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Customer Retention in Logistics

Logistics is an industry that is constantly moving and at quick speeds. They must adhere to tight deadlines and a high level of proficiency to keep up with demand.

In today's modern world, the logistics industry has become essential to our global economy. However, in a time where the competition is tough, logistics companies have to adapt quickly.

Building Customer Loyalty

Thanks to the growth of eCommerce, online shopping, and emerging small businesses, the logistics industry shows no sign of slowing, plus, consumers have now grown accustomed to specific standards when it comes to making purchases online.

Industry expectations can be met primarily due to recent innovations in technology.

However, that also means there is a significant amount of competition. If a customer doesn't see what they want on your site or aren't satisfied with your services, they can go to another website in one click. As a result, the potential to keep that customer reduces, which makes building brand loyalty a challenge.

So what should logistics companies be doing to ensure that they can retain customers for the long term?

Customer Satisfaction

Business owners understand the fundamental part of their business's success and growth is the customers. Part of that process is not just attracting them but keeping them returning for your product or service.

To do this, you must first and foremost understand your target market and their needs, wants, likes, and dislikes. Take the time to know what makes your customers enjoy their experience with your company over your competition.

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The Expectation Gap, Survey Report. Brightpearl

Fulfillment

Every industry has particular expectations from the customer that are unique to their offering. Logistics is no exception. Fulfillment management should be as streamlined and efficient as possible. From the purchase to delivery, every step in the process should consider the customer.

We discussed in our latest article that 54% of customers considered a missing item or receiving the wrong thing a reason to no longer do business with a company. Incorrect fulfillment can be detrimental to customer retention and satisfaction, so its essential orders are fulfilled correctly.

Quick Delivery Times

The heart of logistics is rooted in how quickly products are delivered. Now, companies can offer next-day delivery, and in some cases same day. These offerings drive customers in their purchase decisions, with 45% of customers stating they are more likely to do business with a company that can provide these options.

From the moment a product is ordered, it's on a scheduled timeline for final delivery. If the product is missing, of poor quality, or not delivered on time, it will significantly affect the overall experience.

Customer Support

In an industry such as this, you never want to underestimate the importance of customer support and communication. Without effective communication, no one would feel confident in the persons they are doing business with. In addition, customers want to contact someone at any time during the process, as they may have questions or need assistance.

Being in contact with the customer, whether it's an update on shipping or a confirmation the order is received, is imperative to customer satisfaction. With 58% of people saying they will not return to a business if they had a bad customer service experience. Due to this, it's all the more important to provide quality customer service.

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Ease of Use

The process of placing an order, shipping, and returns should be carried out with as little hassle to the customer as possible. Returns impact overall customer satisfaction, with 96% saying it is a significant factor in purchasing decisions. However, it doesn't stop there; how people interact with your app or website also affects your customers' experience. A simple, straightforward interface and design can provide better functionality for its users.

Backend Operations that Aid in Retention

There are many contributing factors to how your customer will feel by the end of the transaction. The front end of logistics is essential; however, the back in is as important. Allowing your workflow and employees to perform at their best comes by putting systems into place that can be streamlined and enhance the company's overall efficiency.

Resolving Customer Issues

With all the care that goes into the process, mistakes can sometimes happen. Customers generally understand this fact; that is why how you handle each situation is critical. On the other hand, if a customer can have the problem quickly resolved and with little effort, they may conclude that their experience was still satisfactory.

Customers want to feel that the person helping them cares about resolving their problem. Therefore, providing exceptional customer service can be a simple way to capture your part of the market and gain a competitive advantage.

Keeping Schedules

Being on time is crucial to any logistics company. There are many schedules to keep in mind and maintain throughout the process. Each stage has a time frame to complete the assigned task. Processing, filling, shipping, and delivery must work together to keep the workflow running smoothly. Remember, customers, rate quick delivery and response times as a priority when choosing a brand.

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The Expectation Gap, Survey Report. Brightpearl

Utilizing Technology

All of the points discussed in this article can be improved by using technology. Technology can make every part of the process more efficient. It helps cut down the possibility of falling beyond in fulfilling orders or having an order filled incorrectly. The use of these innovations dramatically increases customer satisfaction and retention.

Although meeting the customer's needs is a huge factor in customer retention success, so is making sure that all the parts of your business are running cohesively. The combination of the two helps to build strong brand awareness and loyalty. To learn more about how we help our customers improve their operations and ultimately their customer retention, head to our blog! If you like to know more about how we can help your business grow, contact us here at Dixtra!