As the online retail ecosystem continues to innovate, the adoption of out-of-home delivery options presents both challenges and opportunities. While we understand that there are roadblocks discouraging you from encouraging consumers to embrace alternative delivery methods, many benefits such as convenience, reach, and customer loyalty come into play.
In this blog, we will explore the obstacles you may be currently facing and discuss how HUBBED emerges as an effective solution, mitigating these challenges and paving the way for seamless consumer adoption.
1. Consumer Awareness:
Many consumers may be unaware of the benefits of out-of-home delivery, leading to hesitation in exploring convenient alternatives. This lack of awareness contributes to overlooking time-saving features, enhanced parcel security, and overall convenience. Bridging this informational gap and educating consumers about the diverse benefits becomes crucial to foster greater understanding and encourage a more open-minded approach to innovative and efficient delivery options.
Though this may seem daunting at first glance, we have some good news for you from our recent study:
A whopping 64% of consumers from our survey has used an out-of-home delivery service.
What does this mean for you? Considering that a substantial number of consumers might already be familiar with out-of-home delivery, a more robust promotional campaign may be essential to encourage widespread adoption of the service.
With that said, we take a proactive approach to address challenges by closely collaborating with retailers like you. Our role involves initiating and leading comprehensive awareness campaigns to educate consumers, including yourself, about the unmatched convenience and peace of mind provided by out-of-home delivery. Our thought process surrounding our solutions is focused on supporting you as you navigate the dynamic landscape of retail.
2. Integration Challenges:
We understand integrating out-of-home delivery into existing processes poses challenges, including adjusting inventory systems and meeting technical requirements. Overcoming these requires a strategic approach, involving assessments, effective team communication, and possibly incorporating new technologies.
With these concerns in mind, we are dedicated to making your integration process as smooth and efficient as possible. Our customised solution is designed to ensure that our technology aligns with your business’s specific operational and functional needs.
HUBBED’s strong API and support simplify technology integration with minimal process adjustments. Collaborating with our technology team ensures responsive and adaptive service, optimizing parcel management and overall supply chain efficiency for your business.
3. Security Concerns:
We understand that concerns about the security of customer packages in out-of-home delivery networks may be on your mind. Seeking assurance about the protection and reliability of your delivered items, especially when destined for unfamiliar or external locations, is completely natural.
However, it is important to note that not everyone has a safe place for parcels to be left while they are away.
Only around half (48%) of shoppers have a safe place outside the home for their parcels to be left.
Additionally, 70% of consumers now worry about stolen parcels when they are not home to receive them. That’s around a 7% jump over the 2022 figure and 9% over 2021.
If secure delivery options such as OOH (Out-of-Home) are made available, you can improve delivery confidence with this substantial number of consumers.
To alleviate this fear while improving on parcel protection, we prioritize safeguarding deliveries by strategically located secure parcel points. Our network of HUBBED Parcelpoints are selected based on strict compliance measures to ensure your consumers’ parcel arrives safely near them. Furthermore, our trained and professional store staff from these locations ensure the delivery experience is a positive one.
4. Customer Loyalty:
You might be contemplating the impact of introducing alternative delivery options on customer loyalty to your brand. While there might be concerns about customers adapting to new delivery methods, it’s important to recognize that implementing out-of-home delivery options can enhance customer loyalty.
By offering additional convenience and flexibility, Out-of-home has the potential to strengthen the bond between your brand and consumers, ultimately contributing positively to their overall satisfaction and loyalty.
HUBBED actively engages retailers in the Parcelpoints network, strengthening brand-customer cohesion. We strategically position out-of-home delivery as an added convenience, recognizing the importance of diverse options to boost customer satisfaction.
Sustainable practices are also one of the top considerations of consumers in choosing products and services. Our report supports this as we see consumers’ awareness of OOH’s (Out of Home) positive environmental impact expanding.
57% of shoppers now know that OOH is a more sustainable choice than home delivery – a massive 15% leap over last year.
Through addressing any initial hesitations through thoughtful communication, your brand can pave the way for an improved and more loyal customer base.
5. Operational Complexity:
The implementation of out-of-home delivery may be perceived as operationally complex. This is because it requires investment in infrastructure, such as partnering with locker providers or local stores, and collaboration with third parties to establish partnerships and agreements for delivery.
Through the HUBBED technology, retailers can simplify the process of implementing out-of-home delivery by leveraging API solutions that seamlessly integrate into their existing supply chain operations. HUBBED designed its proprietary technology to integrate easily with carriers, aggregators, marketplaces, and other e-commerce platforms, regardless of the customer.
Our seamless integration enables retailers to offer out-of-home delivery options without extensive operational changes, enhancing convenience and autonomy for customers. This addresses the growing demand for efficient last-mile delivery technology, offering recognized benefits like faster delivery times and increased convenience across diverse markets.
6. Limited Reach:
You may find yourself grappling with concerns regarding the limited reach of out-of-home delivery networks. These concerns often revolve around the potential implications for your brand’s ability to access a broader customer base or serve regions where traditional delivery methods are more prevalent.
Out-of-home delivery is the farthest thing from having limited reach.
Utilize HUBBED Parcelpoints to reach areas traditional deliveries can’t. With 2500+ nationwide points operating 24/7, you can conveniently deliver to your customers’ preferred locations, adapting to their routines.
By providing out-of-home delivery options, you not only expand your customer base but also enhance the pickup experience for added convenience.
Operating in the online retail space requires a thoughtful balance between addressing challenges and seizing opportunities. The adoption of out-of-home delivery, though accompanied by roadblocks, opens doors to enhanced convenience, broader reach, and strengthened customer loyalty. While acknowledging the hurdles hindering the promotion of alternative delivery methods, it’s essential to recognize the transformative potential within these challenges.
HUBBED enables enterprise retailers and marketplaces to optimize efficiencies in the last mile with an out-of-home network consisting of over 2500 parcel points, open conveniently during weekdays, weekends, and extended hours. Contact Us now to learn more about our services.
About the Author:
Jennifer Hoyle is the Head of Marketing at HUBBED, where she brings extensive expertise in B2B marketing and brand communication. With a wealth of experience gained from working in a range of different industries and markets, Jennifer plays a pivotal role in shaping the strategic marketing initiatives for HUBBED to help grow the business.