The first step toward creating a sustainable business over time is by building a loyal customer base through a great customer service and buying experience.

This is related to all kind of industries, and the logistics and supply chain companies are not the exception. Last mile deliveries are the spearhead of the whole logistic process and have an important influence on the customer perspective over the company. Something that applies even if it’s not your own transportation service.

A report from Industry Week shows that “16% of consumers would take their business elsewhere if they have even one negative delivery experience.” [Learn here more]

The problem is the common misconception of managers who think they need to focus their efforts on creating a flawless customer experience and turn their business around customers expectations. Which is very important, but before you can even think about customer loyalty, you must develop the core values within the organization to drive your employees to be the best they can be.

In other words, if your company manages to put employees at the center of an actionable customer-centric philosophy, the company values will be reflected in their customer facing activities.

The Last Mile Deliveries Experience

In most logistic processes that rely on delivery, the shipped package/delivered service represents the most direct touch point and connection with the customer. This may be true especially in e-commerce, but also widely present in every industry that uses last mile delivery to fulfill their value proposition .

“Home deliveries are the only physical touchpoints between an ecommerce company and its customer…This is a unique opportunity to make a difference”

Sebastian Ojeda, Co-founder and CEO Beetrack

This provides insights into why the driver/ delivery person plays an ever-growing role that can affect the bottom line. They are the direct contact between the customer that receives an order and the organization and become a central point in customer satisfaction.

Because of this, logistics managers are looking for 3PL providers or external carrier services as a way to better manage their time and resources, as these companies usually offer a proven customer service in last mile deliveries.

A 3PL / external carrier could be a good fit for companies looking to optimize their efforts in the distribution of their products while at the same time guarantee an optimal customer service from the driver / delivery person. [Learn here why and what to measure]

Why are engaged employees a “must” for your company?

If you are not planning in externalize your delivery service, or you already work with your own transportation fleet, is important to understand why engaged employees are the ground to create a loyal customer base.

Your fleet drivers are customer facing personnel, responsible for achieving customer success and ultimately increasing customer loyalty. There are 3 elements that explain why increasing employee engagement impacts the overall customer satisfaction

Better Customer Service

A study from PNC Bank Corp states that “knowledgeable and attentive employees account for 80% of the reasons consumers feel satisfied.”

Today brands perception and reputation depend on the quality of the service their people can achieve. Because of this manager's needs to communicate and show the individual contribution of each employee related to the success of the business. By building a culture of recognition among employees, companies can create a greater level of loyalty and trust, installing a sense of pride in the service they provide.

A study by Harvard Business School found that every 1% increase in staff loyalty resulted in a 0,5% increase in customer loyalty.

"Great companies understand employee engagement itself is not a destination—it is a platform to even higher performance, greater productivity and increased revenue." -Gallup

Better Brand Experience

Companies that understand the importance of employee engagement are aware of three main things:

Why they do what they do How this affects every decision What the company stands for

From these three points, managers can build the core concept of the brand experience that employees can apply in their everyday work. Managers must connect the internal and external perspectives of the brand, in order to create a single concept aligned with employees and customers.

Studies have shown that engaged employees with a clear knowledge on what the brand stands for, become one of the most important promoters of the company. Employees in last mile deliveries are the only physical touchpoint. Their interactions are always a critical moment for developing lasting relationships.

“70% of unhappy customers abandon vendors because of poor service” - PIC

Employees strengths are your strengths

The Gallup research has found that employees who know and use their strengths, are more engaged with the company, perform better and less likely to leave the company.

From Gallup Research results, is by far more effective to spend resources in improving employee strengths than work to overcome their weaknesses. Is well known that engaged employees are more productive, profitable and enjoy a higher life quality.

The aforementioned study also shows us that by helping employees to find their strengths, increases their productivity by 7,8%, while teams that are focused on actively exploiting those strengths are 12,5% more productive. As customers become more demanding, and the decision to switch suppliers is easier to make in the informational world, managers should focus on developing their human capital just as much as their bottom line.

Building your business holistically

In an over-competitive industry, like the logistics and supply chain markets, is harder to maintain and increase a loyal customer base in a globally connected world. Companies across most industries are scratching available resources to increase revenues and customer base, but lost focus of one of today’s most competitive advantage: engaged employees.

Without an amazing staff to create an incredible customer experience, is very hard that businesses will endure over time. As companies focused their efforts on the customer journey, they lost sight of how their employees affect critical areas of the organization.

Creating a work culture that engages your delivery personnel from day one, and then focus your efforts on developing loyalty among your customers. A remarkable customer experience is provided tightly coupled to a remarkable employee experience.