Firms Must Deliver the Goods When it Comes to Updates

CXM Editorial TeamCXM Editorial TeamApril 24, 20185min

Customers in the UK will switch brands if they do not receive regular updates on the status of delivered goods, it has been warned.

According to a global survey, 78 percent of consumers want to receive updates on the status of their orders when purchasing goods, and they won’t hesitate to switch brands if supply chain performance fails to meet their expectations.

The survey, conducted in February by YouGov and sponsored by Infor, a leading provider of industry-specific cloud applications, polled 6,285 consumers, including a nationally representative sample of consumers in France (1,016), Germany (2,105), the UK (2,035) and the United States (1,129).

Seventy-eight percent of consumers surveyed expect to receive updates on the status of their orders. Of that group, nearly half (49 percent) of consumers said Estimated Time of Arrival (ETA) information – and a further 29 percent saying real-time location information – is most important to know when waiting for a purchase to be delivered at home or to a pick-up location.

The survey showed that consumers will switch brands if supply chain performance doesn’t keep pace with their expectations. According to the survey, it can suggest that consumers are more likely to switch brands related to their day-to-day needs, including groceries (59 percent), household products (53 percent), fashion/footwear (40 percent), and health & beauty products (37 percent). However, even in product categories such as high-tech (35 percent), furniture (32 percent), and automotive (19 percent), consumers indicated that they would switch brands if supply chain performance faltered.

Infor had sponsored a similar YouGov survey in 2016, and Greg Kefer, Vice President of Marketing for the Infor GT Nexus Commerce Network, said:

In 2016, we asked similar questions and at that time, among millennials (18-34), fashion was rated number one. Now, we are seeing categories such as food and beverage and consumer products rank ahead of fashion, with high-tech not far behind. This is an indication that consumer expectations are on the rise across product categories.

In our business, supply chain visibility is frequently cited as a foundational element of innovation and transformation. Companies must be able to ‘see’ across the vastness of their global supply chains, so they can identify gaps and make improvements.”

However, GEODIS recently surveyed 623 supply chain executives and found that only six percent of companies believe they’ve achieved full supply chain visibility. In working with customers, Infor has found that for consumers, next-day or even same-day delivery of goods is becoming the expectation, versus the exception.

And, as the YouGov survey suggests, this expectation goes beyond e-commerce/retail into other industries.

Consumers can now get very granular information about product status and location, and they increasingly are associating supply chain performance with brand preference,” Mr Kefer added.

In fact, the YouGov survey revealed that nearly half (48 percent) of consumers said they know what the “supply chain” is. Awareness of the supply chain was particularly high in the UK (77 percent) and the United States (58 percent) – markets typically characterised by retail/service-centric economies.

Ultimately, companies that sell to other businesses also must face the reality that their customers also are consumers, who see first-hand supply chain innovation (or lack thereof) when shopping online or on their mobile devices.

Consumers now expect a supply chain visibility solution as part of the brand experience.


CXM Editorial Team

CXM Editorial Team

Published for all CX professionals, the digital Customer Experience Magazine is packed full of industry news, blogs, features, video bites and international stories all focusing on customer experience. CXM will help you learn what makes an outstanding customer experience that wins both awards and the hearts of customers. And sometimes we share some cool music as well.




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