Customer expectations change when they receive the “out for delivery” notification. They check for an ETA and expect a fulfilled delivery promise.
But what happens when that notification is misleading, vague, or nonexistent? What happens when customer excitement is replaced by disappointment and frustration at a lack of transparency or a failed delivery promise? The offending business loses customer trust and loyalty. 85% of shoppers won’t purchase from a retailer again after a negative delivery experience and 79% of retailers and 3PLs agree that delivery impacts customer loyalty.
Trust is on the line when a package is “out for delivery.” Without real-time visibility and delivery accuracy, that trust breaks fast and 31% of retailers and 3PLs say visibility is their toughest challenge. That gap doesn’t just affect operations—it also impacts customer loyalty and long-term revenue. However, there are many strategies businesses can employ to maximize their last-mile efficiencies, improve customer experiences, and maintain trust.
Key takeaways:
- As eCommerce grows 14.5% through 2026, last-mile technology investments will shift from competitive edge to survival baseline.
- Customer loyalty hinges on last-mile investments in visibility, accuracy, and delivery experiences that meet changing preferences.
Defining the last-mile
The last-mile is more than the final leg of the eCommerce journey: it’s a digitized, consumer-centric delivery ecosystem where shipments are moved efficiently and with the customer always in mind. It’s the most complex and consequential stage of the supply chain, responsible for 30-40% of all transportation costs and the most challenging step for 77% of retailers.
The last mile is a revenue-critical battleground where delivery promises directly influence conversion rates, brand loyalty, and customer lifetime value. It’s also the litmus test for operational efficiency, service differentiation, and profitability in a market increasingly shaped by Amazon-level expectations.
Key steps in the last-mile include:
- Delivery promise made before checkout
- Order placed
- Order assigned to best-fit fleet
- Item loaded to vehicle
- Route optimized
- Delivery window selected
- Driver dispatched
- Real-time tracking enabled
- ETA shared with customer
- Delivery executed
- Feedback captured
The real challenge: last mile visibility and control
While the “out for delivery” phase seems like the home stretch to the customer, it’s a consequential journey for retailers and shippers where trust is either won or lost. Once a package leaves the distribution point, visibility drops and operational inefficiencies are exposed. A lack of awareness and operation control creates risk for missed SLAs, poor customer experiences, and high last-mile costs.
Common last-mile issues include:
- Real-time driver location and package status visibility
- Failed delivery attempts due to unavailability or incorrect address info
- Disconnected tech stacks and manual handoffs
- Inability to proactively notify customers of changes
- Extra delivery attempts and increased cost per order
Risks are even greater for big and bulky deliveries. Failed attempts on big-ticket items, which often require on-site installations or complex drop-offs, mean costly redeliveries and frustrated customers.
“Big and bulky deliveries are inherently expensive,” said Ali Kamil, expert associate partner at McKinsey. “Each delivery can take at least 30 minutes to an hour, requiring specialized and certified drivers for installation. This complexity makes it hard and costly. Customer expectations are high, and the delivery has to be accurate and timely. Proper planning and sophisticated tools are necessary to plan these deliveries effectively.”
No accuracy and or visibility reduces trust
Consumers often consider delivery an extension of a brand and its products. Efficient delivery no longer means fast shipping and little else, which was the number one priority a few years ago. Today, accurate delivery promises matter more than same-day delivery.
Consumers also prefer cheaper and more transparent delivery options, as well as easier returns, compared to faster fulfillment.
Ultimately, more reliable and transparent last-mile experiences can make or break trust with a brand.
- 82% of customers pleased with their delivery experience will share and recommend the brand to friends and family
- 72% of customers satisfied with their delivery service are likely to increase purchase levels with that brand by 12%
- 71% of online shoppers contacted customer service in the past year due to shipping issues; late deliveries and lost orders topped the list of complaints
Invest in improved last-mile customer experiences
The space between the “out for delivery” message and a package’s arrival requires proactive visibility, flexible routing, and customer-centric coordination.
Here’s how to get this key delivery stage right:
1. Prioritize real-time visibility across stakeholders
- Integrate technology stacks for shared visibility across dispatchers, drivers, and customer support
- Ensure real-time driver tracking and live status updates
- Create centralized dashboards to monitor SLA adherence, exceptions, and performance KPIs
2. Automate customer communications
- Trigger proactive SMS or email updates when a package is en route, delayed, or delivered
- Send estimated time of arrival (ETA) windows with live tracking links
- Notify customers of failed attempts or delivery options in real-time
3. Optimize first attempt success rates
- Offer flexible delivery slots during checkout
- Use AI to route deliveries based on customer availability, geography, and past behavior
- Collect delivery instructions and preferred contact methods upfront
- Allow customers to update delivery preferences after checkout
4. Create more feedback loops and operational agility
- Gather customer and driver feedback on failed deliveries
- Use insights to optimize routing logic, driver training, or pickup/drop-off options
- Monitor delivery performance by fleet, location, or product category
Last-mile investments like the ones above proved successful for a number of companies:
- A U.K. grocer saw a 20% last-mile cost reduction with using multiple fulfillment and delivery models
- A U.S. furniture retailer experienced $5M and $15m annual CapEx and OpEx savings with increased route density and delivery availability
- A U.S. auto parts retailer saw 187% increase in order dispatch with automation
- A U.S. furniture retailer experienced a 20% stops-per-route increase with better route density
Don’t let delays and exceptions derail trust
Delays and exceptions happen. Truck loading errors, traffic, bad weather, and poor 3PL coordination are bound to derail deliveries at some point. When something goes wrong, the response strategy matters. Although 85% of shoppers won’t repurchase from a retailer after one negative delivery, many customers may offer additional grace if the business is transparent about an issue and remediates the situation.
“Proper planning and sophisticated tools are necessary to plan these deliveries effectively.”
Consider these best practices to maintain customer trust during delays and exceptions:
- Detect and respond to delays in real time with exception management tools
- Keep the customer informed, especially when delivery goes off-course
- Log and analyze exceptions across carriers, drivers, and locations
- Offer proactive incentives (e.g., a discount code, gift card, or free expedited shipping on the next order) to turn a poor experience into a reason to return
- Send personalized apology messages based on the severity or context of the delay
- Give customers more control during disruptions with live, self-service options (e.g. delivery rescheduling, alternate pick up points, or real-time chat support)
- Make returns or replacements easy when an order arrives late or damaged
- Track customer experience data alongside delivery performance and identify repeat issues with specific carriers, routes, or fulfillment partners
High-performing shippers know they can’t prevent every exception or delay. But what separates them from the competition is how fast and efficiently they detect, adapt to, and resolve roadblocks.
Prepare for the future or fall behind
B2B and B2C eCommerce is projected to grow 14.5% through 2026. Soon, last-mile technology will no longer be a competitive differentiator that earns customer loyalty—it will be the bare minimum to keep it. Greater customer satisfaction (and the revenue that comes with it) hinges on delivery orchestration tools, real-time visibility, and customer-centric workflows. Businesses that fail to prepare for more eCommerce-driven delivery will lose customers to the competition as consumers expect more “out for delivery” messages in the future.
Learn how retailers and logistics companies will orchestrate last-mile excellence this year. Download the 2025 State of the Last Mile Report
