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THE ICURVE

On-demand and in control: the irrational, emotional, uneconomic consumer

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elbourne-based last-mile services technology company Localz has delved into the mindset of the online consumer and the current status of the Australian logistics industry in response. Their articles present a fascinating insight into an industry on the boil.

THE CALM BEFORE THE AUSTRALIAN ICONOMY STORM Today’s consumers want full control of their buying experience, from location to delivery. These consumers are part of the on-demand and in control generation – and they are irrational, emotional and uneconomic to boot. In the US, Europe and the UK, consumers will no longer accept being told when something will be delivered, or when a service is going to be turned on. The new marketplace is consumer driven, to the exclusion of all other considerations. If once, the customer was king, today they are an absolute monarch, and businesses must move heaven and earth to support their 42 | MHD JANUARY / FEBRUARY 2019

demands. Customers will buy from brands that meet their expectations, and they won’t return to brands that don’t deliver the ultimate in service. Although Aussie consumers are somewhat more complacent, they cannot be ignored. Research has revealed that 65 per cent of Australians have been disappointed in a company because of the delivery service they use, and 11 per cent say that they are disappointed regularly. However, while consumers are highly motivated to get the best service, recent research reveals that most Australian logistics companies do not expect to provide same day delivery until 2023. For the Australian consumer, this is simply too late. Given the technology is readily available to enhance the consumer experience, why are Aussie businesses not using it? Smartphones have reached market saturation, while location services are almost universal. A company like Uber gets it right – when you order an Uber, the customer

can see everything – including how far away the car is, how much the ride will cost, what the car’s license plate is and the rating of the driver. So why are local businesses so slow to adopt? The surge in the Individual Economy – or IConomy – will continue to expose fundamental challenges in the way Australian businesses operate and serve their customers. They are under pressure to let go of old processes and operations to create systems that deliver to discerning consumers. The Australian retail sector’s Uber moment is coming – so what can businesses do to prepare themselves?

TAKEAWAY TRAUMA THE takeaway trauma experience goes like this: A customer orders a pizza. Their initial feeling is one of elation because they have chosen their meal – and 90 per cent of the time it’s exactly what they have chosen in the past. The customer uses their smartphone, choosing their pizza with

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MHD Supply Chain Solutions January-February 2019  

For over 40 years, MHD Supply Chain Solutions magazine has been bringing its readers leading-edge supply chain management information from t...

MHD Supply Chain Solutions January-February 2019  

For over 40 years, MHD Supply Chain Solutions magazine has been bringing its readers leading-edge supply chain management information from t...