Latest Triangle Survey Finds Churn increased in the UK B2C Express Market

Triangle Management Services, the specialist services provider to the global mail and express industry, has just released its UK B2C Express Parcels Distribution Survey. The in-depth annual report surveys UK B2C shippers and benchmarks service ratings for the main carriers used in home deliveries. Key insights from this year’s report include:

• The level of change for 1st choice carrier has returned to 2012 levels
• We have seen an 8% increase in businesses who have recently stopped using a specific carrier
• Improved service levels, marketing and pricing changes are driving shippers to review their choice of delivery partner

The 200 plus page report, which was the result of over 450 telephone interviews, provides a unique insight into the UK B2C Express Market and is available in various formats from £13,000. Contact Triangle’s Research Team on +44(0)1628 642910 or email: Saeed Mumtaz, Director of Research & Consultancy for more information.

 

Survey Highlights:

Amazon fulfilment performing well but still room for improvement

Fulfilment by Amazon (FBA), included for the first time in the survey, shows a significant volume delivered through its network. Interestingly whilst FBA performs well on ratings, there are service improvement opportunities when compared to the mainstream.

 

Service levels are on the rise

Service levels have improved across the industry which is reflected in the increase in the Net Promoter Index. What’s more, overall performance scores across individual service indicators are 0.2 points higher than last year. Interestingly, in this increasingly competitive environment, some carriers have shown a consistent improvement which is reflected in their improved rankings.

The overall improvement in performance together with expected price increases will be driving shippers to look at the current value of their contracts, which is where the opportunity lies.

 

Home delivery still a preference for shippers

Home delivery still remains the preferred B2C delivery option for shippers. There has been an increase of 10% in businesses offering a returns service. Compared with last year, usage of 2-3 day services slipped by 8% in favour of next day services and is now the preferred option for over 70% of deliveries.

 

Triangle’s View

Triangle’s Director of Research and Consultancy, Saeed Mumtaz, commented “This year’s survey shows the B2C delivery sector is enjoying the benefits of the e-commerce wave with flexible services continuing to meet consumer demands. All of the carriers have upped their game which is creating an increasingly competitive market. But shippers are still expecting to see price increases in the near future. Carriers will therefore have to decide whether they compete on price or on service. It will be interesting to see which strategy wins out over the next 12 months.”

 

About the B2C survey

Triangle conducted over 450 in-depth telephone interviews with B2C shippers for the 2016 survey and collected close to 500 benchmark service ratings for the thirteen main carriers used for home deliveries.

Carriers benchmarked in the survey include the major global integrators TNT Express, UPS and FedEx, along with home delivery experts Hermes, Yodel and Royal Mail, plus Parcelforce Worldwide, DPD, Interlink, APC Overnight, UK Mail and freight parcel specialists DX Freight.  Additionally, Fulfilment by Amazon was added for the first time as a benchmark. In total, thirteen delivery providers offering UK domestic home delivery services are rated by their customers, and compared against each other in this survey.

Triangle’s ‘UK Domestic B2C Express Parcels Distribution Survey’ was first published in 2008 and remains the industry standard for the express sector. Its status reflects the way in which subscribers, principally the carriers themselves, use the survey to benchmark themselves against their competitors whilst also judging their own company performance in all the important customer interface areas and the success of new initiatives.

 

About Triangle Management Services

Triangle Management Services Ltd, founded in 1984, delivers a unique range of business services to leading companies and senior executives managing and shaping the mail and express industry. Triangle’s extensive portfolio of services includes high-level conferences, online and print media, industry-specific research, and strategic consultancy, and provides access to senior players in the sector worldwide.

For further information, please contact Triangle’s Research Team on +44(0)1628 642910 or email:
Saeed Mumtaz, Director of Research & Consultancy.

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