Tesco’s delivery malfunction could see thousands of consumers shift supermarket

- Leadership - Jun 21, 2017

Several thousand Tesco customers had deliveries cancelled after an IT glitch led to nearly 10 percent of orders being disrupted.

The UK’s largest supermarket group is offering those affected a £10 compensation voucher, but recent research suggests that many customers could change retailers after experiencing delivery service issues.

According to a JDA/Centiro Customer Pulse 2017 Report conducted by YouGov:

  • More than three quarters (76 percent) of UK online shoppers would likely switch to an alternative retailer after having a poor home delivery experience
  • This comes at a time when problems with online orders are on the increase: more than half (56 percent) of the UK adults surveyed had experienced a problem with an online order in the last 12 months, an increase on the 53 percent reported in 2016 and 47 percent in 2015.

Jason Shorrock, vice president, retail strategy EMEA at logistics company JDA, commented: “The problem suffered by Tesco was not an isolated one. Research has shown that issues with online orders are on the increase, with more than half of UK shoppers experiencing a problem with an online order in the last 12 months.

“Fulfilment and ‘last-mile’ issues continue to hinder their efforts at a time when consumers are becoming increasingly intolerant of poor service. Today’s shoppers expect retailers to offer a high-level of service across all channels – those retailers that fail to keep up put themselves in serious danger of being left behind.”

Niklas Hedin, CEO of delivery management firm Centiro, added: “Customers are clearly upset Tesco has been unable to fulfil some deliveries today. Retailers need to be more confident in their last-mile capabilities, otherwise these issues will continue to reflect poorly on the overall brand experience customers receive. Today there are greater pressures on retailers’ delivery capabilities than ever before and if customers’ expectations aren’t met, they will simply shop elsewhere in the future.”

Many customers have already taken to social media to vent their views, a retailer’s nightmare in a time when increasing amounts of customer service interaction takes place over the likes of Twitter and Facebook.

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