{"id":25338,"date":"2024-10-03T16:06:42","date_gmt":"2024-10-03T14:06:42","guid":{"rendered":"https:\/\/blog.ptvlogistics.com\/?p=25338"},"modified":"2024-10-03T16:16:27","modified_gmt":"2024-10-03T14:16:27","slug":"how-a-better-delivery-experience-increases-customer-loyalty-and-your-bottom-line","status":"publish","type":"post","link":"https:\/\/blog.ptvlogistics.com\/en\/transport-logistics\/how-a-better-delivery-experience-increases-customer-loyalty-and-your-bottom-line\/","title":{"rendered":"Improved delivery experience increases customer loyalty… and your bottom line"},"content":{"rendered":"

[vc_row][vc_column][vc_column_text]<\/p>\n

 <\/p>\n

[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column width=”1\/2″][vc_column_text]<\/p>\n

As the number of people shopping online has increased since the pandemic, so have their expectations for good service. It\u2019s no longer enough to simply deliver products to their door at a good price<\/strong>. This is taken for granted. Instead, consumers are looking for fast and reliable<\/strong> service at their convenience.[\/vc_column_text][\/vc_column][vc_column width=”1\/2″][vc_single_image image=”25165″ img_size=”600×280″][\/vc_column][\/vc_row][vc_row][vc_column width=”1\/2″][vc_single_image image=”25181″ img_size=”450×300″][\/vc_column][vc_column width=”1\/2″][vc_column_text]<\/p>\n

This is putting added pressure on last mile<\/strong> delivery companies to improve their customer service. However, that\u2019s not a bad thing. As the global retail e-commerce market grows, the last mile delivery market will grow alongside it. By 2032, its value is expected to grow to USD 304.5bn from USD 175.3bn<\/a> in 2023. And with more companies looking to capitalise on this expansion, including new players entering the market, competition will increase. One way that last mile companies can differentiate themselves is to focus on increasing customer satisfaction<\/strong>.[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column width=”1\/2″][vc_column_text]<\/p>\n

This is something that premium delivery service provider Urbify<\/a> is focusing on. As their CEO, Dr Ben Stolze, explains, \u201cCustomer experience is the holy grail of our business. It is not our goal to challenge incumbent players on efficiency and price, because that is an almost impossible task to pursue, but customer experience<\/strong> is where we can exceed expectations and outperform competitors. We believe that this may be a smaller share of the market, however it is going to increase tremendously.\u201d[\/vc_column_text][\/vc_column][vc_column width=”1\/2″][vc_single_image image=”25192″ img_size=”500×250″][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]<\/p>\n

Urbify Success Video<\/strong><\/h2>\n

[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_video link=”https:\/\/www.youtube.com\/watch?v=_vaDw33rayc” align=”center”][vc_column_text]<\/p>\n

 <\/p>\n

[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]<\/p>\n

What are the factors that affect customer satisfaction?<\/span><\/h2>\n

[\/vc_column_text][vc_column_text]Whilst the basic elements of a good delivery remain \u2013 the customer receiving the right parcel in a timely manner<\/strong> at a reasonable cost<\/strong> in good condition<\/strong> \u2013 these really are the minimum requirements that any last mile company should be aiming for. To offer great customer service today you need to go beyond this.<\/p>\n

[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_tta_accordion][vc_tta_section title=”Speed” tab_id=”1721324112970-cb4fc691-c91a”][vc_column_text]Customers increasingly expect same-day or next-day delivery. The expectation created by some online retailers that people can receive their items within 24 hours<\/strong> of ordering, has set a standard for the whole industry. In fact, this can be a key factor in a consumer\u2019s purchase decision. If you want to offer a great customer experience<\/strong>, this is something that you must factor in, and to do so requires you to have technology that supports dynamic route planning.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Convenience” tab_id=”1721324112987-0f705ff3-6a4e”][vc_column_text]One of the benefits of online shopping is being able to do it when you want, without leaving your house. This convenience should extend to the delivery. Giving customers the chance to choose exactly when they want to receive their order \u2013 not a delivery window so large that they can\u2019t make any other plans<\/strong> for that day \u2013 is becoming more important. This is something that Urbify has learnt: \u201cWe focus on efficient delivery, but make sure that customers receive their parcels when they are at home (16:00-21:00) and on the day they like to have the delivery.\u201d To be able to offer this granularity to customers requires you to optimise delivery routes more efficiently to factor in these restrictions.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Reliability” tab_id=”1721324321733-726f2cfe-4004″][vc_column_text]Asking customers to wait all day for a delivery is bad enough, but if you fail to deliver during that time slot, your customer satisfaction rating will likely nosedive. For consumers who value their time, having to reschedule plans to accommodate a late delivery is frustrating and can cost you their trust<\/strong> with future transactions.<\/p>\n

It\u2019s not unusual for last minute disruptions to cause delays. However, with real-time visibility<\/strong> and route planning tools<\/strong> you can usually overcome them. For example, by avoiding planning routes in areas where delays are common (e.g. during high traffic times) or by adapting routes on-the-go as you receive information about potential problems. As Stolze highlights: \u201cReliability is crucial also in terms of customer experience so the precision of our planned deliveries is paramount.\u201d[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Transparency and communication” tab_id=”1721324362366-5665f011-0d3c”][vc_column_text]Some delays are unavoidable. But in that case, it\u2019s important to be able to communicate this quickly to the customer. These days, most consumers expect to be able to track their order so that they can make plans without worrying about missing their parcel. Using tools that enable direct communication with customers through alerts and notifications can help reduce any negative impacts of a delay, and offering transparency<\/strong> around the status of a delivery, through real-time tracking<\/strong>, can also build trust.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Cost” tab_id=”1721324396643-dfe5810b-9a4e”][vc_column_text]At a time where the cost of living is increasing, affordability is a determining factor behind purchase decisions. But as costs for everyday consumers increase, they\u2019re also increasing for logistics companies. To continue delivering a great service without passing higher prices onto the customer, it\u2019s crucial to improve efficiency<\/strong> to minimize costs where possible. One way to do that is by optimising route planning. By designing shorter routes, or consolidating them, companies can lower fuel costs. And money can also be saved by designing routes that avoid tolls or other potential tariffs.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Sustainability” tab_id=”1721324424040-762c1aec-c7e6″][vc_column_text]Paradoxically, whilst customers want to receive their orders faster, they also want them to be delivered in a more sustainable<\/strong> way. In general, faster isn\u2019t greener, as more vehicles are required to meet the demand, generating higher CO2 emissions. However, as highlighted above, clever route planning<\/strong> and optimisation<\/strong> can shorten routes reducing the amount of fuel used. These tools can also be used to help plan more efficient electric vehicle routes, that factor in battery life and charging point location. And for urban deliveries, where driving isn\u2019t the most efficient way to get around, optimisation technology can help plan better cargo bike routes.[\/vc_column_text][\/vc_tta_section][\/vc_tta_accordion][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]<\/p>\n

What are the benefits of prioritising customer service?<\/span><\/h2>\n

[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column width=”1\/2″][vc_column_text]In addition to helping last mile delivery companies differentiate themselves from competitors, there are several direct benefits for companies who focus on offering a good customer experience<\/strong>.<\/p>\n

One of the most immediate benefits is higher conversion rates<\/strong>. Offering fast and convenient delivery times at the checkout can be the difference between a customer completing the purchase or abandoning their shopping cart. This is important for delivery companies as it allows them to offer a good experience<\/strong> to both their customers \u2013 retailers and end-buyers.<\/p>\n

[\/vc_column_text][\/vc_column][vc_column width=”1\/2″][vc_single_image image=”25257″ img_size=”500×325″][\/vc_column][\/vc_row][vc_row][vc_column width=”1\/2″][vc_single_image image=”25245″ img_size=”500×300″][\/vc_column][vc_column width=”1\/2″][vc_column_text]Another benefit is reducing your overall operational costs. By increasing efficiency in your deliveries to offer a faster more reliable service, you\u2019ll also save money<\/strong>. This needs to be done with your customer in mind, however. As Stolze explains, \u201cWe have learned that although efficiency is crucial for business viability, customer-orientation is equally important. That means that a logistics solution should both ensure efficiency<\/strong>, but also take into consideration what the expectations of customers<\/strong> are.\u201d<\/p>\n

[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column width=”1\/2″][vc_column_text]More importantly though, offering a good delivery experience leads to customer loyalty<\/strong> which is important for sustainable business growth. As Stolze explains, \u201cOnline retailers’ business model depends on satisfied and recurring customers, hence our clients cannot afford negative delivery experiences for their customers. As the delivery experience<\/strong> is a key determinant of whether customers are going to revisit an online shop or not.\u201d This loyalty<\/strong> comes with its own benefits:<\/p>\n

[\/vc_column_text][\/vc_column][vc_column width=”1\/2″][vc_single_image image=”25233″ img_size=”500×300″][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]<\/p>\n