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Industry Brief

Catalyzing Growth: How Last-Mile Delivery Increases Revenue, Loyalty, and the Bottom-Line

Q2, 2024

Last-mile delivery has emerged as a pivotal point in the shopping experience, offering brands a unique opportunity to make a lasting impression on customers. It's not just a logistical necessity but a strategic component that influences customer loyalty and brand reputation. Brands that excel in providing personalized, communicative, and flexible delivery options can significantly enhance customer satisfaction and stand out in a competitive market.

Efficiently addressing last-mile delivery challenges is essential for brands aiming to improve both efficiency and customer perception. Implementing advanced strategies like route optimization and predictive delivery systems can drastically reduce operational costs and errors. These efforts not only streamline the delivery process but also bolster a brand’s image as reliable and customer-centric.

This report offers insights into last-mile delivery's impact on customer satisfaction, growth, and profitability, and serves as an essential tool for those looking to navigate the challenges of modern delivery logistics to positively impact key business metrics.

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As consumers continue to reshape their expectations,

enterprises must contend with a uniquely challenging landscape.

The consumer technology landscape is forever changing.

From Pinterest to TikTok, WeChat to Instagram, new experiences can rapidly gain consumer adoption and relevance.

Consumer, Technology, Incisiv

From augmented reality to voice, smartwatches to chatbots, consumers are constantly embracing new interaction paradigms.

Commoditized convenience is eroding loyalty and margin.

Consumers expect convenience. If you can't deliver it, they'll go elsewhere - e.g. next day shipping becoming the new standard.

Walmart will reportedly lose USD 1 billion on eCommerce revenue of USD 21 billion this year as it faces challenges in its bid to complete against Amazon – from trouble integrating its DNVB acquisitions to impact on margin from its next-day delivery operations.

Consumers value experiences that are curated to fit their lives better.

They want to engage, be served, and transact at their time, their pace, their place. They have little patience, infinite choice and the freedom to swipe left at the slightest hint of friction.

Consumer, Experience, Incisiv

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