With Millennials firmly cemented in the workforce and Gen Z set to make up 30% of the global job market by 2030, retailers have no choice but to adapt to overcome the next wave of consumer challenges on the horizon.
These cohorts have significant spending power. And ignoring the preferences of younger and digitally-native consumers could prove a costly mistake. However, to date, retailers appear to be stuck in their ways and ultimately falling short of younger consumers’ expectations for home delivery.
Andrew Tavener, Head of Marketing at Descartes discusses why the UK’s younger generations are unsatisfied with delivery services and offers his insight on how retailers can raise their standards…
Evolving with New Consumer Preferences
For years, aligning with customer shopping behaviours has been a key operational priority for businesses aiming to maximise sales and profitability. Still, with the next generation of online shoppers, retailers must prepare themselves for new challenges if they want to retain customers and grow sales.
Today’s 18 to 34-year-olds – collectively known as ‘Zennials’ – won’t be easily put in a box. But there are certain characteristics that set this demographic apart. Being born around the turn of the century, Zennials value a combination of digital and analogue experiences. Their expectations have been shaped by the global recession, the COVID-19 pandemic and environmental anxiety. This means they value a far more intuitive and personalised digital experience. On top of this, they also want brands to demonstrate transparency and environmental responsibility, coupled with convenience throughout the buying experience.
Additionally, a recent home delivery survey commissioned by Descartes highlights that while ecommerce growth is slowing, Zennials are buying more than ever online. Among 18–34-year-olds in the UK, 43% reported purchasing more online than the previous year, with 44% making online purchases at least every two weeks. With online shopping now second nature for younger consumers, expectations for home delivery are at an all-time high. Yet, a concerning statistic highlighted in this survey revealed that 79% of under 35s experienced delivery issues. This is unacceptable for any retailer looking to convert a customer into a repeat buyer, especially when you consider that under 35s offer lifetime customer value to retailers.
However, a disappointing delivery experience doesn’t just affect a business’s margins in the short term. It’s proven that Zennials are also more likely to post about their bad experiences online, having a knock-on effect on future sales, which can be particularly damaging for a retailer, especially as the Gen Z portion of Zennials rank online reviews as the most critical decision-making factor when shopping.
The Main Delivery Issues for Younger Consumers
Therefore, to address dissatisfaction among younger consumers, it’s crucial to understand the most common delivery challenges they face. Here are a few of the pain points highlighted below:
- Late deliveries: 26% of under 35-year-olds said their order arrived much later than expected (vs. 22% overall).
- Unacceptable delivery time slots: In addition to late deliveries, 23% of under 35-year-olds found the delivery time offered to be longer than they preferred.
- Unexpected timing: 25% of under 35-year-olds were frustrated to receive deliveries at a different time than expected.
- Damaged packages: 22% of under 35-year-olds reported receiving damaged items (vs. 16% overall).
- Customer service challenges: 17% of under 35-year-olds reported having difficulties contacting customer support over delivery problems.
In short, delivery costs, convenience and transparency are all areas for improvement. Retailers should also note that sustainability is a deciding factor for many in this age bracket. So, what’s the answer?
Delivery Tracking and Notifications
Because Gen Zs and millennials have grown up online and expect a transparent, mobile-first experience, the first step for retailers is to ensure that they provide progress updates throughout the delivery process, especially if the plan changes.
SMS or text message is the best channel for time-sensitive delivery notifications(“Your driver is 15 minutes away!”), while email can be used to provide additional information or product care instructions. Messages can link to an online portal with more details about the delivery. The portal should include real-time tracking or show the customer’s place in the delivery queue (“Your driver is four stops away!”). Ease of use is crucial too, so don’t expect customers to download an app: Browser-based tracking works just fine.
Reduce Delivery Costs
In 2025, when everyone is seemingly strapped for cash, cost is also a deciding factor for younger shoppers anxious about their economic outlook. It isn’t always feasible to offer free delivery. But there are ways to reduce operational costs and pass these savings on to consumers. Consider investing in warehouse management and route optimisation solutions to reduce staff overtime, minimise miles driven and cut planning time. These tactics have the added bonus of improving customer experience. You’ll be better able to offer feasible delivery slots and make deliveries on time and in full too.
Showcase Sustainability
As highlighted above, many under 35s look for brands that share their views and concerns about the environment. On the checkout page, consider highlighting eco-friendly delivery options – for example, green timeslots when you’re already making deliveries in the customer’s area. A dynamic appointment scheduling tool will allow you to offer delivery windows that are feasible, cost-effective and sustainable. Where possible, it’s a good idea to provide click-and-collect options. This is because the majority of consumers tend to perceive in-store collections as more environmentally friendly.
Offer Convenience and Personalisation
Since convenience is a key priority for younger shoppers too, retailers should make it easy to order and let customers choose delivery slots that suit them. Even if ultra-fast or ultra-cheap delivery isn’t possible, offering choice creates value. Tailor options and communications to suit different delivery personas. On top of this, as the delivery approaches, provide notifications and tracking so there’s no need for customers to wait around all day. It’s also crucial for businesses to ensure they are keeping promises and showing up on time. There are innumerable things that can go wrong during the last mile, but intelligent route planning and driver apps give delivery teams the best chance of honouring delivery commitments.
Conclusion
While improvements in home delivery performance have been made over the past few years, they’re not all currently reflecting the quality of experience that consumers are demanding. And with the buying power of under 35s growing year over year, and their preferences shaping many people’s expectations, it is key for organisations to ensure they are appropriately supporting their needs.
Furthermore, since home delivery is central to how these consumers shop, brands must get it right. So, whether the delivery is handled by your own fleet or a third-party provider, the last-mile delivery experience must live up to the brand promise, be that at home or via ‘Click-and-collect’.
