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Late Deliveries: A Threat to Customer Retention and Future Sales


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Introduction:


Late deliveries have become a significant challenge for businesses and can lead to reduced customer retention, decreased reputation, and increased costs for new customer acquisition. Ondway is a company that provides on-demand delivery solutions to empower businesses to connect their online sales system to hundreds of high-quality independent riders in Dublin City. In this article, we will explore the impact of late deliveries on customer retention and future sales, and provide tips on how businesses can improve their delivery service using Ondway.


The Impact of Late Deliveries on Customer Retention

  • Customer Retention Rate (CRR) is the percentage of customers a business keeps over time and is a valuable metric for businesses to know.

  • Studies have shown that customers who purchase from the same source repeatedly spend as much as 38% more per year on average than customers who switch up their sources.

  • Late deliveries can lead to increased churn (the percentage of customers who leave) and impact customer retention.

  • Around 58% of consumers said they'll switch companies because of poor customer service, including late deliveries.

  • A poor delivery experience can impact the chances someone will become a loyal customer.


The Impact of Late Deliveries on Reputation

  • Negative reviews online can discourage potential customers from purchasing products or services.

  • Dissatisfied customers may not only write badly about a business on social media, but they might also tell their friends and family about their experience.

  • Based on research, 13% of customers tell 15 or more people if they have a negative experience with a business.

  • A business's reputation is built on delivering on its promises, and late deliveries can lead to a decreased reputation.


The Impact on New Customer Acquisition Cost

  • Late deliveries can result in the loss of old customers and the need to spend money obtaining new ones.

  • The cost of obtaining new customers is six to seven times more expensive than keeping existing ones.

  • A business has a 5 to 20% chance of selling to a new customer.

  • Customer Acquisition Cost (CAC) indicates the cost of drawing a new customer to the company, including marketing and sales costs.


How Ondway Will Solve Your Late Deliveries

  • Ondway provides on-demand delivery solutions to empower businesses to manage all their last-mile needs.

  • Ondway offers flexible delivery services, from same-hour express delivery to same-day and scheduled times.

  • Ondway is the only company in the Irish market that offers an ultra-fast delivery service to multiple businesses with a lower price and greater operational agility, positive customer feedback, 30,000+ deliveries completed, and 100+ business partners.

  • Ondway works with restaurants, cafes, pharmacies, offices, retailers, and grocery stores; offering them different delivery solutions, from on-demand deliveries to same-day and scheduled deliveries.

  • Ondway's couriers are trained and equipped with thermal bags and the Ondway Driver App that optimizes delivery operation while providing the end user with an excellent experience.

Conclusion:


Late deliveries are a significant threat to customer retention and future sales, and can also impact a business's reputation and costs for new customer acquisition. Using Ondway's on-demand delivery solutions, businesses can improve their delivery service, retain customers, maintain their reputation, and reduce costs for new customer acquisition.

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