Battling big-box retailers as a small business can be daunting for various reasons. Higher costs, smaller budgets, and limited resources are just a few examples as to why small companies can feel like small fish in a sea of large retailers. Look at e-commerce giants such as Amazon and you will see that they put a lot of focus on faster delivery. They do this because they know that it is a major influence on people buying online and contributes to a great online shopping experience. Big retail brands aren’t the only ones that benefit from implementing same day delivery. Small businesses can benefit from it as well.
Small business owners have a secret weapon that can give them a competitive advantage over their large retail opponents. It can be likened to the unmatched passion they have for their customers and their products. And by going the extra mile to meet customers’ same-day delivery expectations, small businesses can succeed at retaining happy and returning customers.
Small business owners might fear that offering this service could rack up higher costs for their businesses, but consumers are willing to pay extra for expedited delivery. In fact, 47% of U.S. consumers indicated they have paid extra for same-day delivery in the last year.
So as same-day delivery is on track to becoming the norm for consumers, small businesses should keep in mind that this is a huge opportunity to retain existing customers as well as attract new ones. And the opportunity is not limited to large corporations. Notably, nearly two-thirds (65%) of consumers who shop at Amazon say they would order from other retailers that offer the same delivery options.
Chances are that you’ve heard that ominous chant throughout the business world: “Retail is dead.” We call bologna. In truth, the only thing that’s dying is the era of brick and mortar stores being customers’ sole options.
So does same day delivery really make that big of a difference, you ask? Yes, it does, and here’s why.
Benefits of Same Day Delivery for Retail Stores
If you’re like many major retailers, you’re selling your items online as well as in your store. If it still takes a week for customers to receive their products, though, you’re missing out. Here are seven reasons same day delivery is a must in 2020.
Build Customer Loyalty
While customers like to have options when they need them, they like to have favorites too. It makes their shopping more efficient if they can have a primary go-to store. Same day shipping can make you that go-to. A more cost-effective way of growing your business is to get more customers to buy from you over and over again. It is 6-7 times more expensive to acquire new customers than to retain existing ones.
Anything that helps customers will make them more loyal to you bit by bit. Customers will support the businesses that understand them and meet the largest number of their needs. To get customers to come back they need to have a memorable experience buying from you. Same day delivery can give that to your customers.
Expand Your Customer Base
It’s short and simple: the more ways customers can get your wares, the more potential customers you have.
Whether or not you sell your products online, same day delivery opens up countless doors. Suddenly you can serve customers who are too busy to come to your store. You’ve also added customers who are homebound and those without transportation.
In cases when those customers need something in a hurry, you’re as out of reach as you would be if you had no online store at all. Offering same day delivery can be a differentiation between you and your competitors. Everyone wishes they can get the items immediately after purchase. That is why physical retail is still a popular option for most. By adding same day delivery to your shipping option, you will be the better choice. Especially if you have physical retail presence.
Take Advantage of Impulse Buys
Your customers have cravings and impulses, and you want to be the one who can fulfill them. Whether their primary purchase is an impulse buy or we’re talking about lucrative add-on sales, you want instant gratification to be an option.
As customers see products they like and toss them into their digital cart, pauses are your enemies. You don’t want the customer to stop and question, “Will I really want this in three days?”
You want them to think, “This product would be great to have this afternoon.” Same day delivery makes this possible.
Expand Your Product Opportunities
There are certain purchases people rarely plan in advance. For instance, most people wouldn’t buy a soda online if it will take several days to get to them. If it will take care of their craving today, on the other hand, it’s fair game.
When you offer same day shipping, you can add more products to your roster that are well-suited for a quick turnaround. A greater selection means more sales for you and more options for your customers, so it’s a win-win.
Other than getting more repeat customers, you can also increase revenue by increasing conversion rates or increasing average basket value. Instant gratification is great motivation for people to shop online. Adding free same day delivery is a great tactic to increase your conversions. It won’t cost them extra and they will get their order today.
Become a Source for Fast Needs
Let’s say you’re a clothing retailer. Picture this scenario.A customer finds out she has a last-minute event to attend tomorrow night. She needs a dress for the event but her evening tonight is already packed full. She has no time to shop, so her only choice is to buy a dress online from someone who can deliver it tomorrow.
If you don’t offer same day shipping, you’ve taken yourself out of the running for that sale. Instead, you need to add same day delivery as an option, make it known to your customer base, and put those deliveries in their hands on time. Customers won’t just know you’re an option, but that reliability will make you their go-to for emergency shopping.
Online Shopping Trends
This is the retail reality: unless customers are looking for a specific experience, they’re most likely to opt for the convenience of online shopping. That doesn’t mean you have to surrender to Amazon and other giants. It means you need to get on board yourself. A whopping 94% of US consumers think it’s important to support small businesses. They’d rather buy from you than one of the “big guys,” but they can only do that if you offer the same advantages the big guys do. This is how same day delivery can help. It makes you competitive with the larger online retailers so you don’t have to fall victim to the shift from brick and mortar retail to eCommerce.
Gain Advertising Fodder
There’s no denying that digital advertising is an essential tool for your success. It’s not just about having ads, though. It’s also about what those ads say.Offering same day shipping gives you a powerful call-to-action to make your ads more effective. It’s the perfect way to stand out from your competitors.
Arming Your Business with Same Day Shipping
If you want to make your business successful, you need to give it the tools to do so. You wouldn’t try to build a house without a hammer and expect to end up with a high-quality home in a few weeks. So why do you expect your business to get high-quality numbers without the tool of same day delivery?
That means the delivery is not only making it to the customer on-time and in perfect condition, it also ensures that every item being delivered is protected against theft and damage, tracked in real-time, and handled with great care. These might seem like simple, common sense practices, but the delivery is the final touchpoint for a brand and leaves a lasting impression on consumers, often influencing whether or not they return in the future.
Delivery that takes more than a day usually involve processing and sorting parcels at multiple points before reaching to the customer. This increases the chance of goods being damaged or lost.
With same day delivery, the item is picked up from sender location and straight to the recipient without going through any processing or sorting. You will reduce your cost of having to replace the goods.
Don’t Just Concern Over Costs
The cost for same day delivery may be higher than standard delivery but that shouldn’t stop you from providing a better experience to your customers. The benefits you get by implementing same day delivery strategies outweighs the cost. Here is a perspective: A 2% increase in customer retention has the same effect as decreasing costs by 10%. And as mentioned earlier, it’s 6-7 times more expensive to acquire new customers.
There’s no doubt that today’s retail world is competitive. You don’t have to be a victim, though. You can get all the benefits above and more with the simple step of offering same day shipping.
To take that powerful step, reach out to Orbit Same Day Today!