Young online shoppers in Europe and the US aged between 18 and 26 are willing to pay more for a tailored service and a wide range of delivery options despite a smaller income, with retailers and marketers having to adapt to the high expectations of the ‘Millennials’ generation, according to the latest survey by MetaPack.
The survey “Delivering Consumer Choice: 2015 State of eCommerce Delivery” was conducted among 3,000 young adults in the UK, US, Spain, France, Germany and the Netherlands. It revealed that 78% of the respondents had bought goods from one retailer over another due to more delivery options. The majority (69%) of the Millennials surveyed said they would be happy to pay more for a better or more convenient delivery option.
“This group, termed Millennials, are already making their mark as a disruptive generation expecting fast, intuitive and seamless shopping experiences and, crucially, a wide range of choices, particularly with regard to delivery,” MetaPack stressed.
In terms of preferred delivery options, 85% of Millennials prefer home delivery while 33% opted to collect purchases in store and 29% from a local shop or a pick-up point. What they want to avoid is to be kept waiting with 44% of the respondents saying they didn’t complete an online order when they knew delivery would take too long.
Same-day deliveries are popular with almost a quarter (23%) of the Millennial shoppers, more than double those aged 39-52. Despite lower incomes, 60% are prepared to pay for this privilege if they can get what they want delivered quickly.
“This age group is less tolerant than previous generations,” Kees de Vos, Chief Product Officer at MetaPack, said. “If retailers want to secure the loyalty of Millennials, they need to start now and ensure a first-class quality of service and a wide range of options are available online. Being digital natives they are accustomed to speed and responsiveness and this translates into their shopping and browsing habits as much as any other part of their lives.”
In addition, the research found that Millennials express their discontent publicly if they experience poor service, with 50% of them having broadcast a negative delivery experience on social media, a higher percentage than in any other age group. They are also more likely never to shop with that retailer again.
Millennials also use social media to search for peer reviews about which retailers to avoid and 61% of the respondents said a bad review about delivery on social media would influence their decision whether or not to shop with a retailer. “Retailers should also be aware that Millennials are using social media to elicit a response from a retailer – almost a third (28%) have received a goods refund following a social media complaint, while 22% have been given a voucher or discount,” MetaPack added.
“What it comes down to is choice. They are more accommodating if they can see the value in waiting, but if they want something urgently, they’re prepared to pay for it, even if they are earning less than other age groups. What they also demand is to be kept informed – 80% of our younger respondents said that it’s important that a retailer communicates where their parcel is, and they will check-in online to track it. This is what the future of eCommerce and delivery looks like, so retailers and marketers need to take note,” de Vos concluded.
