by Nigel Pye
Let me tell you a little about my sainted wife. In addition to being a domestic goddess, she spends a lot of her time training for triathlons, being walked by the dogs, or generally doing important stuff out and about. How she used to find the time to hold down a full-time job I’ll never know. To optimize her time, most of her non-food shopping is done on-line. She will take care in surveying the purveyors of goods, She will form her opinion of who she should buy from based on many factors:
- Delivery costs;
- The look and feel of the web site;
- When the site was last updated;
- Which credit cards do they take;
- Can she use PayPal etc.
Having carried out this survey my wife then commits to buy. At this point the firm operating the web site have been rewarded for all their hard efforts in addressing her list of bullet points. It would be reasonable to assume that this site will be bookmarked and may now be one of her first points of call when she comes to buy a similar item, but not necessarily so! It is at this point, as the picker is dispatched in the warehouse to find my wife’s item, that the firm jeopardizes their potential for getting return business from the Pye household.
You will not have failed to notice the plethora of courier and delivery vans that ply their trade on our roads these days. Given the number of times I have been stuck behind such vans, were I to own such a firm, I would consider putting my rival’s logo on the back, hoping to put-off the annoyed queue of drivers behind me from using their services. But I digress … Dr Pye next receives an email acknowledging her order and then the firm chooses (or more likely has pre-chosen) a company to fulfil their promise. A second e-mail, or perhaps text message arrives giving my wife a tracking number. This is usually linked to the web site of a courier firm and allows her to follow the journey of her much anticipated item(s). It is at this point that the selling firm’s fate is sealed regarding repeat business. To save litigation let’s just say that if the selling company has chosen Firm A, they are in with a strong chance of another order. If they have chosen Firm B there’s a possibility, but if they have chosen Firm C, they need to have exceptionally good deals to have any hope of repeat business.
You see, the link from Firm A provides a one hour slot for delivery and a link to a GPS track and trace that shows where the delivery van is and how many deliveries need to be made before they turn up Chez Pye. This allows Dr Pye to know if she can fit in a training ride, run, or walk the dogs, or any of the other things that take up her busy day. Visibility makes Dr. Pye happy. Firm B provides a four hour slot, usually 8AM-12PM or 12PM-4PM. This too can be deemed acceptable, not as good as Firm A, but acceptable. Firm C simply say that her item will be delivered between 8AM and 8PM on a given day. This is unacceptable, to the particular customer we are discussing (and, I would suggest, most other customers), as no external activities can be planned to take place that day, it may be that you can’t even do the gardening for fear of missing the 10 second pause between the driver pressing the door bell and driving away. The selling firm that choses Firm C will be getting no more business from us.
As has been pointed out on other posts on this Blog, it is the whole supply chain that delivers customer value, and through a particular choice of fulfillment partner, a firm may have saved pennies from their delivery costs, but they have dented their reputation, probably lost repeat business and possibly the business of Dr Pye’s friends, since in addition to sharing information on retailers’ prices and offerings her circle are now sharing which sellers use which fulfillment partners to deliver the goods. It is unfortunate that some of the big players in the market are not consistent in their choice of delivery partner and so we could play the game of delivery lottery, but given the brief time that it takes to compare prices, the Pye household will pay slightly more for the goods knowing that they will be delivered by Firm A, rather than get a cheaper price that may be fulfilled by Firm C. After all what is an extra pound compared to the opportunity cost of a whole day spent ‘productively’ at home?