. A loyalty program for online courier service with benefits helps improve business.

How businesses can improve the last-mile delivery?

1. Automate the last mile delivery - Have tech do the needful, by creating apps to leverage technology to make faster delivery to meet customer’s quick needs. Many app-based companies provide integrated platforms where customers and service providers are mapped on the same platform. The user can log in to the platform and leave their request. The same request is mapped to the service provider or rider for fulfillment. Companies like Pidge enhance customer experience by offering these services through full –time employees rather than contractual or temporary delivery executives. 

1. Outsource – Companies can get into partnerships and integrations with on-demand delivery services. On-demand delivery services like Pidge offer one day delivery with 60 minutes courier pickup from home guarantee that meets the customer expectations and builds loyalty in customers. The customers keep coming back for better services. 

As per the same Capgemini report on Last-Mile Delivery Challenge, by 2021 35% of consumers would expect to use home delivery through same day courier services at least weekly with multiple deliveries.