If you thought same-day delivery would cost your company money, a new survey of 150 industry leaders proves that it can actually be a profit center.
Everyone knows that same-day delivery is a powerful tool for fulfilling customers’ cravings for instant gratification, but did you also know that it can be a major boon for your business?
Industry leaders report a significant increase in revenue (by an average of 42%) after implementing same-day delivery. This is likely due to a combination of factors, including increased customer satisfaction (with 84% of businesses reporting improvement) and higher customer retention rates (reported by 62% of businesses). On top of that, 71% of respondents that benchmark same-day delivery annually say their return on investment (ROI) consistently trends upward year-over-year.
These represent just a small selection of compelling reasons to use same-day on-demand delivery options to serve B2B and B2C customers who want their orders fast and are willing to pay a little extra to make that happen.
Same-day delivery has become table stakes
Same-day delivery is becoming more popular, but many executives suggest that there’s a tradeoff to consider: offering ultra-fast service may add cost to the final mile of the supply chain. However, this isn’t always the case, and many leaders say so. According to a survey of 150 same-day delivery-offering companies, businesses are successfully implementing such services without breaking the bank. Even better, many of these companies see a healthy ROI when they do.
In 2024 ROI Report: Is Same-Day Delivery Worth the Hype?, Roadie and Supply Chain Dive’s studioID explore a now-mainstream delivery option that was once considered revolutionary. Credit the likes of Amazon and Walmart for setting the delivery pace bar high and forcing others to follow suit.
Most respondents (96%) have offered same-day delivery for more than a year, and nearly 63% of respondents have offered it for more than three years. They use different approaches to move packages from hub to doorstep:
- 80% use major parcel carriers
- 45% rely on regional parcel carriers
- 50% use their own fleets
- 33% rely on local couriers
- 29% use a crowdsourced delivery platform like Roadie
Early investment = long-term rewards
It’s no secret that getting started with same-day delivery requires a mix of initial implementation expenses and operational costs. Those initial outlays quickly turn into benefits as companies experience post-implementation revenue increases and consistently rising ROI.
According to the survey, 91% of companies track the ROI in same-day in order to evaluate profitability, measure success and take the guesswork out of decision-making. Of that group, many report revenue increases of more than 20% after implementing same-day delivery.
Here are the five biggest positive financial impacts that companies can expect when they start delivering orders same-day:
- Potentially double-digit revenue increases. Nearly all respondents (80%) report an increase in revenue as a result of same-day delivery — and it’s not insignificant growth. For almost two-thirds of respondents, revenue rose by 6% or more; approximately 30% saw an increase of more than 10%.
- More profit for every order. Roughly 80% of leaders saw higher revenue per order after implementing same-day delivery, with 34% experiencing a surge of between 6% and 10%.
- Higher net-new sales. More than three-quarters (77%) of respondents surveyed confirmed an increase in net new sales after deploying same-day delivery.
- Customers that come back for more. Nearly eight in 10 companies say repeat purchases improved thanks to the launch of same-day delivery, with 36% seeing an increase of between 6% and 10%.
- Higher conversion rates. After rolling out same-day delivery, 66% of respondents say their conversion rates grew; 23% are seeing improvements of between 6% and 10%.
Speed wins out on the delivery front
About one-third of survey respondents are already realizing the benefits of on-demand same-day delivery, which offers these benefits that other carriers can’t guarantee:
- On-demand delivery is easy to get up and running quickly. There’s no minimum volume commitment or capital investment required. With Roadie, you control the delivery experience — from branding to marketing to data — and provide fast and high-quality service that wows your customers and builds loyalty.
- It’s flexible and scalable based on demand. When many unexpected orders come in simultaneously the number of drivers and delivery vehicles at the ready is virtually unlimited. The Roadie network of independent drivers enables you to flex same-day delivery capacity to meet consumer demand and increase sales.
Simple tool for measuring the ROI in same-day
Whether you serve B2C customers, B2B buyers or both, your customers expect the brands they buy from to offer an array of delivery speeds that suit the needs of any situation. The question is, will same-day delivery benefit your business?
Roadie’s new ROI calculator answers that question by putting key insights like potential revenue boost, customer satisfaction impact and long-term growth potential right at your fingertips.
