The Impact of Offering Delivery on Customer Loyalty And Retention
Offering delivery has become a high-impact strategy for businesses across industries to attract new customers and build loyalty among existing ones. The convenience of on-demand delivery strongly appeals to today’s time-strapped consumers who want quick, effortless access to food, goods, and services. As customer preferences increasingly shift towards delivery, companies that adapt with delivery offerings stand to gain long-term competitive advantages.
Benefits of a Delivery Program
Implementing a well-executed delivery program can increase customer satisfaction, repeat purchases, and lifelong brand affinity. Delivery brings the ultimate convenience straight to the customer’s home or office, saving valuable time and energy. These benefits position delivery as a difference-making service that helps turn one-time customers into loyal brand advocates. These benefits will be seen quickly if your restaurant offers delivery.
Stronger Relationships
The program can strengthen a company’s relationship with its customers in impactful ways. Delivery provides the ultimate convenience by bringing products straight to the customer’s home or office. This saves customers the time and energy required to make a trip to the store themselves.
According to a 2022 survey of 2,000 consumers by Statista, 72% said they are more likely to become repeat purchasers at retailers that offer timely delivery options. The survey also found that 66% of customers will actively choose to buy goods from retailers with delivery over those without it. This data demonstrates delivery’s potential to drive customer retention and loyalty.
Customer Loyalty
Delivery also enables customers to make purchases even when they can’t leave their home or office. Sick, elderly, and busy customers with families can still receive goods and food with a delivery option. This accessibility helps create loyal lifelong customers who may depend on the delivery service when needed.
Expanded Reach
Additionally, delivery expands a business’s geographic reach. Customers who live further away are inclined to utilize a company that provides delivery. This service enables businesses to increase their customer base and area of service. Expanding delivery zones leads to more customer acquisition opportunities.
Businesses may use delivery offerings to upsell additional products. Customers who order delivery might be inclined to purchase more items since they are already paying a delivery fee. Effective upselling suggestions during the ordering process can lead to larger average order values. This positively benefits the company’s bottom line while providing customers with added convenience by delivering more of the products they need.
Delivery Program Drawbacks
However, offering delivery does require upfront investments in things like delivery vehicles, drivers, additional packaging, and delivery coordination technology. Businesses have to determine if the added revenue from delivery will outweigh the expenses. When executed successfully though, the lifetime value of retained delivery customers often exceeds the initial costs.
There are also additional customer service factors to consider with a delivery program. It’s essential to communicate order timing accurately, provide order tracking, maintain food quality during transit, and have friendly professional drivers. Any delivery issues that arise must be promptly resolved by customer service teams. Customers will be understanding of occasional issues if they are handled quickly and effectively.
Establishing a thoughtful delivery service can have significant benefits for customer loyalty and retention. The convenience it provides caters to busy, loyal buyers and enables businesses to expand their customer reach. However, the delivery process must be executed smoothly from order to delivery to ensure customers have positive experiences that keep them coming back. As delivery continues growing in popularity, businesses should strongly consider adding a delivery option if possible to meet changing customer demands. With proper planning and staffing, delivery can be a difference-making competitive advantage in today’s marketplace.
