Despite the ever-increasing demand for excellence in delivery, the delivery industry as a whole is failing to meet these expectations.
- 87% of customers who say they had a great experience will make another purchase from the company, compared to 18% of customers who had a very poor experience.
- 96% of customers say customer service is important in their choice of loyalty to a brand.
- Customers tell an average of nine people about a positive experience with a brand, but they tell 16 people about a negative experience.
Delivering customer satisfaction is still a priority for the Post and parcel market right now. Despite challenging times, the market is still powering on and has been recognised as one of the newest essential services. But how can your business still tap into your customers’ everyday needs and improve your performance despite greater pressure?
We’re more reliant than ever on the parcel market to deliver the goods we need
The parcel market has grown during the pandemic, in line with evolving customer expectations. The industry has been required to adapt to high parcel volumes, returns issues and changing service levels to protect staff and customers. This has led to more delivery problems, as the number of parcel deliveries increases.
According to wearecitizensadvice.org.uk/ (2020), half of all people (51%) are more reliant on parcel deliveries than before the coronavirus outbreak. Their research has also shown that as the demand rises, so does the delivery problems. In April, just after the start of the lockdown, more than 1 in 4 people (28%) had a problem with a parcel delivery (such as late delivery or incorrect tracking information). In May, as people began to receive more parcels, this rose even higher to 1 in 3 (33%).
5 areas KEY to customer satisfaction:
1. Delivering the services that customers want
There has been a distinct rise in the number of service types being used by shippers. The usage of these different service types has gone up by 34% overall amongst shippers. According to *Triangle’s latest UK express parcel distribution survey (2020), non-precise time-slot next day delivery is the most commonly used service (over 70% of all parcels sent), but there is a recent shift in ‘economy’ 2-3 days and ‘premium’ same-day delivery services. Compared with last year, next day delivery fell by 13% (of total parcels sent), whilst 2-3 days delivery service volumes were up by 6% and same-day volumes up by 2%.
2. Delivery service standards
Poor service or experiences with logistics will leave a lingering negative impression, causing a damaging reputation. They expect convenience and don’t want to deal with delivery problems. Great experience comes from great service which occurs when a business meets or exceeds customer expectations. But what happens when a business fails to meet customers’ expectations? Poor service delivery adversely affects the revenue growth of businesses. Companies often end up neglecting the multiple impact poor service can have on their market reputation.
3. Improving customer confidence levels
Customers often experience a lack of trust and confidence with parcel operators in terms of whether they will receive their goods on time, or at all. Obtaining and maintaining the trust of the customers is an important factor in building strong relationships and preserving loyalty. This links back to having an adequate operational strategy in place and the processes your business has to deliver a high standard of service and meet growing demands.
4. Allowing flexibility
There has been a sharp rise in the number of different service types in the desire to meet customers’ needs. Parcel operators need to be highly adaptable to meet these requirements, whilst still providing customers with a fantastic experience. A service that is growing in popularity is pick-up points. Customers being able to collect at their convenience is a growing preference, and one where technology enhances the offering. By giving customers control over their delivery; leaving a certain margin for the customer to recover their package, you can improve the customer experience at the lowest cost.
5. Improving transparency
Delayed deliveries are a pet hate of customers and many courier companies struggle with this. A common performance factor where carriers seem to be struggling is regarding a lack of notification when they are either going to be late for a delivery or fail to deliver at all. Demonstrating efficient and effective communication is key to maintaining customer satisfaction.
Customer satisfaction is pivotal in the current climate and the ever-increasing demand for excellence in delivery is putting more pressure on parcel operators, with overall service levels often failing to meet expectations. However, with the relevant and efficient frameworks in place, customer satisfaction can be improved and restored.
HypaShip can provide direct solutions to these barriers and common issues faced by customers, to help maintain and grow customer satisfaction in your business. We offer complete solutions that are fully integrated with your shipment infrastructure, to improve your agility as a business and the service provided to your customers.
Get in touch today and see how HypaShip can support you in your future goals.
September 2020
