To keep customers coming back, brands must be able to make good on same-day delivery every time the customer chooses that option. Those who don’t offer the option or fail to deliver on the promise of ultrafast fulfillment stand to lose customers. Over time, that business (or lack of it) affects your customer lifetime value (CLV).
Defined as the total financial value a company earns from each customer throughout the relationship, customer lifetime value measures how important someone is to your business over time. Read on to learn more about CLV and how crowdsourcing can help increase customer lifetime value.
Why Does CLV Matter?
Having a high CLV means you’re positioned well in the market, customers love your brand and they’re coming back again and again. That’s an important win when it can cost up to five times more to acquire a new customer than to keep an existing one. Focusing on CLV bodes well for your long-term success as a business. But continued growth in CLV is also important.
There are many ways to improve customer lifetime value. In a world where the delivery experience plays a large role in defining the buying experience, ultrafast fulfillment is one offering that companies can use to keep customers coming back. But retailers don’t always place enough emphasis on same-day delivery, nor do they understand its direct correlation with customer lifetime value.
Consider this: A recent survey by Roadie and studioID highlighted a direct connection between successful same-day deliveries and customer loyalty. Customers are more likely to buy from a brand that can successfully execute on same-day delivery. On the flip side, additional research shows that shoppers are less likely to return if same-day delivery times are too long.
This makes the planning and execution of same-day delivery even more critical at a time when:
- Half of the retail and supply chain leaders who Roadie and studioID surveyed are offering or would offer same-day delivery because customers expect and demand it.
- Nearly two-thirds of companies say that more than 40% of shoppers would be willing to pay more for products with a same-day delivery option.
- And half of retail and supply chain leaders said they believed offering same-day delivery would improve customer retention and loyalty.
6 Ways Crowdsourced Same-Day Delivery Boosts CLV
Crowdsourced same-day delivery can help brands increase CLV across their customer bases by:
Giving customers a choice.
Buyers want a choice in when and how they receive their orders. Increasingly, that means giving them the option of same- or next-day delivery. Companies that ignore this reality will wind up losing customers as a result.
Delivering a consistent experience.
It’s not enough to simply offer the option of same-day delivery. To win new customers and increase the CLV of those buyers, retailers must be able to deliver same-day every time the customer chooses that option. Failing to deliver on time stands to erode CLV.
Providing the visibility customers want.
Customers want to know where their orders are at every stage of the delivery process. From photographic chain of custody, text updates and white-labeled live tracking, Roadie’s native features — all of which are extendable using an application programming interface (API) — help keep your customers in the loop.
Offering flexible, scalable capacity on demand.
For retailers, crowdsourced, ultrafast delivery provides an on-demand fulfillment mode. You have the capacity and reach to deliver any item, anytime and anywhere. Plus, it removes the hassle of building and maintaining your own delivery infrastructure.
Filling those persistent final mile gaps.
Crowdsourced same-day delivery helps companies respond quickly to order surges and seasonal volume peaks. By adding crowdsourced delivery to existing delivery options — including company fleets and traditional carriers — retailers can leverage an independent network of drivers whose vehicles can deliver orders of all sizes, even oversized items.
Keeping customers coming back for more with on-time delivery.
Customer satisfaction and loyalty go beyond the initial purchase. It’s the last touchpoint of the brand experience — the delivery — that solidifies shoppers’ trust and keeps them coming back for more. And as even more customers are willing to pay to get their orders delivered same-day, having a crowdsourced delivery option ensures you’re always ready to deliver, so customers aren’t left waiting.
Faster delivery is top of mind for retailers these days, but speed is just one part of the equation. Read on to learn how letting customers choose when to receive their orders increases buyers’ satisfaction, CLV and retailers’ revenue in the long run.