Shutl delivers numerous benefits to multi-channel retailers
Ahead of presenting at the 4th Annual Retail Bulletin Multi-channel Summit 2013 in London on February 6th, Guy Westlake, head of marketing at Shutl, highlighted some of the advantages to multi-channel retailers of its unique delivery service.
He suggests that offering Shutl as an option provides sufficient differentiation that it can help retailers with customer acquisition: “It’s enough to win customers over from Amazon and eBay. It’s not competing with them on price or product range but on a service proposition – and offering 90-minute delivery is compelling.”
In fact it is such a draw that he claims many customers who have used Shutl then visit the company’s website to look at which other retailers offer the service. “It’s not huge volumes but it is a high percentage of our customers. We then channel them off to the retailers,” says Westlake.
The appeal of Shutl can also increase the average basket sizes for retailers – by as much as 150% - as it can help attract customers who might not necessarily shop at a certain merchant, but they are tempted because they have the comfort of utilising the “premium service” of Shutl.
The 90-minute delivery capability also conveys the feeling of the purchase being made on impulse, which Westlake says can then induce shoppers to spend more than they would if it was an order that is not going to be delivered for a number of days.
The average Shutl shopper is also likely to return fewer goods than other customers, which helps reduce one of the key pinch-point for clothing retailers.
“We put it down to the fact that they are putting more thought into their order because they are using a premium delivery service. Maybe they also want to wear the items that evening. Reducing returns is certainly a key part of our value proposition,” explains Westlake.
Another important advantage is Shutl’s ability to improve the conversion rates of retailers. Westlake says one of the major reasons customers abandon their goods at the checkout is down to the delivery options – either they are not convenient or too expensive.
He suggests Shutl should be used as a badge to convey the message that a retailer offers the “highest possible levels of service”. To this end Westlake says all the company’s clients communicate clearly and comprehensively its availability to shoppers as a delivery option.
He cites Maplin as launching the Shutl service in February and initially having a large banner on its home page highlighting this fact. “It is done to raise initial awareness and lots of retailers now also promote Shutl in their stores – particularly for [delivering] large goods,” he explains.
By offering Shutl free, or for less than 10% of the basket value, Westlake says it has been proven that it increases conversion. Because retailers typically charge £8.50 for the Shutl delivery option he says it lends itself to higher value items.
In most cases he says the retailer will discount the quote that Shutl provides them with for a delivery because they recognise that it helps drive increased conversion.
Guy Westlake is one of many high-quality speakers at the Retail Bulletin’s 4th Multichannel Retailing Summit 2013 to be held in London, 6th February. This highly interactive event will look at how to connect everything in the new omni-channel world retailing environment: 360 solutions to maximise sales effectiveness at every customer touchpoint. Make sure of your place by registering now. Click here for further details.
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