A Last Mile Operation is the final frontier, the fullback of the B2C supply chain. The last mile can either intercept errors before they impact the customer or inadvertently create them. With a focus on the end customer, it becomes crucial to shape internal processes to ensure an exceptional customer experience and encourage customer retention.
Over the course of my career to date, I've been witness to the myriad intricacies of last mile delivery be it 48r, next day, same day or same hour. Along the way, certain principles have stood out as beacons to guide a business towards exceptional customer experience.
- Aligning with Customer Priorities:
- The data shows that missing items or inaccurate orders mar customer experiences more than late deliveries. Imagine an order arriving within 15 minutes, but with items missing; the charm of speed is instantly overshadowed. What's revealing is that customers are more forgiving of a delay than receiving the wrong order. Tailoring operational strategies around these nuances is key. Investing in robust inventory management systems such as 'Available to Promise' is a no brainer. Grab Market's approach of offering discounts for scheduled deliveries versus on-demand orders is also a prime example. Similarly, extending or foregoing auto-rejection of time-based orders (more relevant to Qcommerce) and instead managing delivery expectations, resonates more with customers.
- Promising Right and Over-delivering: Customers' trust hinges more on timely deliveries than on swiftness. Imagine an order arriving ahead of schedule, but with items missing or the wrong item; the charm of speed is instantly overshadowed. Brands need to strike a balance between competitive delivery promises and what's operationally feasible. An order that consistently arrives when expected, or even before, not only meets but often surpasses customer expectations. Over time, this consistent delivery pattern establishes trust, an invaluable currency in today's hyper-competitive market.
- Be Transparent, Be Honest: In the digital age, where information is abundant and consumers are ever more discerning, honesty remains the linchpin of customer relations. If there's a delay or an error, a straightforward acknowledgment goes a long way. Open and transparent communication reinforces the brand's integrity, and in the end, an honest brand is one that customers return to, time and again. Domino's Pizza is a shining example of this ethos, with 'Dom', their real-time pizza tracking bot, ensuring customers are consistently informed about the status of their order (even the delays).
- Preparedness for the Inevitable: Even the best-laid plans can encounter bumps. The real distinction for a brand is in its post-error handling. Zappos, an Amazon owned company demonstrates error resolution excellence by owning their mistakes and empowering their team to fix them, by offering remedies that range from complimentary upgrades to a more personalised touch, such as sending flowers. Furthermore, automation can play a crucial role in streamlining this process. Think of systems that automatically apply discounts to late deliveries, both simplifying the resolution process and reducing the need for customer service intervention. The key? Optimise for fewer human touchpoints, and foster both internal efficiency and customer satisfaction. This is perfectly summarised in one of Amazon's key Customer Service Tenets - “Anticipate customer needs and treat their time and attention as sacred.”
- Harmony of Ops and CS: The symphony between operations and customer service, though often unsung, forms the very core of delightful customer experiences. Seamless collaboration ensures that any hiccup is promptly addressed, reinforcing customer trust and fostering a climate of reliability. Synergies between these teams can lead to more effective automations through AI tools such as Intercom or build macros in more traditional CS tools such as Zendesk.
It is worth noting that things become more complex when dealing with 3P merchants. The core principles still apply, but the level of control is less. So you focus on what you can control (i.e. robust error resolution and communication systems), and what you can influence thereafter (i.e. inventory control, order accuracy, delivery time) through building a strong relationship with your merchants.
In wrapping up, the essence of last mile delivery isn't just in the product reaching its destination, but in the journey's entire narrative – a narrative that should be punctuated with trust, precision, and care.
#LastMileOperations #SupplyChain #OpsExcellence #CustomerExperience
