IMPROVE THE CUSTOMER EXPERIENCE WITH A 3PL

[This is an updated article from October 7, 2023]

In logistics, the customer experience is the cornerstone of success. Shoppers expect the highest standard when it comes to the quality and efficiency of their order fulfillment. Meeting (and exceeding!) their expectations can pay off with substantial customer loyalty over time, driving revenues higher in the long run.

This is where partnering with a capable Third-Party Logistics (3PL) provider can be a game-changer. Leveraging the professionalism, scale, and visibility of an established logistics expert can help you discover new ways to improve customer satisfaction throughout the order journey, and elevate your fulfillment strategy to new heights.

Let’s dive in!

What is the customer experience?

In ecommerce, the customer experience (CX) refers to the entire journey a consumer goes through when interacting with an online retailer, from the first moment they visit the website to the post-purchase phase.

It encompasses everything from site navigation, product search, and checkout process to customer service, delivery, and even returns. A smooth, personalized shopping experience enhances satisfaction, builds trust, and creates positive brand perceptions, which can turn one-time buyers into loyal customers.

In a world where 73% of consumers say that customer experience plays a significant role in their purchasing decisions (PWC), optimizing the ecommerce journey is no longer a choice but a necessity for brands looking to grow.

One aspect of the customer journey where it can be difficult to ensure a positive experience? Order fulfillment. Shoppers want their packages ‘perfect’ – which means the right product is arriving to the right place at the right time, undamaged. Easier said than done!

Partnering with a 3PL who has extensive knowledge ecommerce fulfillment best practices can make a world of difference for improving your customer experience strategy.

The importance of a customer-centric 3PL partnership

Your customers have expectations for their orders, and whether you meet those demands or not can determine whether a customer returns after their first purchase.

With the acquisition of new customers costing 5X more than what it takes to retain an existing customer, it’s imperative that brands do everything in their power to nurture existing customers during the order fulfillment process.

The best way to align your order fulfillment strategy with a seamless customer journey? Partnering with a 3PL whose expertise includes:

Personalized fulfillment marketing

Surprise and delight customers at the most vital point of the buying journey: the unboxing experience. From personalized notes to free product samples to marketing inserts and branded packaging, the right fulfillment partner will enable ecommerce brands to level up the last bit of the journey. They’ll have the expertise to develop standard picking and packing procedures that minimize error and maximize customer satisfaction.

Real-time visibility and transparency

While pre and post-purchase customer interactions is within the brand’s court, knowing where an order is within its fulfillment journey is key to keeping customers in the loop. With a technology-enabled 3PL, brands should have real-time visibility of order status and inventory to answer every ‘Where is my order?’ question coming their customer service teams’ way.

Consistent, on-time delivery

There’s nothing worse than expecting an order on a certain date, only to end up with an empty doorstep. Brands who work closely with their 3PL partners to prioritize efficient picking, packing, and shipping of products will ultimately be able to guarantee more consistent on-time delivery. The results? Happier, more loyal customers.

Key Elements of a Customer-Centric 3PL Approach

All this being said, there are a lot of moving parts when it comes to direct-to-consumer fulfillment. By leveraging the expertise of 3PL providers with end-to-end fulfillment services, you can strengthen trust (and improve customer lifetime value!) with a seamless order fulfillment journey.

• Customized value-added services: A one-size-fits-all approach won’t cut it within a customer-centric culture. Tailoring your fulfillment strategy with things like diverse shipping options, custom kitting and bundling, personalized inserts, and more ensures you efficiently meet each of those customers’ unique requirements.
• Flexible returns management: Not only do 3PLs have return partner integrations to ensure a seamless experience for your customers, but they also have the operational expertise to allow products to be quickly restocked or processed according to your business requirements.
• Seamless last-mile delivery: The final leg of the journey is crucial. 3PLs that optimize last-mile operations ensure on-time and accurate deliveries for your customers. Advanced routing and tracking technologies can make this process even smoother.
• Proactive, transparent communication: Keeping your customers in the loop is essential to delivering an excellent customer experience. Partnering with a 3PL that enables real-time visibility into your operation means your customer service team will always know where an order stands. Tracking and updates through various channels can make a world of difference in optimizing the customer journey.

For more on what 3PL customer service can do for you, explore this case study of a popular snack brand. With WSI, the brand was able to:

• Identify the optimal distribution center location
• Enable food-grade warehousing and lot control
• Offer subscription fulfillment and kitting for their customers

The Role of Technology to Improve Customer Experience

As customers’ expectations for fulfillment have risen, so has technology’s ability to deliver.

For consumers, real-time shipment tracking and automated notifications allow them to monitor their delivery progress every step of the way. For distributors, harnessing the power of analytics to deliver data-driven insights can help anticipate customer behavior and demand, streamline inventory management, and enhance demand forecasting.

When you partner with a technologically-enabled 3PL, you’ll reap the benefits of both. A robust Order Management System (OMS) can offer accurate, real-time inventory data, along with timely order status and tracking information, delivering unprecedented efficiency for you, and unprecedented visibility for your customers.

WSI’s warehouse management system enables:

• Real-time inventory visibility
• Facility throughout analysis & engineering ensure efficient product flow
• Web-based reporting for real-time, on-demand data
• Automated reporting via web or email
• Product turn & inventory level analysis
• Data warehousing / data mining
• Pick-to-Voice, barcode technology

Strategies for Seamless Order Management and Fulfillment

Nothing erodes the customer experience faster than unexpected delays and interruptions. This is why efficient inventory and warehouse management is so important. Streamlining order processing and inventory storage reduces errors and ensures product availability, safeguarding your business from costly delays.

The right 3PL will work with a nationwide network of carriers, enabling diverse shipping options for your customers while minimizing shipping costs for your brand. Plus, experienced 3PLs should be able to streamline the picking and packing process so that every order gets out the door as efficiently as possible.

However, customer expectations don’t stop with fulfillment. They also expect a seamless returns process, meaning your logistics capabilities have to work just as well in reverse.

Making returns hassle-free by implementing customer-friendly policies and integrating with top returns management software can significantly improve a customer’s journey. Luckily, a capable 3PL partner like WSI can leverage its reverse logistics operational experience and technology integrations to streamline return management and unlock a positive customer experience.

Collaboration and Communication: The Foundation of Success

Your partnership with a 3PL provider can only be as effective as your goals and expectations are aligned. Synergy between both parties helps establish a fit between your brand and customers and is essential for collaborative problem-solving and continuous improvement. Since every brand’s needs are different, choosing a 3PL with the capabilities to meet your specific business requirements is more important than ever.

When it comes to customer support, ensuring your customers are feeling the love has never been more important. According to Zendesk, 73% of consumers will switch to a competitor after more than one bad experience. Clear communication helps fight this, significantly improving the customer experience at every stage in the fulfillment lifecycle.  Offering multiple channels for customer support ensures that queries and concerns are addressed promptly and conveniently.

Plus, working with your 3PL to uncover customer feedback is just as important. For example, if a particular product has a higher rate of return, your 3PL may be able to identify the recurring return reason, allowing your brand to address the problem and reduce the return rate.

Future Trends: Evolving Customer Experience in Logistics

As the customer experience evolves, so too does the way fulfillment operates.

Sustainability initiatives have grown in popularity, as eco-friendly practices in logistics operations are becoming increasingly important to customers. Additionally, AI-driven technologies can enhance personalized customer experiences and predict customer preferences, optimizing deliveries and driving new efficiencies.

In navigating uncharted waters like these, a 3PL partner with significant industry experience is especially helpful, allowing you to rest easy while your fulfillment capabilities grow alongside customer expectations – not apart from them.

Conclusion: Empowering Lasting Customer Relationships

When it comes to logistics and fulfillment, customer experience is more than just a buzzword; it’s a competitive differentiator that cannot be ignored.

The future belongs to brands who can deliver positive customer experiences, repeatedly, over time.

The right 3PL partner can play a vital role in ensuring customer satisfaction with seamless execution at every stage of the fulfillment lifecycle and consistently overdelivering on your customers’ expectations.

The world of logistics is ever-evolving. Embracing innovation and continuous improvement in your 3PL partnerships will ensure that you stay ahead of the curve and strengthen customer relationships with a focus on the shopper’s journey.

If you want to learn more about 3PL services or need help improving your customer experience through better fulfillment capabilities, reach out to one of our fulfillment experts today.