In today’s competitive business landscape, putting the customer at the heart of your strategy has become the lifeblood of lasting success and strong brand recognition. Be it any industry, one thing you will find repetitive is the emphasis on customer experience, with brands looking for thousands of different ways to make it great. Because every brand, in the end, knows that a happy and satisfied customer is the best brand ambassador.
According to the Temkin Group Study, if a business earns $1 billion annually and starts investing in customer experience within 3 years, it can earn about an additional $700 million within the same period. To talk about it more broadly, making customers your top priority is a decision you won’t regret, because it would bring you long-term brand loyalty in the fiery business environment.
In the age of malignant digitalisation, new technologies have truly changed the game of customer-centric approach in any business today. You just name it, and AI is leading the front everywhere. Particularly in the heavy labour-centric industries like shipping and logistics, AI in supply chain management has truly simplified the process of moving goods across international borders. Not just that, it has made the scope for customer-centric logistics wider and made carbon-neutral shipping an achievable target for businesses globally.
Understanding Customer-Centric Logistics: What Does It Mean?
From the traditional model of logistics, more emphasis is placed upon the efficiency in the process of delivering goods to the end customer. However, modern logistics is driven more towards customers’ overall satisfaction with the services, which often makes organisations re-evaluate the product to get a deeper understanding of how customers utilise it.
Modern logistics is all about customer satisfaction today. Be it the stages of raw material procurement, manufacturing, distribution, and consumption, stakeholders ensure that every step is carried forward, keeping in mind the greater good of customers. So, in a nutshell, customer-centric logistics is nothing but the careful implementation of measures into supply chain management that are aimed at making customer satisfaction the best.
Every single brand and business today makes a heavy investment in elevating their customer satisfaction by all means because survival in the cutthroat competition is only possible if a brand is one step ahead of what the consumer expects!
For instance, take the example of every single hyperlocal delivery brand today. Right from Zomato-owned 10-minute grocery delivery app Blinkit or Zepto, or Swiggy-owned InstaMart, all compete to deliver all household essentials in the shortest time possible. Not just that, emphasis on making packaging more appealing and customised is also their priority. Alongside this comes gifting the customers freebies (items that are often sent free after a customer has purchased products worth a certain amount) to encourage repeat purchases and word-of-mouth marketing.
The Need for Customer-Centric Logistics: Why Does It Matter?
In 2023, the global market for customer experience management was valued at USD 12.04 billion. From 2024 to 2030, it is expected to widen at a noteworthy compound annual growth rate (CAGR) of 15.8%.
Now comes the question of why the approach of customer centricism matters in modern logistics and shipping. Here’s why:
- 89% of customers abandoned doing business with a company after receiving poor customer service, says the RightNow Customer Experience Impact Report.
- When a firm is regarded for providing excellent customer service, 68% of consumers say they are willing to pay more for its goods and services. (HubSpot)
- 93% of consumers are inclined to return to businesses that provide exceptional customer service. (HubSpot Study)
- Just a 5% increase in client retention rates can result in a 25%–95% boost in revenues. (Bain and Company)
In the age of AI and big data, it is easier than ever to redefine customer experience on a broader scale. Data analytics is one factor that has truly revolutionised the way businesses track and trace all the user-based information to serve their customer base exactly what they want.
Considering the current state of the global economy, consumers choose brands that excel at making sense of the products they offer and not just the exceptional service. Thus, the secret to success in eCommerce logistics is providing what customers can relate to, not just admire!
One of the key determinants of a company’s efficiency and effective operation is logistics. The supply chain all across the globe depends on solid logistics management. Without a solid logistics plan, getting raw materials or transporting products to the market may be extremely time consuming. But that’s never enough in today’s age!
Here’s Why Customer-Centric Logistics Matters
- If the supply chain is focused more on taking a customer-centric approach, customer retention would be easier in the long run.
- A better brand image can be harboured by adopting measures within the supply chains, such as offering customers their preferred mode of delivery, customised options for delivery, etc.
- Having a customer-centred approach in logistics can give brands leverage over other competitors in the industry. Thus, there is always a wide scope for better brand image and customer retention.
- Receiving feedback from the customers further brings efficiency and better output in the business operations. Also, businesses can benefit largely from word-of-mouth marketing once the customers are satisfied and happy with the services.
- Customer retention, along with total revenue growth, will go high.
Wrapping Up
Building customer-centric logistics demands various elements to be brought together, such as implementing data-driven analytics, artificial intelligence, personalisation, close collaboration with multiple stakeholders in the supply chain, etc. Big players in the industry are already investing in measures to adopt customer-centricism, given the fact that succeeding in the game demands a greater approach towards understanding customer needs and viewpoints.
If you’re an online business juggling with shipping and supply chain handling, then the country’s leading eCommerce logistics service provider, NimbusPost, has got you covered!
FAQs
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What is customer-centric logistics?
An approach in logistics and supply chain management that comprises the methods and ways of prioritising customer satisfaction alongside operational efficiency is what customer-centric logistics is about.
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What is the customer-centric concept?
The core concept of a customer-centric approach is to put the customer first in every facet of supply chain management and understand the needs, wants, and desires of the customer to serve them accordingly. It’s more of a sort of long-term business strategy that demands careful, consistent efforts and solid planning to formulate a blueprint that delivers.
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What are the 7 pillars of customer centricity?
A customer-centric approach is never a one-step process. It involves climbing multiple steps to achieve one single objective: a satisfied customer. Here are the 7 pillars of customer-centricity:
- Experience
- Loyalty
- Communication
- Variety
- Offers
- Price Point
- Opinion
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What is an example of customer-centricism?
Wayfair, a US-based home goods and furniture selling business, sells more than eight million items, ranging from storage and appliances to furniture and décor. In addition to the 37,173 varieties of coffee mugs it offers, there are over 70,000 alternatives when you take into consideration the range in colour, size, and material they offer. And how do they do it? By taking a customer-centric approach.
The business creates thorough buyer profiles using AI in supply chain management and predictive analytics to display to clients the most relevant products, saving them from having to browse through endless product pages in search of what they want, straightforward and easy!
