63% of consumers use real-time tracking when the service is available. And according to a survey conducted by Bettermile, a German based last mile technology company, the same percentage (63) of users engage with the feature 3+ times over the course of a delivery day. This means that parcel tracking has become an excellent opportunity for retailers to engage with their customers. The branded tracking front-ends enable targeted advertisements and promotions, fostering engagement and the potential for cross-selling and upselling, thereby increasing sales and loyalty.
‘Retailers need to provide a stellar customer experience all along the customer journey. The service level should be consistent on all touch points with the customer to ensure a seamless shopping experience,’ says *** from Bettermile. Analysis of the financial crisis of 2008 shows that customer experience leaders saw a shallower downturn, rebounded more rapidly, and achieved three times the total shareholder returns in the long run compared with the market average. A study from McKinse clearly indicated that loyalty is achieved through better communication and engagement.
Research has shown that of customers who are satisfied with the delivery process, 74% increase their spend with retailers, and 82% share their positive experience with a friend or relative. ‘The delivery experience affects how customers perceive a brand,’ says Simon Seeger, Managing Director Bettermile.
Engaging the logistics provider
The pressure on retailers to provide a consistent and stellar customer experience is passed on to the logistics companies. These are being held accountable for their services by the shippers. And the list of what they asked is:
- detailed reporting
- cost effective solutions
- service stability
- seamless technological integrations
‘Last-mile delivery service providers can harness real-time data to optimize the delivery process and provide reporting for the whole trail from warehouse to the consumers’ door.’ Real-time tracking also empowers logistics companies to offer customers transparency on the status of their order and feel involved in the delivery process.
In the end, service options like preferred delivery time frames or alternate dropoff locations have huge operational impact. Flexibility for the consumer comes at a high cost for the logistics companies. Only technological solutions can bridge that gap between productivity and customer experience.
Engaging the consumer through better logistics
‘Real time tracking is a two-way street: Consignees often use real time tracking to get more in-person deliveries and actively change their schedule to ensure the perfect handover, making life easier for delivery drivers and increasing operational efficiency for carriers,’ continues Simon.
Bettermile can see how engaged consumers are with their shipment. They want to know where their order is and really make use of real-time tracking to check the status of their order. Bettermile regularly surveys their tracking users, here are some conclusions:
- 94% use real time tracking sometimes (31%) or almost always (63%) when the service is available
- 49% of our live parcel tracking users say they check the real-time status of their delivery because they wish to receive their order in person
- 63% of real time tracking users engage with the feature 3+ times over the course of a delivery day.
One example would be a case study with BVB Dortmund. On average 60% of the customers who ordered products from the BVB online-shop, used the live package tracking application to check the estimated delivery time of their parcel. The high click rates are evidence of great user engagement. Indeed, the average user clicked eight times to check the location of their parcel. This engagement opens the door to reactivating the sales cycle.
Learn more how Bettermile can help you transform your last mile operations here!