Brand loyalty may build over years, but new research shows that as few as four negative delivery experiences could undo all the equity retailers build in a repeat customer.
According to recent research conducted by Roadie and Studio by Informa, nearly two-thirds (64%) of online shoppers say that just one to four bad delivery experiences would be enough to make them stop ordering from a given retailer entirely.
But what constitutes a bad delivery? Consumers have a broad definition of “delivery failure,” including missed delivery time windows, damaged packages, unsecured drop-off locations and poor communication to name a few. Seemingly small missteps can add up quickly and have an outsized impact on customer satisfaction.
Understanding the importance of each of these issues is critical to keep delivery failures from affecting the bottom line because, as it turns out, the cost of a failed delivery can extend far beyond replacing a damaged or missing package.
When is a delivery deemed a failure?
Based on online shopper sentiment, the definition of “delivery success” relies heavily on meeting the timeline selected at checkout.
A third of respondents to the Roadie survey (33%) consider a delivery to be late the moment the promised delivery window passes. Another 18% are willing to give a grace period of just two hours before they consider a delivery late. In an era when customers have come to expect delivery next-day, same-day, or even in as little as an hour or two, shoppers are showing a very small tolerance for missed delivery windows.
But as it happens, timing is only one factor influencing customer satisfaction. When asked which elements are most influential to their delivery experience, 85% of respondents rated both on-time arrival and package condition as extremely or very influential, and a full 80% gave the same rating to whether delivery instructions were followed. Did the customer request placing the package in a certain location on the porch? Ask the driver to ring the doorbell? It pays to honor these kinds of customer notes.
What these survey responses really show is an important distinction: A delivery can be technically successful while still falling short of customer expectations.
“Retailers sometimes focus so heavily on delivery speed that they overlook the importance of consistency,” says Dennis Moon, chief operating officer at Roadie. “Customers want to know that when the retailer makes a delivery promise that they can be trusted to keep it. It’s essential to set realistic expectations and deliver on them consistently to help build confidence in your brand.”
When completed deliveries still go wrong
Acknowledging that a package marked “delivered” doesn’t necessarily translate to a satisfied customer, Roadie dug into some of the delivery experience demands that rose to the top for respondents.
First is package security. More than four in 10 respondents (43%) reported having at least one package stolen after delivery in the previous 12 months. When asked which delivery issues frustrate them the most, 28% of shoppers selected having packages left where they were stolen or could easily have been stolen or damaged, making security the most frequently noted frustration.
“We know that not every instance of package theft is attributable to the delivery provider, but where and how a package is left on the doorstep clearly matters,” Moon says. “When drivers follow delivery instructions, leave packages in secure locations, and provide proof of delivery, they can mitigate unnecessary risk and uncertainty for customers.”
Speaking of delivery proof, Roadie research also found that 72% of respondents consider a photo or other proof of delivery extremely or very influential to their delivery experience. For retailers, this all points to the importance of looking beyond delivery completion rates when evaluating last-mile performance. Secure package placement, adherence to delivery instructions, and reliable proof of delivery all contribute to the customer’s full experience and likelihood of returning.
Losing customer trust & business
Perhaps the most significant potential cost of failed deliveries is the loss of future business. According to the Roadie survey, 64% of shoppers say it would take four bad delivery experiences or less before they start ordering from another retailer. This statistic is particularly important because it illustrates that shoppers don’t distinguish between the retailer and the delivery that places a package on their doorstep.
From the customer’s perspective, the delivery is an extension of the retailer’s service. When something goes wrong, the retailer’s reputation may suffer, regardless of which company caused the concern. That puts added pressure on retailers to select delivery partners whose service standards align with their own customer experience goals.
“The customer doesn’t think about how many companies or systems were involved in getting an order to their doorstep,” Moon says. “They remember whether the experience met their expectations. Every delivery is an opportunity to reinforce the trust they’ve placed in the retailer, or it could give them a reason to take their business elsewhere.”
While the survey measures consumers’ intentions rather than actual customer attrition, the implications are clear: Repeated delivery problems can put customer relationships at risk, along with the future revenue an otherwise loyal customer represents.
Reducing the risk of failed deliveries
While the survey identifies several delivery-related pain points, it also gives insight into what shoppers value most – and where operational improvements may help protect customer loyalty.
For example, 44% of respondents ranked real-time order tracking and updates among their most important delivery considerations, while 29% selected a trusted, reliable delivery provider. Clear and accurate delivery windows and reliable communication about delivery changes were each selected by 22%. And when choosing among delivery options, 31% of respondents say they most often select reliable delivery within a defined time window, compared to just 14% who prioritize the fastest possible delivery regardless of cost.
The message for retailers is that speed alone isn’t enough.
“Retailers need to think about the entire delivery experience, not getting an order from point A to point B,” Moon says. “That means keeping customers informed and working with delivery partners who understand that everything from careful handling to driver professionalism reflects on their brand. When customers know what to expect and can trust that those expectations will be met, they’re much more likely to have a positive experience.”
Ultimately, a successful last-mile strategy is about more than moving packages efficiently. It’s about consistently delivering on the promises that brought customers to a brand in the first place. When the potential cost of a lost customer factors in, retailers have good reason to make delivery reliability a priority. Because the true cost of a failed delivery may not be the order that went wrong. It may be the next order that never gets placed.
