According to new
research, businesses that offer free postage and packaging have a distinct
advantage over those that add postage and packaging costs to their bill.
The research of over
2,000 UK consumers found that 35% of consumers won’t spend money with a brand
online if it adds this cost onto the bill, while a massive 50% are more likely
to spend with a brand if their delivery costs are free.
The research was carried
out in November 2016 by Rakuten Marketing along with Morar Research. It involved surveying a representative sample of 2,000 consumers across
the UK.
Implications of this
Research
The implications of this
research are obvious. It is better to increase the price of your product and
then offer free delivery, rather than to charge lower prices but add on a delivery
charge.
At the end of the day, your overall price might still be the same. But
customers seem to have a preference for free delivery. Maybe it's just the psychology of using the word "free".
This might all be more to do with customer perceptions than reality, but as Kate Zabriskie famously said: “The customer’s perception is your reality.”
This might all be more to do with customer perceptions than reality, but as Kate Zabriskie famously said: “The customer’s perception is your reality.”
REFERENCES
www morarconsulting.com
www.businesstrainingworks.com