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Mapping Retail’s Last Mile Battleground

Retail TouchPoints – There are many reasons why the last mile has become a first-order concern for retailers. Topping the list is Amazon’s well-publicized ability to provide two-day, one day and even same-day shipping. Amazon’s ability to set a high standard for the retail industry is abetted by the fact that for more than 100 million Amazon Prime members, those shipping costs are bundled into their annual fees, making them essentially invisible and “painless.”

Another reason that last mile concerns are increasingly keeping retailers awake at night is the growing volume of digital sales and subsequent deliveries that are taking place. Results from the 2nd annual Retail TouchPoints Last Mile Benchmark Survey, which collected and analyzed responses from 138 retail executives, illustrate the last mile’s growth trajectory.

Below are pages with comments from Jeffrey Neville, SVP and Practice Lead at BRP Consulting:

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Retailers also are reshaping their internal structures and responsibilities to handle last mile challenges. “Retailers are beginning to apply the agile processes they are using on their web sites to the last mile customer experience,” said Jeffrey Neville, SVP and Practice Lead at BRP Consulting in an interview with Retail TouchPoints. “They are assigning a product manager to the last mile experience, giving this person the ability to test and learn about the impact technical and non-technical changes can have on the identified last mile KPIs. These product managers are also engaging consumers in feedback of the initiatives before they roll out chainwide.”

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“Meeting and exceeding the accelerating consumer expectations for fast and free delivery has retailers scrambling to figure out the most economical and reliable options,” said BRP’s Neville. “In addition, retailers must manage the costs and inefficiencies created by rushing to implement new delivery options to avoid customer disappointments.”

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“Retailers are establishing KPIs, metrics and service level agreements (SLAs) to monitor and maintain consistent delivery quality,” said BRP’s Neville. “Establishing clear expectations of service levels with third-party delivery parties is imperative to ensuring customer satisfaction.”

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While managing the cost of returns was the top challenge for retailers in 2018, this year the list is led by the 64% that identified minimizing fraudulent returns. This is another complex problem with no single “silver bullet” answer, according to BRP’s Neville: “Preventing or limiting theft from delivery drivers, porch thieves and dishonest reports of theft from customers is a challenge,” he noted. “Retailers need to proactively identify theft as well as arm customer service representatives with a clear policy for customer appeasement for those customers that have experienced stolen packages.”

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BRP’s Neville recommends retailers provide a preprinted return label, including a prepaid shipping label, and also enable shoppers to easily print such labels from the retailer’s web site. “The prepaid label assures that a standard set of information is included with each return (invoice number, SKUs, quantities, etc.) to assist the returns team in processing it,” he said.

Read Full Article: Mapping Retail’s Last Mile Battleground

Why Retailers Must Seize the Post-Purchase Opportunity to Create a “Moment of Trust”

Sourcing Journal – Writing last August about the importance of the post-purchase experience, BRP Retail Consulting SVP and practice lead Jeffrey Neville described retailers as creating a “moment of trust” when they regularly communicate order and shipping updates to consumers who would otherwise be left in the dark in the oft-ignored opportunity between purchase and package delivery.

“Customers who shop without a sense of risk will feel more comfortable making repeat purchases in the future,” Neville noted. Retailers are beginning to realize the value of the post-purchase opportunity as a time to strengthen the customer relationship and brand moments typically outsourced to third-party shippers.

Retailers that enrich the post-purchase experience stand to gain greater customer loyalty, an important move, BRP said, because these customers are between five and 25 times less costly to convert and 80 percent more likely to buy again in the future.

“By crafting a post-purchase experience to minimize stress and maximize convenience, retailers make an investment in a sustained relationship with their customer,” BRP noted.

Read Full Article: Why Retailers Must Seize the Post-Purchase Opportunity to Create a “Moment of Trust”

Customer Loyalty is Critical to Retailers, Yet only 40% Currently Measure Customer Retention, According to Recent BRP Report

While Most Retailers Measure Average Order Value and Comparative Sales, Less than Half Rate their Customer Retention Strategies

Boston, MA – October 11, 2018– It’s not a secret that returning customers are better for your business than new customers. Studies have shown that a returning customer is less expensive to convert and has a higher average order value than a new shopper. However, many retailers are focused on measuring total sales and comparative sales, while customer loyalty strategies and retention are not getting the attention they deserve.

“Retailers are focusing more attention on customer acquisition than loyalty. While acquiring new customers and driving top-line sales are important, building long-term relationships with customers is imperative for healthy long-term performance,” said Jeffrey Neville, senior vice president and practice lead at BRP. “Paying more attention to the post-purchase experience and measuring its impact on sales, will increase the lifetime value of customers and maximize total revenues and profits.”

According to early results from BRP’s 2018 Digital Commerce Survey (publishing soon), most retailers have key performance indicators (KPIs) for sales, average order value, comparative sales and conversion rates; however, less than half of retailers measure customer loyalty through customer satisfaction (net promoter score), customer retention and post-purchase customer survey results.

“What retailers should really be focused on is RFM (recency of a purchase, frequency of the purchase and the monetary value of the purchase),” said Ken Morris, principal at BRP. “For many years this has been the mantra for successful omnichannel retailers, but it appears that the new economy has different metrics. Maybe we need to go back to the future.”

According to the recent Best Practices for Enhancing the Post-Purchase Experience report, your customers’ most recent experience with your company impacts the feelings they share with friends and family and the relationship they have with your brand. The satisfaction level during the post-purchase experience has a direct correlation on a customer’s decision to buy again, or not.

Retailers that meet or exceed post-purchase customer experience expectations create a unique brand experience that customers will “share” with others personally and on social media. Exceptional post-purchase customer experiences also inspire customers to build long-term relationship with brands.

To download Best Practices for Enhancing the Post-Purchase Experience, visit: https://brpconsulting.com/download/2018-post-purchase-experience-white-paper/

About BRP

BRP is an innovative retail consulting firm dedicated to providing superior service and enduring value to our clients. BRP combines its consultants’ deep retail business knowledge and cross-functional capabilities to deliver superior design and implementation of strategy, technology, and process solutions. The firm’s unique combination of industry focus, knowledge-based approach, and rapid, end-to-end solution deployment helps clients to achieve their business potential. BRP’s consulting services include:

Strategy | Business Intelligence | Business Process Optimization | Point of Sale (POS)
Mobile POS | Payment Security | E-Commerce | Store Systems and Operations | CRM
Unified Commerce | Customer Experience | Order Management | Networks
Merchandise Management | Supply Chain | Private Equity

For more information on BRP, visit http://www.brpconsulting.com.

BRP Report Shows Post-Purchase Experience Important Too

Convenience Store Decisions – As retailers prepare for the 2018 holiday season, BRP warns focusing on loyalty post-purchase is a key strategy in building your brand.

According to a new report from Boston Retail Partners (BRP), the post-purchase experience is not getting the attention it deserves as retailers focus more on customer acquisition than loyalty.

BRP published the Best Practices for Enhancing the Post-Purchase Experience report to address the importance of the time between the customer clicking the buy button and the customer receiving and using the product. This is your customers’ most recent experience with your company and impacts the feelings they share with friends and family and the relationship they have with your brand. The satisfaction level during the post purchase experience has a direct correlation on a customer’s decision to buy again, or not.

Retailers that meet or exceed post-purchase customer experience expectations create a unique brand experience that customers will “share” with others personally and on social media. Exceptional post-purchase customer experiences also inspire customers to build long-term relationship with brands.

“Retailers who communicate regular updates and reassurances on order and delivery status to customers create a moment of trust with the brand,” said Jeffrey Neville, senior vice president and practice lead, BRP. “Customers who shop without a sense of risk will feel more comfortable making repeat purchases in the future.”

Read Full Article: BRP Report Shows Post-Purchase Experience Important Too

New Report from BRP Offers Best Practices for Enhancing the Post-Purchase Customer Experience in Preparation for Holiday 2018

95% of Customers that are Satisfied with the Returns Process will Purchase from a Retailer Again

Boston, MA – August 15, 2018– According to a new report from BRP, the post-purchase experience is not getting the attention it deserves as retailers focus more on customer acquisition than loyalty. BRP published the Best Practices for Enhancing the Post-Purchase Experience report to address the importance of the time between the customer clicking the buy button and the customer receiving and using the product. This is your customers’ most recent experience with your company and impacts the feelings they share with friends and family and the relationship they have with your brand. The satisfaction level during the post purchase experience has a direct correlation on a customer’s decision to buy again, or not.

Retailers that meet or exceed post-purchase customer experience expectations create a unique brand experience that customers will “share” with others personally and on social media. Exceptional post-purchase customer experiences also inspire customers to build long-term relationship with brands.

“Retailers who communicate regular updates and reassurances on order and delivery status to customers create a moment of trust with the brand,” said Jeffrey Neville, senior vice president and practice lead, BRP. “Customers who shop without a sense of risk will feel more comfortable making repeat purchases in the future.”

By crafting a post-purchase experience to minimize friction and maximize convenience, retailers make an investment in a sustained relationship with their customer. Enhancing your post-purchase customer experience doesn’t necessarily mean investing heavily in the latest technologies – it’s all about making the experience easy and transparent. Best practices that create a welcome and trusting experience for your customers to return time after time include:

  1. Set customer expectations before the click “Buy”
  2. Communicate tirelessly
  3. Set a fair and competitive return policy
  4. Simplify the return process
  5. Deliver your products in professional packaging
  6. Turn a digital experience into an omni-channel experience
  7. Use your stores for something more
  8. Gather customer feedback

To download Best Practices for Enhancing the Post-Purchase Experience, visit: https://brpconsulting.com/download/2018-post-purchase-experience-white-paper/

About BRP

BRP is an innovative retail management consulting firm dedicated to providing superior service and enduring value to our clients. BRP combines its consultants’ deep retail business knowledge and cross-functional capabilities to deliver superior design and implementation of strategy, technology, and process solutions. The firm’s unique combination of industry focus, knowledge-based approach, and rapid, end-to-end solution deployment helps clients to achieve their business potential. BRP’s consulting services include:

Strategy | Business Intelligence | Business Process Optimization | Point of Sale (POS)
Mobile POS | Payment Security | E-Commerce | Store Systems and Operations | CRM
Unified Commerce | Customer Experience | Order Management | Networks
Merchandise Management | Supply Chain | Private Equity

For more information on BRP, visit http://www.brpconsulting.com.