If you’re running a business that relies on getting goods to your customers – whether it’s an online retailer or a local pizza restaurant – then logistics will matter. Let’s take a look at how you might approach delivery, and how you might make it as efficient as possible.
Customer Expectations: The Demand for Speed
The efficiencies of the modern age have given customers high expectations when it comes to delivery. Fail to meet those expectations, and your valued customers might decide to shop elsewhere.
In some cases, customers might want their deliveries quickly. In other cases, they might want it cheap, or even free. Balancing these demands, and providing a choice, can help you to retain as many customers as possible.
Of course, the gold standard for delivery has been set by Amazon, with its subscription-based ‘Prime’ service. Customers pay a fixed amount every month in exchange for free next-day delivery on a range of items. Crucially, customers tend to forget that they’re paying the ongoing cost – but if they’re confronted with a bill at the checkout every time, then they’ll be reminded of the cost, and they might decide to turn in the other direction.
Same-Day Delivery: A Competitive Advantage
In some cases, next-day delivery isn’t good enough. You’ll need to go a step further and offer same-day delivery. By offering this service, you can put yourself at a major advantage, and attract more customers. This applies particularly if you’re offering goods that might be demanded suddenly. You might think of a customer who breaks a drill bit midway through a morning’s work, and needs a replacement before the day is done.
Same-day delivery was once a luxury in the UK, but it’s increasingly being offered by a range of retailers. Fail to incorporate it into your offering, and you risk being left behind.
Streamlining Operations for Faster Delivery
Fast delivery means not wasting any time. You’ll therefore need to streamline your operations and hone your supply chain. Think about the things that slow down an order after it arrives, and how those obstacles might be eliminated. You might incorporate technological tools, like automation, tracking, and real-time route optimisation.
One major benefit of technology is that it allows customers to be provided with more information about where their package is. Customers tend to be more satisfied when they have this information – which is why Uber has been so successful.
Customer Loyalty and Retention Through Efficient Delivery
It’s essential that you deliver on your promises. If you offer your customers cheap and fast delivery, and you fail to provide it, then you’ll damage your relationship with them. When customers stop trusting you, they’ll stop placing orders – and thus it’s essential that you fulfil the promises you make. If you don’t satisfy your customers, they won’t be loyal, and your business will fail.
This applies to returns, too. When things go wrong, you have an opportunity to retain customers by providing an excellent service.
The Financial Impact of Efficient Delivery
Of course, efficiency savings aren’t just there to benefit the customer. They might also reduce the amount that the business spends on delivery. Of course, slow delivery also imposes costs, in the form of lost sales and reputational damage. In the coming decade, it’s unlikely that customer expectations will get any less stringent. Optimising your service now is therefore vital!
