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An Introduction to Delivery Experience Management (DEM), Reference (

An Introduction to Delivery Experience Management (DEM)

Reference

https://www.getconvey.com/blog/delivery-experience-management-last-mile-future/

Keywords: experience management, last mile delivery costs,

Delivery Experience Management (DEM) is the art of proactively ensuring that your customers get their orders how and when they expect, taking intelligent action to correct issues along the way and continuously communicating to uphold brand promises.

Successful DEM results in happier customers, actionable insights and more efficient transportation, netting top line growth while managing costs.

Ecommerce has changed supply chain reality at mind-numbing speeds. For decades, retail supply chain professionals were concerned primarily with back-of-house operations. They made sure products were manufactured and got to transit points or retail brick-and-mortar locations on time and in full (OTIF). Customers were other companies – mostly faceless entities whose processes needed to be adhered to in order to succeed. With that focus, there was a lot of investment in the first and middle mile and less worry about ‘delighting’ the customer.

Doing things the way they’ve always been done won’t work. Applying a few tweaks to an old process isn’t enough. Reacting when a customer is dissatisfied means you are already too late. Too late to win their loyalty, too late to preserve your margins and too late to thrive in the era of Amazon.

Transportation costs that are sunk into last mile delivery can make up 8% of annual turnover, eating into margins.

https://www.gartner.com/en

The email, phone call and spreadsheet driven interactions that were used to keep track of hundreds of full-truckload deliveries from DC to store have been stretched and create intractable challenges when managing millions of deliveries to consumers. Customer care teams once responsible for addressing product concerns and trying to upsell are now being taxed with skyrocketing “where is my order?” (WISMO) calls and becoming ad hoc logistics coordinators.

DEM puts the customer at the center of the equation. DEM doesn’t leave the last mile to chance. But first, DEM requires a shift in mindset from reactive to proactive management.

Visibility: Real-time access to data about last-mile deliveries is required for all stakeholders. Logistics professionals need to know what’s going on in the network. Carriers need to understand what their shippers see. Customer care representatives need to answer questions about specific orders. Consumers want to know where their merchandise is and how they can receive it with convenience. This alone is a challenge because the last mile can be complicated, data feeds are not always accurate or timely and consistent access is tough to get. DEM provides this visibility to all stakeholders in ways that are relevant to their unique use case.

Insights: Once retailers have access to the data, they need to make sense of it. Brands that ship millions of orders must understand not just what’s happening with MY order, but what is trending with clusters of orders. How are my VIP orders doing? What location or carrier is causing the most damages or delays? Which of my orders have incorrect addresses? Which orders have stalled and are at risk of missing their promise dates? These insights provide the means to take action – on an individual order OR at scale.

Action: DEM is unique because of this final element. All the access to data and insights does no good without the ability to quickly and easily take actions that will improve outcomes for both customers and the brand.

Best in class brands are using their newfound visibility and insights to make both proactive and reactive changes to orders in transit. That could be as simple as proactively messaging a specific segment of customers about a change in estimated delivery to ensure that expectations are managed. Or it could mean cancelling a single, damaged order in transit and re-shipping from a new DC before a customer is aware of the issue – saving BOTH the customer experience and costs for consignee refused storage and reshipping.

While all that proactive engagement may sound awfully labor intensive and expensive, consider the data:

Losing customers is expensive.

Fielding WISMO calls is expensive.

Shipping inefficiently is expensive.

Storing and re-delivering shipments is expensive.

Refunding damaged or delayed orders is expensive.

The amount of money spent after the fact trying to fix orders that have gone wrong boggles the mind.

To remain competitive both from a customer experience standpoint and when it comes to managing margins, retailers must get proactive and reap the rewards. It’s not unusual that, practiced at scale, DEM not only drives cost and LTV related ROI, but can also yield top-line results. It empowers your team to engage and upsell happy consumers instead of simply placating those who’ve had a bad experience.

To sum it up, the three primary outcomes of adopting DEM are:

Actionable Insights: Uncover data-driven insights that will create opportunities for systemic improvement – be it in network design or managing customer expectations.

More Efficient Transportation: With complete visibility into your last mile network, optimizing cost to serve and OTIF rates no longer have to be competing priorities.

Happier Customers: Offer your customers the best delivery experience possible, leading to lower complaint volume, higher NPS scores, and increased LTV.

https://www.lateshipment.com/blog/use-cases-for-lateshipment-coms-delivery-management-platform/

Our use cases

Gaining visibility into shipments in transit

Keeping support reps on top of delivery issues

Proactively handling delivery exceptions

Keeping customers informed of delivery status via SMS & email

Providing an on-brand delivery experience

Getting D-Sat Scores

https://www.getconvey.com/blog/delivery-experience-management-retails-last-mile-competitive-advantage/

DEM is the art of proactively ensuring that your customers get their orders how and when they expect, taking intelligent action to correct issues along the way and continuously communicating to uphold brand promises.

Successful DEM results in happier customers, actionable insights and more efficient transportation, netting top line growth while managing costs

It seems like only 10 years ago consumers were thrilled to push a button and have their merchandise show up a week later – what a convenience! Then came two-day shipping. Then it became free. Then same-day. Now one to two-hour deliveries are common for certain items in major metro areas. Consumers have gotten spoiled – but retailers cannot simply ignore it.

What they really want is delivery that is tailored to their unique situations and needs. This means self-service options for mode and scheduling, great visibility into where and how a delivery will arrive and friendly, competent, rapid resolution if and when an issue occurs.

Tailored delivery experiences need not break the bank — brands shouldn’t have to rely on increasing customer acquisition costs (CAC) just to compete. Brands that are using Delivery Experience Management to orchestrate positive delivery outcomes are enjoying significant upside ranging from cost containment to customer retention and revenue uplift.

Brands that are using Delivery Experience Management to orchestrate positive delivery outcomes are enjoying significant upside ranging from cost containment to customer retention and revenue uplift.

Gartner has dubbed customer experience today’s competitive battleground and last-mile delivery is often the final touchpoint in that all-important customer experience.

Many brands we talk to about DEM still believe that ‘It’s too hard to be proactive when we have millions of shipments,’ or ‘My carriers would never collaborate on this with us, plus we don’t have the resources.’ This organizational inertia is exactly the type of attitude that caused many a vaunted retail brand to stumble – only to find itself falling behind more agile firms that recognized how investing in customer experience pays itself back tenfold.

As retail continues to mature and more brands understand the value of DEM, those who start now will be ahead of the game. Creating higher customer lifetime value (CLTV) starts with efficiently building organizational capability to access shipping-related data-driven insights across your teams. From there, if you can automate actions that can improve delivery outcomes, you will indeed reduce costs while making your customers happier.

https://www.getconvey.com/blog/deliver-higher-lifetime-value-shipping-experiences/

high value customer, shipping experience

The customer journey goes beyond purchase. It starts before we buy – with need and discovery stages, moving through purchase to delivery, onboarding, use and eventually (hopefully) advocacy.

Because consumers have exponentially more choices for the brands they can buy from, improving loyalty and generating repeat purchases has become critical on the path to long term growth — and higher lifetime value.

Supply chain and logistics can make or break that critical delivery part of the customer journey

By collaborating across teams, mature brands use shared data, visibility and collaboration tools to:

Reassure and inform customers between purchase and receipt with branded tracking pages, customized alerts and communications

Support customers as they onboard — and learn how to use — new products with visibility that empowers customer care staff to return, disposition or handle an errant or damaged shipment

Provide mechanisms for feedback and rating of the shipment and deepen the relationship by meeting promises that get customers to come back

The last touchpoint in the customer journey… enables memorable experiences that can earn customer trust.

The last touchpoint in the customer journey is critical to master, and enables memorable experiences that can earn customer trust and increase customer lifetime value. Even the most loyal customers will remember if they have a positive delivery experience

Everything that touches your brand has an impact on customer experience and the likelihood to re-purchase and/or advocate for your brand. Your teams sweat the details when it comes to the packaging, design and even unboxing experience (as many of us have learned from Apple’s success elevating a product with beautiful surroundings). Why wouldn’t you sweat the details of how and when that package arrives?

It’s no longer acceptable to leave customers hanging – they want to know where their stuff is.

Customers expect to get their deliveries fast and free – usually with updates along the way. It’s no longer acceptable to leave customers hanging – they want to know where their stuff is. And if you spent all that time on beautiful branded packaging, why would you leave the tracking, alerts and engagement up to anyone else?

Once you’ve solved the basics of the delivery experience, you can start to think about what you want the VIP delivery experience to look like. Whether you have a formal loyalty program or not, your organization likely has CRM data that can identify the top 10% of your customers who probably make up an outsized portion of your revenue (and love to talk about your brand).

Many supply chain leaders are starting to track customer satisfaction metrics with the most sophisticated leaning so far in that some of their bonuses and incentives are tied to either transactional CSAT or longer term NPS scores. Culturally, embracing customer experience outcomes as a critical outcome that can be influenced by supply chain is a sign of increasing maturity.

Now is the time to take what we inherently know about these unsung stages of the customer journey and explicitly prioritize them in service of growing strong customer relationships, increasing customer lifetime value, and driving business growth. Whether your company is in a “React” stage, where it feels like you’re jumping from fire to fire, or you are in a well-oiled “Automated” stage, with a role like ‘Chief Delivery Officer’ driving change, increasing visibility and collaboration to improve final mile delivery experiences should be top of mind.

Design elements

Infographic: Benefits of DEM

Some Views from Within LS DEM

Banner Ad: Plug & Play

Experience gap image

Why Does Your Business Need Delivery Experience Management?

Last-mile pitfalls

What is Delivery Experience Management?

What

Why

When

How

Where

Who

How Should You Integrate Delivery Experience Management Into Your Processes?

Conclusion

Use 3dcart intro

Post-purchase experience gap