We always think that the best reason to buy from any e-commerce website is the least price, i.e., the more discount you give, the greater the sales you receive. But do you know that 55% of customers who have had bad shipping experience says, they won’t be buying from that website again, so more than half of your customer base falls despite it’s giving heavy discounts because of bad logistics. The expert says that it is 5 times easier to retain an old customer rather than finding a new one. So, firstly we’ll focus on the ways logistics can improve customer experience and this will, in turn, prove to increase sales and most importantly retain the customer, consequently making them loyal to your brand. In short, it can be described as, “If discounts help you get new customers, proper logistics helps you keep them loyal”. So let’s see various aspects of logistics which will not only retain the customer but also will increase the sales through customer recommendations itself.
1. Keeping the store up to date (literally)
Managing inventory correctly and choosing a reliable supplier with efficient logistics and a wide range of distribution is really important. This ensures that if you display a product on your website with a call to action BUY button and then the item is not in stock or if it would take a longer amount of time than other websites then it would lead to loss of customers. In today’s world of lightning-fast delivery, your efficient logistics will prove itself to have the highest impact on the customer, and a strong reason to buy the product from you. This, in turn, increases sales.
2. Relying on positive feedback from the customer
Below every product, there’s a review tab where customers give ratings and write their experiences that may include grievances or some happy/funny experience. While our focus here is not inclined towards product experiences, more than often customers write about their experiences providing attractive feedback like on-time delivery, tracking facility, replacement service, etc. All this is usually managed by an organized logistics chain. Therefore, if an efficient and flexible logistic is providing good service then customers are forced to write about their experience, give good reviews, which becomes an indirect source of the increase in sales.
3. Removing the ‘What if?’
There’s always a ‘what if?’ in the customer’s mind. What if these shoes don’t fit? What if this dress is too long? What if the sound is too low? etc. The common thoughts that incur in the customer’s mind need to be dealt with. A question would arise how can one deal with this and stop it from hampering our sales. To overcome this we must complete the end to end logistics distribution channel which takes care of the delivery and then take back the product if the customer wishes to return it. Doing this will make the customer fearless while shopping. They’ll feel monetarily safe whilst shopping. Now, fewer-ifs are directly proportional to sales growth. It is proven that after implementing the return policy, sales have gone up and the return of products has always been negligible.
4. Being flexible
A customer likes if he/she is given choices. Most importantly, the freedom to choose anything from what is available with minimum effect on the price affects the sales. So being flexible and having options for logistics, like air, rail, road transport in the distribution network makes the company more reliable. If one has some issues with a certain form of transportation in terms of delivery the customer’s needs can be fulfilled by some other form.
Hence these are the ways, having an efficient logistics not only improves your customer base but also helps in retaining your customers and make him/her loyal to your website.