If your company delivers parcels or packages to customers, then you probably know that missed deliveries are a common occurrence. Whether your policy is to leave the package at the door or attempt a second delivery, missed deliveries can be a real issue.
In this article, we will explain the various ways missed deliveries can impact your business and how to reduce extra costs, stay competitive, and enhance customer satisfaction.
How missed deliveries can impact your business
Customers’ delivery experiences play an important role in their satisfaction. The longer customers wait for the orders they’ve paid for, the more annoyed they will become, and their overall experience will start to deteriorate as a result.
But sometimes customers are not home to receive their parcels. One of the main reasons for this is that they are not given an exact delivery time. Because of this, they don’t want to stay home, especially if they have things to do, and they may not be able to arrange for someone to be there to receive the parcel for them.
When they’re given a precise time and they're able to track their order in real time, customers are more likely to be present for the first delivery attempt. Customers want to be there on the first attempt as much as you want them to be there.
Reason #1: It costs money
Every time a driver misses a delivery because the customer is not home, it can cost your company money. Companies have different policies when it comes to missed deliveries.
Attempt a second delivery. Some businesses will attempt a second delivery instead of leaving the package at the door, as this can compromise security. As such, they will have to store the package until the next delivery, which means the more missed deliveries they make, the more storage they will need for those parcels, and the less space they will have for other deliveries. This time spent on making up deliveries is time your drivers are not spending on other deliveries, losing you money.
Some companies even prefer to offer a refund to customers rather than having to attempt a second delivery, which can be more expensive. Plus, delivery drivers' having to drive extra miles will increase their bill.
Leave the package at the doorstep. Some companies will leave the package at the door and won’t attempt a second delivery. While this might allow customers to get their package earlier, it isn’t the ideal option as it can compromise security.
As we’ve mentioned in this blog, porch pirates are a real threat to home delivery, and thefts have been increasing since the onset of the pandemic. In fact, one out of three customers had a package stolen in 2020.
If a package gets stolen, it could be costly for your business as you will have to send another product for free and the delivery driver will have to deliver it again.
Reason #2: It is time-consuming
As mentioned before, when a first delivery attempt fails, the driver may have to store the package in the warehouse before attempting a second delivery. This means the time they will spend on the road is timeless for the other deliveries.
When the driver returns the parcel to the warehouse, your team will have to reschedule the delivery, which might not be easy and may disturb the delivery system.
Since they will have to deliver the parcel again, the driver will spend twice as much time as they were supposed to for the same delivery. This will increase their hours, which is costly for your business and impacts the employee’s motivation.
Your team will also have to spend time messaging your customers to let them know about the next delivery, and they might have to deal with complaints.
If your driver left the package at the doorstep and it was stolen, you will also have to order a new product for them, message the customer to inform them and apologize, and reschedule the delivery.
Reason #3: It has a negative impact on customer satisfaction
Missed deliveries can’t always be blamed on the customers for not being home. Many businesses are vague when it comes to letting customers know when the package will be delivered. Some may not even mention which day of the week the delivery will be.
Customers have lives and can’t change their plans just to make sure that they won’t miss a delivery. However, when they miss it, they are just as annoyed as the drivers are. Customers expect faster deliveries as they shop online more frequently, and they often become impatient to receive their orders, especially when ordering groceries or furniture, making the first attempted delivery a priority for businesses.
Will their order be delivered? Will it be left on the porch if they are not there? These are some of the fears customers experience while waiting, and the longer they wait, the bigger their fears will be and the more unpleasant their experience will be.
Anxiety is not a nice feeling, and customers might be resentful of your company for making them feel that way. Their experience might worsen if the package is left at their door and is stolen. They might lose trust in your company, which will prevent them from buying your products again.
Customer experience and satisfaction are essential to any company, as a bad experience might make you lose not only that customer but also others, as customers might share their dissatisfaction with friends or on social media. The last thing you want is for people to think your company is not reliable.
What can you do to reduce first delivery attempt's fails?
In order to reduce first delivery attempt fails, you will have to increase the chances of customers being at home. You can do this by letting the customer know precisely when they can expect the delivery so that they can plan their day ahead.
In fact, the main reason customers are unavailable is that they are given broad delivery time windows. Customers cannot be expected to stay at home for five straight hours while waiting for delivery drivers.
This is why many companies are now using delivery software equipped with real-time delivery tracking. This feature will notify customers of any update regarding their delivery and allow them to track their parcel in real-time. They will be able to see how many stops are left before theirs and know approximately when the driver will be there.
Real-time tracking not only significantly increases the chances of your customers being home, but it also ensures that they will be able to receive the package. Drivers sometimes miss customers even though they are at home because the customer is in the garden, taking a shower, vacuuming, or doing something else.
Provide a delightful customer experience
Real-time tracking will not only greatly reduce missed deliveries and the costs associated with them, but it will also enhance the customer’s delivery experience and positively impact the way they perceive your company.
In a recent survey, we discovered that approximately 60% of customers consider real-time tracking to be "very important," while 15% consider it to be "important." Customers like to know where their order is in real-time because they might need to use the item soon. They also don’t want to feel trapped at home waiting for their parcel.
Therefore, if companies don’t make the switch to offer real-time tracking, they might be left behind. Also, fast deliveries highly increase customers retention.
Increase customers’ trust
By offering customers real-time information about their parcel status, you will increase their trust in your company. As a matter of fact, real-time delivery tracking shows transparency and honesty while promoting a positive brand image.
Increase customers’ loyalty. If customers believe they can rely on your company to deliver their parcel on time, then they will be more likely to purchase from you again. Further, they might have larger orders and with more frequency. They will also be more likely to talk positively about your business to other people.
Meet CIGO Tracker
CIGO Tracker is a best-in-class, cloud-based platform to increase deliveries, service calls, and pick-ups for your business. It scales as you need it and provides a state-of-the-art, “last mile” delivery experience that will thrill your customers.
Driven by innovation, an unwavering commitment to customer service, honesty, and trust, CIGO delivers the best, most flexible delivery tracking software in the industry.
At CIGO, we are always on the lookout for new features that we can add to our delivery software to improve your daily operations. If you would like to learn more about our delivery software, book a demo today.
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