LONDON, Aug. 23, 2017 /PRNewswire/ --
Summary
One of the main reasons for a retailer offering a delivery saver scheme is to encourage shopper loyalty and boost the number of orders placed, particularly given the high operating costs involving in fulfilling online food & grocery orders. Online shoppers who have not subscribed to a food & grocery delivery saver scheme require discounts or rewards in order to be encouraged to subscribe. 43.1% of non-subscribers stated that saving money on groceries through discount codes or vouchers would encourage them to sign up for a delivery saver scheme.
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Furthermore, 42.7% of non-subscribers said they wanted rewards such as extra loyalty points or free gifts in order to entice them to sign up. In contrast, of those who had already subscribed to a food delivery saver scheme only 17.9% and 8.6% subscribed because of discount codes or for reward points respectively, over half of these consumers stating they subscribed to save money on delivery costs due to frequently placing online orders.
In an effort to save money, most consumers are selecting limited midweek delivery saver schemes over more flexible anytime options. For example, 77.2% of Asda delivery pass subscribers selected the midweek saver scheme costing £24 for 12 months, compared to 22.8% choosing anytime delivery at £60 for 12 months. In order to encourage consumers to trade up, retailers should further differentiate between the benefits of midweek and anytime services. For example, only anytime subscribers should use be able to use advantages such as booking recurring slots or securing booking slots over the week before Christmas.
Tesco having the highest penetration of all delivery saver schemes, with 32.6% of all food & grocery delivery saver scheme subscribers using the Tesco delivery service, only 30.5% of Tesco delivery saver subscribers stated that they shopped more since signing up, compared to an average of 43.2% for overall food & grocery delivery service subscribers.
Retailers may want to consider a lower order threshold for anytime delivery saver customers as an additional benefit, which will also encourage these shoppers to purchase more frequently online.
The report "Delivery Saver Schemes in the UK - 2017" offers comprehensive insight and analysis of delivery saver schemes in the UK.
In depth, this report provides the following analysis -
- Who subscribes by demographic.
- Who subscribes by type of scheme.
- Who subscribes by retailer.
- How people shop.
- Why people shop.
- Delivery saver scheme specifications.
Companies mentioned in this report: Amazon, Argos, Asda, ASOS, boohoo.com, Boots, Debenhams, H&M, Marks & Spencer,Missguided, Morrisons, John Lewis, Next, New Look, Ocado, Sainsbury's, Tesco, Topshop, Sports Direct, Very.co.uk
Scope
Food & grocery delivery saver schemes -
- 43.1% of non-subscribers stated that saving money on groceries through discount codes or vouchers would encourage them to sign up for a delivery saver scheme. Grocers should offer exclusive discounts on food & grocery products to attract new subscribers. Discounts would be particularly attractive to non-subscribers considering food & grocery prices are expected to continue rising due to the weak pound.
- Though Tesco has the highest penetration with 32.6% of all food & grocery delivery saver scheme subscribers using the Tesco delivery saver scheme, only 30.5% of Tesco subscribers stated that they shop more since signing up. The grocer should widen the perks it offers, for example offering a complimentary bottle of wine when subscribers spend over a certain limit, to boost spend and order frequency.
Non- food delivery saver schemes -
- Amazon Prime accounts of 82.0% of all non-food delivery saver scheme subscriptions. The e-commerce giant offers free next day delivery on a vast amount of items and same day delivery for selected items in certain postcodes. Aside from the fulfilment benefits, subscribers also have access to extra add-on services, such as Prime Instant Video and Prime Music. Retailers who offer a delivery scheme should also offer extra services to their consumers, for example, early access to seasonal Sales, to further encourage uptake and spending.
- 34.1% of online shoppers aged 25-34 are subscribed to a non-food delivery saver scheme compared to only 9.0% of online shoppers aged 55-64.This is widely driven by fashion retailers, such as ASOS, in which 70.6% of subscribers are within the 15-34 age group.
Reasons to buy
- Understand the overall penetration and profile of subscribers for both food & grocery and non-food delivery saver schemes, by demographic.
- Understand the profile of subscribers for both food & grocery and non-food delivery saver schemes per retailer by demographic, to comprehend which type of consumers competing retailers strongly resonate with.
- Review drivers of subscriptions for both food & grocery and non-food delivery saver schemes for subscribers and non-subscribers, in order to better target consumers and boost shopper conversion levels.
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SOURCE ReportBuyer
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