Free delivery: Does it benefit businesses?
Many businesses would squirm and shiver slightly at the notion of offering a free service. However, such companies aren’t so respected and beloved by the buying public. After all, delivery companies are far from bulletproof, and even they need to get that perfect balance of profit and customer satisfaction. In this sense, they’re just like any other business too.
But how can free delivery benefit a business? Can profits still be made, or is it exposing a series of crippling weaknesses in firms the world over who adopt these strategies? Well, all the naysaying isn’t necessary.
Consequently, here’s why free delivery can benefit businesses.
Customer Satisfaction
No respectful business would ever underestimate the power of customer satisfaction. It’s literally what keeps the cashflow ticking and retains the loyalty of shoppers. Additionally, it also spreads positive word of mouth, which is a great way of attracting new customers to the business. When people are happy, that happiness spreads and profits inevitably expand.
What better way is there to satisfy customers than offering something for free? Sometimes it pays to be kind and offer something for free, and the businesses that are generous and considerate of their customers often find that those same shoppers boomerang back to them in time. The greedy corporate world is a turnoff for the consumer; they’re not stupid and know then they’re being ripped off and exploited. They want kindness and respect, and free delivery is a great way for any business to uphold that key value.
Incentive to Purchase
It’s a common experience; many customers start their online shopping sprees, get to the checkout page, and swiftly abandon their digital carts as soon as they spot the delivery tariffs. It’s the ultimate turn off, the crippling catch 22, and ultimately it’s enough for customers to click away with a sour, bitter taste in their mouths. In the end, sometimes it’s the case that a hefty delivery charge is a brick wall erected between the customer and the business.
When that’s gone, online purchases go up for businesses. Not only do customers come back, but they spend more and more. The floodgates are open, and the possibilities are endless from their perspective. Free delivery gives shoppers free reign to spend as much as they want with a care-free attitude, which has obvious benefits for the companies. It’s the perfect state of mind that customers need to be in for businesses to experience an upsurge in profits.
A Choice
While free delivery options are provided by many businesses, it’s often the case that the delivery time takes a little longer. Many might then find that some businesses also offer delivery that requires payment also. Therefore, the customer is presented with a very interesting choice to make from one business; pay and get the goods sooner, or don’t pay and get them later.
That choice is respectful of the consumer and benefits the business either way. Even if they business can’t sustain a speedy free delivery model right away, the fact that they’re making an effort means that they’re listening to consumers and trying to appease within their means. For example, while some do charge for great quality delivery, companies like TNT offer discounted services, depending on if customers prepay or not. It’s these little gestures of partially free delivery that can win customers around.
