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Be a Hero Brand by Focusing on Loyalty Logistics

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Apr 16, 2020

Every business wants to build brand loyalty and for a good reason. A study conducted by the Kellogg School of Management at Northwestern University showed that 55 to 70% of a brand's sales come from its most loyal patrons. Customer loyalty can only be achieved by offering brand appreciation to consumers, which can come in different forms like discounts, vouchers, great in-store experience, and efficient post-sale customer service.

Loyalty logistics

Technology now plays an even bigger role in gaining both a customer's trust and loyalty. It allows customers to have more visibility on the entire process, a venue to provide feedback, and quick communication with drivers. Plus, technological advancements provide more delivery options and schedules to clients.

Enterprises in search of ways to make the supply chain process more efficient should start by considering the consumer's core preferences. There are several elements businesses should keep in mind in leveraging technology to win their patron's loyalty.

Where Loyalty Lies

This factor is an important one, particularly for companies outsourcing their delivery logistics. Many firms tend to expand their delivery capabilities as soon as possible by engaging the services of third-party logistics firms. However, business owners must ask themselves whether customers would first think of their brand or the delivery service? Brands like Domino pizza that take ownership of the brand experience of the entire supply, but others, with a delivery firm as a partner, won't be able to roll-out or integrate marketing and sales programs. That said, new software innovations are allowing brands some quality control options for expanding service by better syncing with third party and 3PL partners.

Simply put, in the past, businesses that engaged third-party delivery services were unable to ensure a good brand experience that would foster loyalty from the last mile chain. Now it's much easier to keep a brand's high standards consistent with more capable, better-synced software. Poor service, whether it originates internally or externally, could hurt the brand.

The Face of The Company

Workers on the frontlines, like waiters, salespeople, cashiers, and other customer-facing personnel, are a representation of the company for brick-and-mortar stores. However, this service-centric personnel is not present (aside from autonomous chatbots) during the online retail experience. Thus, it is essential for businesses to invest in their delivery staff with the right training and oversight, given they are the only customer-facing employee in an online transaction. Aside from offering superior customer service, delivery staff must be able to communicate the brand messages as well as distribute sales and promotional materials like samples, vouchers, or catalogs.

Substitute Experience of A Physical Store

Physical stores with their controlled environment where customers can be pampered make the challenge to win customer happiness and satisfaction easier. But rules of engagement in winning clients become muddy in the world of online selling. Many companies are banking on their creativity to create a magical experience for their customers, even with minimal physical contact.

Take the case of luxury brands like Louis Vuitton or Gucci. These two brands gift wrap every purchase made online and send a retail bag with all their orders. Other firms send freebies, testers, eco-bags, or stickers along with the orders to make customers feel special. With home deliveries becoming the new norm in shopping, companies need to find ways to make each and every customer feel appreciated and special.

Yes, while speed and convenience are at the core of delivery logistics, businesses should also make customer loyalty a priority. This means ensuring that every touchpoint is memorable and pleasurable, so customers will remain loyal to the brand for a very long time.


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