Introduction
Every day, thousands of failed deliveries across the UK frustrate customers and businesses alike. We’ve all be there – waiting for a parcel, only for it to arrive when you nip out briefly, or having to explain to your boss that a project will be delayed because of a failed delivery. Failed deliveries are more than just an inconvenience, they come with significant costs to your bottom line and brand’s reputation. In this blog post, we’ll explore the actual costs of failed deliveries and emphasise the importance of a trustworthy logistics partner, such as The Silver X Group.
The Real Financial Implications
From a financial perspective, one of the most significant expenses to your business will be the cost of repeating a failed delivery. In the United Kingdom, it is estimated that 6% of all parcel deliveries to customers fail (PDF here), with the average associated cost of each failure being £11.60. Based on this, the average UK business will lose almost £700 for every thousand attempted deliveries due to failures – a cost that any prudent business would want to avoid or at least minimise.
Another substantial cost to businesses is lost time. If you’re expecting a delivery, you will likely have planned to have your staff ready and waiting. Unfortunately, they end up waiting and waiting, until you finally admit that your delivery is not going to arrive. As the proverb simplifies “time is money”, having your team wait will have a cost to your business, for example Forklift Operators alone cost an average of £12.39 per hour in the UK (Link here).
Lost Customers
As we all know too well, a failed delivery can be incredibly frustrating and often has knock-on effects. Therefore, it’s no surprise that 12% of B2B customers told Wunderman and Thompson (Link here) that they had moved suppliers due to logistical issues, while a further 11% said that they had left their previous supplier as delivery was not quick enough. Demonstrate the importance of getting your delivery right, and when you do, you may be rewarded with 62% of consumers stating that a good delivery service would encourage them or their household to order from that retailer again (PDF here).
Damage To Your Brand
In today’s business landscape, it’s just as important to impress your customers during the delivery process as any other stage in the customers’ journey. If you’re providing a poor delivery experience, one in three customers will leave a bad review or post on social media about their experience (PDF here). The delivery process continues to become an increasingly impressionable interaction between businesses and consumers, as Digital Commerce 360 (Link here) found that 98% of consumers believe their delivery experience is a key part of brand loyalty.
Ensuring your customers are receiving a positive delivery experience remains crucial, as previously mentioned a negative experience is likely to lead to negative reviews. At the same time, consumers are increasingly leaning on reviews to inform their purchasing decisions, with Review Tracker stating that customers do not trust companies with a rating of four stars or lower (Link here).
Why Choose The Silver X Group
Throughout this section, we’ll cover the important things you should be looking for in a logistics partner and how we can provide you with honesty, transparency, and an all-around customer-centric approach to business.
Honesty & Transparency
Here at The Silver X Group, we believe that being honest and open with our customers is the right way to do business. As our roads become increasingly busy, traffic congestion becomes increasingly rife, now costing the average Brit 80 hours in lost time per year (Link here). This increased congestion makes delays almost inevitable, and it is in these frustrating scenarios, we believe we shine. With an honest and transparent approach, we will always do our best to inform you of any expected delays, providing you with the opportunity to make the necessary adjustments. The research also supports our way of doing business, with ShipStation (PDF here) finding that 95% of consumers are more likely to reuse a brand if that brand acknowledges or rectifies a poor delivery experience.
A Customer-Centric Approach
We believe that our customers are at the centre of everything we do. We also know that 96% of consumers are less likely to have a lasting negative perception of a business if they are provided with fast and honest updates regarding their shipping issues (PDF here). That’s why we have been and will continue to invest heavily in expanding our dedicated in-house customer service team. We’ve also equipped them with a best-in-class fleet management system. Our system, along with live telematics, enables us to respond quickly to potential congestion, allowing us to avoid delays. When delays are unavoidable, we’re able to track our vehicle’s exact location, enabling us to keep you updated with complete transparency.
Conclusion
The costs of failed delivery extend beyond mere inconvenience. They can damage your businesses reputation, result in financial losses, and even lead to the loss of customers. Choosing a reliable logistics partner such as, The Silver X Group, who are committed to honesty, transparency, and customer-centricity can help you to mitigate risks and stay updated on your deliveries.
