6 Factors Why Customer Service in Logistics is Important
Table of Contents
Customer Services in Logistics – Its Relevance and Structure.
Given the structure of the global economy that exists these days, the definition of a good brand or good quality service is dependent upon the customers. Just like in any other business, in the Logistics Industry too, it is the customer who determines the reputation and the goodwill of the company. Hence customer service in logistics is the key to success.
Logistics is a critical determining factor in the efficient working and productivity of a company. A good logistics plan is crucial for the supply chain. Moving goods to the market, or receiving raw goods, becomes a very tedious task if a good logistics plan is not in place. However, logistics alone is not enough. A key component of a successful logistics plan is the customer service in logistics. For logistics activities to operate smoothly, a good customer service in logistics is of utmost importance.
It is no secret that in order to be at the top of the game, the one and only factor is customer satisfaction. A satisfied and happy customer adds value to the brand, and helps the business to stand out in the crowd, and be ahead of all competition. And in today’s global economy it is the customers that set the bar for the quality of service or product.
In view of the intense competition, the bar set by the customers, in terms of the standard of quality of service or product, is really high. Regardless of the business segment, it is imperative to keep customers satisfied. That is why in current times, customer service in logistics has become really important for freight forwarders around the world
6 Factors Why Customer Service in Logistics is of Utmost Importance
In every vertical market, customer service has an essential role to play. Customer service holds a very high value in the logistics industry.
A shipper is constantly faced with innumerable queries throughout the course of the transportation of cargo, from the place of origin till its final destination. A good partner support is imperative to handle all the transportations issues.
Logistics companies are the partner support that assure the delivery of goods to the correct destinations, on time, and that too cost effectively. A single breakdown in this process of transportation can cause great damage and be catastrophic for the company, negatively impacting the customer service in logistics.
A good customer service in logistics depends upon good communication and timely and damage free deliveries. And an efficient customer service in logistics helps the logistics chain to operate well, to the best of its capabilities. Providing good customer service and communications as part of the logistics services is essential to the success of the business.
In order to establish a long-term relationship with the customers, and in order to gain the loyalty of the customer, the focus of the customer service should be shifted product-oriented strategy to customer-focused one.
The following pointers elaborate upon the relevance of customer service in logistics and how customer service catapults the business to the next level:
1. Good Customer Service Helps in Earning Customer Loyalty and Maintaining a Client
Maintaining a client results in an automatic increase in profits. A repeat customer is a customer who is loyal to the brand and hence spends more on the brand products and services. Almost 67% more. This naturally results in the business having to spend less on its operating costs and yet, gaining more through the business done with the repeat clientele.
A mere increase of 5% in customer retention equates to an increase of almost 25% in profits. Customer Acquisition Cost (CAC) is the cost of acquiring a new customer. And this is not an insignificant cost. As per research, Customer Acquisition Cost (CAC) is way more for a company than the customer retention cost. For a company that does not invest a small percentage of its budget in customer service, CAC can be a hefty cost.
A good customer service helps in maintaining the clients and ensures a repeat clientele at a much lower cost than CAC. Hence, investing in customer service can decrease the churn rate, which ultimately decreases the amount spent on acquiring new customers, and decreases the overall CAC
2. A Good Customer Service Boosts the Brand Image
Customers are the brand makers. A great client support boosts the brand image and makes it appear attractive in the market. The positive reviews of the customers and their positive feedback surveys about the brand products and services, and consequently about the business, boosts the overall gains and opportunities for the business. Bad audits typically happen when the client feels they had poor client care. Hence a good customer service is key to the success of the business.
3. Good Customer Service Depends Upon Cheerful, Sensitive and Positive Customer Care Representatives
Customer Care Representative are the contact points between the brand and the customer. Hence the entire interaction of customer service depends upon the customer care representative. Naturally, an unhappy customer care representative will not provide a good customer service. No employee appreciates feeling overlooked or contrasted with representatives on different groups and same holds true for client assistance groups.
It has been observed that 87% of customer care representatives, who are content with their occupations, are happy to make adjustments for their business clients. In other words, they are pliant to the needs and queries of the customer.
55% of representatives, who, even though they emphatically differ about being content with their employments, also buckle down for clients. Their perspective behind serving clients is not so much about needing to offer quality support. Instead, it is more linked to them maintaining their polished skill and uprightness, and not having any desire to get terminated before time, along with being sympathetic to clients and getting acknowledged for their work.
In order for the customer care representative to accomplish their best work, they should feel regarded and acknowledged. This provides the psychological incentive and inherent inspiration for working superbly and serving the clients in the best way, making the clients in turn feel regarded and acknowledged. Hence happy customer care representatives enable good communication and customer service, and lead to happy customers.
4. Satisfied And Happy Customers are Good Advertisement for the Brand.
A good, strong and effective customer service ensures happy and satisfied customers and clients. This not only means a repeat clientele, but it also means good advertisement for the brand. A happy client refers the brand or company to other partners, coworkers, friends, etc. It is a chain reaction. A good, content customer service team works harder to satisfy the customers and exceed the expectations of the customers. The satisfied customers refer the brand to others. Customers are the best, and most cost effective form of word-of-mouth advertising.
Hence investing in keeping customer care representatives motivated empowers the customer service, giving the customer enough reasons to remain loyal and spread a good word about the brand.
customer service in logistics
5. A Great Client Assistance is a Key Factor in Customer Service that Gives the Brand The Edge Over Rivals
Irrespective of the type of industry or business, it is imperative to stand apart and shine above all competition. To be the “second-best” is not the idea. To be better than all competition is what helps a business to thrive, and the clients need to know this that they are with the best. This keeps the clients steadfast and gets them to regularly, without fail, interface with the brand image.
60% of clients quit working with a brand after just one poor client assistance experience. 67% of this agitate can be averted if the client’s concern is settled to satisfaction, during the first communication itself. Hence, client assistance can be a great differentiator for the brand. This implies that a brilliant client care ensures client retention and customer loyalty.
customer service in logistics
6. Long Term Customer Retention
Earning customer loyalty is the ultimate reward for a business. It translates into good profits. Great customer service experience ensures that customers will make the brand a part of their lifestyle and persona, and use the brand services and products regularly. Even when it comes to ancillary services, consumers are more willing to work with a business that they’ve had a great experience with, than find a new business or brand to engage with.
customer service in logistics
Conclusion
As the business gets bigger, the supply chain gets more complex. For a big business or complex supply chain, it can become challenging and tough to maintain a perfect customer service, owing to multiple stages and people involved, as each of these people and stages involved in the shipping process, constantly affects a company’s reputation through customer experience. In customer service in logistics it is impossible to be perfect. However, it is possible to always be better and provide the customers with the best services possible. Customers desire a smooth and easy experience when working with a company. It is up to the company to enrich the customer experience by providing a good and worthwhile customer service in logistics.
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