The global pandemic coupled withfast-changing consumer behavior has changed the dynamics for on-demand digital deliveries.
By Ritukar Vijay, CEO of Ottonomy
The COVID-19 pandemic, and the resulting government-mandated lockdowns, has transformed the on-demand delivery market from a marathon to a sprint.In fact a recent report from McKinsey, notes a “decade in days” scenario where online delivery providers incorporated 10-years of operational changes into a period of eight weeks in the spring of 2020.
“Behavioral changes will reshape consumer decision journeys and companies will need to adapt fast,” McKinsey stated. “Consumers have changed on where and how they engage and organizations s will need to adapt to this change in consumer behavior.”
What Consumers Want With On-Demand Deliveries (and How Businesses Should Respond)
This scenario is especially true for the delivery market, where consumers, after long periods of lockdowns and quarantines during the pandemic, have changed their expectations and behaviors related to online deliveries these dynamics are forcing retailers, restaurants, and hospitality providers to innovate their delivery services to accommodate the evolved expectations of consumers.
How so? Let’s examine five ways consumers have shifted their on-demand delivery expectations, and how that systemic change is accelerating a huge shift in organizations attitudes towards technology-based delivery services practices.
Consumers want more personalization. The pandemic has forced delivery services to recognize the “personality factor” when engaging with the public.
Consumers want their delivery experience personalized, and that means companies must accommodate that demand with better engagements (i.e., to let customers know when the delivery will arrive, giving choice for where the customer wants the delivery placed upon arrival, and specific re-delivery options.)
Cutting edge technology based deliveries. As on-demand delivery rises, companies will need to invest in the latest technology, like delivery robots, drones, AI-led scheduling and customization programs and choices.
Companies will need to invest in software & automation tools that will enable them to meet customer expectations on faster delivery and flexible timings. Businesses that do so are the ones who will thrive in a world where consumer on-deliver expectations will continue to remain high.
Acceptance of autonomous delivery service providers. In this golden age of technology-driven consumer engagements, retailers, restaurants, and hospitality companies must provide a seamless customer experience.
Consumer expectations have morphed significantly, changing from a basic demand to have a package or box of food delivered on time to a delivery experience that is automated, contactless, efficient and effective, and with more control and options for consumers.
That’s where robotic on-demand delivery providers can make a big difference for businesses by helping them to automate the delivery experience. Apart from providing delivery tools like robots and drones, the new generation of autonomous delivery service providers can also help manage warehouses that can store the products customers want, with the technology available to deliver those products in minutes.
Embrace 5G. With data speeds up to 20-times faster than fourth-generation data transmission networks, companies can adapt to consumer on-demand delivery demands by investing in 5G technology.
5G will enable faster data analysis, which will help companies make smarter, faster and more informed decisions on everything from inventory, weather patterns, and traffic conditions. The latest generation of delivery providers are leveraging 5G to build autonomous, AI-driven vehicles to get products to consumers faster and with a higher degree of safety
Automated the last mile deliveries. Autonomous vehicles are the future of on-demand deliveries – they’re expected to account for 78% of all deliverable products on a global basis, according to McKinsey.
To adjust to the expectations of consumers in a new era of ever increasing number of on-demand deliveries, businesses need to invest in autonomous delivery vehicles.
Whether that’s in the form of sidewalk-maneuvering robots or self driving vehicles navigating public roadways, businesses can benefit from autonomous vehicles for delivering anything and everything, be it pizzas or prescription drugs or the latest sneakers, or the weekly groceries in a safe and environment friendly manner.
The Takeaway on On-Demand Deliveries and Changing Consumer Behaviors
Businesses that focus on-demand deliveries market need to listen to what consumers expect when they place an order for delivery.
Once companies understand the new rules for digital deliveries, they’ll need to shift into higher gear with the tools and the technologies required to engage with more demanding customers.
No doubt, there’s a lot on the line for companies in the deliverables market. For them, the choice is a clear one.
Keep your foot on the accelerator – or be left behind.