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Fast delivery affects brand loyalty

News, 15 September 2016

EDISON, NJ: Speedy delivery and premium packaging strongly influence online shoppers' trust and loyalty to a brand, a new study has found.

Dotcom Distribution, a logistics and fulfilment firm based in New Jersey, said shipping speed is so important that a full 87% of online shoppers cite it as a key factor in whether to use an e-commerce brand again.

The report also found that around two-thirds (67%) of online shoppers would pay more to get same-day delivery if they had a deadline to receive a package, while 47% would do the same simply because they want their package more quickly.

Dotcom Distribution did not provide a sample size for its survey, but it suggested quick shipping builds trust because that is a view shared by 44% of online shoppers.

However, according to the study, fast delivery is not the only factor that has a high impact on customer loyalty because online consumers are also attracted by the aesthetics of branded packaging.

It found that 40% of online shoppers say they would be somewhat more likely, or much more likely, to buy from a retailer that offers premium packaging.

And the same proportion of shoppers say that branded or gift-like packaging affects their perception of the brand that sent the purchase to them.

Indeed, more than two-thirds (68%) of online shoppers say branded packaging makes the brand seem more "upscale", while 61% say branded aesthetics make them more excited about receiving or opening the package, compared to 49% in 2015.

Also of note for e-commerce brands and retailers, half report that the use of branded or gift-like packaging for online orders makes them more likely to recommend the product to friends.

"It's incredibly important to leverage customers as brand advocates,” said Maria Haggerty, CEO of Dotcom Distribution. "In e-commerce, retailers are learning what they have to do to encourage customer loyalty and increase positive reviews about their brands," she added.

"As we've known, shipping, the pack-out experience and considering customer demands helps customers understand that brands care about them and what they want. Our study gives retailers better insight so they can achieve that."

Data sourced from Dotcom Distribution; additional content by Warc staff