LOGISTICS
ENTICING BEHAVIOURAL CHANGE TO REINFORCE CONSUMERS’ SUSTAINABLE CHOICES
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onsumers’ commitment to sustainability has been undermined by financial concerns. According to Descartes’ third annual 2024 Home Delivery Sustainability Report,
nearly 90 percent of consumers’ sustainable home delivery choices are impacted by economic pressure. Yet sustainable business models are increasingly key to successful long-term performance.
Retailers and delivery companies face regulatory Net Zero targets, as well as expectations from stakeholders to reduce carbon emissions. Consumers, especially the younger generation, increasingly make purchasing decisions based on a company’s environmental reputation. So why are customers being asked to choose between low cost and sustainable options? There is no longer any need for cost versus sustainable compromise. An efficient, effective delivery operation minimises miles, saving fuel and cutting emissions whilst also reducing costs and delivering a better customer experience. What is good for the business is also great for the environment, insists Andrew Tavener, head of marketing, Descartes.
CUSTOMER COMPROMISE Sustainability matters to consumers, with 99 percent either doing or open to doing more to reduce their environmental footprint. However, the vast majority still perceive the cost of sustainability is too high and believe they cannot afford to take the sustainable route due to on-going economic pressures. In the 2024 Home Delivery Sustainability survey, while 57 percent of respondents were quite/very interested in sustainable home delivery services, 89 percent felt their willingness to pay more for sustainable delivery was impacted by the current economic environment. Moreover, 34 percent indicated economic pressures had significantly/drastically impacted this motivation.
Retailers and delivery companies cannot afford to let customers’ economic woes derail environmental strategies. Aside from Net Zero targets and stakeholder expectations, organisations are also experiencing growing consumer scrutiny. Individuals may not be willing to pay for a green delivery, but that doesn’t stop them calling out companies with
a bad environmental reputation on social media, especially the younger generation. The speed with which retailers can entice consumers towards ‘green’ delivery slots will play a key role in achieving environmental goals. That can only be achieved with a different approach and a shift away from cost versus green thinking. Efficient fleet operations leveraging intelligence route optimisation to improve delivery density will reduce the number of miles driven. As a CO2 and fuel savings calculator reveals this not only significantly cuts fuel costs, but also minimises Scope 1 CO2 emissions, allowing companies to offer customers delivery slots that are both green and lower cost.
CHANGING MINDSET
The opportunities to transform customer behaviour are clear; 99 percent of consumers are open to doing more to reduce their environmental impact. Furthermore, retailers can embrace the fact that customers’ delivery expectations have changed in recent years. As the Home Delivery Consumer Sentiment Study 2024 revealed, speed of delivery is no longer the biggest incentive for online purchasers, with customers opting for low-cost delivery over speed. Furthermore, growing numbers of customers also prioritise certainty, opting for a precise delivery window rather than next day options.
Retailers now have a compelling chance to boost environmental performance, accelerating the drive to Net Zero whilst customers to support their environmental goals. An intelligence-driven route optimisation model enables the entire last mile process to be transformed; the challenge is now to present delivery options to customers in a way that meets their needs whilst also enticing behavioural change. Offering low-cost delivery slots many weeks expensive, carbon intensive management of area to reduce miles travelled or offering free ‘green’ deliveries when a delivery is already booked to a neighbouring address will improve delivery density, reducing costs and emissions. Money off vouchers for customers that consistently opt for green deliveries will
38 DECEMBER/JANUARY 2024/25 | FACTORY&HANDLINGSOLUTIONS
attitudes to online purchasing.
TAILORED APPROACH
A core component of this change will require an understanding of diverse attitudes across delivery personas. While over a third (38 percent) of consumers insist they regularly/always make purchase decisions based on the environmental impact of the product or company, there are very clear differences between age groups. More than four fifths (83 percent) of consumers aged 18-24 and 71 percent of 25-34-year-olds consider the environment when making a purchase, in contrast to only 43 percent
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