Last Mile and Consumer Experience

Feb 10, 2020, 488 views

In consumer trends, the last mile is a term used to describe the final step of the product journey before it reaches the customer's door. With the growth of e-commerce, this step has become the focus of much attention, since delivery to the final consumer can represent 20% of the total logistics cost.

Keeping an eye on this need, more and more startups create revolutionary alternatives to deliver the product to the customer and some of them are very interesting. See some innovations that tend to reduce cost and delivery time, as well as create new and better consumer experiences:

-Drones: autonomous aircraft that can deliver up to 15 kilos, considerably reducing the time and cost of small purchases;

-Crowdsourcing: In this model, people register on a network and can choose specific deliverables to do. Flexibility can be the main advantage for companies as they can use existing features such as application or taxi drivers to complete deliveries;

- Autonomous vehicles: vans full of drawers with a password, like those of correspondence, stop in front of the client's house, who only needs to enter the password to unlock the delivery;

-Bicycle: deliveries by bicycle are already common for documents, flowers and food, but the trend is this trend to move to other types of products, mainly because it has an ecological appeal;

-Droids: robots that travel the sidewalks for small deliveries and closer to the final consumer; As we said, these are just some of the innovations. Online shopping is estimated to reach 8.8% of worldwide sales, and in this percentage, the technologies cited will help a lot. But the reality is that the world is still offline. The vast majority of people prefer to leave their homes, go to a store and buy what they need.

In a recent poll by Reuters / Ipsos Poll "Why does not the US shopper do his grocery shopping online?", Three-quarters of online shoppers surveyed said they rarely or never buy groceries that way. Another 75% said they simply prefer to go and do their shopping in person. In summary, in more than 90% of sales, who makes the last mile is the consumer and, by the numbers, it seems that this will not change. One of the great challenges is to provide solutions to improve this scenario.

The customer, when questioned when leaving the stores, says that only noticed 5 releases. In this case, we may even have inspired him to buy the newly released product, but we are not able to show him where to buy.

It is already possible to improve the experience of those who buy in physical stores. An alternative is to show the availability information of the products to the consumer. Adding to the marketing campaign a product locator can direct customers to the right stores, which already have the product in stock. This increases sales, reducing inventory disruption and improving the consumer experience.

Another important practice is to give visibility, in real time, of the distribution of the launches to the Marketing area. With this information you can choose the location and the most appropriate time to do a geolocalized campaign. By using availability data to decide where and when to launch a campaign, the retailer avoids reaching consumers in regions where their product is not yet available and improves the efficiency of the money invested in communication.

The new means to deliver, the ability to locate products in physical stores and the use of technology to generate more visibility of information in real time are just a few innovations. There is still plenty of room for news in the last mile of the consumer store. Keep an eye!

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