How Shipping Times Affect Net Promoter Score

How Shipping Times Affect Net Promoter Score

How Shipping Times Affect Net Promoter Score

These days, no one wants to wait for anything. With services like Amazon Prime offering near-instant-gratification with their two-day shipping, the ability to deliver products at the speed of now has become a requirement to compete. In a time where customer loyalty is now going to the fastest shipper, how will you deliver customer satisfaction? Let us tell you how Kibo can help.

Did you know that the likelihood a customer will be a net promoter of your brand drops drastically if your product takes more than five days to reach them? We recently analyzed nearly thirteen thousand customer satisfaction survey results, and it was determined that 87% of orders delivered in five days or less resulted in a net promoter. However, if the package was delivered in more than five days, that figure dropped down to 66%. It’s not that surprising considering the expectations being set by services like Amazon Prime.

We know that faster shipping times lead to happier customers and ultimately an increased customer lifetime value. But what can we learn from those net detractors who experienced slower shipping times and less favorable shopping experiences than their promoter counterparts? We conducted an additional analysis looking at nearly twenty eight thousand survey results collected from detractors in 2014 to determine the cause of shipment delays.

It turns out shipments fulfilled directly by the brand were significantly slower than shipments fulfilled by a dealer. These slower shipping times are directly linked to a greater distance from the fulfillment location to the customer. This begs the question, what measures can you take to reduce shipping times to your customers?

One solution is to partner with your dealer network and utilize their retail storefronts versus your own warehouses/distribution centers. This allows you to significantly cut down shipping distances to your customers, which reduces shipping times and increases customer satisfaction.

By collaborating with your dealers in this capacity you can:

  • Reduce shipping times by 20% using ship from store capabilities
  • Enable in store pickup at dealer locations
  • Utilize dealer expertise in direct-to-consumer fulfillment

If you capitalize on ship from store to deliver quicker shipping times and/or in store pickup options for your customers, then you’re delivering on their expectations. As a result, you can expect a reduction in detractors of your brand and an increase in promoters.

Not to mention you will strategically strengthen your relationship with your dealer network. A relationship that is increasingly more important in this ever-changing landscape of commerce.

Contact us to learn how Kibo can help grow your business.

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