Top Challenges Facing Retailers in Delivering Phenomenal Delivery Experiences
Mastering Exceptional Shipment Services: A Handbook for Retail Success!
In today's digital age, online shoppers are swarming in massive numbers year after year, and so are their delivery expectations. A whopping 268 million digital buyers were recorded in the United States in 2022 alone, a number projected to climb up to nearly 285 million in 2025 [Esource].
Yet, despite the rise in retail efforts, retailers are struggling to provide stellar delivery experiences for their customers. Here's a rundown of the major roadblocks that retailers face:
1. Surge in Delivery Hiccups
Unexpected incidents during the delivery process that disrupt timely delivery are known as delivery exceptions. These can significantly impact a company's finances and customer relationships. Minimizing delivery exceptions is vital for improving operational performance during the last mile.
2. Lack of Personalized Delivery Options
Every customer has unique needs, and retailers must cater to their delivery preferences. While some businesses strive to adhere to faster delivery timelines, they often fall short in the long run due to capacity and cost constraints. Subpar delivery experiences for customers are a common outcome. Retailers require a robust logistics solution to align their capacity with customers' delivery preferences.
3. Faulty Deliveries
Failed deliveries are even more problematic than late deliveries. Fuzzy addresses and unoptimized route plans are often the primary reasons for delivery failures. Utilizing cutting-edge technology such as fleet tracking software is essential to overcome this obstacle.
4. High Shipping Costs
High shipping costs are the primary reason for 58% of cart abandonments among US retail shoppers. To save money and improve customer experience, retailers should consider partnering with suitable carriers and investing in efficient contract management tools to manage carriers more effectively.
5. Inadequate Order Visibility
Lack of transparency in the delivery process can lead to missed deliveries. Customers crave transparency in this digital era, and with real-time order tracking, they can easily monitor the progress of their orders and avoid missed deliveries.
6. Soaring Carbon Emissions
According to recent reports, carbon emissions are reaching alarming levels, causing significant damage to the planet. Customers are gradually leaning more towards sustainable deliveries, and retailers looking to minimize carbon emissions should invest in technologies like fleet tracking software.
Overcoming the Delivery Dilemma with Last-Mile Delivery Software
Modern technology is revolutionizing retail logistics, transforming e-commerce to home deliveries and elevating customer experiences to new levels. Fortunately, last-mile delivery software offers solutions to help retailers provide tailored delivery experiences and expand their customer base.
Here's what your last-mile delivery software should boast for an increased customer base and customer loyalty:
- Customized Delivery System Integrated with Fleet, Cost, and Customer Preferences By adopting an in-built delivery-linked checkout feature in your logistics solution, you can create capacity-led delivery plans that cater to customers' preferred time slots and ensure profitable deliveries.
- Smart Geocoder Wrong addresses frequently lead to delivery failures. By investing in a robust dispatch management platform, you can convert ambiguous geographical addresses into accurate geographical coordinates, reducing the chances of failed deliveries and cutting down empty miles, thus improving driver satisfaction.
- Efficient Contract Management for Reduced Carrier Costs Partnering with the right carrier can save money and improve customer satisfaction. Using a dispatch management solution with an in-built contract management system allows you to manage carriers more effectively by optimizing your carrier selection based on cost, cargo size, track record, and other factors.
- Real-Time Tracking Young consumers, such as Gen Z and Millennials, expect end-to-end visibility for their orders after placing them. Implementing technologies like fleet tracking software enables you to provide real-time updates and timely alerts to customers, increasing their satisfaction and reducing missed deliveries.
- Route Plan Optimization to Minimize Carbon Emissions Minimizing your fleet's time on the road is vital for achieving sustainability in last-mile delivery. A delivery solution that offers optimized route plans can help your drivers complete their deliveries more efficiently, minimizing carbon emissions and boosting their First Attempt Delivery Rates (FADR).
In conclusion, misaligned logistics can spell disaster for retailers in terms of customer trust, sales, and reputation. Investing in a robust last-mile delivery software integrated with delivery system, geocoding, contract management, real-time tracking, and route optimization can help retailers provide superior delivery experiences, bridge the customer satisfaction gap, and cement their competitive edge.
Importance of Omnichannel Fulfillment for Enhancing Customers’ Experiences
With the rise of digital consumers, omnichannel fulfillment has become a necessity for retailers to meet customers’ different expectations across various touchpoints. According to a survey, 73% of customers expect seamless information availability, regardless of the channel they are using [1]. Retailers that fall short in this regard risk losing customer loyalty and sales. Here are the top reasons why omnichannel fulfillment is crucial for enhancing the customer experience:
- Consistent Branding: A cohesive branding strategy across all channels contributes to a stronger customer connection. This ensures that customers have a positive and consistent experience, regardless of the shopping method they choose.
- Seamless Order Fulfillment: Coordinating inventory and shipping processes between online and offline channels can be complex, but an omnichannel approach simplifies the process, allowing retailers to fill and ship orders more efficiently.
- Greater Flexibility: Omnichannel shopping caters to customers with varying preferences, enabling them to shop across multiple platforms, pick up order in-store, or return merchandise with ease.
- Enhanced Customer Engagement: Personalized shopping experiences motivate customers to stay loyal to a brand. By leveraging customer data and insights across channels, retailers can create targeted offers, promotions, and content that resonate with their customers.
- Greater Competitive Advantage: With an omnichannel presence, retailers can reach a wider audience and optimize their resources to maximize revenue.
Reap the Rewards of an Omnichannel Fulfillment Strategy
Adopting an omnichannel fulfillment strategy can help retailers improve customer experience, boost sales, and gain a competitive edge. By investing in solutions like order management systems, warehouse management systems, and transportation management systems, retailers can streamline their operations and enhance customer satisfaction while reducing costs and increasing efficiency. With the right tools and strategies in place, retailers can provide a seamless shopping experience across all touchpoints, creating loyalty and driving revenue growth.
([1] Zappos, “Synqee Alguire: A Competitive Advantage Through Omnichannel Fulfillment,” Zappos Insights, 2017)
- To minimize delivery exceptions and improve operational performance during the last mile, retailers should invest in a robust logistics solution capable of aligning capacity with customers' delivery preferences, such as a last-mile delivery software with an in-built delivery-linked checkout feature.
- To cater to customers' unique needs and preferences, retailers should leverage technology like last-mile delivery software to optimize their carrier selection based on cost, cargo size, track record, and other factors, reducing high shipping costs that lead to cart abandonments among US retail shoppers.
- Retailers can minimize the chances of failed deliveries and cut down empty miles by adopting a dispatch management platform with a smart geocoder, capable of converting ambiguous geographical addresses into accurate geographical coordinates.
- To increase customer satisfaction and reduce missed deliveries, retailers should implement real-time tracking technologies like fleet tracking software, which enable the provision of end-to-end visibility and timely alerts to customers.
- To expand their customer base and customer loyalty, retailers should consider an omnichannel approach to fulfillment, integrating order management systems, warehouse management systems, and transportation management systems to streamline operations, enhance customer satisfaction, and reduce costs and increase efficiency across all touchpoints.
- By adopting an omnichannel fulfillment strategy, retailers can gain a competitive edge, reach a wider audience, and create loyalty by providing a seamless shopping experience across online and offline channels, delivering personalized offers, promotions, and content that cater to their customers' preferences.
