Episode Transcript
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(00:00):
Are you obsessing about customer acquisition,checkout and user experience?
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Because that's not where it's at. The moment that actually defines what acustomer thinks about your brand isn't in your beautiful
store or your slick website or even the product.
It's about the delivery and the returns process.
Welcome to Retail Reckoning. On the 3rd of February, I was a panellist atthe Delivery Conference and I was talking about two
particular things (00:29):
the delivery process and how that
influences customer experience,
and returns. And it's got me thinking — delivery isn't a backendoperation, that's just a process to follow.
(00:56):
It's really genuinely the final and most emotional touchpoint— because if you get that wrong,
you can undo months of careful brand building, product development,promotions, marketing and store design.
If you nail it, you can turn logistics into loyalty,trust, and repeat purchases.
But then again, I — many, many moons ago — did the postgraduate diploma withthe Chartered Institute of Purchasing and Supply.
(01:22):
I am a supply chain professional. I do believe in the art ofdemand forecasting, capacity planning,
logistics planning and so on. So I'm probably alittle bit biased.
But this does tie perfectly to the previous episodes, becausedelivery and after-sales aren't separate.
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They're a continuum — and together they make or breakyour post-purchase experience.
I'm going to zone in on why delivery matters morethan you might think.
And it's an uncomfortable truth. Customers cannot separate yourbrand, product, in-store experience,
website, slick checkout from their delivery experience.
(02:05):
They don't think, "oh, the brand is great, but the courierwas slow." It's all the same thing —
because delivery leaves a lasting impression.
And I'm sure everybody listening knows that, becausethey'll have felt it themselves.
This is the final checkpoint in the customer's emotional journey.
This is when expectations meet reality. The trust in that brand istested and the brand promises either land or fail.
(02:34):
But retailers are still getting this wrong.
I don't understand in this day and age how that's happening.
I mean, we've had online retail since — I think 1997 wasthe first online transaction,
prior to that mail order. Prior to that, you'd go intothe store, specify your sofa,
and in X number of weeks it turns up. And yet we'restill getting it wrong.
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We over-promise and under-deliver, there's poor communications,late arrivals and damages and mistakes,
and these are significant irritations. In fact, to be fair, they'rebrand disasters in a world of social media —
and that means those brand disasters end up onlinefor the world to see.
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And it's really, really hard to turn a detractor back into acustomer, let alone an advocate.
But for me, it's all about setting expectations.
Setting expectations and keeping promises beatsspeed of delivery every time.
So I don't think it's important to have fast delivery at anycost — because speed's irrelevant.
(03:38):
If it's unpredictable — today, tomorrow, next week —just tell me when it's coming,
so I can make sure I've not booked a call.
I mean, I work from home personally, so I don't want mydelivery to turn up early.
I certainly don't want it to turn up late, but I want it toturn up when they said it will.
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Clarity, transparency and reliability are just so essential to my experience,because I'll plan my calendar around when I'm told
something will turn up. And I'll avoid booking a meetingif I receive a message to say:
your delivery will come between one and 2pm onwhatever date it is.
And I'll think, okay, well I won't make anycommitments at that time.
(04:23):
If it then turns up at half past twelve and I'm on a meeting ornot at home — that's really annoying.
So setting the expectations — it's going to arrive onthis day between this time —
sending updates if anything changes, and allowing me to be able tosay, well, actually that's not convenient.
I'm going to need you to rework that. And not trying to hide problems —that's super important in terms of the whole trust and
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brand relationship. So I would actually go the other way and I'dsay — it's more common sense maybe,
but maybe not to everybody, because it's not happening — and thatis to under-promise and over-communicate.
Because I think customers — well, certainly I — would forgive adelay more than an early surprise,
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because I can plan for that. I don't like the surprise.
Early, late, goodness knows what's happening or when it'shappening, being kept in the dark —
that doesn't work for me. And that's becauseit's quite emotional.
A lot of people treat the delivery process asoperational when it's emotional.
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Let me restate that. A lot of people treat the delivery processas operational when it's emotional.
If you think about it, a customer has already parted with their cashand is waiting for their product to turn up.
This is meant to be like instant gratification —like going to a store.
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It's meant to be convenient. It's meant to make life easier, andyou plan your life around the delivery.
I know it sounds silly, but even if it's just a smallthing — a letterbox-sized item —
I still expect it to arrive on time. And crikey, if it's something like a pieceof furniture where I'm going to have to let people
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into the house, have them traipsing around, potentially unboxing, potentiallybuilding furniture or putting things together and
then leaving with the waste — that takes up areasonable amount of my life.
So I want it to go smoothly, and at the end of it I want to feel happybecause I've got myself a new thing and the instant
gratification has now been rewarded. And if it doesn't goto plan, I just feel frustration,
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disappointment, doubt — and I want to share that with someone.
Obviously the polite thing to do is share thatwith the brand themselves.
And yeah, people do take to social media, take somephotographs and have a rant.
Can anybody really afford that kind of negativefeedback these days?
And it's really the small touches that make the difference.
So things like real-time tracking that actually works — itdoesn't just say it's on the way.
(07:10):
Okay, it's on the way, but it's been on the way for two days.
I mean, where on the way is it? Is it five minutes downthe road or is it two days more?
And then you have things like the politeness and thegenuine empathy when things go wrong —
so customer services, people who handle returns,complaints and so on.
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Who are empowered to not just read a script, but actually talkto you like a human being and say,
what can I do to make this better for you?
Sometimes you just want to be listened to.
Sometimes you want them to refund you the cost of the delivery andget it sorted out as soon as possible.
And there are a million and one different spectrums in between.
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Also having the ability — if something does go wrong, if something isdelayed — it should be really easy and seamless for the
customer to change what's required. So the self-serviceadjustments: leave it with a neighbour,
bring it on this day — because actually the day you're telling me you'regoing to bring it now is no good for me anymore.
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And it's about good packaging. Packaging needs toprotect the product.
It also needs to represent the brand. And there are certain lower-cost onlineclothing retailers that stuff the clothes into the
tightest, cheapest, nastiest polythene packaging — and it doesn't feel goodwhen you receive it and everything's scrunched up
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anyway. And yes, okay, I've not paid a fortune for it.
But if it was just nicely packaged in a recyclable cardboard box with sometissue paper so that everything doesn't get crumpled
and disgusting, I would feel so much better — and I'd be happyto pay a little more for delivery.
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Do you want premium delivery — and it'll come in a box with tissue paper — orlow-cost delivery where it comes scrunched up in a
polythene bag? But also there's the sustainability point.
It's surely better for brands — and pretty much every brand — to beable to present their delivery in a nice,
clean, sustainable way, even if we all know itcosts a little more.
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And I guess this is where the logistics and thesupply chain meets branding.
And I've always had arguments with colleagues inmarketing in the past — I'd say:
without supply chain, you wouldn't have anything to sell.
And marketing would say (09:33):
without us, there
wouldn't be any demand.
And I think we're both right. And that's where we have tobreak down the silos and work together.
Because the reliability and consistency of delivery helpsbuild confidence with customers,
and sloppy approaches can erode both really quickly.
(09:54):
So no one's a winner. And I think it's also important to consider thatdelivery is part of the wider customer journey —
because for many retailers, if you're online only, how else are yougoing to get the product to the customer?
Now, we can use collection lockers. One of my good friendsworks with a company called E Lockers.
(10:16):
There are so many different options available for 24/7 collection, whichmight be more convenient than home delivery.
But it only really works with products that fitwithin the locker size.
And I think retailers miss the fact that you haven't got astore in every single neighbourhood.
Well, some people do — but very few do. Sodelivery cannot stand alone.
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It is still part of the customer experience.
And if it goes badly, it really does affect our choices asto where we'll shop in the future.
And it also flows into things like the returns, the exchanges,and the post-purchase communications.
So for me, everything that happens after the point that I've parted withmy cash is still part of my customer journey.
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It hasn't ended at the transaction. Smooth deliveries lead toa level of trust, recommendations,
advocacy, very positive reviews and post-purchase interactions.
And of course, it leads to repeat purchase — becausethat's all down to trust.
But if the delivery process is messy and confusing, itleads to frustration, lack of trust,
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negative reviews, potentially quite angry social media reactions,and almost certainly lost future business —
not just from the customer, but from the people in their network who seethat they've had a bad experience and think,
well, I won't buy from them then. So I would say — withmy process and systems hat on —
that you have to map the end-to-end experience.
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Every single touchpoint from the checkout to the doorstep, to that moment ofgratification when you're holding the product you
paid for — potentially having waited some time — in your hands.
And it meets with the quality expectations you had of the product, becausethat's all part of the whole post-delivery experience.
Follow up (12:15):
how did the delivery go? Were you
happy with the product?
That's the email marketing side of things that engages thecustomer — not spamming them,
but asking how they feel, getting truthful feedback.
Because you can then say (12:30):
if it didn't go to plan, we'd love your
feedback so we can improve for next time.
And at least it makes you feel honest and real.
And if you get this whole chain of events right, youroperational efficiency improves —
because getting things right first time, as the Japanese say withKaizen, is the answer to reducing waste —
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and it turns your operations into a profit factorand a strategic advantage.
So I think that retailers need to focus on acouple of things first.
And if you are new to delivery, or a smaller business andyou've not done this before,
my recommendations are (13:14):
start with clear and very
realistic delivery promises.
No marketing fluff — and you need to be able tomeet those promises.
It's better to say it'll take longer and be truthful than toover-promise and under-deliver.
And then there's the communication. There are so many toolsout there that give live updates,
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trackings and help set expectations. Proactive communications —you do not want a customer asking,
where is my order? You want to be telling the customer where theirorder is before they need to ask you.
Because that means they feel cared about.
And also use the correct communication channels — you could ask thecustomer: how would you rather be updated?
(14:03):
Email, WhatsApp, SMS, phone — anything. Carrier pigeons,probably not the most effective.
And then it's about training as well. I always bang on abouttraining and making sure people are empowered,
because they have to be able to deal withexceptions with empathy.
Customers don't want to be met with a blank face and a person who has tofollow a script or be referred up to a manager.
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Customers want to know that the people they speakto can just deal with it.
They don't want to wait for somebody else to come on theline or for a callback in two hours.
That's just further frustration and furtherfriction to the process.
And we also have to think end to end. It starts with thetransaction, then delivery.
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But there are cases where we need to manage returns — whether that's aquality issue or simply that someone ordered three
different sizes and three different colours just to try.
And then all of the post-purchase engagement.
Imagine selling a sofa and, six months down the line, you say tothe customer: fluff up your cushions,
don't forget to do this, don't forget to do that.
You can use the hoover, you can wash the covers — and this is howyou'll give your sofa the most extended lifetime.
And that makes a customer think (15:16):
they're not just trying
to get the next sale out of me.
They're actually telling me how to look after my product — one I'veprobably invested several thousand pounds in.
So the whole end-to-end engagement from the transactionand beyond is really important.
And I think those four things mean that delivery can gofrom being just a necessary evil —
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a logistical and operational activity — to something that helpsdefine the brand and the brand values,
and helps people feel more connected, more loyal andmore likely to recommend.
So to wrap up, I want to bring it all back to trust.
Trust is becoming, more and more, almost the currency of retail.
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And I feel like after-sales service is often overlooked — but Ithink that's where trust is earned.
Because if you can't walk out of the store with the product you'vejust parted with your hard-earned cash for,
you enter a kind of anxious zone, and that anxietylasts until it turns up.
You've given them your money, but you haven'tgot your product yet.
So trust is essential, and delivery is where it's earned or lost.
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And customers are going to judge you on the very last thingthey remember — that last-mile moment.
So if the person who delivers just throws it over the fence, versussomeone who is uniformed and makes a point of saying,
"have a good day" — it makes a difference.
It needs to be seamless, it needs to be transparent, but alsohuman — so that they'll remember it,
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and they'll remember you. If you get this wrong, all the months of carefulbrand building and marketing can quickly unravel.
Because the bottom line is (17:00):
delivery isn't a logistics problem.
It's a commercial opportunity disguised as operations.
If you nail it, you're not just doing parcel delivery — you areactually delivering trust and customer promises.
Well, that's my thoughts on this, and it was inspired by the DeliveryConference where I spoke on the 3rd of February.
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I'm Clare Bailey, the Retail Champion, and you've beenlistening to Retail Reckoning.