Rethinking Peak Season 2024: Strategies for Last-Mile Delivery

Originally Posted October 18, 2024 in Supply & Demand Chain Executive

Peak season is right around the corner. For shippers, the key to succeeding is providing a great experience to the end customer–for the entire purchase journey.

As e-commerce brands gear up for peak season, they have an opportunity to optimize last-mile delivery to drive key business outcomes. One of the most important aspects for any e-commerce operation is the ability to meet–and exceed–the promises made to customers.

Visibility, transparency, traceability, and accountability in package delivery should be top of mind as retailers strive to fulfill promises to customers during peak.

Consumer Expectations Are Evolving

The modern e-commerce customer is tech-savvy, with high expectations that shape their purchasing decisions.

A recent study by Incisiv revealed that:

• 90% of consumers now expect two-day delivery as standard.
• There is an increasing demand for even faster, and more flexible, delivery options.

Meeting promises regarding last-mile delivery is directly related to shippers increasing average order value and lifetime value of their clients. Delivering with speed, precision, and flexibility is imperative for shippers.

Optimizing Delivery is Key to Business Growth

Optimizing delivery services improves key business metrics for brands. Those who have placed their focus on optimizing last mile delivery capabilities report:

• An 8.9% increase in cart-to-purchase conversion rates.
• A 10.6% rise in average order values.
• A boost in Net Promoter Score (NPS) by 15.3%, which converts satisfied customers into loyal advocates.
• Cost savings, with 92% of retailers reporting significant operational cost savings from optimized delivery processes.

The study also found that a positive initial delivery experience increases the likelihood of customers returning.

Preparing for Peak: Strategies

So how can brands capitalize on peak? A solid strategy will help brands fulfill their delivery promises. Here’s a closer look at what to think about this summer in preparation:

Flexible Carrier Partners

Partnering with agile carriers can give shippers the upper hand during peak. Here’s what to look for to ensure effective collaboration:

• Scalable operations: A good Carrier should be able to adjust their capacity up and down, with no caps placed on capacity during peak periods. Choosing partners who offer unrestricted capacity can avoid extra costs and delayed deliveries.
• Detailed volume forecasts: Shippers should provide carriers with comprehensive forecasts in the spring and summer months–derived from both historical data and current sales figures. This helps carriers plan and scale operations in prep for peak.
• Ongoing insights: Opt for carriers that provide continuous insights throughout the purchase process, both for shipper visibility and customer experience.
• Collaboration for surge management: Partnering closely with carriers allows for:some text
  • Effective management of demand surges
  • Development of contingency plans

Superior Technology, AI and Machine Learning

Best-in-class delivery technology, with AI and Machine Learning layered on top, provides benefits for shippers during peak:

• Accurate forecasting: Utilizing a mix of historical data and current sales to prepare for peak demands.
• Predictive capabilities: AI and machine learning enable proactive route optimization and predictive analytics to foresee and manage potential delivery disruptions.
• Improved tracking: Integration of real-time analytics and AI into tracking and tracing processes ensures fast, reliable information is relayed to clients and their end customers.

Personalization

Personalization is about understanding who your buyer is and tailoring offers that resonate with their specific interests and purchasing habits to drive key metrics such as loyalty and higher cart values. Here's how shippers can use personalization to create better customer experiences:

• Behavioral insights: Analyze buyer behavior to customize offers and improve engagement throughout the purchase journey.
• Targeted recommendations: Suggest complementary items during checkout based on past purchases to boost cart value.
• Flexible delivery options: Offer a range of shipping speeds, including premium fast shipping options for a fee, to meet diverse customer preferences.

Micro-fulfillment Centers

Micro-fulfillment centers, usually located within retail stores, bring inventory closer to the customer's doorstep. They're a game changer for meeting the common expectation of same-day delivery. These centers speed up the process and broaden the variety of products available in key areas–making it easier for shippers to handle peak season surges.

Peak season is right around the corner. For shippers, the key to succeeding is providing a great experience to the end customer–for the entire purchase journey. During peak planning this year, brands can ask their teams the question: how can we make sure that visibility, transparency, traceability and accountability in package delivery are top of mind?

This is the key to success.

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