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Strategies to Mitigate Consumer Pain Points through Out-of-Home Delivery

January 18, 2024

The evolution of retail through online shopping has undeniably granted consumers unprecedented convenience. However, the delivery process has ushered in its unique challenges, prompting concerns regarding parcel security, convenience, and the importance of sustainability. Let’s discover how the integration of Out-of-Home (OOH) can help solve these issues.

Understanding Consumer Apprehensions

54% of Consumers Fear Parcel Theft

One of the main consumer pain points is the growing fear of parcel theft. This is experienced by a staggering 54% of consumers, according to HUBBED’s 2023 consumer report, The Rise of Delivery Choices. This has driven 22% to demand a signature on delivery, as 9% have resorted to having parcels delivered to their workplace. Parcel theft and missed deliveries result in an unfavourable customer experience due to the extra steps needed from the consumer. To retain and attract more customers, retailers must start adapting by providing Out-of-Home (OOH) delivery options—as 69% of shoppers deem it to be convenient according to our data. Addressing this concern head-on, retailers must prioritise secure delivery options— like collection points that enable consumers to select a location close to them, nominate a pickup time and ensure their parcel is safe until they reach them.

63% of Consumers Ready to Shop More Online with Secure Delivery Options

As online shopping continues to reshape consumer behaviour, the demand for secure and convenient parcel delivery options intensifies. A resounding 63% of consumers express a willingness to shop online more if assured secure delivery options are provided. Retailers must prioritise secure delivery options, whether through signature-on-delivery protocols or usage of collection points.

Collection Points Ascend as the Preferred Delivery Choice

There is a reason why collection points are becoming a preferred delivery choice among consumers. While it aligns with consumer preferences, incorporating Out-of-Home (OOH) collection points also presents a wealth of advantages for retailers too.

Retailers stand to benefit by strategically incorporating collection points into their delivery and fulfillment strategies. Beyond meeting the demands of consumers, the usage of collection points serves as a means for enhancing the delivery experience. Through diverse delivery strategies, retailers create opportunities to provide more convenient and accessible ways for consumers to better connect with their brand. Moreover, the financial aspect cannot be overlooked.

84% of consumers express a likelihood to embrace collection points when the cost is cheaper than delivery or free.

This highlights an opportunity for retailers to enhance their value proposition through improving the shopping experience. Retailers can do this by providing multiple and convenient delivery alternatives, and cost savings for both parties through competitive pricing.

For consumers, the convenience of collection points extends beyond the speed and reliability of delivery. The value lies in the flexibility and accessibility offered by these designated pickup locations.

This is further supported by our research with 54% of consumers prefer to collect parcels after weekday work. Whether it’s the option to retrieve parcels at a time convenient for them or a nearby collection point, consumers find this alternative to suit their daily lifestyles and stress-free compared to traditional delivery methods. Additionally, the cost adds another layer of appeal, as it provides savings for consumers. It also serves as an incentive for them to choose collection points over other delivery options. Retailers must align with consumer preferences by leveraging reliable and accessible options. This preference includes Out-of-Home (OOH) locations, to ensure that the last mile leaves a lasting positive impression.

As consumer behaviour continues to shift, the key takeaway for retailers is clear: to capitalise on this shift and offer a convenient alternative delivery through the integration of collection points. These will help foster enhanced customer satisfaction, nurture brand loyalty, and ultimately drive sales.

Embracing Sustainability in Delivery: An Imperative for the Modern Consumer

In the modern retail landscape, one cannot overstate the importance of sustainable delivery options. With the need for more sustainable practices, the need to rework traditional delivery processes has become mandatory to aligning to customer expectations.

57% of shoppers recognise Out-of-Home (OOH) as a more sustainable choice compared to home delivery– a significant 15% increase from 2022.

This substantial shift in consumer awareness underscores a growing expectation for eco-friendly practices in the delivery process.

Moreover, 38% of consumers express a specific preference to see sustainable delivery options prominently featured at the checkout. This indicates that sustainability is not just a peripheral concern but a decisive factor influencing consumer choices right at the point of purchase. This not only aligns with the values of eco-conscious shoppers but also positions the retailer as a responsible corporate entity.

Retailers can attract repeat customers by offering secure delivery options, diverse choices, and environmentally friendly practices. As the e-commerce landscape continues to evolve, those who proactively prioritise consumer satisfaction will emerge as leaders in the retail sphere. Read more on our latest report here.