Redefining Delivery KPIs: Measuring What Really Matters During Peak Season

Why Traditional KPIs Fall Short

For decades, brands gauged shipping performance by two metrics: cost per delivery and on-time rates. These metrics provided a simple benchmark for measuring efficiency. But in today’s volatile retail environment, this simplicity often hides complexity.

According to Veho and Supply Chain Dive’s recent survey of more than 150 retail supply chain leaders, legacy KPIs leave critical blind spots. 

36% of logistics leaders still think cost per delivery is the most important delivery KPI, and only 19% track delivery-related complaints. A mere 25% consider return rates a key delivery metric. 

That gap is telling. 

The metrics that most directly reflect customer loyalty and long-term profitability are often ignored in favor of cost metrics that paint an incomplete picture.

If brands do not connect these dots, they risk missing the true cost of delivery. High efficiency on paper can mask hidden friction points that erode customer trust, loyalty, and lifetime value.

Expanding the KPI Framework

Forward-thinking retailers are now reimagining their KPI frameworks. Instead of focusing narrowly on operational efficiency, they are layering in customer-centric measures that tell the full story of last mile delivery. These include:

• Customer satisfaction scores tied to delivery
  Post-purchase surveys and Net Promoter Scores reveal whether customers see delivery as seamless or frustrating. High satisfaction correlates with repeat business, while negative scores can flag weaknesses before they escalate.
  
  
• Support and restitution costs tied to shipping failures
  Customer support interactions and refund or credit expenses highlight the hidden costs of late or damaged deliveries. Tracking these costs provides a more realistic view of profitability beyond the transportation budget.
  
  
• Repurchase and retention rates
  Loyal customers are the lifeblood of retail. By linking repurchase behavior to delivery performance, retailers can quantify how reliability drives long-term revenue. Even a small lift in retention delivers exponential returns.
  
  
• Average order value growth when delivery is reliable
  Customers who trust a retailer’s delivery process are more likely to increase basket size. Tracking order value alongside delivery KPIs shows how logistics investments translate into incremental revenue.
  
  

This expanded playbook makes clear that delivery is not just a logistics function. It is a customer experience driver that directly shapes profitability and brand reputation.

A Customer-First Approach

Industry experts agree that the most effective delivery strategies start with the customer. Nate Skiver underscores this point:

“Brands should create a delivery strategy with their customers in mind, and work back from there to put the right resources in place to execute that strategy.”

That mindset requires measuring not only operational efficiency but also customer outcomes. In practice, this means asking: Did the delivery experience strengthen trust? Did it reduce friction in the buying journey? Did it make customers more likely to return?

By treating logistics as a customer experience touchpoint rather than just a back-end operation, retailers elevate delivery from a cost center to a competitive differentiator.

Winning This Peak Season

Redefining delivery KPIs is not just an academic exercise. It is a practical playbook for surviving and thriving during peak season. Retailers that broaden their measurement approach are better equipped to make smart, targeted investments. Instead of cutting costs blindly, they can:

• Identify where failures are driving churn
  Data on delivery complaints, support tickets, and refunds help pinpoint the weak links that push customers away.
  
  
• Justify investments in technology
  Metrics tied to customer experience strengthen the case for tools like AI-powered exception management, predictive ETAs, and dynamic routing. These solutions directly reduce friction and improve delivery accuracy.
  
  
• Strengthen their “Return on Shipping” (ROS)
  By linking delivery outcomes to customer lifetime value, retailers can prove that shipping is not a sunk cost but a driver of growth. Measuring ROS reframes delivery as a strategic lever for revenue expansion.
  
  

In the words of one supply chain leader, delivery is the final mile of the customer experience, and the first mile of customer loyalty. The companies that act now to redefine their delivery KPIs will be the ones setting the standard for retail success this season and beyond.