4 Ways to Reduce Shipping Costs using SMS and Email Alerts
Have you ever had to deal with excessive product returns in your logistics business? Is dealing with irate customers demanding to know about their missing parcels getting on your nerves? Do you spend countless hours coordinating delivery details with parcel hubs and drivers on a daily basis?
Today, technology has made it possible for us to get real time updates on our orders. Our smart devices let us keep track of our parcels by way of SMS & Email alerts.
According to a recent KPMG report, the logistics market pertaining to E-Commerce alone is going to hit figures of USD 2.2 billion in India by 2020. Growing at a CAGR (Compound Annual Growth Rate) of 48 percent, it is going to be imperative for logistics companies to offer a seamless transition of goods from source to destination.
Customer Satisfaction is going to be key in order to become dominant in this ever-increasing industry. This is why SMS & E-Mail notifications are essential for improving the shipment tracking experience, especially for the recipients. Although intangible, it still gives a semblance of control to customers awaiting their orders by communicating information about the parcel and its current status, and when they can expect to receive it.
E-mail & SMS alerts are extremely effective & efficient communication tools that:
- Inform customers about the status of their shipments
- Inform E-Commerce sellers about the receipt/non-receipt of shipments
What are the uses of SMS & E-Mail status notifications in the Logistics industry?
Let’s say there has been an accident on the supply route. SMS & E-Mail alerts can be used by the involved parties to inform other members of the supply chain about a delay in pick-up or drop-off times at the warehouse.
In case a recipient notifies of their non-availability on the date of delivery and specifies a change of address for the parcel, this information can be sent out on short notice to the delivery guys via SMS/E-mail. They can then factor in the changes to modify their routes accordingly.
This is probably the most obvious one, but also one of the most important. Alerts are sent out to customers informing them about the successful/unsuccessful delivery of goods to the specified address.
Examples of SMS alerts & E-mail notification
From this, we can identify 4 major benefits that SMS/E-mail alerts provide to your logistics business:
Minimizes Shipment Returns & Associated Delivery Costs
For every product return, the shipment is sent back to the hub by the courier service guys. If the courier company does not receive a request for re-attempting the delivery within 24-48 hours, then the E-Commerce seller stands to lose big time. Why? Because the courier service will end up double charging the seller for both delivery and product return.This situation can easily be avoided.
SMS & E-Mail notifications inform both the seller and the end customer about the missed delivery. Because of the timely alert, a request for reattempting the delivery can be filed within 24-48 hours to prevent the shipment being sent back to the source. It can save the seller both time, and money by minimizing product returns to source.
Fast & Inexpensive Mode of Communication:
The beauty of SMS & E-Mail alerts lie in their speed, and the fact that they are relatively inexpensive compared to methods used in the past. There is minimal delay in the message sending and receiving process, and that is very important in the logistics business where time is money and real time updates are crucial to efficiency.
Bulk SMS provider MSG91 have got the formula locked down for getting the maximum bang for your buck. A single SMS costs Rs. 0.19, and a pack of 50,000 would cost you around Rs. 9,000. Reaching out to your clientele right into their smartphones has never been more cost effective.
Decreases Call Volume:
Earlier, it was a logistical nightmare having to deal with a million phones going off at the same time with anxious and angry customers and even drivers seeking clarification about their parcel status and delivery mishaps. Now, with proper implementation of real time update features and SMS & E-Mail alerts, call volumes can be significantly reduced, and you no longer need to spend extra bucks on maintaining additional call centre facilities.
SMS/EMail alerts inform customers about the status of their shipment by reaching them directly. Customers get prompts about shipment dispatch, expected date of delivery, tracking link and a delivery confirmation message. Most points of inquiry are covered here itself, because of real time alerts being sent out. Thus, call volumes are naturally expected to decrease.
Excellent Marketing Platform:
SMS & E-Mail alerts are not just logistical enablers, but can also be used as both blatant and subliminal marketing tools.
You can send out a wide array of Marketing and Promotional messages, newsletters, discount coupons and offers etc. to your client list and potential clients. The reach is fantastic compared to the prices that you are spending on sending out bulk E-Mail’s and SMS’s.
Examples of SMS & E-Mail Marketing
If you happen to be in the Logistics business and you aren’t already using SMS & E-Mail notifications, then this should be a good case to make the change today. You stand to gain a lot in terms of customer confidence and market reputation, and also reducing running costs at the same time.
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