Using PICKUP Delivery as a Brand Extension Strategy 

These days it’s becoming more and more difficult for businesses to not only set themselves apart from competitors but also attract and retain customers. One tactic companies should seriously consider is brand extension, defined by Investopedia as when “a company uses one of its established brand names on a new product or new product category.” Ideally, a business will use its “already established brand equity to help it launch its newest product.” A recent example of brand extension is the fast-food chain Wendy’s releasing Frosty-flavored cereal in grocery stores.  

In a post-pandemic economy, customers are hungry for something more than just Frosty-flavored cereal, and that’s elevated delivery experiences. By introducing same day and scheduled delivery as a new extension of their brand, businesses can offer their customers so much more.  

The biggest challenge to rolling out a delivery solution is the expense of drivers, vehicles, and the technical infrastructure needed to run the entire system. While some companies may be capable of going this route, the easiest way to add delivery as an extension of your brand is to partner with a trusted delivery provider. 

Outsourcing an offering that’s supposed to increase the reach of a brand may seem counter-intuitive. In fact, releasing some control of brand image to a third party can be a real problem if businesses don’t partner with a reputable delivery provider. In most cases, customers are not as concerned with who is making the delivery as they are with when and how it is delivered.  The last mile experience typically is the most challenging aspect of eCommerce. 

Problems arise when there are issues with delivery experiences. If a contracted delivery person does a bad job meeting a customer’s expectations, there’s a good chance that the customer will still blame the business.  41% of consumers place the blame for late deliveries on retailers regardless of who is at fault.  

Modern consumers are more and more becoming “one strike and you’re out” shoppers. A report from Anyline, a mobile data capturing company, shows that each generation has less patience for negative delivery experiences. 57% of Silent Generation respondents said they would reconsider shopping with a company again after a poor delivery experience. The figures rose to 72% among Baby Boomers, 76% for Generation X, 81% for Millennials, and 86% for Generation Z. Essentially, brand loyalty is weaker than ever.  

Pair that data with this report that says brand extensions have a failure rate of up to 80% and you could be frightened away from pursuing delivery as an extension of your brand. However, with the right approach, businesses can overcome this and transform the last mile with elevated delivery experiences. 

Dominique Turpin, Emeritus Professor of Marketing Strategy (IMD Switzerland & Singapore), Chairman of DAA Capital, and board member of international public and private institutions shared a valuable observation in a LinkedIn blog

“When brand extensions fail, it’s usually because companies try to borrow or milk their brands, and/or they simply do not pay enough attention to creating sufficient new consumer benefits.” 

The key to successfully rolling out a brand extension in the form of delivery is making sure all benefits of the service are communicated and their value is fully understood. At PICKUP, we know what consumers are looking for in an elevated delivery experience. Using our technology and people, our partners are equipped to provide their customers with: 

  • Fully-vetted PICKUP Delivery Pros composed of military vets, first responders, and all-around good people 
  • Seamless delivery experiences 
  • Live support – phone, chat and email 
  • Real-time delivery information 
  • Convenience of same day and scheduled delivery options with smart delivery windows 
  • Track and trace proof of delivery 
  • White glove delivery 

We’ve heard so many success stories of our partners using PICKUP to extend their brand, thereby helping them reach their goals of reaching new demographics, keeping existing customers, and increasing revenue. In a recent case study, a renowned luxury retailer with stores located across the world needed a first-class solution to provide elevated delivery of its high-value items to clients in the United States. By offering their clientele the type of delivery experience they expected from one of the world’s most valuable brands, the retailer grew in digital business by transforming delivery net promoter score (NPS) from the 30s to the 90s and above.  

When you partner with PICKUP, you can have trust and confidence in us to represent your business best. Interested in learning how we can help you offer delivery of big, heavy, and high value items to your customers? Schedule a demo today.