In a world where customer experience (CX) is paramount, harnessing the power of personalized shipping can be a game-changer for retailers seeking to create lasting customer relationships. Today’s online shoppers consider the shipping experience to be a key component of their CX, with 90 percent of respondents stating that it accounts for at least half of their total online shopping experience, according to a report from UPS Capital Insurance Agency, Inc. With this in mind, it’s time to take a deeper look at the shipping journey to determine how small and midsize businesses (SMBs) can capitalize on the trends driving today’s retail sales. By embracing hyperpersonalization, leveraging advanced analytics, and adapting to the omnichannel shift, SMBs can not only meet but exceed customer expectations, leading to improved customer loyalty and sustainable growth.
Catering to the Individual
Today’s online shoppers seek control and personalization in their shipping experience. In fact, 87 percent of surveyed respondents in the same report indicate a stronger inclination to shop with a SMB if it could personalize their shipping. This desire for personalization can include everything from various return options and the ability to expedite shipping timelines, to the option to pick a specific delivery window and recommendations on local, secure delivery locations, to name a few. To stand out in a competitive market, SMBs need to offer these customized options to help deliver an exceptional CX, as “fast” and “reliable” are now baseline expectations.
Embracing the Omnichannel Shift
The retail landscape has experienced a notable shift towards omnichannel strategies as SMBs adopt multiple marketplaces to expand their reach and grow their businesses. According to UPS Capital, 81 percent of surveyed SMBs now sell on multiple marketplaces, with 42 percent operating on four or more platforms. However, despite the potential for increased sales, a significant hurdle arises. A new report reveals that almost one-third (27 percent) of surveyed SMBs struggle with managing shipments and ensuring a consistent, positive shipping experience across multiple online channels and carriers. This challenge results in significant time and money being spent to address shipping and delivery issues. To tackle these obstacles efficiently, SMBs are turning to advanced shipping analytics to leverage features such as precise multicarrier tracking and multicarrier claims data. By optimizing logistics across various marketplaces, SMBs can provide customers with a seamless online experience across multiple marketplaces.
Leveraging Data for Efficiency
A strong correlation exists between shipment visibility and the overall CX for most SMBs. Seventy-one percent of respondents acknowledge that granting customers access to advanced shipping analytics would improve their overall customer experience. By leveraging extensive and up-to-date data sources, along with machine learning algorithms, retailers can consistently optimize shipping routes, track shipments in real time, and provide customers with accurate delivery estimates. This not only improves efficiency but fosters transparency, ultimately building trust with customers.
Protecting the Shipping Experience
Porch piracy has reached alarming levels in the U.S., with Forbes reporting that 79 percent of Americans have fallen victim to theft in 2022 alone. Despite this concerning statistic, UPS Capital’s report found that over half (53 percent) of surveyed online shoppers are only offered options to insure their orders less than 25 percent of the time. And while carrier liability may offer limited protection, it’s important for SMBs to consider the benefits of offering true shipping insurance to safeguard their business and customers against shipping- and delivery-related issues. Integrating consumer-elected insurance into checkout carts can offer SMBs a compelling and differentiated value proposition that provides customers peace of mind and greater control.
Harnessing the Power of Shipping
In today’s competitive retail landscape, harnessing the power of shipping as a vital component of a comprehensive CX strategy is crucial for achieving success. By embracing key retail trends within the delivery experience, like customization, advanced analytics, and insurance options, retailers can differentiate themselves from competition, build lasting customer relationships, and protect their bottom line.
Ryan Fannon serves as the director of product management and user experience for UPS Capital®, providing industry-leading shipping insurance solutions for small and medium-sized businesses and consumers.
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