parcelLab, the leading Operations Experience Management platform bringing people and brands closer together, today released its “Holiday 2021: Consumer Preferences and Expectations” report, uncovering what consumers expect during the 2021 holiday shopping season.
Conducted online with third-party research firm YouGov, parcelLab sought to discover what made U.S. consumers tick during the pandemic-driven 2020 holiday season and to learn what their expectations are for the upcoming season. From this research, it is clear that attitudes created by previous shipping delays and inventory shortages erupted a shift in purchasing behavior – consumers are planning to buy earlier.
Holiday Shipping Mishaps
parcelLab’s “Holiday 2021: Consumer Preferences and Expectations” report found that 50% of U.S. adults will be done with their holiday shopping by Cyber Monday. That said, 5 percent of shoppers are already done with their holiday shopping, while another 12 percent say they will be done by Halloween. The remaining 33% of consumers say they will be done by Cyber Monday, revealing that retailers have a shorter window of opportunity to leverage e-commerce technology solutions to personalize their experience during shipping, delivery and returns. With 71% of consumers indicating they will be shopping the same or more online during the 2021 holiday shopping season, the potential for shipping mishaps is almost certain – but by providing consumers with relevant post-purchase communication, retailers can overcome some of these inevitable operational challenges.
However, not everyone will have their holiday shopping done early this year. 25 percent of consumers plan to do their shopping last minute, meaning its crucial to manage their customer experience with proactive communication during this season.
“Brands and shipping carriers alike took last year’s holiday season by storm, and not in a good way. Almost 1 in 5 consumers (19 percent) have started shopping earlier this year because they’re worried about shipping delays, and another 42 percent said their package was delayed by at least a day. These delays are extremely disappointing during the high stakes holiday gifting season. This proves why brands must manage expectations and communicate proactively throughout each experience,” said Tobias Buxhoidt, Co-Founder and CEO of parcelLab. “Our goal is to help retailers communicate effectively during shipping, delivery and returns. We help brands manage expectations by creating amazing customer experiences that are seamless and joyful.”
A Negative Experience Can Make or Break a Retailer
The holiday season is a busy time of year, and consumers are looking for streamlined, easy and stress-free online shopping experiences that don’t add to the chaos. Arguably one of the busiest seasons for retailers across the globe – nearly 1.1 billion packages were delivered throughout the holiday season in 2020 – so shipping mishaps are bound to occur. When delays or other unpleasant issues occur, customers look for solutions – 34% mentioned contacting customer service, which is extremely expensive and a large burden for retailers.
Shipping should never be taken lightly, especially during the holiday season. Almost 1 in 4 (23 percent) of American consumers are unwilling to order from a retailer again after a negative delivery experience.
Following last year’s frustrations, retailers have a lot of ground to make up. In 2020, 1 in 3 (33 percent) consumers were frustrated hoping everything arrived on time, while 18 percent of consumers had packages that never arrived. 28% of consumers received inaccurate notifications about their packages, and nearly 1 in 4 (23%) received incorrect items last holiday season. These experiences leave a negative impression and harm retailers’ reputations, with 17% of consumers noting they have left a negative review or comment online. “This data clearly shows many bad experiences. Yet consumers and brands don’t realize that it could be different. Relevant and proactive communication with an Operations Experience Management platform can transform these operational challenges and complexities into touch points that delight,” says Buxhoidt.
This time of year is also the perfect opportunity to build brand loyalty. A recent data pull by parcelLab shows that their customers are averaging 148% open rates for shipping confirmations. Sharing pertinent information and personalized recommendations via these transactional communications creates positive brand experiences. 26 percent of customers want how-to guides, while 20% want information on how to recycle packaging and 24% want more information about a brand’s loyalty programs.
The Return Experience is Just as Important
Returns are inevitable, and how retailers handle them can help or hinder a future customer relationship. Just as customers want information on when their package will arrive, the reverse rings true when a return is getting shipped back to the warehouse. Nearly one-third of consumers (32 percent)want regular updates on where the return is, and 45% want a notification when the return arrives at the warehouse. 50 percent of consumers want updates on when the return is expected to be processed and when the refund will be received.
In addition, nearly half of consumers (45 percent) would rather return an item directly to the store to avoid dealing with return shipping.
“Following last year, the 2021 holiday shopping season will certainly be challenging,” said Buxhoidt. “A key opportunity from our report this year is that retailers must communicate with their customers throughout the journey – whether that will be a delay or other issue, or creating a better returns experience to improve the customer relationship – harnessing these touch points will build trust and loyalty for 2022 and beyond.”
