Today retailers are increasingly appreciating that the buying behaviour of their customers varies from consumer to consumer, and is much more complex than it has ever been before.
Even though many ecommerce merchants use data-backed buying personas that provide insight into the purchasing decisions of their customers, many are only truly starting to get to grips with the next part associated with buying personas – and that is appreciating that consumers have delivery personas too.
A 2023 study of over 8,000 consumers across 10 geographies, including the UK, central Europe and North America reviewed the state of ecommerce and home delivery performance. It investigated how demographics impact online buying habits and delivery preferences, as Johannes Panzer, Head of Industry Solutions, Ecommerce at Descartes discusses.
Providing different age groups what they need
When reviewing the online shopping habits and home delivery expectations of consumers, the survey revealed that the reasons people choose to buy online—and why some consumers are planning to receive more ecommerce deliveries than last year—are similar across all demographics:
- Shoppers have become used to it.
- The order process has become easier.
- They don’t have to go out of their way to pick up the items they need.
Millennials Vs Gen Z vs Baby Boomers
However, although all demographics are driven by the same online shopping factors, they all have different delivery expectations. Older buyers do not have as much experience ordering goods and services online; in comparison with younger shoppers, for whom online shopping is second nature. Millennials and Gen Z consumers (18-34 years) tend to shop online more, spend more money online, and are more likely to increase ecommerce spend (50% vs. 33% of 55+ consumers).
Therefore, Millennials and Gen Z expect more from retailers’ ability to execute on deliveries— which, today, is a consideration for merchants that are attempting to meet the expectations of younger target groups.
When confronted with a delivery challenge, younger consumers are also more likely to take action against the retailer: 80% of 18-34 year olds are likely to take some form of action against a delivery problem – e.g. complaining on TikTok, or telling family and friends to avoid a particular brand. This statistic changes to 69% for 35-54 year-olds and to 53% for people over 55.
Further, when planning delivery propositions to meet the expectations of a younger demographic, ecommerce vendors must recognise that these shoppers are most concerned about speed of delivery, instead of low-cost deliveries. In fact, 39% of respondents in the 18–34 age group prioritise speed, compared to just 19% of early Gen X and Baby Boomers.
In contrast, Baby Boomers and early Gen X consumers value price over speed in their delivery experience. These shoppers are characterised by being ‘the’ cost-conscious delivery persona. For instance, half of the early Gen X and Boomers surveyed prioritised lowest cost compared to only 30% of 18–34 year-olds. What also stands out is that 47% of the 55+ age group cited less disposable income—a stark increase from 19% in 2022—as a reason for putting off future online purchases.
Conclusion
Customising delivery choices according to the range of delivery personas is an important building block to developing long-lasting customer relationships. Unfortunately, many retailers are falling short. Although the 2023 study reported a 6% improvement in delivery performance over 2022, 67% of consumers surveyed experienced a delivery failure in the three-month evaluation period.
Ecommerce merchants must take action to meet the home delivery requirements of their customers more effectively. This means considering and evaluating the values, priorities, and preferences of their various demographics, with a view towards defining and serving multiple delivery personas.
Ecommerce brands that appreciate the significance of these kinds of demographics, or personas, will create opportunities to provide a customised home delivery experience that will enable them to differentiate themselves from the competition, improve brand enthusiasm and loyalty, and ultimately drive their bottom line.
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