Delivery ETAs: Balancing Customer Expectations and Competitiveness
What Customers Care About
With so many food delivery companies entering the industry, it’s become very clear that staying competitive and ahead of the curve is a requirement for success. Capturing a customer’s precious dollars while they are on your website or app is a top priority of course, and we know there are a handful of data markers customers are paying attention to when shopping for food. The top interest areas for consumers are:
- food price
- delivery fee
- delivery duration
- restaurant selection
- reviews (if applicable)
- coupons or deals, if available
For the purpose of this post, we want to focus on delivery duration. This is a variable that resides mostly in the RDS’s (restaurant delivery service) control, and with thorough experience and practice with frequent routes, drivers are able to master their delivery ETAs (estimated time of arrival).
Many times, however, we see an RDS provider quoting significantly higher delivery durations on their websites, in order to set lower expectations for the customer, and thus please the client when they arrive on time, or better yet, earlier than expected. Although this may seem like a strong strategic approach, it’s actually backfiring on many delivery providers by dissuading would-be customers from making a purchase.
We are living in the NOW era, where consumers expect everything quickly and effortlessly. Therefore publishing competitive, yet realistic and attainable delivery durations, is a significant factor is driving more sales and increasing customer engagement.
So what’s the magic formula?
Of course there is none, but we have great insight into what generally works best across delivery providers nationally.
ASAP ETA: this should be set at approximately 90-93% of what you’re currently quoting as a cushioned upper limit duration. In other words, if your estimated delivery duration for a zone is currently set at 45 minutes, and you consider this an over-estimation, then we encourage you to drop estimates by 7-10%. Thus, your new delivery duration would be 40 minutes.
How does this help my overall business?
- Competitive Advantage: Due to a quicker delivery estimate, customers will be more attracted to your service. This will of course contribute to increased order volume and order frequency.
- Happy Driver: An ongoing logistical challenge for RDS owners is keeping their drivers busy enough, so that they don’t lose valuable delivery personnel. Idle drivers is bad for business. Thus increased order volumes that allow drivers to squeeze in more orders during routes will help you retain your company’s talent/personnel.
Finally, a Portal that understands you
Delivery providers who qualify for DeliverClub, and join as DC Partners will soon realize that DeliverClub is the portal they have been dreaming about. Since DeliverClub is running on RDS Logic software technology, current DeliverLogic (Big Tree Solution) clients will benefit from the synchronization of their systems with DeliverClub’s platform. Therefore, the data that is inputted or updated in your RDS logic install will seamlessly integrate and publish on DeliverClub’s platform. So for example when you publish a 30-minute delivery ETA in your system, DeliverClub will display exactly that: we will not have to add padding to the delivery duration due to unknowns or uncontrollables that other portals experience. (psst.. this goes for menu updates as well!) As a results, your restaurants will attract more online customers and funnel more orders and new customers to you, the delivery provider.