Interview • 24.05.2016

”Delivery is crucial in the online shopping experience“

Interview with Arjan Kerkhoff, Senior Director Key Account Management Northern & Central Europe at MetaPack

Arjan Kerkhoff: In general one can describe the Millennials as particularly...
Arjan Kerkhoff: "In general one can describe the Millennials as particularly mature and self-confident customers."
Source: MetaPack

Not only are they young and like to spend money, they are also very tech savvy: the Millennial Generation. Since they grew up with the Internet, they are well informed and already had experiences with online retailers. In this iXtenso interview, Arjan Kerkhoff explains how discerning this generation is when it comes to online shopping and why the delivery process plays an important role for millennials.

Mr. Kerkhoff, why do millennials have such a low tolerance for bad service?

Millennials have grown up in a digital world. Compared to the more analog world that older people are still familiar with, their world seamlessly integrates digital technology and product choices in everyday life. That’s why millennials also expect a fast and seamless customer experience in eCommerce order fulfillment. Since they have been used to this all of their lives, they also have a lower tolerance for mistakes and bad customer service experiences when things don’t go as smoothly as they should.

What retailer a customer selects for his purchase can also be affected by the...
What retailer a customer selects for his purchase can also be affected by the delivery.
Source: MetaPack

Why does delivery in particular play such a big role for this generation?

The delivery is the final stage of any buying process and therefore crucial for the overall experience the customer has during this process. In addition, the purchase always satisfies a want or need and the delivery is key on how quickly this need is actually met with an online purchase. Speed is one of the most important factors for millennials.

What special services are important to millennials when it comes to the delivery of products they purchased online?

Millennials tend to be very mobile. Unlike older people, they are not home as often and are frequently not able to receive packages there. That’s why the type of delivery is also very important to them. They like the flexibility of being able to decide whether the package should be delivered to their homes or their workplace or whether they want to collect it at a parcel pick-up service or the actual store in person. Click and collect retail models also play a big role here, since millennials are also willing to pick up items they ordered online in person at the store if they previously already selected and purchased online.  

Hoow a consumer sees the delivery can affect his long-term buying habits....
Hoow a consumer sees the delivery can affect his long-term buying habits.
Source: MetaPack

This age group also likes to use the same day delivery option if the retailer offers it. Another difference compared to older customers: millennials are willing to pay for additional services, whereas for older customers, the price is often most important. One example is Amazon Prime, which promises its customers special offers and faster delivery for an additional fee. Millennials are mindful that special treatment by a retailer comes at a price in most cases.

A fast and convenient return process is also very important to millennials. They would like to know at any time how returns are handled by the respective retailer: will the package be picked up at home or the office or do they need to drop it off in person at a service point location? It’s bad enough if something is wrong with the item or if a clothing item does not fit. If returns are then also cumbersome and obscure – or actually involve a fee – it presents a negative experience that affects the overall shopping experience. This is why retailers also need to f        ocus on service commitment and the needs of their customers.

One bad experience can go around within
a community of potential customers....
One bad experience can go around within a community of potential customers.
Source: MetaPack

What new services do millennials want to see in the future in terms of delivery?

Millennials tend to be very savvy with new technologies and are also willing to try out new services for a fee if they hope to benefit from them.  For instance, 30 percent of millennials could envision receiving a shipment via drones. Amazon has already tested this type of system for example.  

Millennials generally highly emphasize convenience. When it comes to online ordering, this also means a high level of transparency throughout the entire process. At any time, they want to be able to track via text message, email or at a website where their package is currently located and how long it will take for delivery. This is a service that many retailers are still not offering today but that millennial customers are almost taking for granted.

What services consumers want to use in the future.
What services consumers want to use in the future.
Source: MetaPack

What consequences should retailers expect if they don’t live up to these expectations?

Generally, you can describe millennials as particularly mature and self-confident customers who are not afraid to air their grievances on social networks for instance if they had a negative retail experience and also don’t have a problem avoiding that particular retailer in the future and never shop there again. As a result, negative experiences by customers spread quickly and retailers get a bad brand image with this target audience. And this is something that’s hard to shake. This is why it is important for retailers to also monitor social networks themselves, so they are quickly able to respond to a negative comment about their company. Millennial customers are more likely to be aware of their strong position as paying customers of retailers than older customers and don’t hesitate to give a negative review or actually shop at a competitor store.

Interview: Daniel Stöter, iXtenso.com

related articles:

popular articles:

Thumbnail-Photo: Three ways to make better use of mobile marketing...
08.03.2021   #online trading #e-commerce

Three ways to make better use of mobile marketing

Social media, mobile optimization, QR codes – practical rips for retailers

The pandemic has rapidly changed the way consumers interact with brands, with digital platforms becoming the sole way for browsing and purchasing goods and services in almost all sectors. This has resulted in a tremendous rise in the use of mobile, ...

Thumbnail-Photo: Swiss Brand Ons new flagship store
29.12.2020   #customer satisfaction #brick and mortar retail

Swiss Brand On's new flagship store

New standards for retail?

Swiss performance running brand On opens its global flagship store today, On NYC, located at 363 Lafayette Street in New York, NY. On has pioneered a design-centric and technologically driven approach to the in-store consumer experience. Centered ...

Thumbnail-Photo: Fashion out of waste
04.12.2020   #sustainability #fashion

Fashion out of waste

H&M collection for upcycling

H&M Conscious Exclusive A/W20 collection introduces exquisite pieces crafted from sustainably sourced materials made from waste. What is normally thrown away is purposefully transformed into treasures to be loved and valued, allowing us to ...

Thumbnail-Photo: First free masks-vending bus in Saigon, Vietnam...
18.02.2021   #customer satisfaction #coronavirus

First free masks-vending bus in Saigon, Vietnam

Community event "Bus Mask"

DONY Garment Company, a subsidiary of DONY International Corporation and one of the largest manufacturers of workwear, casual clothing, and uniforms in Viet Nam, has responded to the threat of the COVID-19 pandemic by designing and manufacturing a ...

Thumbnail-Photo: Shopping in social media streams?
16.11.2020   #e-commerce #app

Shopping in social media streams?

Further steps towards social commerce

The fact that retailers and brands offer their products online where consumers spend their free time – on social media channels as well as on image and video portals – is nothing new. There have been many advertising campaigns on these ...

Thumbnail-Photo: How the industry thinks: The most important trends for 2021...
05.01.2021   #brick and mortar retail #digitization

How the industry thinks: The most important trends for 2021

What awaits retailers after the first Corona year?

2020 – most certainly not an easy year. But many agree: The only way forward is to look ahead. So we asked industry insiders – retailers, academics, manufacturers – what they expect for this year. How will changing customer ...

Thumbnail-Photo: Theyre just not that into you
05.02.2021   #customer relationship management #marketing

They're just not that into you

Consumer-brand relationship insights for marketers and brand communication

Researchers from Western University, Indiana University, and Washington State University published a new paper in the Journal of Marketing that deals with communication strategies towards consumers that have a certain connection to a brand.The ...

Thumbnail-Photo: Consumer packaged goods purchases grew 19% in 2020...
27.01.2021   #coronavirus #customer retention

Consumer packaged goods purchases grew 19% in 2020

Fueled by the pandemic, half of Americans tried new brands

As consumers hunkered down at home during most of last year, their spending on consumer packaged goods (CPG) grew an average of 19% in 2020 compared to 2019 according to the latest data from NCSolutions. The COVID-19 pandemic caused a ...

Thumbnail-Photo: Zalando onboards C&A to Connected Retail
18.02.2021   #online trading #brick and mortar retail

Zalando onboards C&A to Connected Retail

Network passes 3.000 active stores mark

Zalando, Europe’s leading online platform for fashion and lifestyle, continues to grow its Connected Retail network at high speed. The program now counts over 3.000 active stores, selling to millions of Zalando customers online. Since the ...

Thumbnail-Photo: Stats and trends for 2020 holiday customer service strategies...
12.01.2021   #online trading #e-commerce

Stats and trends for 2020 holiday customer service strategies

Higher sales with self-service materials and chat

ResultsCX announced findings from its recent holiday shopping and customer service survey, taking the pulse of organizations and how they’re handling a variety of customer service offerings this holiday season.The National Retail Federation ...

Supplier

iXtenso - Magazin für den Einzelhandel
iXtenso - Magazin für den Einzelhandel
Celsiusstraße 43
53125 Bonn
EuroShop
EuroShop
Stockumer Kirchstraße 61
40474 Düsseldorf
Seven Senders GmbH
Schwedter Straße 36 A
10435 Berlin
Navori Labs
Navori Labs
Rue du lion d'or 4
1003 Lausanne