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Global Brands Embrace Same Day Delivery

Krispy Kreme has become the latest brand to announce home delivery capabilities, planning to roll out nationwide delivery across the United States at the end of February. The popular brand will send boxed coffee and doughnuts by the dozen with a delivery fee of $4.99. This is just the latest brand to recognise and embrace the importance of same day delivery.

Krispy Kreme first began testing online ordering and delivery in 2018, before announcing the national rollout. The company is creating an event around the launch, which enables it to join home delivery services from brands like CVS, Starbucks, McDonald’s, Walmart and Dunkin. Doughnuts will be delivered to dozens of hospitals on Feb 29, celebrating Leap Day babies, their parents and the professionals who care for them.

The move is significant in the context of mobile and online ordering too. With mobile and online ordering emerging as table stakes, the delivery aspect is becoming an important part of the customer experience as well as the bottom line of the companies in this space.

According to research from TouchBistro, same day delivery has created a new revenue stream for full-service restaurants, gaining on average an 11 to 20 percent increase in overall sales volume. It has also increased the average spend. Customers spend up to 20 percent more on online orders than offline visits.

Home delivery is also becoming common in the retail space. The same report shows that half of retailers currently offer same day delivery and 65 percent plan to offer it within two years. Almost half of all shoppers are more likely to shop online if they know the product will be delivered on the same day. Sixty-one percent of consumers are willing to pay more for same-day delivery. On the flip side, 25 percent of shoppers would abandon a cart without same day delivery.

Revenue and customer satisfaction aside, home delivery is also emerging as a high-touch option in a digital world. According to a report from location-based provider Glympse, home delivery is an essential source of customer feedback.

“In days gone by, customers were perfectly okay with going to a website and searching for contact information, or waiting a couple of days after receiving their purchase to get a feedback request from the company,” its report states. “The landscape of customer feedback has changed dramatically in the last several years, as buyers now expect to have instant options to provide feedback during and after the delivery on their mobile device.”

The Glympse reports hints at the decision any retailer that wants to play in the home delivery space will have to make: Who delivers? With any number of delivery services competing for business, including DoorDash, Seamless and Uber Eats, McKinsey research says it’s a critical decision. Once a consumer signs up for one of these platforms, they typically don’t leave.

“New delivery platforms, which personalise the ordering experience by storing relevant customer data, are sticky,” it says. “Once customers sign up, 80 percent never or rarely leave for another platform, creating a strong ‘winner-take-all’ dynamic, in which the reward goes to the player who can sign up the most customers in the shortest amount of time.”

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