American spending is on the rise despite high interest rates, as evidenced by a 4% jump in personal spending this year– the biggest jump since 2021.1
And on a macroeconomic level, the US economy grew at a 4.9% pace this year, the fastest we’ve seen in over three years.2 According to industry analysts at Deloitte, ecommerce holiday sales are forecasted to keep pace, increasing by up to 12.8% this season.3
With this burst of consumer spending and enduring pandemic behaviors, it’s no surprise that >62% of shoppers say they plan to “buy mostly online” this holiday season.4
But peak season is more than a chance to boost ecommerce sales (it represents 30-50 % of annual retail revenue for many shippers)-- it is a vital opportunity to forge lasting relationships with new customers exploring different brands, and to improve Customer Lifetime Value (CLV) through unparalleled experiences.
Holiday season is notoriously popular for trial, with a staggering 75% of customers willing to try a new brand if it's offered at a lower price.5 ‘Tis the season for "first time buyers"-- buyers that will get to experience your brand's delivery and returns process for the first and potentially last time if you mess it up.
So, how can your brand focus on “making” and not “breaking” peak performance in 2023?
We talked to multiple logistics and transportation leaders across the most customer centric retailers in the US. Here are their top 3 suggestions to make the most of your peak season:
1. Diversify your carrier partners.
Jamie Rogerson, Director of Outbound Logistics, lululemon:
“Having all your eggs in one basket can be risky. The relationship with a single carrier is typically very strong, but you aren’t protecting yourself. You may be missing out on service/transit benefits, and you aren’t introducing competition in rates. There are some realities in managing peak, and one reality is that even if you have diversified, you still owe your carrier partners a forecast. If something would happen to carrier A, you can’t just dump all their volume on carrier B. Our relationships with regional carriers like Veho have been very good and we see great value with regards to service, customer service, and competition.”
2. Identify and optimize for efficiencies that support both you and your customers.
Amena Ali, CEO, Optoro:
“We implemented Home Pickups in order to meet customers where they are and add deeper convenience to their busy lives, while also working to truncate the lengthy returns process. Besides driving customer satisfaction, Home Pickups help retailers decrease time to restock by a third and save 15%+ on shipping costs through consolidation and fewer touches.”
3. Be clear and precise with delivery promises to your customer.
Nate Skiver, LPF Spend Management:
“ Peak is critical for customer expectations. Planning and execution to meet their expectations should always be paramount over shipping expenses. Think about it LONG term - if you fail to meet those expectations, you are losing from a customer lifetime value perspective. It’s worth the investment during peak to hit those expectations.”
Are you ready to make next holiday season your best one yet? Sign up today for a complimentary "Peak Customer Experience Analysis" with Veho to gain insights on how your customer experience stacks up against your competitors during peak.
To register, contact zain.zahid@shipveho.com.
- https://www.bloomberg.com/news/articles/2023-10-26/us-economy-expands-by-most-since-2021-on-household-spending
- https://www.bloomberg.com/news/articles/2023-10-26/us-economy-expands-by-most-since-2021-on-household-spending
- https://www2.deloitte.com/us/en/pages/about-deloitte/articles/press-releases/deloitte-holiday-retail-sales-expected-to-increase
- https://tinuiti.com/blog/ecommerce/holiday-shopping-statistics
- https://www.retaildive.com/spons/holiday-2023-guide-seasonal-trends-to-build-your-marketing-strategy
