May 9, 2016 

 

Greg loved his job in purchasing ; he was the guru of cost cutting and knew all the tricks of the trade. With his hand on his heart Greg could proudly claim that his company had the best last mile delivery rates possible. In fact, he had just managed to beat his carriers down by a further 5%...and cut the fuel surcharge to boot!

Imagine his surprise when his new boss (who had an obsession for customer experience) called him in to say that the game rules had changed, it wasn't all about price any more but about great customer experience...,of course, at an acceptable price.

He just didn't get it, but luckily he knew someone who did. His mates Krys, and Marek had set up a specialist consultancy to advise people like him on how to look at last mile from a customer perspective and maximise shareholder value and not just minimise costs. "Guys you are a Godsend" he said, once he  had understood how to play the game according to the new rules....and the customer ratings started rocketing!

As discussed in an earlier post, the "last mile' is becoming a key differentiator in customer acquisition and retention. It will be the players who are able to offer the consignee flexibility, control and quality courier interaction who will win the day. Not surprisingly, to do this, the last mile operator needs "state of the art" systems, alternatives to home delivery (such as local access points or lockers) as well as a stable team of couriers who are motivated and really care about the customer.

So what's the point here? Well, the point is that if we do the maths, we may well find that on top of saving on complaint management and reducing customer attrition, we will sell more, to more customers if we are able to make the "last mile as easy and comfortable as the first click" to order. In many cases, we have seen that on top of the long term commercial benefits, a more expensive but better last mile, is  actually cheaper  than the "low cost" alternative. 

 

 

Any views?