Valuing Home Delivery 2010
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This is the third IMRG Valuing Home Delivery Review following on from those published in 2006 and 2008.
The reason for producing Valuing Home Delivery is to assess what progress the e-Retail industry is making to eradicate inefficient cost for its stakeholders and to keep us focused on the opportunities that remain.
The 2010 review acts as a progress report and considers:
- The cost of late delivery
- The cost of attempted delivery
- The cost of failed delivery
- The environmental cost of failed delivery
- The impact of address quality and data management
In this last area we are grateful for the support of Postcode Anywhere which has provided address verification and auto-fill solutions for 10 years and is the largest value-added reseller to e-retail of Royal Mail’s Postcode Address File (PAF®).
As part of this review, Postcode Anywhere was consulted to gather tangible evidence of the benefits of address auto-fill technology to the e-Retail industry. Its detailed findings are covered later in this document.
The assumed advantages of validating postal addresses at the point of entry are well known:
- Reduced cart ‘abandonments’;
- Increased conversion rates;
- Improved customer experience;
- Fewer returns.
Yet there has been little research to quantify the effect of address auto-fill technology on the bottom line. The Valuing Home Delivery Review 2010 aims to finally reveal the true cost of inaccurate addressing to the e-Retail industry.
The 2010 review uses the most recent data available and in order to create a complete a picture as possible, has used similar data from a number of different sources to allow validation and cross checking. Due to the wide variety of data sources used and the way in which these sources define performance it has not always been possible to fully reconcile different results and where this is the case we have shown data ranges. All data sets are accompanied by assumptions and definitions
We are grateful to those companies who contributed data to this review – a full list of which can be found in Annex 3. All non published data has been aggregated and no company’s specific data has been attributed. It is not our intention to provide comparisons between competing companies but rather to bring the industry together to understand current levels of performance, what we can aspire to, the benefit of reaching higher standards and to signpost opportunities for improvement.