JDA SOFTWARE GROUP INC
2015 Customer Pulse Reports highlight fulfillment challenges for retailers in the face of heightened customer expectations
World Retail Congress, Rome, and Bracknell, U.K. - 8 September 2015 - European adults have experienced a high number of problems with online orders in the last 12 months, according to data from the JDA/Centiro Customer Pulse Report (). The survey of 6,151 adults online across the UK, Germany and Sweden revealed that nearly half of German respondents (48%) had experienced problems, compared to 47% of UK adults and 38% of Swedish respondents. Late deliveries were a significant issue; 48% of German respondents had experienced late deliveries, with 46% of UK respondents and 40% of Swedish respondents having the same poor experience (). The research also revealed that across Europe, consumers are becoming far less tolerant of fulfillment failures and a significant number of adults online would 'vote with their mouse' by opting to shop with a different retailer. Indeed, 73% of Swedish respondents, 71% in the UK and 65% in Germany indicated they would be likely to switch to an alternative retailer as a result of a poor experience when ordering a product online.
Furthermore, the online research highlighted that adults who have made a purchase online in the last 12 months are increasingly choosing to shop with retailers that offer varied delivery options. In the UK, 46% of these respondents chose to shop with a retailer that specifically offered multiple delivery options over one that only offered one delivery option, followed by 32% in Sweden and 29% in Germany. While many retailers have focused on the importance of rapid or same-day delivery, the research indicates that across Europe, cost and convenience were most important to those who had shopped online, rather than speed (tweet this).
"As online shopping continues to grow in popularity, European retailers are not only having to contend with successfully managing vast fulfillment operations, but also with the decreased tolerance of customers for any problems that occur. The risk of damage to retailers' brands is clear, with many customers willing to shop elsewhere as a result of a negative experience," said Jason Shorrock, retail strategy director at JDA. "The key point for retailers to note is that even while tolerance is falling, expectations are rising. Choice and convenience are becoming bigger priorities for shoppers, not just cost, which only adds to the fulfillment burden for retailers. The importance of excellent service, combined with good value and flexibility in delivery options, cannot be underestimated. Retailers must ensure they develop the capability and flexibility built into their supply chains to meet customers' high expectations."
'Click & Collect' an increasingly attractive option
The online research also highlighted that services such as 'Click & Collect' and 'Drive' are increasingly being seen by respondents as viable alternatives to home delivery. The UK leads the field in this trend, with almost half (49%) of respondents who have made a purchase online in the last 12 months having used 'Click & Collect' services in the last 12 months, and 23% in Germany (tweet this). Indeed in Sweden, a significant number of respondents stated they would use 'Click & Collect' (64%) and 'Drive' (42%) services if they were offered by supermarkets. Of those respondents who had used 'Click & Collect' the cost, followed by the convenience of those services were by far their biggest reasons for doing so.
Online returns continue to cause dissatisfaction
The convenience of return options is also a growing factor in where people choose to shop; 78% of adults online in Germany, 69% in Sweden and 63% in the UK, said the ease of being able to return items factors into which retailers they shop online with (tweet this). Interestingly, with the research finding that the ease of being able to return items is on a par with purchasing items, many respondents were still experiencing frustrations with returns. When asked what their biggest frustration was when it came to returning online purchases, 37% of respondents who have shopped online in both the UK and Sweden, and 26% in Germany cited having to pay for return postage and package. This was followed by having to return items by post or wait for a courier, which frustrated 24% of UK respondents who have shopped online, 18% in Germany and 12% in Sweden (tweet this).
"While the UK remains the leading, most mature European online retail market, countries like Germany and Sweden have also been bitten by the online shopping bug. The general willingness of Europeans to embrace online shopping is high and the fulfillment challenge for retailers is only going to grow. Retailers must be able to scale their supply chain operations to meet demand, and will require a much more sophisticated and complex operation supported by robust planning and intelligent fulfillment execution. This will be the key battleground for European retailers in the next five years," added Jason Shorrock.
All figures, unless otherwise stated, are from YouGov Plc. The results are based on the data from JDA's Customer Pulse Reports 2015; Total sample size was UK (2,093) Germany (2,042) Sweden (2,016). Fieldwork was undertaken between 16th - 30th April 2015. The survey was carried out online. The figures have been weighted and are representative of all UK/German/Swedish adults (aged 18+).
Tweet This: European Adults Experience High Number of Problems with Online Orders in Last 12 Months #JDAPulse: http://bit.ly/1igyETR
Additional Resources:
About JDA Software Group, Inc.
At JDA, we're fearless leaders. We're the leading provider of end-to-end, integrated retail, omni-channel and supply chain planning and execution solutions for more than 4,000 customers worldwide. Our unique solutions empower our clients to reduce costs, increase profitability and improve collaboration so they can deliver on their customer promises every time. Using JDA, you can plan to deliver. www.jda.com
About Centiro
Centiro is the leading innovator in cloud-based transportation and delivery management solutions. Centiro's products empower companies and finer supply chains in over 65 countries. The company has won several awards and accolades over the years and is ranked as one of the best places to work in Europe by Great Place to Work®. For further information, please visit www.centiro.com.
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"JDA" is a trademark or registered trademark of JDA Software Group, Inc. Any trade, product or service name referenced in this document using the name "JDA" is a trademark and/or property of JDA Software Group, Inc.
JDA Software Group, Inc.
14400 N. 87th Street
Scottsdale, AZ 85260
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Furthermore, the online research highlighted that adults who have made a purchase online in the last 12 months are increasingly choosing to shop with retailers that offer varied delivery options. In the UK, 46% of these respondents chose to shop with a retailer that specifically offered multiple delivery options over one that only offered one delivery option, followed by 32% in Sweden and 29% in Germany. While many retailers have focused on the importance of rapid or same-day delivery, the research indicates that across Europe, cost and convenience were most important to those who had shopped online, rather than speed (tweet this).
"As online shopping continues to grow in popularity, European retailers are not only having to contend with successfully managing vast fulfillment operations, but also with the decreased tolerance of customers for any problems that occur. The risk of damage to retailers' brands is clear, with many customers willing to shop elsewhere as a result of a negative experience," said Jason Shorrock, retail strategy director at JDA. "The key point for retailers to note is that even while tolerance is falling, expectations are rising. Choice and convenience are becoming bigger priorities for shoppers, not just cost, which only adds to the fulfillment burden for retailers. The importance of excellent service, combined with good value and flexibility in delivery options, cannot be underestimated. Retailers must ensure they develop the capability and flexibility built into their supply chains to meet customers' high expectations."
'Click & Collect' an increasingly attractive option
The online research also highlighted that services such as 'Click & Collect' and 'Drive' are increasingly being seen by respondents as viable alternatives to home delivery. The UK leads the field in this trend, with almost half (49%) of respondents who have made a purchase online in the last 12 months having used 'Click & Collect' services in the last 12 months, and 23% in Germany (tweet this). Indeed in Sweden, a significant number of respondents stated they would use 'Click & Collect' (64%) and 'Drive' (42%) services if they were offered by supermarkets. Of those respondents who had used 'Click & Collect' the cost, followed by the convenience of those services were by far their biggest reasons for doing so.
Online returns continue to cause dissatisfaction
The convenience of return options is also a growing factor in where people choose to shop; 78% of adults online in Germany, 69% in Sweden and 63% in the UK, said the ease of being able to return items factors into which retailers they shop online with (tweet this). Interestingly, with the research finding that the ease of being able to return items is on a par with purchasing items, many respondents were still experiencing frustrations with returns. When asked what their biggest frustration was when it came to returning online purchases, 37% of respondents who have shopped online in both the UK and Sweden, and 26% in Germany cited having to pay for return postage and package. This was followed by having to return items by post or wait for a courier, which frustrated 24% of UK respondents who have shopped online, 18% in Germany and 12% in Sweden (tweet this).
"While the UK remains the leading, most mature European online retail market, countries like Germany and Sweden have also been bitten by the online shopping bug. The general willingness of Europeans to embrace online shopping is high and the fulfillment challenge for retailers is only going to grow. Retailers must be able to scale their supply chain operations to meet demand, and will require a much more sophisticated and complex operation supported by robust planning and intelligent fulfillment execution. This will be the key battleground for European retailers in the next five years," added Jason Shorrock.
All figures, unless otherwise stated, are from YouGov Plc. The results are based on the data from JDA's Customer Pulse Reports 2015; Total sample size was UK (2,093) Germany (2,042) Sweden (2,016). Fieldwork was undertaken between 16th - 30th April 2015. The survey was carried out online. The figures have been weighted and are representative of all UK/German/Swedish adults (aged 18+).
Tweet This: European Adults Experience High Number of Problems with Online Orders in Last 12 Months #JDAPulse: http://bit.ly/1igyETR
Additional Resources:
- At World Retail Congress in Rome this week, join Lee Gill, Group Vice President, Global Retail Industry Strategy will be facilitating a panel on the transformation of retail giants.
- Acces s the full JDA/Centiro 'Customer Pulse 2015' Report.
About JDA Software Group, Inc.
At JDA, we're fearless leaders. We're the leading provider of end-to-end, integrated retail, omni-channel and supply chain planning and execution solutions for more than 4,000 customers worldwide. Our unique solutions empower our clients to reduce costs, increase profitability and improve collaboration so they can deliver on their customer promises every time. Using JDA, you can plan to deliver. www.jda.com
About Centiro
Centiro is the leading innovator in cloud-based transportation and delivery management solutions. Centiro's products empower companies and finer supply chains in over 65 countries. The company has won several awards and accolades over the years and is ranked as one of the best places to work in Europe by Great Place to Work®. For further information, please visit www.centiro.com.
RSS Feeds:
JDA press releases: www.jda.com/rss.asp?a=press
JDA news: http://www.jda.com/rss.asp?a=news
JDA events: http://www.jda.com/rss.asp?a=events
Social Networks:
Web: www.jda.com
Blog: http://blog.jda.com
Twitter: www.twitter.com/JDASoftware
Facebook: www.facebook.com/JDASoftwareGroup
LinkedIn: www.linkedin.com/company/JDA-Software
YouTube: www.youtube.com/user/JDASoftware
SlideShare: www.slideshare.net/JDASoftware
"JDA" is a trademark or registered trademark of JDA Software Group, Inc. Any trade, product or service name referenced in this document using the name "JDA" is a trademark and/or property of JDA Software Group, Inc.
JDA Software Group, Inc.
14400 N. 87th Street
Scottsdale, AZ 85260
###
What Customers Are Saying
Prior to using JDA solutions, many of our products went to the wrong place and were produced too early or too late and our inventory mix was not optimal. We estimated that 1 to 2 percent of our total revenue was lost every year because of our inability to make accurate delivery promises. However, now with the help of JDA's solutions, we expect to make a 1- to 2-percent increase in revenue and simultaneously reduce assets locked up in our supply chain. In addition to improving the satisfaction of our existing customers, we also expect to win more business as a result of the JDA solutions. All together, we estimate that the benefits of JDA solutions will translate into a cash savings of millions of Euros.
Dirk Peterman
Project Manager
Continental AG
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