JDA & Centiro Customer Pulse 2017now.jda.com/rs/366-TWM-779/...Pulse_Report_2017_UK.pdf2017, predictions range from 11.5%2 to 14%1 growth throughout 2017. ... of them investing in

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JDA & CentiroCustomer Pulse 2017United Kingdom

Voice of the online UK shopper

Contents

Introduction

Customer-centricity

Click & Collect

Delivery preferences

Returns

In-store technology experience/ future-gazing

Conclusion

About JDA & Centiro

3

5

8

11

14

16

18

19

3 | JDA & Centiro Customer Pulse Report 2017

as Amazon and ASOS have become known for providing all deliveries and returns free of charge. Now, omni-channel retailers are more selective about the kind of delivery options they provide, how much they cost, and the level of premium services they can realistically provide while maintaining a profit margin. The ability to strike the right balance is becoming increasingly important.

The good news for retailers is that customers are growing increasingly accepting of the different trade-offs.

Online sales with UK retailers grew to £133bn in 20161, representing an increase of 16% compared with 2015. With strong sales continuing into 2017, predictions range from 11.5%2 to 14%1 growth throughout 2017. The strong performance of online retail in 2016 was fuelled by the continued growth of sales made on smartphones, accounting for 47% of total online sales1. Clearly, smartphones are broadening the times and places in which people can browse and engage with online retailers, a strong indicator that mobile will become the number one sales channel sooner than we think.

Over the last few years, we have seen omni-channel retailing converge the online and offline shopping experiences, rendering omni-channel a must-have rather than a ‘nice to have’ for UK retailers, especially as the online channel continues on its

upward trajectory. However, this report sheds light on a number of growing pains that retailers continue to face as they look to meet omni-channel demands. Many retailers struggle to actually make a profit from omni-channel retail: our recent PwC survey3 of retail CEOs revealed that only 3% of UK CEOs (10% of global CEOs) feel their organisation is able to make a profit while fulfilling the demands of omni-channel retail.

“80% of customers begin their journey online”4

In the short term, the initial reaction has naturally involved a tightening of belts, with retailers becoming more selective about which kind of delivery options they provide. Whereas in years gone by, online pureplays such

Introduction


transformation is a number one priority for CEOs, with a large amount of them investing in big data (85%), mobile-enabled applications (85%), smart mobile devices for staff in store (79%) and personalised mobile ‘push offers’ and beacons (76%).

This year’s Customer Pulse Report not only provides a health check on UK retailers’ omni-channel fulfillment operations, but also looks at how consumers see themselves using technology to interact with retailers in the future.

Surveying 2,070 UK adults, the JDA/Centiro Customer Pulse Report provides a thorough overview of customers’ online shopping experiences during the past 12 months.

Key Highlights• Click & Collect is growing and

improving but home delivery issues risk alienating customers.

• People no longer expect free deliveries as a given: 75% of people are willing to exceed a minimum order value to qualify for free delivery.

• Mobile investments are proving shrewd. Nearly half (46%) of UK adults are already using mobile devices in stores.

In order to improve and enhance the customer experience, many retailers are now investing in technology, hoping to capitalise on the next wave of the digital era. Our PwC survey of retail CEOs3 revealed that digital

All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 2,070 adults. Fieldwork was undertaken between 29th - 30th December 2016. The survey was carried out online. The figures have been weighted and are representative of all UK adults (aged 18+).


Customer-centricityConsumers growing increasingly intolerant, retailers ‘controlling the controllables’

Have you experienced a problem with an online order during the last 12 months?

Late delivery

2016

2015

2017

42%

42%

46%

Never Recieved 24%

25%

30%

Incorrect Item 21%

19%

15%

Damaged Item 25%

22%

24%

Missed delivery despite being

at home 36%

37%

40%

Item never received but

delivery company/retailer states

delivery was made

12%

11%

13%

56%

37%

8%

No

Yes

N/A

55%64%

RetailerDeliveryCompany GoodPoor

35%

24%

A poor onlineexperience overall

2016 2017

A poor click & collect experience

A poor home delivery experience

A poor returns experience

Poor problem resolution

78%

80%

73%

76%

66%

65%

80%

76%

85%

81%

Same day delivery

Specific delivery slot

Standard delivery Same day Click & Collect

Next day Click & Collect

Standard Click & Collect

Evening/ weekenddeliveries

Next day delivery

None of these

Don’t know

61%

67%

52%

53%

12%

11%

9%

6%

10%

8%

4%

8%

26%

21%

3%

3%

9%

8%

20172016

Same day delivery

Standard delivery

Same day Click & Collect




Next day delivery

None of these

Don’t know

24%

16%

10%

12%

7%

15%

30%

5%

11%

Not applicable 25%

Check/compareprices

Read product/service reviews

Access and redeemmobile offers

For entertainmentwhile queuing

Online purchasesin store

Online purchases at another store

Other

Don’t know

Not applicable

30%

22%

15%

21%

7%

9%

3%

5%

49%

Mobile device

Social media

Self-service kiosk

Self-scanningtechnology

Magic mirrors

Robots

VR/AR

Wearable tech

30%

12%

22%

27%

10%

5%

8%

8%

UK online shoppers continue to be increasingly intolerant of poor online experiences, as demonstrated by the 5% increase in consumers who have experienced a poor online experience overall, compared with the previous year. Many are taking a step beyond simply complaining when experiencing a problem and are now quick to take their custom elsewhere. While the research reveals that attitudes have mellowed slightly in some areas, it is apparent that UK shoppers are coming to expect an excellent end-to end online experience from shopping cart right thought to delivery and possible returns.

The headline story for retailers is that last-mile order fulfillment issues continue to grow, with 56% of UK adults experiencing an issue in the last 12 months, compared to 53% in 2016 and 47% in 2015.

Late delivery

2016

2015

2017

42%

42%

46%

Never Recieved 24%

25%

30%

Incorrect Item 21%

19%

15%

Damaged Item 25%

22%

24%


at home 36%

37%

40%



delivery was made

12%

11%

13%

56%

37%

8%

No

Yes

N/A

55%64%


35%

24%


2016 2017





78%

80%

73%

76%

66%

65%

80%

76%

85%

81%

Same day delivery






Next day delivery

None of these

Don’t know

61%

67%

52%

53%

12%

11%

9%

6%

10%

8%

4%

8%

26%

21%

3%

3%

9%

8%

20172016

Same day delivery

Standard delivery





Next day delivery

None of these

Don’t know

24%

16%

10%

12%

7%

15%

30%

5%

11%

Not applicable 25%

Check/compareprices






Other

Don’t know

Not applicable

30%

22%

15%

21%

7%

9%

3%

5%

49%

Mobile device

Social media

Self-service kiosk


Magic mirrors

Robots

VR/AR

Wearable tech

30%

12%

22%

27%

10%

5%

8%

8%

How likely would you be to switch to an alternative retailer when next shopping for products online, as a result of:


Which of the following have you experienced with an online order during the last 12 months?


2016 2017

NoYes N/A

A poor Click & Collect experience




78%

80%

73%

76%

66%

65%

80%

76%

85%

81%

NoYes

Late delivery

20162015 2017

42%

42%

46%

Never recieved 24%

25%

30%

Incorrect item 21%

19%

15%

Damaged item 25%

22%

24%

73%


at home 36%

37%

40%



delivery was made

12%

11%

13%

56% 57%

37%

43%

8%

55%

10%

12%

46%

43%

44%

13%

64%

RetailerDeliveryCompany Don’t Know Don’t KnowGoodPoor

No

Yes

No N/AYes

20172016

2017

2016

35%

54%

24%

More convenientthan home delivery

More confident theywould recieve goodsthan home delivery

To avoid homedelivery charges

54%

49%

19%

22%

59%

55%

Staff unable to locateitems in store

No dedicated areas for Click & Collect

Made a planned purchase of an additional item(s)

Made an impulse purchaseof an additional item(s)

Returned an item in store

Cost

Convenience

Speed

A good returns policy

Other

Don’t know

Not applicable

Same day delivery

Standard delivery





Next day delivery

None of these

Don’t know

Same day delivery






Next day delivery

None of these

Don’t know

Researched other items in store

Did not make an additional purchase in store

Long waiting timesdue to lack of staff

Item out of stockat preferred store

Item no longeravailable after

order placed18%

35%

32%

26%

17%

16%

15%

14%

10%

12%

Wrong item 5%

7%

Damaged item4%

4%

16%

10%

8%

6%

33%

40%

22%

16%

17%

1%

4%

3%

2%

69%

3%

9%

20%

4%

16%

3%

4%

61%

67%

52%

53%

12%

11%

9%

6%

10%

8%

4%

8%

26%

21%

3%

3%

9%

8%

20172016

Same day delivery

Standard delivery





Next day delivery

None of these

Don’t know

24%

16%

10%

12%

7%

15%

30%

5%

11%

Not applicable 25%

32%

36%

38%

17%

7%

32%

25%

10%

23%

32%

33%

I return up to 2 items per year

Don’t know/ can’t recall

The item(s) was faulty

I return more than 3 items per year

I bought the item(s) as an impulse purchase due to a promotion, but I subsequently did not want/need them

I don’t return online items

The item(s) was not what I was expecting

I ordered several alternatives with theintention of returning the item(s) I didn’t want

2016 2017

Check/compare prices


Access and redeem mobile offers

For entertainment while queuing


Online purchases in store

Other

Don’t know

Not applicable

30%

22%

15%

21%

7%

9%

3%

5%

49%

Mobile device

Social media

Self-service kiosk

Self-scanning technology

Magic mirrors

Robots

VR/AR

Wearable tech

30%

12%

22%

27%

10%

5%

8%

8%

9%


2016 2017

NoYes N/A





78%

80%

73%

76%

66%

65%

80%

76%

85%

81%

NoYes

Late delivery

20162015 2017

42%

42%

46%

Never recieved 24%

25%

30%

Incorrect item 21%

19%

15%

Damaged item 25%

22%

24%

73%


at home 36%

37%

40%



delivery was made

12%

11%

13%

56% 57%

37%

43%

8%

55%

10%

12%

46%

43%

44%

13%

64%


No

Yes

No N/AYes

20172016

2017

2016

35%

54%

24%




54%

49%

19%

22%

59%

55%






Cost

Convenience

Speed


Other

Don’t know

Not applicable

Same day delivery

Standard delivery





Next day delivery

None of these

Don’t know

Same day delivery






Next day delivery

None of these

Don’t know






order placed18%

35%

32%

26%

17%

16%

15%

14%

10%

12%

Wrong item 5%

7%

Damaged item4%

4%

16%

10%

8%

6%

33%

40%

22%

16%

17%

1%

4%

3%

2%

69%

3%

9%

20%

4%

16%

3%

4%

61%

67%

52%

53%

12%

11%

9%

6%

10%

8%

4%

8%

26%

21%

3%

3%

9%

8%

20172016

Same day delivery

Standard delivery





Next day delivery

None of these

Don’t know

24%

16%

10%

12%

7%

15%

30%

5%

11%

Not applicable 25%

32%

36%

38%

17%

7%

32%

25%

10%

23%

32%

33%









2016 2017







Other

Don’t know

Not applicable

30%

22%

15%

21%

7%

9%

3%

5%

49%

Mobile device

Social media

Self-service kiosk


Magic mirrors

Robots

VR/AR

Wearable tech

30%

12%

22%

27%

10%

5%

8%

8%

9%


2016 2017

NoYes N/A





78%

80%

73%

76%

66%

65%

80%

76%

85%

81%

NoYes

Late delivery

20162015 2017

42%

42%

46%

Never recieved 24%

25%

30%

Incorrect item 21%

19%

15%

Damaged item 25%

22%

24%

73%


at home 36%

37%

40%



delivery was made

12%

11%

13%

56% 57%

37%

43%

8%

55%

10%

12%

46%

43%

44%

13%

64%


No

Yes

No N/AYes

20172016

2017

2016

35%

54%

24%




54%

49%

19%

22%

59%

55%






Cost

Convenience

Speed


Other

Don’t know

Not applicable

Same day delivery

Standard delivery





Next day delivery

None of these

Don’t know

Same day delivery






Next day delivery

None of these

Don’t know






order placed18%

35%

32%

26%

17%

16%

15%

14%

10%

12%

Wrong item 5%

7%

Damaged item4%

4%

16%

10%

8%

6%

33%

40%

22%

16%

17%

1%

4%

3%

2%

69%

3%

9%

20%

4%

16%

3%

4%

61%

67%

52%

53%

12%

11%

9%

6%

10%

8%

4%

8%

26%

21%

3%

3%

9%

8%

20172016

Same day delivery

Standard delivery





Next day delivery

None of these

Don’t know

24%

16%

10%

12%

7%

15%

30%

5%

11%

Not applicable 25%

32%

36%

38%

17%

7%

32%

25%

10%

23%

32%

33%









2016 2017







Other

Don’t know

Not applicable

30%

22%

15%

21%

7%

9%

3%

5%

49%

Mobile device

Social media

Self-service kiosk


Magic mirrors

Robots

VR/AR

Wearable tech

30%

12%

22%

27%

10%

5%

8%

8%

9%

Drilling down into specific problem areas, late deliveries (42%) and missed deliveries (37%) continue to be a significant ‘last-mile’ pain point. Frustratingly for retailers, such issues are out of their direct influence, but research does show that they are making some progress to remedy problems that are within their own control. The amount of people who have been sent an incorrect item by a retailer has fallen from 21% to 19%, and the number of people receiving a damaged item has also decreased (from 25% to 24%) this year. Correcting such problems and processing the returned items significantly impacts profit margins. Indeed, 74% of retail CEOs believe that the cost of customer returns is eroding profits to at least some extent3. It is imperative that these areas are addressed as a matter priority given that small changes could potentially deliver significant improvements.


It’s a reality of life that problems with online orders will occur from time to time, so what is crucial is how such problems are resolved. The majority of survey respondents (55%) believed that the retailer should be responsible for resolving delivery problems, compared to just 35% who thought that the delivery company should be held accountable. Of those respondents that had experienced an issue, 64% felt their most recent issue had been resolved well, however a further 24% stated it had been handled poorly.

At the end of the day, it’s the retailer, rather than the carrier, that potentially loses custom every time an error is made. As such, retailers must take great care when selecting which carrier will represent their brand, especially along the ‘last-mile’ customer engagement.

Who do you think should be responsible for resolving delivery problems?

How would you rate your experience of getting the issue resolved?

“Be mindful: the carrier you select will represent your brand along the ‘last-mile’.”


2016 2017

NoYes N/A





78%

80%

73%

76%

66%

65%

80%

76%

85%

81%

NoYes

Late delivery

20162015 2017

42%

42%

46%

Never recieved 24%

25%

30%

Incorrect item 21%

19%

15%

Damaged item 25%

22%

24%

73%


at home 36%

37%

40%



delivery was made

12%

11%

13%

56% 57%

37%

43%

8%

55%

10%

12%

46%

43%

44%

13%

64%


No

Yes

No N/AYes

20172016

2017

2016

35%

54%

24%




54%

49%

19%

22%

59%

55%






Cost

Convenience

Speed


Other

Don’t know

Not applicable

Same day delivery

Standard delivery





Next day delivery

None of these

Don’t know

Same day delivery






Next day delivery

None of these

Don’t know






order placed18%

35%

32%

26%

17%

16%

15%

14%

10%

12%

Wrong item 5%

7%

Damaged item4%

4%

16%

10%

8%

6%

33%

40%

22%

16%

17%

1%

4%

3%

2%

69%

3%

9%

20%

4%

16%

3%

4%

61%

67%

52%

53%

12%

11%

9%

6%

10%

8%

4%

8%

26%

21%

3%

3%

9%

8%

20172016

Same day delivery

Standard delivery





Next day delivery

None of these

Don’t know

24%

16%

10%

12%

7%

15%

30%

5%

11%

Not applicable 25%

32%

36%

38%

17%

7%

32%

25%

10%

23%

32%

33%









2016 2017







Other

Don’t know

Not applicable

30%

22%

15%

21%

7%

9%

3%

5%

49%

Mobile device

Social media

Self-service kiosk


Magic mirrors

Robots

VR/AR

Wearable tech

30%

12%

22%

27%

10%

5%

8%

8%

9%


2016 2017

NoYes N/A





78%

80%

73%

76%

66%

65%

80%

76%

85%

81%

NoYes

Late delivery

20162015 2017

42%

42%

46%

Never recieved 24%

25%

30%

Incorrect item 21%

19%

15%

Damaged item 25%

22%

24%

73%


at home 36%

37%

40%



delivery was made

12%

11%

13%

56% 57%

37%

43%

8%

55%

10%

12%

46%

43%

44%

13%

64%


No

Yes

No N/AYes

20172016

2017

2016

35%

54%

24%




54%

49%

19%

22%

59%

55%






Cost

Convenience

Speed


Other

Don’t know

Not applicable

Same day delivery

Standard delivery





Next day delivery

None of these

Don’t know

Same day delivery






Next day delivery

None of these

Don’t know






order placed18%

35%

32%

26%

17%

16%

15%

14%

10%

12%

Wrong item 5%

7%

Damaged item4%

4%

16%

10%

8%

6%

33%

40%

22%

16%

17%

1%

4%

3%

2%

69%

3%

9%

20%

4%

16%

3%

4%

61%

67%

52%

53%

12%

11%

9%

6%

10%

8%

4%

8%

26%

21%

3%

3%

9%

8%

20172016

Same day delivery

Standard delivery





Next day delivery

None of these

Don’t know

24%

16%

10%

12%

7%

15%

30%

5%

11%

Not applicable 25%

32%

36%

38%

17%

7%

32%

25%

10%

23%

32%

33%









2016 2017







Other

Don’t know

Not applicable

30%

22%

15%

21%

7%

9%

3%

5%

49%

Mobile device

Social media

Self-service kiosk


Magic mirrors

Robots

VR/AR

Wearable tech

30%

12%

22%

27%

10%

5%

8%

8%

9%


Click & CollectPopularity is growing and investments are paying off

Retailers are continuing to value the importance of Click & Collect: our PwC CEO3 research revealed that globally, more than half (51%) of retailers either offer or plan to offer Click & Collect in the next 12 months – up from 47% in 2016. A slight twist on the same theme, ‘Buy online, ship to store’, also continues to pick up steam, with 48% of retail CEOs already investing in this service, or planning to in the next 12 months.

In the UK, Click & Collect use has plateaued, with 54% of shoppers having used it over the past 12 months, exactly the same figure as the previous 12 months.

However, an interesting contrast begins to emerge when comparing consumer Click & Collect habits around the Christmas period against the entire 12 months. Our Christmas

Customer Pulse6 reports that 39% of people used Click & Collect for an element of their shopping during the 2016 festive period, which is down 15% from the all-year-round figure.The data suggests that Click & Collect is not just for Christmas, it is used throughout the year, regardless of the season, so retailers should not focus on ramping up their Click & Collect efforts solely in the lead up to Christmas.

Have you used a Click & Collect service over the last 12 months?

While the reasons for choosing Click & Collect remain high for convenience and to avoid home delivery charges, we see an increase of 3% around consumer confidence in receiving their goods compared with home delivery.

Which of the following reasons best describes why you used this service?


2016 2017

NoYes N/A





78%

80%

73%

76%

66%

65%

80%

76%

85%

81%

NoYes

Late delivery

20162015 2017

42%

42%

46%

Never recieved 24%

25%

30%

Incorrect item 21%

19%

15%

Damaged item 25%

22%

24%

73%


at home 36%

37%

40%



delivery was made

12%

11%

13%

56% 57%

37%

43%

8%

55%

10%

12%

46%

43%

44%

13%

64%


No

Yes

No N/AYes

20172016

2017

2016

35%

54%

24%




54%

49%

19%

22%

59%

55%






Cost

Convenience

Speed


Other

Don’t know

Not applicable

Same day delivery

Standard delivery





Next day delivery

None of these

Don’t know

Same day delivery






Next day delivery

None of these

Don’t know






order placed18%

35%

32%

26%

17%

16%

15%

14%

10%

12%

Wrong item 5%

7%

Damaged item4%

4%

16%

10%

8%

6%

33%

40%

22%

16%

17%

1%

4%

3%

2%

69%

3%

9%

20%

4%

16%

3%

4%

61%

67%

52%

53%

12%

11%

9%

6%

10%

8%

4%

8%

26%

21%

3%

3%

9%

8%

20172016

Same day delivery

Standard delivery





Next day delivery

None of these

Don’t know

24%

16%

10%

12%

7%

15%

30%

5%

11%

Not applicable 25%

32%

36%

38%

17%

7%

32%

25%

10%

23%

32%

33%









2016 2017







Other

Don’t know

Not applicable

30%

22%

15%

21%

7%

9%

3%

5%

49%

Mobile device

Social media

Self-service kiosk


Magic mirrors

Robots

VR/AR

Wearable tech

30%

12%

22%

27%

10%

5%

8%

8%

9%


2016 2017

NoYes N/A





78%

80%

73%

76%

66%

65%

80%

76%

85%

81%

NoYes

Late delivery

20162015 2017

42%

42%

46%

Never recieved 24%

25%

30%

Incorrect item 21%

19%

15%

Damaged item 25%

22%

24%

73%


at home 36%

37%

40%



delivery was made

12%

11%

13%

56% 57%

37%

43%

8%

55%

10%

12%

46%

43%

44%

13%

64%


No

Yes

No N/AYes

20172016

2017

2016

35%

54%

24%




54%

49%

19%

22%

59%

55%






Cost

Convenience

Speed


Other

Don’t know

Not applicable

Same day delivery

Standard delivery





Next day delivery

None of these

Don’t know

Same day delivery






Next day delivery

None of these

Don’t know






order placed18%

35%

32%

26%

17%

16%

15%

14%

10%

12%

Wrong item 5%

7%

Damaged item4%

4%

16%

10%

8%

6%

33%

40%

22%

16%

17%

1%

4%

3%

2%

69%

3%

9%

20%

4%

16%

3%

4%

61%

67%

52%

53%

12%

11%

9%

6%

10%

8%

4%

8%

26%

21%

3%

3%

9%

8%

20172016

Same day delivery

Standard delivery





Next day delivery

None of these

Don’t know

24%

16%

10%

12%

7%

15%

30%

5%

11%

Not applicable 25%

32%

36%

38%

17%

7%

32%

25%

10%

23%

32%

33%









2016 2017







Other

Don’t know

Not applicable

30%

22%

15%

21%

7%

9%

3%

5%

49%

Mobile device

Social media

Self-service kiosk


Magic mirrors

Robots

VR/AR

Wearable tech

30%

12%

22%

27%

10%

5%

8%

8%

9%


The research reveals that the amount of people experiencing an issue with their Click & Collect order (43%) has fallen slightly over the last two consecutive years (45% in 2016 and 47% in 2015). In the area of workforce management especially, it appears retailers have made some progress, however long waiting times due to a lack of staff continues to be the biggest pain point. To continue moving in the right direction, retailers must also focus on making sure that stock is available in the first place, so effective inventory management will be a prerequisite.


2016 2017

NoYes N/A





78%

80%

73%

76%

66%

65%

80%

76%

85%

81%

NoYes

Late delivery

20162015 2017

42%

42%

46%

Never recieved 24%

25%

30%

Incorrect item 21%

19%

15%

Damaged item 25%

22%

24%

73%


at home 36%

37%

40%



delivery was made

12%

11%

13%

56% 57%

37%

43%

8%

55%

10%

12%

46%

43%

44%

13%

64%


No

Yes

No N/AYes

20172016

2017

2016

35%

54%

24%




54%

49%

19%

22%

59%

55%






Cost

Convenience

Speed


Other

Don’t know

Not applicable

Same day delivery

Standard delivery





Next day delivery

None of these

Don’t know

Same day delivery






Next day delivery

None of these

Don’t know






order placed18%

35%

32%

26%

17%

16%

15%

14%

10%

12%

Wrong item 5%

7%

Damaged item4%

4%

16%

10%

8%

6%

33%

40%

22%

16%

17%

1%

4%

3%

2%

69%

3%

9%

20%

4%

16%

3%

4%

61%

67%

52%

53%

12%

11%

9%

6%

10%

8%

4%

8%

26%

21%

3%

3%

9%

8%

20172016

Same day delivery

Standard delivery





Next day delivery

None of these

Don’t know

24%

16%

10%

12%

7%

15%

30%

5%

11%

Not applicable 25%

32%

36%

38%

17%

7%

32%

25%

10%

23%

32%

33%









2016 2017







Other

Don’t know

Not applicable

30%

22%

15%

21%

7%

9%

3%

5%

49%

Mobile device

Social media

Self-service kiosk


Magic mirrors

Robots

VR/AR

Wearable tech

30%

12%

22%

27%

10%

5%

8%

8%

9%


2016 2017

NoYes N/A





78%

80%

73%

76%

66%

65%

80%

76%

85%

81%

NoYes

Late delivery

20162015 2017

42%

42%

46%

Never recieved 24%

25%

30%

Incorrect item 21%

19%

15%

Damaged item 25%

22%

24%

73%


at home 36%

37%

40%



delivery was made

12%

11%

13%

56% 57%

37%

43%

8%

55%

10%

12%

46%

43%

44%

13%

64%


No

Yes

No N/AYes

20172016

2017

2016

35%

54%

24%




54%

49%

19%

22%

59%

55%






Cost

Convenience

Speed


Other

Don’t know

Not applicable

Same day delivery

Standard delivery





Next day delivery

None of these

Don’t know

Same day delivery






Next day delivery

None of these

Don’t know






order placed18%

35%

32%

26%

17%

16%

15%

14%

10%

12%

Wrong item 5%

7%

Damaged item4%

4%

16%

10%

8%

6%

33%

40%

22%

16%

17%

1%

4%

3%

2%

69%

3%

9%

20%

4%

16%

3%

4%

61%

67%

52%

53%

12%

11%

9%

6%

10%

8%

4%

8%

26%

21%

3%

3%

9%

8%

20172016

Same day delivery

Standard delivery





Next day delivery

None of these

Don’t know

24%

16%

10%

12%

7%

15%

30%

5%

11%

Not applicable 25%

32%

36%

38%

17%

7%

32%

25%

10%

23%

32%

33%









2016 2017







Other

Don’t know

Not applicable

30%

22%

15%

21%

7%

9%

3%

5%

49%

Mobile device

Social media

Self-service kiosk


Magic mirrors

Robots

VR/AR

Wearable tech

30%

12%

22%

27%

10%

5%

8%

8%

9%


2016 2017

NoYes N/A





78%

80%

73%

76%

66%

65%

80%

76%

85%

81%

NoYes

Late delivery

20162015 2017

42%

42%

46%

Never recieved 24%

25%

30%

Incorrect item 21%

19%

15%

Damaged item 25%

22%

24%

73%


at home 36%

37%

40%



delivery was made

12%

11%

13%

56% 57%

37%

43%

8%

55%

10%

12%

46%

43%

44%

13%

64%


No

Yes

No N/AYes

20172016

2017

2016

35%

54%

24%




54%

49%

19%

22%

59%

55%






Cost

Convenience

Speed


Other

Don’t know

Not applicable

Same day delivery

Standard delivery





Next day delivery

None of these

Don’t know

Same day delivery






Next day delivery

None of these

Don’t know






order placed18%

35%

32%

26%

17%

16%

15%

14%

10%

12%

Wrong item 5%

7%

Damaged item4%

4%

16%

10%

8%

6%

33%

40%

22%

16%

17%

1%

4%

3%

2%

69%

3%

9%

20%

4%

16%

3%

4%

61%

67%

52%

53%

12%

11%

9%

6%

10%

8%

4%

8%

26%

21%

3%

3%

9%

8%

20172016

Same day delivery

Standard delivery





Next day delivery

None of these

Don’t know

24%

16%

10%

12%

7%

15%

30%

5%

11%

Not applicable 25%

32%

36%

38%

17%

7%

32%

25%

10%

23%

32%

33%









2016 2017







Other

Don’t know

Not applicable

30%

22%

15%

21%

7%

9%

3%

5%

49%

Mobile device

Social media

Self-service kiosk


Magic mirrors

Robots

VR/AR

Wearable tech

30%

12%

22%

27%

10%

5%

8%

8%

9%


2016 2017

NoYes N/A





78%

80%

73%

76%

66%

65%

80%

76%

85%

81%

NoYes

Late delivery

20162015 2017

42%

42%

46%

Never recieved 24%

25%

30%

Incorrect item 21%

19%

15%

Damaged item 25%

22%

24%

73%


at home 36%

37%

40%



delivery was made

12%

11%

13%

56% 57%

37%

43%

8%

55%

10%

12%

46%

43%

44%

13%

64%


No

Yes

No N/AYes

20172016

2017

2016

35%

54%

24%




54%

49%

19%

22%

59%

55%






Cost

Convenience

Speed


Other

Don’t know

Not applicable

Same day delivery

Standard delivery





Next day delivery

None of these

Don’t know

Same day delivery






Next day delivery

None of these

Don’t know






order placed18%

35%

32%

26%

17%

16%

15%

14%

10%

12%

Wrong item 5%

7%

Damaged item4%

4%

16%

10%

8%

6%

33%

40%

22%

16%

17%

1%

4%

3%

2%

69%

3%

9%

20%

4%

16%

3%

4%

61%

67%

52%

53%

12%

11%

9%

6%

10%

8%

4%

8%

26%

21%

3%

3%

9%

8%

20172016

Same day delivery

Standard delivery





Next day delivery

None of these

Don’t know

24%

16%

10%

12%

7%

15%

30%

5%

11%

Not applicable 25%

32%

36%

38%

17%

7%

32%

25%

10%

23%

32%

33%









2016 2017







Other

Don’t know

Not applicable

30%

22%

15%

21%

7%

9%

3%

5%

49%

Mobile device

Social media

Self-service kiosk


Magic mirrors

Robots

VR/AR

Wearable tech

30%

12%

22%

27%

10%

5%

8%

8%

9%

Which of the following problems have you encountered with a Click & Collect order during the last 12 months?

Have you experienced an issue with a Click & Collect order during the last 12 months?


Retailers recognise that Click & Collect is an important sales channel in its own right, but when it’s performing well, the potential is huge to create additional sales opportunities. The research shows that 16% of Click & Collect shoppers made a planned purchase of an additional item(s) and a further 10% made an impulse purchase. Footfall is invaluable to retailers so the fact that 6% did some research on other items while visiting stores to pick up a Click & Collect order, can only represent good news.

CEOs are clearly already thinking along these lines: our PwC CEO survey3 revealed that more than three quarters (76%) of retailers are not afraid that online sales are cannibalising in-store sales, indeed, this figure rises to 83% for the UK alone.


2016 2017

NoYes N/A





78%

80%

73%

76%

66%

65%

80%

76%

85%

81%

NoYes

Late delivery

20162015 2017

42%

42%

46%

Never recieved 24%

25%

30%

Incorrect item 21%

19%

15%

Damaged item 25%

22%

24%

73%


at home 36%

37%

40%



delivery was made

12%

11%

13%

56% 57%

37%

43%

8%

55%

10%

12%

46%

43%

44%

13%

64%


No

Yes

No N/AYes

20172016

2017

2016

35%

54%

24%




54%

49%

19%

22%

59%

55%






Cost

Convenience

Speed


Other

Don’t know

Not applicable

Same day delivery

Standard delivery





Next day delivery

None of these

Don’t know

Same day delivery






Next day delivery

None of these

Don’t know






order placed18%

35%

32%

26%

17%

16%

15%

14%

10%

12%

Wrong item 5%

7%

Damaged item4%

4%

16%

10%

8%

6%

33%

40%

22%

16%

17%

1%

4%

3%

2%

69%

3%

9%

20%

4%

16%

3%

4%

61%

67%

52%

53%

12%

11%

9%

6%

10%

8%

4%

8%

26%

21%

3%

3%

9%

8%

20172016

Same day delivery

Standard delivery





Next day delivery

None of these

Don’t know

24%

16%

10%

12%

7%

15%

30%

5%

11%

Not applicable 25%

32%

36%

38%

17%

7%

32%

25%

10%

23%

32%

33%









2016 2017







Other

Don’t know

Not applicable

30%

22%

15%

21%

7%

9%

3%

5%

49%

Mobile device

Social media

Self-service kiosk


Magic mirrors

Robots

VR/AR

Wearable tech

30%

12%

22%

27%

10%

5%

8%

8%

9%

When making a Click & Collect pick up in-store:

“76% retail CEOs globally do not think that online sales are cannibalising in-store sales.”

How are online sales impacting store sales overall?3

63%

51%49%

It factors into my decision

Don’t know/ n/a

It doesn’t factor into my decision

27%

10%

NO

YES

Cannibalisingstore sales

Don’t know

Online are net additional sales

Complimentary(some halo

effect acrossthe channels)

17%

53%

18%

24%

42%

28%

12%

6%

UKGlobal


In the early days of the ecommerce boom, free delivery and returns options were commonly offered by retailers as they jostled for market share, seeking to remove every possible barrier towards a customer making a purchase. Fast forward to today and retailers have recognised just how much this approach has been costing them.

The days of free deliveries and returns being the norm are becoming a thing of the past – a fact that consumers are already acutely aware of. There is now a growing acceptance that consumers cannot expect the delivery of an online order to always come free of charge. The research reveals that cost remains the most important factor when it comes to home deliveries, however convenience, speed and a good returns policy are key considerations for a lot of shoppers.

Indeed, nearly 1 in 5 (17%) of respondents said a good returns policy was the most important to them, indicating just how important the returns experience is for many shoppers (a topic we will look at in more detail later on in the report).


2016 2017

NoYes N/A





78%

80%

73%

76%

66%

65%

80%

76%

85%

81%

NoYes

Late delivery

20162015 2017

42%

42%

46%

Never recieved 24%

25%

30%

Incorrect item 21%

19%

15%

Damaged item 25%

22%

24%

73%


at home 36%

37%

40%



delivery was made

12%

11%

13%

56% 57%

37%

43%

8%

55%

10%

12%

46%

43%

44%

13%

64%


No

Yes

No N/AYes

20172016

2017

2016

35%

54%

24%




54%

49%

19%

22%

59%

55%






Cost

Convenience

Speed


Other

Don’t know

Not applicable

Same day delivery

Standard delivery





Next day delivery

None of these

Don’t know

Same day delivery






Next day delivery

None of these

Don’t know






order placed18%

35%

32%

26%

17%

16%

15%

14%

10%

12%

Wrong item 5%

7%

Damaged item4%

4%

16%

10%

8%

6%

33%

40%

22%

16%

17%

1%

4%

3%

2%

69%

3%

9%

20%

4%

16%

3%

4%

61%

67%

52%

53%

12%

11%

9%

6%

10%

8%

4%

8%

26%

21%

3%

3%

9%

8%

20172016

Same day delivery

Standard delivery





Next day delivery

None of these

Don’t know

24%

16%

10%

12%

7%

15%

30%

5%

11%

Not applicable 25%

32%

36%

38%

17%

7%

32%

25%

10%

23%

32%

33%









2016 2017







Other

Don’t know

Not applicable

30%

22%

15%

21%

7%

9%

3%

5%

49%

Mobile device

Social media

Self-service kiosk


Magic mirrors

Robots

VR/AR

Wearable tech

30%

12%

22%

27%

10%

5%

8%

8%

9%

Which of the following factors matters most to you when it comes to online home deliveries?

Delivery preferencesConsumer delivery cost expectations growing more realistic


The research reveals that the majority of shoppers continue to typically choose standard delivery (3-5 days) followed by standard Click & Collect (3-5 days) and next day delivery.

When it comes to expectations around what should be given free of charge, people are increasingly expecting that if they are willing to use standard delivery, they will not be asked to pay.

A positive trend for UK retailers is the fact that it is now widely accepted that the more premium delivery options will often come with a fee attached.

Which of the following delivery options would you expect to be free without a minimum order value?

Late delivery

2016

2015

2017

42%

42%

46%

Never Recieved 24%

25%

30%

Incorrect Item 21%

19%

15%

Damaged Item 25%

22%

24%


at home 36%

37%

40%



delivery was made

12%

11%

13%

56%

37%

8%

No

Yes

N/A

55%64%


35%

24%


2016 2017





78%

80%

73%

76%

66%

65%

80%

76%

85%

81%

Same day delivery






Next day delivery

None of these

Don’t know

61%

67%

52%

53%

12%

11%

9%

6%

10%

8%

4%

8%

26%

21%

3%

3%

9%

8%

20172016

Same day delivery

Standard delivery





Next day delivery

None of these

Don’t know

24%

16%

10%

12%

7%

15%

30%

5%

11%

Not applicable 25%

Check/compareprices






Other

Don’t know

Not applicable

30%

22%

15%

21%

7%

9%

3%

5%

49%

Mobile device

Social media

Self-service kiosk


Magic mirrors

Robots

VR/AR

Wearable tech

30%

12%

22%

27%

10%

5%

8%

8%

Late delivery

2016

2015

2017

42%

42%

46%

Never Recieved 24%

25%

30%

Incorrect Item 21%

19%

15%

Damaged Item 25%

22%

24%


at home 36%

37%

40%



delivery was made

12%

11%

13%

56%

37%

8%

No

Yes

N/A

55%64%


35%

24%


2016 2017





78%

80%

73%

76%

66%

65%

80%

76%

85%

81%

Same day delivery






Next day delivery

None of these

Don’t know

61%

67%

52%

53%

12%

11%

9%

6%

10%

8%

4%

8%

26%

21%

3%

3%

9%

8%

20172016

Same day delivery

Standard delivery





Next day delivery

None of these

Don’t know

24%

16%

10%

12%

7%

15%

30%

5%

11%

Not applicable 25%

Check/compareprices






Other

Don’t know

Not applicable

30%

22%

15%

21%

7%

9%

3%

5%

49%

Mobile device

Social media

Self-service kiosk


Magic mirrors

Robots

VR/AR

Wearable tech

30%

12%

22%

27%

10%

5%

8%

8%

Late delivery

2016

2015

2017

42%

42%

46%

Never Recieved 24%

25%

30%

Incorrect Item 21%

19%

15%

Damaged Item 25%

22%

24%


at home 36%

37%

40%



delivery was made

12%

11%

13%

56%

37%

8%

No

Yes

N/A

55%64%


35%

24%


2016 2017





78%

80%

73%

76%

66%

65%

80%

76%

85%

81%

Same day delivery






Next day delivery

None of these

Don’t know

61%

67%

52%

53%

12%

11%

9%

6%

10%

8%

4%

8%

26%

21%

3%

3%

9%

8%

20172016

Same day delivery

Standard delivery





Next day delivery

None of these

Don’t know

24%

16%

10%

12%

7%

15%

30%

5%

11%

Not applicable 25%

Check/compareprices






Other

Don’t know

Not applicable

30%

22%

15%

21%

7%

9%

3%

5%

49%

Mobile device

Social media

Self-service kiosk


Magic mirrors

Robots

VR/AR

Wearable tech

30%

12%

22%

27%

10%

5%

8%

8%

Delivery options: free vs. paid

“There is growing acceptance amongst consumers that premium delivery services will come at a cost - a cost they are prepared to pay.”


2016 2017

NoYes N/A





78%

80%

73%

76%

66%

65%

80%

76%

85%

81%

NoYes

Late delivery

20162015 2017

42%

42%

46%

Never recieved 24%

25%

30%

Incorrect item 21%

19%

15%

Damaged item 25%

22%

24%

73%


at home 36%

37%

40%



delivery was made

12%

11%

13%

56% 57%

37%

43%

8%

55%

10%

12%

46%

43%

44%

13%

64%


No

Yes

No N/AYes

20172016

2017

2016

35%

54%

24%




54%

49%

19%

22%

59%

55%






Cost

Convenience

Speed


Other

Don’t know

Not applicable

Same day delivery

Standard delivery





Next day delivery

None of these

Don’t know

Same day delivery






Next day delivery

None of these

Don’t know






order placed18%

35%

32%

26%

17%

16%

15%

14%

10%

12%

Wrong item 5%

7%

Damaged item4%

4%

16%

10%

8%

6%

33%

40%

22%

16%

17%

1%

4%

3%

2%

69%

3%

9%

20%

4%

16%

3%

4%

61%

67%

52%

53%

12%

11%

9%

6%

10%

8%

4%

8%

26%

21%

3%

3%

9%

8%

20172016

Same day delivery

Standard delivery





Next day delivery

None of these

Don’t know

24%

16%

10%

12%

7%

15%

30%

5%

11%

Not applicable 25%

32%

36%

38%

17%

7%

32%

25%

10%

23%

32%

33%









2016 2017







Other

Don’t know

Not applicable

30%

22%

15%

21%

7%

9%

3%

5%

49%

Mobile device

Social media

Self-service kiosk


Magic mirrors

Robots

VR/AR

Wearable tech

30%

12%

22%

27%

10%

5%

8%

8%

9%

Which delivery option do you typically choose when shopping online?


Retailers are increasingly introducing minimum order thresholds that customers must exceed to qualify for free delivery options. The encouraging news is that three quarters of customers are happy to increase their spend if it means delivery is free of charge. This is particularly apparent for premium services such as same day and next day delivery.

That said, in general, retailers look set to attempt to drive further sales by raising the threshold customers need to exceed to qualify for free delivery. Our PwC research revealed that 2017 will see 62% making this change, which is up from 39% last year. It’s important for retailers to tread carefully in this regard: they must be careful that they do not upset the balance in this area by ramping up the minimum order value beyond an amount that customers would be willing to exceed to achieve free standard delivery.

Which of the following delivery options would you be happy to exceed a minimum order value if it resulted in a free delivery?

“75% customers are happy to increasespend to qualify for free delivery”

Late delivery

2016

2015

2017

42%

42%

46%

Never Recieved 24%

25%

30%

Incorrect Item 21%

19%

15%

Damaged Item 25%

22%

24%


at home 36%

37%

40%



delivery was made

12%

11%

13%

56%

37%

8%

No

Yes

N/A

55%64%


35%

24%


2016 2017





78%

80%

73%

76%

66%

65%

80%

76%

85%

81%

Same day delivery






Next day delivery

None of these

Don’t know

61%

67%

52%

53%

12%

11%

9%

6%

10%

8%

4%

8%

26%

21%

3%

3%

9%

8%

20172016

Same day delivery

Standard delivery





Next day delivery

None of these

Don’t know

24%

16%

10%

12%

7%

15%

30%

5%

11%

Not applicable 25%

Check/compareprices






Other

Don’t know

Not applicable

30%

22%

15%

21%

7%

9%

3%

5%

49%

Mobile device

Social media

Self-service kiosk


Magic mirrors

Robots

VR/AR

Wearable tech

30%

12%

22%

27%

10%

5%

8%

8%

Late delivery

2016

2015

2017

42%

42%

46%

Never Recieved 24%

25%

30%

Incorrect Item 21%

19%

15%

Damaged Item 25%

22%

24%


at home 36%

37%

40%



delivery was made

12%

11%

13%

56%

37%

8%

No

Yes

N/A

55%64%


35%

24%


2016 2017





78%

80%

73%

76%

66%

65%

80%

76%

85%

81%

Same day delivery






Next day delivery

None of these

Don’t know

61%

67%

52%

53%

12%

11%

9%

6%

10%

8%

4%

8%

26%

21%

3%

3%

9%

8%

20172016

Same day delivery

Standard delivery





Next day delivery

None of these

Don’t know

24%

16%

10%

12%

7%

15%

30%

5%

11%

Not applicable 25%

Check/compareprices






Other

Don’t know

Not applicable

30%

22%

15%

21%

7%

9%

3%

5%

49%

Mobile device

Social media

Self-service kiosk


Magic mirrors

Robots

VR/AR

Wearable tech

30%

12%

22%

27%

10%

5%

8%

8%

Minimum order thresholds


Returns remain a huge headache for the majority of retailers. Almost three quarters (74%) of CEOs surveyed in our PwC research3 said the cost of customer returns is impacting profits to at least some extent, a figure that rises to 85% for the UK.

From a consumer perspective, 63% of people say the returns experience now factors into which retailer they choose to shop with online (the same amount as last year). Clearly shoppers are not just attracted by promotions and promises of free delivery, but also by the increasingly common safety net of free returns.

To what extent does the ease of being able to return items factor into which retailers you shop online with?

In an average year, approximately how many times do you return items that you have bought online?

ReturnsRetailers working to stem the returns tide


2016 2017

NoYes N/A





78%

80%

73%

76%

66%

65%

80%

76%

85%

81%

NoYes

Late delivery

20162015 2017

42%

42%

46%

Never recieved 24%

25%

30%

Incorrect item 21%

19%

15%

Damaged item 25%

22%

24%

73%


at home 36%

37%

40%



delivery was made

12%

11%

13%

56% 57%

37%

43%

8%

55%

10%

12%

46%

43%

44%

13%

64%


No

Yes

No N/AYes

20172016

2017

2016

35%

54%

24%




54%

49%

19%

22%

59%

55%






Cost

Convenience

Speed


Other

Don’t know

Not applicable

Same day delivery

Standard delivery





Next day delivery

None of these

Don’t know

Same day delivery






Next day delivery

None of these

Don’t know






order placed18%

35%

32%

26%

17%

16%

15%

14%

10%

12%

Wrong item 5%

7%

Damaged item4%

4%

16%

10%

8%

6%

33%

40%

22%

16%

17%

1%

4%

3%

2%

69%

3%

9%

20%

4%

16%

3%

4%

61%

67%

52%

53%

12%

11%

9%

6%

10%

8%

4%

8%

26%

21%

3%

3%

9%

8%

20172016

Same day delivery

Standard delivery





Next day delivery

None of these

Don’t know

24%

16%

10%

12%

7%

15%

30%

5%

11%

Not applicable 25%

32%

36%

38%

17%

7%

32%

25%

10%

23%

32%

33%









2016 2017







Other

Don’t know

Not applicable

30%

22%

15%

21%

7%

9%

3%

5%

49%

Mobile device

Social media

Self-service kiosk


Magic mirrors

Robots

VR/AR

Wearable tech

30%

12%

22%

27%

10%

5%

8%

8%

9%


2016 2017

NoYes N/A





78%

80%

73%

76%

66%

65%

80%

76%

85%

81%

NoYes

Late delivery

20162015 2017

42%

42%

46%

Never recieved 24%

25%

30%

Incorrect item 21%

19%

15%

Damaged item 25%

22%

24%

73%


at home 36%

37%

40%



delivery was made

12%

11%

13%

56% 57%

37%

43%

8%

55%

10%

12%

46%

43%

44%

13%

64%


No

Yes

No N/AYes

20172016

2017

2016

35%

54%

24%




54%

49%

19%

22%

59%

55%






Cost

Convenience

Speed


Other

Don’t know

Not applicable

Same day delivery

Standard delivery





Next day delivery

None of these

Don’t know

Same day delivery






Next day delivery

None of these

Don’t know






order placed18%

35%

32%

26%

17%

16%

15%

14%

10%

12%

Wrong item 5%

7%

Damaged item4%

4%

16%

10%

8%

6%

33%

40%

22%

16%

17%

1%

4%

3%

2%

69%

3%

9%

20%

4%

16%

3%

4%

61%

67%

52%

53%

12%

11%

9%

6%

10%

8%

4%

8%

26%

21%

3%

3%

9%

8%

20172016

Same day delivery

Standard delivery





Next day delivery

None of these

Don’t know

24%

16%

10%

12%

7%

15%

30%

5%

11%

Not applicable 25%

32%

36%

38%

17%

7%

32%

25%

10%

23%

32%

33%









2016 2017







Other

Don’t know

Not applicable

30%

22%

15%

21%

7%

9%

3%

5%

49%

Mobile device

Social media

Self-service kiosk


Magic mirrors

Robots

VR/AR

Wearable tech

30%

12%

22%

27%

10%

5%

8%

8%

9%


2016 2017

NoYes N/A





78%

80%

73%

76%

66%

65%

80%

76%

85%

81%

NoYes

Late delivery

20162015 2017

42%

42%

46%

Never recieved 24%

25%

30%

Incorrect item 21%

19%

15%

Damaged item 25%

22%

24%

73%


at home 36%

37%

40%



delivery was made

12%

11%

13%

56% 57%

37%

43%

8%

55%

10%

12%

46%

43%

44%

13%

64%


No

Yes

No N/AYes

20172016

2017

2016

35%

54%

24%




54%

49%

19%

22%

59%

55%






Cost

Convenience

Speed


Other

Don’t know

Not applicable

Same day delivery

Standard delivery





Next day delivery

None of these

Don’t know

Same day delivery






Next day delivery

None of these

Don’t know






order placed18%

35%

32%

26%

17%

16%

15%

14%

10%

12%

Wrong item 5%

7%

Damaged item4%

4%

16%

10%

8%

6%

33%

40%

22%

16%

17%

1%

4%

3%

2%

69%

3%

9%

20%

4%

16%

3%

4%

61%

67%

52%

53%

12%

11%

9%

6%

10%

8%

4%

8%

26%

21%

3%

3%

9%

8%

20172016

Same day delivery

Standard delivery





Next day delivery

None of these

Don’t know

24%

16%

10%

12%

7%

15%

30%

5%

11%

Not applicable 25%

32%

36%

38%

17%

7%

32%

25%

10%

23%

32%

33%









2016 2017







Other

Don’t know

Not applicable

30%

22%

15%

21%

7%

9%

3%

5%

49%

Mobile device

Social media

Self-service kiosk


Magic mirrors

Robots

VR/AR

Wearable tech

30%

12%

22%

27%

10%

5%

8%

8%

9%


2016 2017

NoYes N/A





78%

80%

73%

76%

66%

65%

80%

76%

85%

81%

NoYes

Late delivery

20162015 2017

42%

42%

46%

Never recieved 24%

25%

30%

Incorrect item 21%

19%

15%

Damaged item 25%

22%

24%

73%


at home 36%

37%

40%



delivery was made

12%

11%

13%

56% 57%

37%

43%

8%

55%

10%

12%

46%

43%

44%

13%

64%


No

Yes

No N/AYes

20172016

2017

2016

35%

54%

24%




54%

49%

19%

22%

59%

55%






Cost

Convenience

Speed


Other

Don’t know

Not applicable

Same day delivery

Standard delivery





Next day delivery

None of these

Don’t know

Same day delivery






Next day delivery

None of these

Don’t know






order placed18%

35%

32%

26%

17%

16%

15%

14%

10%

12%

Wrong item 5%

7%

Damaged item4%

4%

16%

10%

8%

6%

33%

40%

22%

16%

17%

1%

4%

3%

2%

69%

3%

9%

20%

4%

16%

3%

4%

61%

67%

52%

53%

12%

11%

9%

6%

10%

8%

4%

8%

26%

21%

3%

3%

9%

8%

20172016

Same day delivery

Standard delivery





Next day delivery

None of these

Don’t know

24%

16%

10%

12%

7%

15%

30%

5%

11%

Not applicable 25%

32%

36%

38%

17%

7%

32%

25%

10%

23%

32%

33%









2016 2017







Other

Don’t know

Not applicable

30%

22%

15%

21%

7%

9%

3%

5%

49%

Mobile device

Social media

Self-service kiosk


Magic mirrors

Robots

VR/AR

Wearable tech

30%

12%

22%

27%

10%

5%

8%

8%

9%


2016 2017

NoYes N/A





78%

80%

73%

76%

66%

65%

80%

76%

85%

81%

NoYes

Late delivery

20162015 2017

42%

42%

46%

Never recieved 24%

25%

30%

Incorrect item 21%

19%

15%

Damaged item 25%

22%

24%

73%


at home 36%

37%

40%



delivery was made

12%

11%

13%

56% 57%

37%

43%

8%

55%

10%

12%

46%

43%

44%

13%

64%


No

Yes

No N/AYes

20172016

2017

2016

35%

54%

24%




54%

49%

19%

22%

59%

55%






Cost

Convenience

Speed


Other

Don’t know

Not applicable

Same day delivery

Standard delivery





Next day delivery

None of these

Don’t know

Same day delivery






Next day delivery

None of these

Don’t know






order placed18%

35%

32%

26%

17%

16%

15%

14%

10%

12%

Wrong item 5%

7%

Damaged item4%

4%

16%

10%

8%

6%

33%

40%

22%

16%

17%

1%

4%

3%

2%

69%

3%

9%

20%

4%

16%

3%

4%

61%

67%

52%

53%

12%

11%

9%

6%

10%

8%

4%

8%

26%

21%

3%

3%

9%

8%

20172016

Same day delivery

Standard delivery





Next day delivery

None of these

Don’t know

24%

16%

10%

12%

7%

15%

30%

5%

11%

Not applicable 25%

32%

36%

38%

17%

7%

32%

25%

10%

23%

32%

33%









2016 2017







Other

Don’t know

Not applicable

30%

22%

15%

21%

7%

9%

3%

5%

49%

Mobile device

Social media

Self-service kiosk


Magic mirrors

Robots

VR/AR

Wearable tech

30%

12%

22%

27%

10%

5%

8%

8%

9%


2016 2017

NoYes N/A





78%

80%

73%

76%

66%

65%

80%

76%

85%

81%

NoYes

Late delivery

20162015 2017

42%

42%

46%

Never recieved 24%

25%

30%

Incorrect item 21%

19%

15%

Damaged item 25%

22%

24%

73%


at home 36%

37%

40%



delivery was made

12%

11%

13%

56% 57%

37%

43%

8%

55%

10%

12%

46%

43%

44%

13%

64%


No

Yes

No N/AYes

20172016

2017

2016

35%

54%

24%




54%

49%

19%

22%

59%

55%






Cost

Convenience

Speed


Other

Don’t know

Not applicable

Same day delivery

Standard delivery





Next day delivery

None of these

Don’t know

Same day delivery






Next day delivery

None of these

Don’t know






order placed18%

35%

32%

26%

17%

16%

15%

14%

10%

12%

Wrong item 5%

7%

Damaged item4%

4%

16%

10%

8%

6%

33%

40%

22%

16%

17%

1%

4%

3%

2%

69%

3%

9%

20%

4%

16%

3%

4%

61%

67%

52%

53%

12%

11%

9%

6%

10%

8%

4%

8%

26%

21%

3%

3%

9%

8%

20172016

Same day delivery

Standard delivery





Next day delivery

None of these

Don’t know

24%

16%

10%

12%

7%

15%

30%

5%

11%

Not applicable 25%

32%

36%

38%

17%

7%

32%

25%

10%

23%

32%

33%









2016 2017







Other

Don’t know

Not applicable

30%

22%

15%

21%

7%

9%

3%

5%

49%

Mobile device

Social media

Self-service kiosk


Magic mirrors

Robots

VR/AR

Wearable tech

30%

12%

22%

27%

10%

5%

8%

8%

9%

63%

51%49%


Don’t know/ n/a


27%

10%

NO

YES


Don’t know




17%

53%

18%

24%

42%

28%

12%

6%

UKGlobal

2016

2017



2016 2017

NoYes N/A





78%

80%

73%

76%

66%

65%

80%

76%

85%

81%

NoYes

Late delivery

20162015 2017

42%

42%

46%

Never recieved 24%

25%

30%

Incorrect item 21%

19%

15%

Damaged item 25%

22%

24%

73%


at home 36%

37%

40%



delivery was made

12%

11%

13%

56% 57%

37%

43%

8%

55%

10%

12%

46%

43%

44%

13%

64%


No

Yes

No N/AYes

20172016

2017

2016

35%

54%

24%




54%

49%

19%

22%

59%

55%






Cost

Convenience

Speed


Other

Don’t know

Not applicable

Same day delivery

Standard delivery





Next day delivery

None of these

Don’t know

Same day delivery






Next day delivery

None of these

Don’t know






order placed18%

35%

32%

26%

17%

16%

15%

14%

10%

12%

Wrong item 5%

7%

Damaged item4%

4%

16%

10%

8%

6%

33%

40%

22%

16%

17%

1%

4%

3%

2%

69%

3%

9%

20%

4%

16%

3%

4%

61%

67%

52%

53%

12%

11%

9%

6%

10%

8%

4%

8%

26%

21%

3%

3%

9%

8%

20172016

Same day delivery

Standard delivery





Next day delivery

None of these

Don’t know

24%

16%

10%

12%

7%

15%

30%

5%

11%

Not applicable 25%

32%

36%

38%

17%

7%

32%

25%

10%

23%

32%

33%









2016 2017







Other

Don’t know

Not applicable

30%

22%

15%

21%

7%

9%

3%

5%

49%

Mobile device

Social media

Self-service kiosk


Magic mirrors

Robots

VR/AR

Wearable tech

30%

12%

22%

27%

10%

5%

8%

8%

9%

What were your reasons for returning items you have bought online?

“Big data and a sharp analytical focus is required to understand and act on the information that will allow retailers to reduce the costly cycle of returns.”

Having the ability to segment customer purchase history, preferences, lifetime value etc, is also set to become increasingly important in the bid to get more control over the volume of returns. As a case in point, while almost one fifth of people (17%) ordered several items with the intention of sending some back. When broken down by gender, the differences are even starker as only 9% of males ordered several items with the intention of sending them back, compared to 23% of females.There is a big opportunity here to not just efficiently manage the returns process, but to use big data and a sharp analytical focus to predict and prevent returns in the first place.

With the tide rising, what action can retailers take in a bid to stem the number of returns? While the causes of returns are a complex interplay of product, customer and marketing, the primary reasons for returning items, as highlighted in the survey, was 38% who claimed the item delivered was not what they were expecting. Clearly retailers still have further work to do with how they describe products online, and the imagery they use alongside it. Product information is absolutely vital online and more effort needs to be put into how items are represented. This could generate significant cost savings to retailers and deliver a better online shopping experience to customers.


One of the things that makes retail a particularly exciting space to work in is the way technological boundaries are constantly tested. Their efforts in this regard don’t go to waste, as consumers are ready and expecting digital engagement: nearly half (46%) of UK adults are already using mobile devices in stores.

Retailers are being proactive through their use of mobile technology while customers are in the store. Beacon technology is a great example: our PwC CEO survey3 revealed that more than three quarters (76%) of retailers have already invested in ‘push offers’ and beacons, so that they can reach out to people who are visiting, or possibly just passing by their store.

It’s a fact of life that many customers today use their mobile devices to check and compare prices. But it is interesting to note that this ‘showrooming’ results in a negligible difference between shoppers buying items from the store they are in (7%) or from another store (9%).

In-store technology experience/future-gazingMobile investments paying off, with self-scanning the next big target

Late delivery

2016

2015

2017

42%

42%

46%

Never Recieved 24%

25%

30%

Incorrect Item 21%

19%

15%

Damaged Item 25%

22%

24%


at home 36%

37%

40%



delivery was made

12%

11%

13%

56%

37%

8%

No

Yes

N/A

55%64%


35%

24%


2016 2017





78%

80%

73%

76%

66%

65%

80%

76%

85%

81%

Same day delivery






Next day delivery

None of these

Don’t know

61%

67%

52%

53%

12%

11%

9%

6%

10%

8%

4%

8%

26%

21%

3%

3%

9%

8%

20172016

Same day delivery

Standard delivery





Next day delivery

None of these

Don’t know

24%

16%

10%

12%

7%

15%

30%

5%

11%

Not applicable 25%

Check/compareprices






Other

Don’t know

Not applicable

30%

22%

15%

21%

7%

9%

3%

5%

49%

Mobile device

Social media

Self-service kiosk


Magic mirrors

Robots

VR/AR

Wearable tech

30%

12%

22%

27%

10%

5%

8%

8%

Which of the following do you ever use a mobile device for while in-store?

Have you used a mobile device in-store?

63%

51%49%


Don’t know/ n/a


27%

10%

NO

YES


Don’t know




17%

53%

18%

24%

42%

28%

12%

6%

UKGlobal


Thinking about shopping in 5 years’ time, which of the following technologies do you think you will use to interact with a retailer?

Late delivery

2016

2015

2017

42%

42%

46%

Never Recieved 24%

25%

30%

Incorrect Item 21%

19%

15%

Damaged Item 25%

22%

24%


at home 36%

37%

40%



delivery was made

12%

11%

13%

56%

37%

8%

No

Yes

N/A

55%64%


35%

24%


2016 2017





78%

80%

73%

76%

66%

65%

80%

76%

85%

81%

Same day delivery






Next day delivery

None of these

Don’t know

61%

67%

52%

53%

12%

11%

9%

6%

10%

8%

4%

8%

26%

21%

3%

3%

9%

8%

20172016

Same day delivery

Standard delivery





Next day delivery

None of these

Don’t know

24%

16%

10%

12%

7%

15%

30%

5%

11%

Not applicable 25%

Check/compareprices






Other

Don’t know

Not applicable

30%

22%

15%

21%

7%

9%

3%

5%

49%

Mobile device

Social media

Self-service kiosk


Magic mirrors

Robots

VR/AR

Wearable tech

30%

12%

22%

27%

10%

5%

8%

8%

Given that more than half of people are already using mobile devices in store, it is no surprise that online con-sumers predict they will be interacting with retailers this way in 5 years’ time. This is good news for CEOs who are investing in mobile technology. The advances being made with self-scan-ning operations, such as the ‘Amazon Go’ store that allows customers to walk away with items and bills them automatically, explains why more than a quarter (27%) believe they will be using self-scanning technology to interact with retailers in five years’ time. Clearly customers are ready and willing for the checkout experience to significantly change, so retailers should not be afraid of evolving

the in-store customer journey and accelerating the adoption of emerging technologies.

Despite mobile devices only being selected by 30% of respondents, the rapid adoption of smartphones, electronic payment technology and shopping apps all indicate a far higher mobile adoption rate over the coming years. This is further supported by the fact that online retail sales from a mobile device will surpass 50% of the total online retail market in the not too distant future.

“Mobile optimisation has been the focus for many [retailers] and some are already reaping the benefits of higher conversion rates as customers enjoy speedier browsing activity.” 5


We’ve now reached a critical juncture for many retailers. After spending several years trying to be ‘all things to all people’, it’s becoming increasingly apparent that they need to think more intelligently about the omni-channel services they are offering to customers. Thinking in the longer-term, they need to focus on customer quality over quantity.

Retailers now need to balance the effectiveness and profitability of the fulfillment channels they offer with customer satisfaction. If shoppers experience a problem with a home delivery or Click & Collect order, they are dealing with a possible lost sale – and unhappy customer – a situation that retailers need to avoid in today’s highly competitive retail market. As retailers reimagine their strategies to transform the customer experience, shoppers want a seamless and personalised experience, regardless of the shopping channel. Supply chain complexities and cost will continue to challenge retailers, and moving forward, the difference between winners and losers will be how much, or how little, retailers understand their customers and how well they are able to personalise the service they offer to each customer to balance customer satisfaction and customer profitability.

Conclusion

1 IMRG Press Release, Jan 21017: https://www.imrg.org/media-and-comment/press-releases/uk-online-sales-in-2016

2 Centre for Retail Research: http://www.retailresearch.org/onlineretailing.php

References

3 CEO Viewpoint 2017: The Transformation of Retail, Feb 2017: http://now.jda.com/PwC-CEO-Survey-2017-UK-EMEA.html

4 Karen Katz, CEO, Neiman Marcus, World Retail Congress, April 2017

5 Helen Dickinson OBE, Chief Executive, British Retail Consortium, March 2017: https://brc.org.uk/retail-insight-analytics/retail-sales-reports/online-retail-sales-monitor/reports?

6 UK Christmas Customer Pulse Report 2017, Jan 2017: http://now.jda.com/Christmas-Customer-Pulse-Report-2017-UK-EMEA.html

https://www.imrg.org/media-and-comment/press-releases/uk-online-sales-in-2016/



http://www.retailresearch.org/onlineretailing.php

http://www.retailresearch.org/onlineretailing.php

http://now.jda.com/PwC-CEO-Survey-2017-UK-EMEA.html?srcid=di-cpuk17

http://now.jda.com/PwC-CEO-Survey-2017-UK-EMEA.html?srcid=di-cpuk17

https://brc.org.uk/retail-insight-analytics/retail-sales-reports/online-retail-sales-monitor/reports?

https://brc.org.uk/retail-insight-analytics/retail-sales-reports/online-retail-sales-monitor/reports?

http://now.jda.com/Christmas-Customer-Pulse-Report-2017-UK-EMEA.html?srcid=di-cpuk17

http://now.jda.com/Christmas-Customer-Pulse-Report-2017-UK-EMEA.html?srcid=di-cpuk17


About JDA Software Group, Inc. At JDA, we’re fearless leaders. We’re the leading provider of end-to-end, integrated retail and supply chain planning and execution solutions for more than 4,000 customers worldwide. Our unique solutions empower our clients to achieve more by optimizing costs, increasing revenue and reducing time to value so they can always deliver on their customer promises.

About Centiro Centiro believes in empowering logistics for successful companies. Our cloud-based solution for delivery management is used by finer supply chains in more than 125 countries. With us a retailer can think global, yet offer customers a consistent and personalised experience for first- and last mile delivery and returns to take a brand and shopping experience full circle. It’s a plug-and-play setup offering a world-class portfolio of carrier networks.From straightforward shipping labelling solutions and carrier management, through harmonised tracking, event management and cost control – we offer functional features that extend your existing IT-landscape.

For further information, please visit www.centiro.com

http://www.centiro.com

JDA Manufacturing Pulse 2016

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Documents

JDA & Centiro Customer Pulse 2017now.jda.com/rs/366-TWM-779/...Pulse_Report_2017_UK.pdf2017, predictions range from 11.5%2 to 14%1 growth throughout 2017. ... of them investing in