There’s an old saying that “slow is smooth and smooth is fast” — taking the time to perform a job accurately is faster than attempting to rush through it, making mistakes, and rectifying them.
Unfortunately, time tends to be in short supply for most organizations, meaning they not only have to be accurate, but they need to do so quickly. As consumer expectations continue to grow, the hidden thorn of modern convenience, retailers will really have to zero in on their processes to ensure an accurate and on-time delivery. Considering the tremendous impact late or inaccurate orders can have on customer satisfaction and a company’s reputation, the need for tighter process controls is much more dire.
In its Delivery Benchmark report, Metapack found that 55% of consumers across all markets expect delivery to arrive in two days, yet only a third of merchants currently offer this service. A Forbes study found 90% of global shoppers expect two- or three-day shipping to be standard, while 32% of them will abandon their carts if estimated shipping times are too long.
That said, guaranteeing on-time delivery each and every time and delivering on that guarantee are two very different things. While improving delivery accuracy will certainly play a role, the process of getting there isn’t as straightforward.
Why Meeting Customer Expectations is Crucial
In today’s competitive market, meeting these expectations is not just about delivering a product; it’s about delivering an experience. Customers expect seamless interactions, timely responses, and a hassle-free shopping journey. They want to feel valued and understood, and their expectations reflect this desire for a personalized and efficient service.
Meeting customer expectations is crucial for several reasons. Firstly, it directly impacts customer retention and loyalty. Satisfied customers are more likely to become repeat buyers and even brand advocates, spreading positive word-of-mouth and enhancing the brand’s reputation. Providing excellent customer service can set a business apart from its competitors, creating a unique selling proposition that attracts and retains customers.
Moreover, meeting customer expectations can lead to significant cost savings. When customers receive what they expect, the likelihood of returns, complaints, and negative reviews decreases. This not only saves on the costs associated with handling returns and resolving complaints but also protects the brand’s reputation. In an age where online reviews and social media can make or break a business, maintaining a positive reputation is invaluable.
This article will explore the importance of on-time delivery and the impact customer expectations have on day-to-day operations.
Living Up to Customer Expectations
If technology has evolved rapidly, customer expectations have evolved right along with it. E-commerce and digital shopping have significantly changed consumer behavior. They’ve changed not only how and when they shop but also how they look at retailers and what they expect from those retailers in exchange for their hard-earned money. According to a recent VML report, approximately 58% of all consumer spending is done online.
A consumer survey report from ECDB also shows that customers are prepared to wait roughly 2.15 days for deliveries, regardless of category. A lot of this has to do with the ‘Amazon Effect,’ which relates to the impact Amazon has had on the evolution of customer expectations, as it continually pushes the envelope in terms of convenience and delivery times. The day Amazon announced free two-day shipping, the very nature of retail changed forever. This has forced retailers to also offer competitive pricing and quick shipping to meet customer expectations.
The flip side of this is the repercussions of failing to live up to such modern customers’ expectations. E-tailers live and die by their reputation, and late or inaccurate deliveries are a quick and surefire way to tarnish what might otherwise be a sterling reputation, jeopardizing customer satisfaction and new or repeat business. Soliciting customer feedback and continuously improving delivery operations can help businesses stay aligned with the evolving expectations of their customers.
Strategies to Ensure On-Time Delivery While Improving Customer Experience
While delivery time and accuracy are obviously crucial when it comes to managing customer expectations, customer experience is equally important. For example, providing visibility through end-to-end tracking of their orders provides the customer with a level of control. They know when their package is going to arrive and can plan accordingly, which is especially important for big-ticket or valuable orders. Of course, daily operations also benefit from this level of visibility as it provides invaluable insights into daily operations and highlights potential weak spots in the supply chain.
Effective management of delivery drivers is crucial in optimizing logistics and ensuring on-time deliveries. Flexible routing and planning can significantly enhance delivery success rates by accommodating customer schedules.
End-to-end tracking can be achieved in any number of ways, whether through advanced technology such as RFID tracking systems or from utilizing sophisticated software such as a warehouse management system. As there is no “one-size-fits-all” solution, a hybrid approach is typically the best bet.
Equally important to tracking is carrier management. Every carrier is unique in terms of service offerings, reliability, and, arguably the most important from a business standpoint, shipping costs. Yet, most organizations will find a carrier and stick with them as personally vetting new carriers can be a time and labor-intensive prospect.
Fortunately, this is a prospect that can be resolved simply by working with the right delivery technology provider or a 3PL. Metapack has built an extensive network of over 300 carriers, which can be accessed via a single integration, while 3PLs also tend to offer extensive carrier libraries.
Here are a few more tips for organizations trying to improve their on-time delivery and delivery accuracy ratings.
Streamlined Logistics
A well-oiled logistics engine is the beating heart of a successful retail business. Understanding and implementing process improvements throughout the entire supply chain, from supplier to end customer, is the key to an efficient and smooth operation.
Logistics management systems can help organizations coordinate operations regardless of location, which is especially useful for e-tailers working out of multiple warehouses. Coordinated shipments, accurate inventory cycling, and real-time delivery tracking all work together to improve operations.
Another viable strategy for streamlining logistics to improve order accuracy is to automate any systems that don’t need direct human intervention. Order picking and packing, label generation, and shipment forms are all opportunities for human error to negatively affect delivery accuracy. Automated systems, specifically data-centered systems, remove much of the potential for human error and improve workflows and shipping accuracy.
Improved Return Logistics
Returns are inevitable, especially with e-commerce. According to the National Retail Federation, $743 billion worth of merchandise was returned in 2023, roughly 14.5% of total sales. The cost of return logistics is massive and is often a considerable drain on resources, especially during peak seasons. According to the NRF customer survey report, “for every $1 billion in sales, the average retailer incurs $145 million in merchandise returns,” making reverse logistics a very relevant topic for retailers.
Returns are also a touchy subject for customers. Customer expectations are centered around a quick and easy return process. The easier and faster the process is, the more likely customers are to place another order in the future. The inverse is also true: An inefficient or difficult-to-manage returns process is likely to dissuade customers from placing another order and more likely to lead to negative feedback.
Returns can also gum up operations, especially in the warehouse, as inventory coming and going can quickly skew cycle counts and slow operations, resulting in an overall drop in efficiency.
Improve Communications
There’s a fine balance when it comes to communicating with customers. The average person receives roughly 121 emails every day. While most of that gets flagged as spam, what does get through can very quickly become an annoyance. Still, companies need to be proactive when it comes to communicating, especially if there’s a minor delay that could affect an otherwise on-time delivery.
A good strategy for managing communications and the customer experience is to provide multiple options to customers, allowing them to choose how they receive notifications. While some may prefer email, other customers might prefer push or SMS notifications. Providing multiple options allows customers to choose what works best for them and improves their overall experience.
More than a simple notification regarding package delays, having a responsive customer service team helps customers reach out in the event of questions or concerns and will go a long way toward building trust and exceptional customer loyalty.
Customer Expectations and On-Time Delivery: Part and Parcel
Accurate and timely delivery is a critical touchpoint in the customer journey. It’s the moment when the customer’s anticipation culminates in the receipt of their purchase. On the other hand, shipping errors and delays can tarnish the customer’s perception of the brand, leading to negative feedback and potential loss of future business.
The ecommerce industry is expected to touch $6.3 trillion by the end of 2024. Total retail sales for the entire world will land somewhere between $29 and $30.57 trillion. Simply put, customers have more choices about where to spend their money than ever before. Offering a superior product is great, but if the company’s offering fails to live up to customer expectations, it has little chance of being truly successful.
Delivery accuracy is not just about getting a package from point A to point B; it’s about ensuring that the customer’s expectations are met every step of the way. By prioritizing delivery accuracy, businesses can enhance customer satisfaction, build trust, and foster long-term loyalty, ultimately leading to cost savings and revenue growth.
Ensuring accurate and timely deliveries is essential for meeting customer expectations and fostering loyalty. Metapack offers comprehensive solutions to help businesses achieve these goals:
- Extensive Carrier Network: Access over 350 carriers and 4,000 delivery services through a single integration, enabling flexible and efficient shipping options.
- Delivery Management Software: Automate carrier selection and expedite label printing, even during peak periods, to maintain smooth operations.
- Branded Tracking and Notifications: Provide customers with real-time tracking and personalized updates, enhancing transparency and satisfaction.
- Data-Driven Insights: Utilize analytics to monitor shipping performance, identify areas for improvement, and make informed decisions to optimize delivery processes
By leveraging Metapack’s solutions, businesses can streamline logistics, reduce errors, and consistently meet customer expectations, leading to increased satisfaction and loyalty. Click here to learn more about how Metapack can help you deliver on both delivery accuracy and customer expectations.