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Logistics as key marketing element in e-commerce

Break out Logistical challenges Bpost

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Page 1: Break out Logistical challenges Bpost

Logisticsas key marketing element in e-commerce

Page 2: Break out Logistical challenges Bpost

LogisticsI have a e-shop

1

Someone buys

2

Need to ship this

3

Page 3: Break out Logistical challenges Bpost

Why do people buy online?

Page 4: Break out Logistical challenges Bpost

Driver 1 : Long Tail

Page 5: Break out Logistical challenges Bpost
Page 6: Break out Logistical challenges Bpost

Driver 2 : Price

Page 7: Break out Logistical challenges Bpost

What, if anything, might

preventyou from shopping

in-store ?

Long lines

Too much traffic

Slow checkout

Doesn’t carry merchandise I want

Lack of parking

Items/sizes often out of stock

Too far away

Store hours inconvenient

Online site does not indicate if the product is available in the store

Limited number of store associates

Gas prices

Store associates’ knowledge / ability toassist

44

30

28

24

19

16

16

10

9

7

6

4

Driver 3 : Convenience

Page 8: Break out Logistical challenges Bpost

Reasons to buy online

56

52

52

47

42

37

36

34

32

23

23

11

2

1

Order 24 hours a day

Delivered at home

Easier, don't have to leave home

Lower prices than in regular shops

Opportunity to buy products that are not available in the regular shop

Less time-consuming

Greater choice

Easy to compare products

The speed of delivery

Ability to pick up goods at a convenienttime and location

Ability to send products back

More environmentally friendly way of buying

Other

Don’t know

Base: Total sample (n=1321)

Question: Q3.3 What are the most important benefits to you of online shopping compared to purchases in a regular shop?

ABCD: 95% significance level

Convenience

Price

Long tail

Convenience is the most important driver

Page 9: Break out Logistical challenges Bpost

The more they buy online

the more they value Convenience

Base: Total sample (n=1321)

Question: Q3.3 What are the most important benefits to you of online shopping compared to purchases in a regular shop?

ABCD: 95% significance level

Order 24 hours a day

Delivered at home

Easier, don't have to leave home

Lower prices than in regular shops

Opportunity to buy products that are not available in the regular shop

Less time-consuming

Greater choice

Easy to compare products

The speed of delivery

Ability to pick up goods at a convenient time and location

Ability to send products back

More environmentally friendly way of buying

Other

Don't know

47

50

44

38

34

31

24

27

29

21

18

9

1

1

53

52

49

46

39

34

34

31

29

22

23

8

2

1

62

54

57

51

47

41

43

39

35

24

25

1

2

1

LIGHTn= 271 (A)

MEDIUMn= 415 (B)

HEAVYn= 635 (C)

Page 10: Break out Logistical challenges Bpost

Base: Total sample (n=1321)

Question: Q3.3 What are the most important benefits to you of online shopping compared to purchases in a regular shop?

ABCD: 95% significance level

Order 24 hours a day

Delivered at home

Easier, don't have to leave home

Lower prices than in regular shops

Opportunity to buy products that are not available in the regular shop

Less time-consuming

Greater choice

Easy to compare products

The speed of delivery

Ability to pick up goods at a convenienttime and location

Ability to send products back

More environmentally friendly way of buying

Other

Don't know

increases by age

57

46

52

46

46

37

39

38

29

22

22

9

1

2

58

51

53

46

43

38

37

36

31

28

21

11

2

1

56

53

52

50

41

40

40

37

33

25

22

14

2

1

18-34 Yn= 394 (A)

35-44Yn= 283 (B)

45-54 Yn= 304 (C)

53

61

50

45

37

32

30

26

35

18

26

10

1

0

55-70 Yn= 340 (D)

The importance of

Convenience

Page 11: Break out Logistical challenges Bpost

What is

Convenience?

Page 12: Break out Logistical challenges Bpost

means ORDERING

whereand whenthe consumer wants

Convenience

Page 13: Break out Logistical challenges Bpost

means being delivered

whereand whenthe consumer

wants

Convenience

Page 14: Break out Logistical challenges Bpost

Home Neighbour Work

Where?

Page 15: Break out Logistical challenges Bpost

Convenience does

NOT always mean

quick delivery.

21%

79%

Page 16: Break out Logistical challenges Bpost

Saturday

Evening

Sameday

9-6 P

M

Sunday

Day

When?

Page 17: Break out Logistical challenges Bpost

How many shoppers

do NOT receive their

parcel at first visit

NO

16,3%

YES

83,7%

?Q1.7. Welke leveringsmethode was oorspronkelijk voorzien voor dit pakje?

Q1.10.1. Welke van onderstaande situaties komt het best overeen met de uwe?

Q1.10.2. Hoe hebt u het pakje uiteindelijk ontvangen?

Target: Received parcel < 7 days, excl. dnk

Received parcel at first visit(n=3251)

Page 18: Break out Logistical challenges Bpost

NO

16,3%YES

83,7%

not all 84% were delivered as

foreseen

Q1.7. Welke leveringsmethode was oorspronkelijk voorzien voor dit pakje?

Q1.10.1. Welke van onderstaande situaties komt het best overeen met de uwe?

Q1.10.2. Hoe hebt u het pakje uiteindelijk ontvangen?

Target: Received parcel < 7 days, excl. dnk

Even

worse…

Courier visited 2nd time

Pick-up at carrier’s pick-up point

Did not receive parcel

Other

n = 551

44,2

49,9

5,2

0,775,1

13,0

4,4

3,6

1,6

2,0

0,3

n = 2700

You/somebody else was at home/office/other address when courier visited and you received

parcel

Courier deposited parcel in letter box

Courier left parcel with neighbour– at your request

Courier left parcel with neighbour– own initiative

Courier left parcel at specific spot – at your request

Courier left parcel at specific spot – own initiative

Other

Page 19: Break out Logistical challenges Bpost

Reviews, sharing,…

x7

NO

16,3%YES

83,7%

Page 20: Break out Logistical challenges Bpost

Let the

consumerchoose

Page 21: Break out Logistical challenges Bpost

87

49

23

15

15

12

7

Home delivery

Pick up from

a pickup point

Pick up from

a post office

Pick up in

the shops / web shop

Delivered to another

address specified

Delivery at work

Pick up from

a pack machine

63

19

3

1

3

7

4

DELIVERY METHODS EVER USED

DELIVERY METHODS PREFERRED

What are the

preferreddelivery methods

Delivery

Pickup

Base: Total sample (n=1321)

Question: Q3.4 In which ways have you had your online purchases delivered?

Q3.5 If you could choose between all the following delivery options for shipping your online purchases,

how would you prefer having your purchases delivered?

ABCD: 95% significance level

Avg. # of delivery methods used 2,1

Page 22: Break out Logistical challenges Bpost

46

41

40

36

20

20

6

5

10

1

0

1

1

DELIVERYn = 978

PICK-UPn = 343

Reasons for

preferring certain delivery

methods

Base: Total sample (n=1321)Question: Q3.6 Why do you prefer the following deliver methods for your online purchases?

ABCD: 95% significance level

Avg. # of reasons

2,3

No extra effort to move

Don't have to leave home

Receive the packagepersonally

Time-saving

Faster

Reliable

Cheaper

Environmentally friendly

Don't have to be/stay home

Pick up when I want

Pick up 24/24

Pick up the packageimmediately / quickly

Other

0

0

0

17

10

28

15

7

66

66

8

45

1

Avg. # of reasons

2,6

Page 23: Break out Logistical challenges Bpost

Post

PointParcel

LockerShop

Pick up Methods

Post

Office

How?

Page 24: Break out Logistical challenges Bpost

600+ Post Offices 600+ Post Points

opening hours #

Mon-Fri > 6 pm >400

Saturday am >1000

Saturday pm >500

Sunday 70

Page 25: Break out Logistical challenges Bpost

Most important factor is distance

between the pick-up point and the

home or “on the way home-work”

Provide a dense Pick up Network

Post Points

Post Offices

Page 26: Break out Logistical challenges Bpost
Page 27: Break out Logistical challenges Bpost

Click & Collect

Phygitalisation: Bring your

e-consumers into your shop

Allow for online & offline interworking

Increase traffic in your Retail shop by delivering

online orders to your shop

Page 28: Break out Logistical challenges Bpost

Parcel Lockers

Page 29: Break out Logistical challenges Bpost

Located in high traffic zones

Railway / Metro stations,

Supermarkets

Petrol stations, …

Easy-to-access

Easy-to-park

Accessible 24/7/365

Available for delivery & drop

Parcel Lockers

Page 30: Break out Logistical challenges Bpost
Page 31: Break out Logistical challenges Bpost

When are the

Parcelspicked up?

Lunch time &end of business hours

are main Pick up times

Page 32: Break out Logistical challenges Bpost

When are the

Parcelspicked up?

85,66%

91,73%

95,04%

98,79%99,79%

D+1 D+2 D+3 D+4 D+5

Page 33: Break out Logistical challenges Bpost
Page 34: Break out Logistical challenges Bpost

and if Murphy

passes by…

have a solution ready

Page 35: Break out Logistical challenges Bpost

Give your customers co-

CONTROL

Page 36: Break out Logistical challenges Bpost

ParcifyDelivery by

appointment

Page 37: Break out Logistical challenges Bpost

Is increasing in importance as

marketing element in e-commerce and the enabler for

convenience

Logistics

Page 38: Break out Logistical challenges Bpost

Do you

convert

100%of your

visitors?

Page 39: Break out Logistical challenges Bpost

Lostsales …

Page 40: Break out Logistical challenges Bpost

Eliminateall the

risks

Page 41: Break out Logistical challenges Bpost

How do you

lowerthe

risks

Offer all the

shipping options

Brand of Transportation partner

(logo = quality label)

Shipping Costs

(free if possible)

Returns

Known or LOCAL

Brand

Offer various payment

options

Page 42: Break out Logistical challenges Bpost

Make it

easierFor you customer to

return

Page 43: Break out Logistical challenges Bpost

Free

How?

make labels

Where?shops, home,

lockers

Make it

easierFor your customer to

return

Page 44: Break out Logistical challenges Bpost
Page 45: Break out Logistical challenges Bpost

Returnsby

purchaseditem

Q1.2 Over welk(e) type(s) producten ging het? - Q1.15. Hebt u het/de bestelde product(en) uit het pakje teruggestuurd of bent u van plan dat te doen?

Target: Received parcel < 7 days

Clothing / shoes / access / jewellery / ...

Books

Care products

CD / DVD / Blu-Ray / Games

PC / hardware / software / ink

Small household appliances

Electronic devices

Telecom products

Food

Pharmaceutical products

Toys

Animal products / accessories

Interior decoration

DIY and garden products

Sports products and apparel

Personalised photo products

Yes, already did

Yes, planning to

No Dnk yet

15

7

8

14

10

8

10

5

5

7

9

3

11

2

15

3

6

7

9

14

13

20

13

5

10

9

6

4

6

7

4

3

77

83

82

68

75

70

75

88

83

80

82

92

77

89

80

94

2

3

2

4

2

2

2

2

2

3

3

2

5

2

1

n = 1166

n = 469

n = 369

n = 318

n = 224

n = 112

n = 169

n = 211

n = 146

n = 132

n = 112

n = 115

n = 117

n = 105

n = 103

n = 166

Page 46: Break out Logistical challenges Bpost

Logistics is 2 ways

Page 47: Break out Logistical challenges Bpost

Keep

the consumer

“posted”

Page 48: Break out Logistical challenges Bpost

Base: Total sample (n=1321)

Question: Q3.8 Which information do you wish to receive about your order and the monitoring of your delivery when you buy a product

online? Please indicate to which extent you find it important to receive each of the following types of information.

ABCD: 95% significance level

Online buyers expect

informationabout their

purchaseDesired information about order

and delivery of online purchases

Confirmation of the order

Expected delivery time

When the product is available

When the product is shipped

Monitoring of the shipment

Estimated time of delivery after the shipment has left

Confirmation of the delivery

1

1

6

5

8

5

10

11

36

37

45

51

45

30

88

63

58

50

41

50

60

Unnecessary

Nice to have

Must have

Page 49: Break out Logistical challenges Bpost

Integration

Page 50: Break out Logistical challenges Bpost

Try to create a Wow- effect?

Page 51: Break out Logistical challenges Bpost

People share more than ever

Page 52: Break out Logistical challenges Bpost

Example: Un-Boxing experience

Page 53: Break out Logistical challenges Bpost

Happy shopping ;-)