A survey from Roadie and Supply Chain Dive’s studioID finds that the ROI in same-day delivery is real, substantial and yours for the taking.
A delivery option once considered exclusive and to be reserved only for emergency deliveries, same-day delivery has become commonplace in this “instant gratification” environment. Customers are used to seeing a same-day checkbox on their shipping option pages, and companies have responded by adding the service for their B2B and B2C buyers.
Providing ultrafast service pays off: According to a 2024 Roadie survey, 80% of companies report higher revenues per order after implementing same-day delivery. Other wins include higher conversion rates, more repeat buyers and higher net-new sales.
Yes, same-day delivery is worth the hype
Any company that hasn’t dipped a toe in the same-delivery waters may be wondering if the extra effort is worth it. This hesitancy is understandable. After all, companies are continually told that they need to “upgrade to this” or “adopt that” in order to keep up with customer demands and stay ahead of their competitors.
Same-day delivery is different. In fact, organizations that ignore the signals telling them to deliver goods same day are missing out on a golden opportunity that provides fast ROI. Consider these findings from the Roadie survey:
- Same-day service boosts revenues. Nearly two-thirds of survey respondents say their revenues rose by 6% or more when they added the service, while 30% saw an increase of more than 10%.
- Fast delivery drives higher revenue per order. Most (80%) survey respondents saw higher revenue per order after implementing same-day delivery, with 34% experiencing a surge of between 6% and 10%
- That ROI remains consistent over time. The 68% of firms that track same-day delivery ROI realize consistent improvement across those metrics every year. That growth helps keep the costs of same-day delivery in check over time.
The ROI in same-day delivery doesn’t end there. Same-day delivery is also an excellent lead conversion tool and new-customer magnet. According to the survey, more than three-quarters (77%) of companies confirmed an increase in net-new sales after deploying same-day delivery.
And those customers will keep coming back for more if they know they can get their stuff on the same day they place their orders. About 80% of survey respondents say repeat purchases improved when they introduced same-day delivery, with 36% seeing an increase of between 6% and 10%.
Drive revenue margins and company longevity
Same-day delivery is becoming a must-offer service; most of the 150 leaders that Roadie surveyed (91%) continue to track its ROI in order to evaluate profitability, measure success and make more informed decisions.
Now, it’s important to understand that ROI involves more than just calculating the amount of revenue being driven by same-day delivery. It’s also about calculating the amount of revenue you’re driving compared to cart abandonment and other similar metrics. Ignore these critical metrics and you may overlook quality data that helps drive revenue margin and company longevity.
Calculating same-day ROI also isn’t a “one and done” exercise. For optimal results, measure the ROI over the long term (not just a few months), compare it to your other distribution channels, and view it through the lens of, “How does growth look among customers using same-day service versus those who don’t take advantage of the service?”
Here are 10 more questions that the continuously measured ROI data will help you answer:
- Should inventory be increased for products that sell especially well when offered with same-day delivery?
- Are there products rarely purchased with same-day delivery?
- Based on previous success, will it pay to expand services into new markets or regions?
- Is same-day delivery growing to the point that more space may be needed in the future to support it?
- Is same-day growth accelerating in a specific area?
- Would this be an opportunity to establish more facilities close by?
- Is our current technology working effectively?
- Where can future investments make the most impact?
- Is our team as productive as it can be?
- How can we build a more efficient workforce?
Keeping same-day delivery expenses at bay
Implementing same-day delivery is daunting for some, but as the Roadie report shows, the ROI is substantial, impactful and long-lasting. Still, there are some initial setup and ongoing costs to consider when putting a same-day delivery service program in place.
- About half of the survey respondents report six-figure startup costs (the median cost is $400,000) that include IT, training and hiring expenses.
- For 79% of respondents, operating costs increased after putting same-day delivery into service.
- For more than half of these leaders, costs rose between 1% and 40%, but 17% reported no major changes in operating costs after rollout.
- Many businesses (65%) saw cost-per-order rise for same-day delivery, with nearly half reporting increases of between 1% and 20%.
The good news is that companies have found innovative ways to offset these costs and in doing so have turned the final mile of their supply chains into a money-maker. For example, over half of survey participants raised product prices to compensate for same-day delivery costs. About one-third made simple price adjustments, while 24% raised prices after offering a free same-day delivery service trial.
Offering a trial gives customers a commitment-free “taste” of what it would be like to get their orders same day. It also gives them time to determine their own ROI metrics. For example, an electrical contractor will be able to get work done faster by having last-minute orders from an electrical distributor dropped off at the job site that same day. The payoff will be evident pretty quickly when that contractor can take on more work and boost its own revenues.
Charging delivery fees is another way to cover same-day delivery costs. According to the Roadie survey, companies are charging an annual fee (17%), a one-time fee (14%), a monthly fee (13%) or a per-order fee (13%) for the services. Customers generally don’t mind paying out a little extra for the speed, convenience and experience of same-day delivery, and particularly for big and bulky items they don’t want to transport themselves.
Calculating the opportunity
While there are costs associated with same-day delivery, the potential ROI for companies is substantial and virtually guaranteed, according to the Roadie survey. Higher conversion rates, double-digit revenue boosts and happier customers that come back to place more orders are just some of the benefits you can count on.
Use the ROI calculator from Roadie to learn exactly how same-delivery can boost your organization’s revenues, conversion rates and customer retention rates.
