What is the Importance of Customer Service in Logistics Companies?

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In today’s customer-centric world, delighting your customers has never been more critical. If you want to stand out from your competition, it is an absolute must. However, the bar is set really high in today’s global economy. Regardless of the industry your company operates in, it must invest in making customers happy. For freight forwarders and third-party logistics firms (3PL), customer service in logistics has become an essential element of their performance.

Your company’s reputation is based on your customers’ experiences. They want a simple and frictionless experience when working with a brand. In logistics, customer service refers to activities that help bring added value to the core service that customers want in order to maximize their satisfaction with a brand. Your customers expect to have on-time and accurate delivery. When it comes to meeting needs and building both loyalty and trust, customer service is essential. With the right logistics solutions in place, you can give real-time information, solve problems, keep your customers posted, and develop a relationship that can retain them.

Why Should Logistics Companies Adopt a Customer-Centric Approach?

By adopting a customer-centric culture, the customers become the focal point of all processes, decisions, and activities of your company. This type of culture aims to ensure that exceptional value will be provided to consumers. In those organizations, each team member understands their responsibility in meeting the needs and wants of their customers. Each employee plays an active role in adding more value to the customer experience.

When it comes to logistics companies, adopting a customer-centric approach is the best strategy to gain a competitive advantage in the 21st-century’s information-based, global economy. The logistics industry is becoming increasingly competitive due to globalization, and the top benchmarks to measure logistics providers’ efficiency now include customer service. Customer service is also a leading benefit of proactive inbound freight management, which is all about ensuring adequate and accurate inventory for customers, maintaining sufficient stock, and avoiding issues with backorders.

Why Should Logistics Companies Treat Customers as Strategic Partners?

What does the customer want, and how can we meet their demands? These two questions are fundamental to customer-centric companies. To answer these questions, 3PL providers must understand the shipper’s business, the dynamics of their industry, and their supply chain. When a third-party logistics company understands their customer’s needs (along with all the intricacies), they can work collaboratively and strategically to fine-tune their functionality and technology around desired goals.

For example, transport in the food and beverage industry comes with its own set of complexities, since it requires the use of multi-temperature refrigerated trailers and cold chain warehouses. This supply chain has little margin for error because of the cost pressures, safety regulations, and perishable nature of the goods. Operating with its clients’ customers in mind is the essential aspect of a logistics company’s ability to collaborate strategically. Any disruption along the supply chain link will eventually affect the end-user because supply chains are always interconnected. For example, logistics providers monitor and analyze carrier performance metrics to identify the root causes or patterns of recurring issues. They can eliminate all the inefficiencies in their transportation management systems by taking proper corrective actions, and that will positively affect the whole supply chain.

Customer Service Affects Brand Image

Brands that provide excellent customer service enjoy a great reputation in the market. When a customer leaves a bad review about your company or complains about you on social media, that is a sign of poor customer service. These types of incidents damage your brand image. Despite offering a great product, poor customer service (e.g., untimely delivery or receiving a package damaged during transportation) can lead to bad reviews. On the other hand, if the product is faulty, a company can appease their customers with exceptional customer service (like a replacement and an apology).

Reverse logistics is also becoming an increasingly important issue. The more products you sell, the more products customers send back, that’s inevitable. Reverse logistics is the process of customers returning unwanted goods to a store or a manufacturer. Establishing an effective return system is a valuable tool to improve customer service, brand image, and competitive advantages while being a valuable source of information about customer behavior and expectations.

Customer Satisfaction and Loyalty

When customers have a positive experience with a brand, they won’t have a reason to search the market for better alternatives. Exceptional customer service is a way to retain customers and create a base of loyal consumers who develop a relationship with your brand. Loyal customers become brand advocates who tell their friends and family about your brand, which results in word-of-mouth marketing.

In the logistics industry, customer satisfaction is especially important. Even though the whole logistics management process might seem simple (picking up a delivery and delivering it to its destination), customer satisfaction comes down to what you can offer them outside of that simple process. Providing them a tool to track shipments is often quite helpful, but so is human interaction. Keep your customers updated on their purchases or update them on the status of their deliveries.

When it comes to customer loyalty, we need to emphasize the importance of customer communication at every stage. Feedback must be a two-way street. Meaning you must provide feedback regarding any problems, how you managed to solve them, and how you can prevent them from happening again. Customers can provide feedback on whether you met or failed their expectations, which you can use to improve your supply chain management process and do better in the future.

Building and maintaining good customer relationships will not only keep your customers coming back for more, but they’re more likely to recommend your business to others. If they have chosen to do business with your brand, it is up to you to provide more reasons for them to come back and keep choosing you over your competitors.

Redbird Logistics Services will work with you, no matter your needs. This ultimate guide about your logistics strategy is only the start. Our logistic services and supply chain solutions will be sure to cater to all of your requirements. We will work to implement the services you need, maximize the efficiency of your supply chain management and network optimization, and ensure customer satisfaction. With our real-time technology, we will provide you with complete visibility of your products every step of the way.

If you’re looking for a top logistics company, Redbird Logistics Services can help!!  Contact us today!

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