DELIVERY MATTERS Christmas · women £300 Christmas is all about looking good Clothes were the...

How to keep your festive shoppers full of cheer

ChristmasDELIVERY MATTERS

2019

Presenting the insights in our Christmas edition

Online shopping continues to grow, with one in every five pounds being spent online now. Our research shows that almost half of festive shoppers do most or all

of their shopping on the web. People's spending is also up – over a third (37%) bought more gifts online in 2018 than they did the previous year. And the young have

even deeper pockets, with 53% of 18-24s spending more online.

While mobile use is up, people still prefer to do their festive shopping from home and home remains their favourite delivery point too. Christmas is all about convenience.

And the majority of festive shoppers (81%) agree that end-to-end tracking of items gives them more confidence when buying on the net.

Keep reading to find out more and enjoy this little gift to you (together with our other UK and International reports) helping you to enjoy the perfect year-round delivery.

To download this or any other report from the collection, visit royalmail.com/deliverymatters

Contents

Presenting the insights in our Christmas edition .... . . . . . . . . . . . 3

Unwrapping the facts ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

The laptop still leads, but mobile is catching up .... . . . . . . . . . . . . . 6

The comfort of Christmas at home .... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Christmas shopping: the ‘where’ and the ‘when’ ... . . . . . . . . . . . . 9

Free or low cost delivery is on shoppers' wish lists ... . . . . .10

The countdown to Christmas .... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12

A ho, ho, home delivery is a must for most .... . . . . . . . . . . . . . . . . . . .14

The next best thing – click & collect ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15

Trust is crucial at Christmas .... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16

Candy coat your delivery with tracking .... . . . . . . . . . . . . . . . . . . . . . . . . . . . .18

It’s lovely, but… .... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20

Wishing you happy customers .... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22

Welcome to the 11th year of Delivery Matters from Royal Mail. This edition is focused on Christmas – the period that is so important to online retailers.

Inside, the research will highlight key insights to help you make the most of the

festive season.

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http://www.royalmail.com/deliverymatters

Christmas is all about gifting – and 2017 was no exception. Last year, online shoppers were nothing if not generous, with an average online spend of just under £300. Who spent the most? 35-54s (£344)… with 55+ shoppers next (£265) and 18-34s coming in third (£152). And the really good news for those doing the unwrapping – two in five spent more than the year before!

Unwrapping the factsUnwrapping

the facts

The 5 most popular product categories purchased online last Christmas

What we spend online at Christmas

Christmas shoppers enjoy a seasonal spending spree to buy the perfect gifts

for friends and family. And in 2018 the average online spend was up yet again,

from £292 in 2017 to £324.

On average Christmas shoppers purchased seven gifts online. And the giving tradition

continues to grow with 1 in 3 (33%) saying they bought more items online in 2018 than

in 2017. Only 1 in 6 (16%) bought fewer. 39%

Toiletries/ makeup

The average online

spend for Christmas

gifts in 2018.

Up from £292 in 2017.

£324

44%

Toys

Average amount spent by

men

£348

Average amount spent by women

£300

Christmas is all about looking goodClothes were the number one gift given last year. Dresses, jumpers, coats and also socks, presumably.

Who spends the most?

Men spent more over the yuletide period than women. This could be

due to the fact that women buy more traditional gifts like clothes, toys and books, whilst men tend to buy things

like TVs, stereos, computers and tablets, that are often fairly pricey.

The young treat themselves

Those aged 18-24 are a lot more likely to have bought

gifts for themselves than any other age group (59% vs 43%

or less for all other age groups).

56%

Clothes

36%

CDs/DVDs/records/ computer games

44%

Books

TOP TIP

With the average gift costing almost £46,

offer Royal Mail Tracked® for extra peace of mind

for you and your shoppers (includes up to £100

compensation).

Delivery Matters Christmas 2019

54

In-store is not out, by any meansWhile online spending is up, the high street is still doing well. Our research shows 87% of all online shoppers still do some shopping in-store and 6% still shop over the phone.

Women shop more than men, whether in-store, online or both. A higher proportion of women shopped in-store compared to men.

52%

39%

30%

29%

Laptop

Smartphone

Desktop/PC

Tablet

Devices online shoppers used for buying their festive gifts

Reasons for shopping online

Can shop from the comfort of own home

71%

Can shop at any time

of the day60%

Can compare prices more easily

46%

Can check availability/

levels of stock33%

The laptop still leads, but mobile is catching up

Unsurprisingly, as mobiles become the ‘go to’ device, more and more online shoppers are using them to purchase Christmas gifts.

Usage is up 5% this year and that’s a big jump. The laptop still pipped the mobile to the post on usage overall. But for the first year ever, the mobile has overtaken the laptop amongst the 18-24s as the festive device of choice (62% mobile vs 61% laptop).

Online shoppers

who also go in-store

men

82%

women

91%


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TOP TIP

Help last minute shoppers get it there in time, every time,

with Royal Mail Special Delivery Guaranteed®.


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1%

The comfort of Christmas at home

As Christmas draws nearer, and the preparations for the festive season are underway, there’s really only one place to be...

...at home, toasting your festive slippers in front of the fire. And it’s the comfort of home that people give as the

single biggest reason why they shop online.


Christmas shopping: the ‘where’ and the ‘when’A staggering 89% of online shoppers said they did the majority of their shopping at home and more than half (56%) said they shopped on the sofa/under the duvet between 6pm and midnight.

But when did they start their shopping? Some (13%) are super organised and start to shop before October – yes October. The vast majority of present buyers (75%) made a start by the end of November. And then there are those who need to get a wiggle on (5%), who left it to the last week to shop.

Started shopping before October

Started shopping before the end of

November

Started shopping the week before

75%

5%13%

Shoppers make the majority of their festive purchases at home

89% 5% 4%Shopped online whilst at home

Shopped online whilst at a physical store

Shopped online whilst at work

Shopped online when travelling/

commuting

Dear Santa...

Free or low cost delivery is

on shoppers’ wish lists

GLAD TIDINGS

We’ll help you offer low cost or free delivery

at Christmas with our great value

Royal Mail 48® service

Top 5 important factors for online shoppers when making purchases online for Christmas

Granny’s favourite perfume, a set of hankies for Dad, and even place mats for your cousin, are all more attractive

gifts with low-cost delivery.

8 in 10 shoppers considered either free or low-cost delivery as by far the

most important reason when pressing the 'buy' button online.

But they also want more…Offering speedy delivery options is key for those shoppers who just can’t wait. Using a delivery company they know and can count on time and again, and being able to collect from a convenient pick-up location if they’re not at home are key buying factors too.

Low cost delivery

Free delivery

Free returns

Knowing the company

responsible for delivery

Wide range of delivery

options available

79% 78% 67%58% 57%

Free delivery remains a key stocking filler

It’s the top factor for swaying shoppers to make purchases online, but it’s worth noting it’s more of a priority for 45-54s (80%) than

it is for the 18-24s (69%).

43%

2 in 5 shopperssaid having an in-store or alternative delivery location was important to them.

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The countdown to Christmas

I’ll wait, there’s still time71% of customers opted for standard 2-3 day delivery, presumably due to cost, but just over 1 in 4 chose to pay more for a next day or evening delivery. And there will always be those people who leave things to the last possible moment… who can beat the clock with same day delivery.

Urgency versus cost

You’d think if a customer was offered next day delivery, they’d

take it? Just over half did. The pattern continues, with a third of shoppers opting

for same day, evening or time specific delivery. It’s all about

how quickly they want the gift and how much they are

prepared to pay.

I want it now!

While 1 in 4 younger shoppers aged 18-34 claimed to have used next day delivery when ordering for Christmas 2018, this drops to 1 in 7 (14%) for those aged 55+ (who are perhaps better planners).

The delivery options chosen by online shoppers vs the options they were offered

As Christmas draws closer, there are two types of shoppers.

Those who are relaxed having completed their shopping, and those who are in a mild state of panic because they have not yet purchased all their gifts.

But when it comes to online shopping delivery choices there are some surprising facts.

16%Same day delivery

6%

CHOS

EN

OFFE

RED28%

Nominated day delivery

11%

CHOS

EN

OFFE

RED

43%

Next day/express delivery

23%

CHOS

EN

OFFE

RED

2-3 day delivery

71% 71%

CHOS

EN

OFFE

RED

Used next day delivery

1 in 4

18-34

Used next day delivery

1 in 7

55+

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GLAD TIDINGS

10% 11%

24%

Shopping online at home is such an attractive option – you do it in your own time when it’s convenient for you, and you can browse and

compare prices snuggled up on the sofa.

It’s also so much easier to order online and get a gift delivered to home. That’s the conclusion that 89% of online shoppers came to last year.

The next best thing – click & collectWith 24% of shoppers opting to click & collect from a retailer’s store, it’s clear that offering the choice of a local collection point (if they know they’re not going to be at home) is growing in popularity… well, there can be lots of festive chores (and the odd lunch) to do at Christmas!

Almost half (48%) would use an online retailer that offers deliveries to a local Post Office® – up from last year (42%).

A ho

, ho, home delivery...

is a must for most

HomeRetailer’s store – click & collect

men

19%

women

28%

Don’t have a convenient store to click & collect from?

No problem. Royal Mail Local Collect® will allow you to add

11,200 Post Office®/Royal Mail Customer Service Points to

your checkout page.

89%

Convenience store –

click & collect

Someone else’s home

Work Post Office®/ Royal Mail Customer

Service Point

8% 9%

Online shoppers’ chosen Christmas delivery location

More women like to click

& collect from a retail store

Say they would use an online retailer that offers

deliveries at a Post Office®

48%


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At such an important time of year, trust is everything.

Even though it’s the busiest time of year, more than 9 out of 10 online Christmas shoppers were satisfied with the delivery of the majority of their items.

Trust is crucial at Christmas

GLAD TIDINGSReliable ratings ruleOne thing remains clear: customers want a delivery company they can trust at this special time of year. 73% of customers said they trusted Royal Mail to deliver on time at Christmas (up from 67% in 2017). And 62% of shoppers used Royal Mail to deliver in the run up to the big day – significantly more than its closest competitor.

When it comes to the friendliest, most trusted delivery staff,

Royal Mail comes out on top with UK shoppers.*

*Delivery Matters UK 2018

44%

Royal Mail is trusted the most by 44% of shoppers –

more than twice that of its closest competitor

online Christmas shoppers were satisfied with the delivery of the majority of their items

9 out of 10

Overall satisfaction is up in 2018

with more parcels arriving on time despite the busy

time of year

67%of customers

trusted Royal Mail to deliver on time

at Christmas

2017

73%of customers

trusted Royal Mail to deliver on time

at Christmas

2018

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Build festive cheerAt this time of year especially, people want the reassurance that the gifts they’ve ordered will be delivered on time, safely and securely. Tracking lets customers plan around their deliveries, reducing ‘where is my parcel’ enquiries, providing a happier Christmas for everyone.

Enjoy the convenience (and added peace of mind)

of end-to-end tracking on those important stocking stuffers.

The majority of online shoppers agree that tracking items offers

people confidence (81%) when buying things on the web. And 3 out of 4

would like to be able to track all their Christmas orders if they could.

Candy coat your delivery with tracking

GLAD TIDINGS

Did you know your shoppers can use

the Royal Mail App to track their parcels and receive an

SMS/email notification the day before and on the day of

delivery with an estimated delivery window from 2 hours?

81%

I would be more confident in

returning items I had purchased

if they could be tracked

I would like to be able to track all of my online Christmas

orders

Tracking makes online

shopping more convenient

Tracking gives me more

confidence when shopping

online

77%75%

65%Cater for shoppers on the go

Smartphone use among 18-24s is now higher

than laptop usage.

81% of younger shoppers (18-24) would like to track

all their online festive orders vs 72% of 65+.

Top 4 important factors for online shoppers when tracking their parcels

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Popping it back at the Post Office®…If an online retailer offers returns via a local Post Office® branch, around 7 out of 10 of shoppers would be more likely to use them.

And if they offered an option for items to be returned via a Labels to Go service at a local Post Office® or Royal Mail Customer Service Point, 70% would be more likely to buy.

TOP TIPOffer shoppers

mobile returns at the Post Office®.

With Labels to Go, shoppers simply download a QR code to their mobile,

then print, drop and go.

It’s the wrong size/it’s not really me/I’ve already got one

We all buy gifts with the best intentions, but of course there are times when we change our mind about that perfect spontaneous stocking filler… Christmas socks that light up when you walk… a great idea at the time.

And talking of returns, around 1 in 10 online shoppers returned items last Christmas, with women being twice as likely to do so (12% vs 6%).

It’s lovely, but…

I am more likely to make an online

purchase from a retailer if

they offer returns at a Post Office®

I am more likely to make an online

purchase from a retailer if they

offer mobile returns with Labels to Go

70%

70%

RETURNS

R

When it’s got to go back

6%12%

Only 6% of men return their gifts, compared

to 12% of women.

men women


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Royal Mail festive servicesRoyal Mail Special Delivery Guaranteed®

Next day by 9am or by 1pm for those last-minute purchasesRoyal Mail Tracked 24® and Royal Mail Tracked 48®Peace of mind for festive delivery next day or 2-3 days

Royal Mail 24® and Royal Mail 48®

Great value everyday deliveryRoyal Mail Tracked Returns®

Make returns easy for shoppers if they change their mindLocal Collect®

Offer shoppers a click & collect option at the Post Office® or a Royal Mail Customer Service Point

Wishing you happy customersWhat have we learned about shopping over the festive season?

Christmas is a time when we all spend money freely: "It’s Christmas!" we proclaim in the most un-Scrooge-like fashion. But contrastingly,

when buying online we suddenly become more cost-conscious, with nearly 9 in 10 (87%) rating free delivery or low cost delivery as important.

The 18-34s spend more and are more likely to use their smartphone to shop online. So make their buying/returning experience as smooth as possible.

And while people are generally offered a range of delivery options, they typically opt for the standard 2-3 day service. However, the younger crowd (18-34s) don’t want to wait,

and are happy to go for more premium options such as next day delivery.

The importance of everyday tracking is also on the rise. 75% said they’d like to be able to track all their Christmas deliveries. Returns, too, must be easy, accessible and tracked.

It’s a fact that online shoppers are more likely to use a retailer if they offer returns via a local Post Office®. Knowing and trusting the carrier is vital to building loyalty,

and being on time, every time, also helps.

Think about your customers, think about which deliveries are right for them. Get it right and you and your customers will have a very merry Christmas indeed.

To download this or any other report from the collection, visit royalmail.com/deliverymatters


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http://www.royalmail.com/deliverymatters

About this research

Independently conducted by Trinity McQueen, this research was based on a sample group of 1,501 UK online Christmas shoppers. They completed a 10-12 minute survey, optimised for mobile and

tablet devices, between 22-28 February 2019. This research is representative of online shoppers that bought

festive items online in the UK.

For more information on our products or services, please call Business Sales on 08457 950 950*.

Textphone users can dial direct on 03456 000 606 and we welcome Typetalk calls.

* Calls may be recorded, monitored and used for training and compliance purposes. Calls cost 5p per minute plus your telephone company’s network access charge.

Royal Mail and the cruciform are trade marks of Royal Mail Group Ltd. © Royal Mail Group Ltd 2019. All rights reserved. Royal Mail Group Ltd, registered in England and Wales, number 4138203, registered office: 100 Victoria Embankment, London, EC4Y 0HQ.

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