According to a survey, 99% of U.S. consumers say ‘fast delivery’ is important to them when making online purchases. Yet, more consumers feel frustrated with the lack of professionalism and accuracy when having items delivered.
When it comes to ecommerce delivery, customer expectations are continually rising. This creates constant pressure on brands to ensure quick and timely deliveries, as customers are more likely to transact with retailers that offer better customer experience. In fact, up to 61% of shoppers are willing to pay extra for same day delivery, which goes on to prove that customers don’t like to be kept waiting.
According to Gartner, customer experience is the major point of differentiation for most businesses. No wonder companies lose 71% of consumers due to poor customer service.
But what constitutes good customer experience in the logistics industry?
Besides transparency and ease of communication, on-time delivery is the most important metric for customer satisfaction in most industries, and rightly so.
For most shoppers, convenient and personalized delivery service is a key factor influencing their online buying decisions. Unfortunately, the number of consumers receiving late deliveries has increased to 78% from 70% in 2017. Of course, companies who can’t meet their delivery commitments tend to lose business, with 57% of consumers less likely to purchase from a retailer whose delivery experience was not up to the mark.
Understanding On-Time Delivery (OTD)
While different organizations may measure on-time delivery differently, it can be defined as the number of shipments delivered on time to the customer with respect to the total number of orders shipped. And if this number happens to be low, it can signify potential issues in your supply chain that must be addressed to improve the overall efficiency of your processes, as well as the user experience.
Here’s why on-time delivery is crucial for your business:
What Leads to Delayed Deliveries?
There are many reasons that can lead to delayed deliveries, including issues in forecasting, bad SOPs, quality delays, etc. However, last mile delivery is often the most challenging part of the process, leading to maximum delays.
Yes, the last mile is often touted as the most inefficient leg of a supply chain but poorly managing it can have a negative impact on your business. However, modern logistics management software can make it easier for businesses to streamline the last mile and deliver smiles, on time, every time! Integrating AI and ML capabilities, advanced logistics software offer dynamic route planning and predictive visibility into your fleet. In addition, such software can optimize the dispatching process, leading to more deliveries per day, thanks to intelligent task allocation. With real-time tracking, it is also possible to provide accurate ETAs to your customers and keep them informed in the case of any delays, leading to better customer experience.
FarEye has empowered 200+ customers in more than 20 countries drastically improve their delivery happiness score and boost customer loyalty. To know how FarEye can help you achieve the same sign up for a quick demo here.
Research done on IT and business performance has found that (a) the more successfully a firm can align information technology with the business goals, the more profitable it will be, and (b) only one-quarter of firms achieve alignment of IT with the business.
One of the most important pieces in this game of deliveries is the experience that the customer undergoes as a good Delivery Happiness Score is the cornerstone for customer retention and brand equity. For an on-time delivery execution to take place, a well-orchestrated engine needs to function like an oiled machine at peak efficiency.
With a vision to bring uniformity across the nation, Government of India is rolling out e-Way bill from February 1, 2018. This means that the transporters will no longer need separate transit passes for moving goods from one state to another.