Transport and logistics as an industry has not changed much over the years, there hasn’t necessarily been a need to radically alter the way in which we deliver goods to customers. However, that is slowly changing, the transport and logistics sector is starting to evolve spurred on by the world’s technological revolution over the past decade. It isn’t as much about the industry changing, as it is about people themselves changing.
The attitudes of consumers brought about by Amazon’s disruption of the e-commerce space, whereby consumers now expect faster and more reliable service, has bled into the B2B market with those expectations now felt by B2B customers.
A recent Salesforce study found that 84% of customers say the experience a company provides is just as important as the service itself whilst 66% would pay more for a superior experience, so what does a great experience look like for consignors?
· Tailored solutions for each customer
· Friendly and reliable customer service
· Easy-to-use bookings management system
· Fully Chain of Responsibility compliant
· Provides value-added services
The sentiment towards service and experience among consignors is largely in-line with the Salesforce research, as indicated by Inbound Logistics’ 3PL Perspectives 2020 report, where 77% of consignors were found to believe service is more important than price when it comes to selecting their logistics providers.
However, in that same study 70% of consignors also believe that cutting transport costs is a top concern for their business. A businesses transportation function is at the heart of the experience they deliver, in many cases it’s some of the only face-to-face interaction a business will have with their customers. To deliver a great experience as whole, what’s needed is a reliable, punctual and hassle-free carrier.
There appears to be a clear disconnect here, if service is more important than price – which it should be – the idea that cutting transport costs whilst simultaneously using a carrier that delivers an extraordinary customer experience isn’t realistic.
Before cutting costs at the expense of service, the question needs to be asked… What impact does customer dissatisfaction have on a business?
A negative customer experience can have devastating effect on your business, multiple bad experiences will consistently have you attempting to cover your losses. According to a Genysys study conducted in 2009, the cost of negative customer experiences in 16 major global economies was approximately USD $338.5B per year, this has likely increased over time. Nearly 70% of customers in that same study said they would stop using a supplier if they had a poor customer experience.
Additionally, research conducted by Bain & Company found that increasing customer retention rates by 5% increases profits by 25-95% and by simply taking a customer focused approach a business can grow revenues by 4-8% above their market. Given this, by making the decision to not cut transport costs, reducing the risk of customer loss from poor service, you’re likely to recoup whatever money you may have saved through growing and retaining your customer-base.
Providing a stellar customer experience should be at the forefront of your transport decision, simply choosing the cheapest carrier will more than likely hurt your business in the long run, poor service leads to disloyal customers.
Yellow Express has built a reputation for delivering exceptional customer service, from the team in the office to our fleet of drivers, we take pride in how we interact with both our clients and their customers. To discuss how we can help ensure you’re not losing out from bad customer experiences, speak to us today!