Logistics and eCommerce have always had a symbiotic relationship. But over the last couple of years, that relationship has intensified. The eCommerce boom has led to massive growth and advancement in the logistics industry, while logistics providers now have a significant impact on overall eCommerce brand experiences and customer loyalty.

Thirty-two percent (32%) of shoppers in Southeast Asia say they have switched to an eCommerce website for its faster delivery times, while over 90% of customer complaints and negative feedback on eCommerce sites are related to a lack of communication and updates during the delivery process. This makes excellence in last-mile fulfillment a significant contributor toward higher customer satisfaction and retention.

The question is, as online retail and delivery become increasingly entrenched in our current and future lifestyles, what can eCommerce and logistics leaders do to raise the bar and keep pace with growing customer expectations?

Here’s what industry leaders Jethro Marks of The Nile Group, Vineet Sharma of Pizza Hut, and Raul Valle of Schneider Electric have to share about the trends shaping the future of eCommerce and logistics, and why they’re focusing on digital experiences to build their competitive advantage.

Transparency in customer communications is non-negotiable

Today’s shoppers want free and fast delivery, but in the absence of that, they want clear, real-time updates on where their parcels are and when they can be expected. Telling a customer that their product will be delivered in two days only to have received it in 12 without accounting for the delay is simply no longer acceptable.

“Our principle is to give as much transparency to the customer as we possibly can. Any information that we can give upfront to the customer to keep them better informed about their delivery, we’re going to give,” says Jethro. “I’ve never had a customer complain that we told them too much about the delivery itself. We keep them updated at every touch point, and it’s almost become like a bit of a gamification process.”

“I think that gamification is also creating stickiness with brands,” says Raul in agreement, “as customers consistently come back to your website or app to check on their delivery status. Regularly communicating with customers also helps give them that reassurance that you’re on top of things, which prevents them from getting anxious or dissatisfied.”

To strengthen customer experiences, transparency remains key—but that first requires that the end-to-end delivery process from order to doorstep is captured and communicated. That’s why many companies are using technology to their advantage, to automate and streamline otherwise time-consuming processes and gain better insight into the delivery process.

“I think the key here is automation,” explains Jethro. “Automate and optimize as much as possible. Giving your teams visibility over the metrics associated with whatever they’re involved in, and trying to minimize their time spent on manual processes is absolutely paramount.”

Technology agnostic solutions foster collaboration

More importantly, eCommerce companies would benefit from using technology that facilitates collaboration across all end-to-end teams, whether they’re in-house or third-party. “The most difficult thing to do is to bring a consistent delivery experience for the customer,” explains Raul, “and technology plays a big role there, especially if you want to scale. Making sure that every single order is synchronized, especially if you have a third-party delivery partner, is essential to that last-mile delivery experience.”

While many know that collaboration is critical to producing hassle-free customer experiences, it’s something that many companies still struggle with. The biggest challenge tends to be difficulty integrating new technology into an existing back-end tech stack, or finding a digital solution that is compatible with your third-party delivery partner’s system as well. It’s why eCommerce and logistics companies would benefit from prioritizing solutions that are not overly disruptive and have a low barrier to entry.

APIs tend to be the solution of choice because they’re a relatively low-code, easy-to-use and highly customizable option to pull information together from multiple sources onto a single interface. And because they’re technology agnostic, APIs play well with others, allowing for wide-scale interoperability between diverse apps, databases, and programs.

“When you’re working with multiple service providers, you need to make sure that your technology is agnostic,” explains Vineet. “If there is one break in the chain, the customer will know it, so the key is to adopt a technology that works across different platforms and integrates with multiple environments.”

To deliver great CX, first start with great EX

Technology has a massive impact on the entire logistics chain. But just as important as customer-facing digital solutions, such as payments or communications, are the back-end or internal-facing solutions that your own employees use.

According to Vineet, employee experience (EX) is crucial to customer experience (CX) because empowering your employees with the right technology to do their jobs means you’re reducing friction and removing barriers to better service quality.

And this doesn’t just apply to your in-house employees. The experience of your third-party partners also matters.

“When you own the entire end-to-end delivery channel, customer experience tends to be far superior because you’re more in control,” explains Vineet. “During the initial stage when we started working with third-party logistics partners, we began facing issues with delivery quality. We realized this was mostly due to a lack of knowledge-sharing or training, so we actually came up with training videos for our delivery partners to teach their drivers how to properly handle our product.”

“Yes, it’s an investment of time and resources, but at the end of the day, the objective is the same. Everybody wants the customer to be happy.”

Sustainability should not be overlooked

The rise of the eco-conscious shopper will see more consumers in Southeast Asia scrutinize their shopping habits through the lens of sustainability. “It’s an early trend, but it is certainly there,” confirms Vineet, who recommends that while regulation is not yet fully formed in the region, it’s better to get on the front foot and start moving towards more sustainable practices earlier rather than later.

Jethro agrees, saying that he foresees sustainability becoming an even bigger consideration for the logistics and eCommerce industry in the near future, especially as consumers are putting their money where their mouth is when it comes to supporting purpose-driven brands and companies. “I think it was just good business sense, for example, for us to get rid of bubble wrap and replace it with compostable or biodegradable paper,” he shares. “It’s lighter, cheaper, and better for the planet.”

Moving forward, it’s possible for logistics companies to differentiate themselves by building and communicating more sustainable business models. While the current prevailing demand is for fast delivery, customers may be willing to accept longer delivery times if they know it’s to ensure more sustainable practices, such as ensuring that driver routes and delivery densities are optimized for less fuel consumption.

The bottom line: Digital CX is the new benchmark for eCommerce and logistics

Despite the fact that most of its activities happen in the physical realm, last-mile delivery and fulfillment matters more than ever to the digital customer experience. Having a customer reach out to you about a delivery delay and having to tell them you can’t help because it’s being handled by a third-party delivery provider risks undoing all the great wins you’ve created up till that point.

To win over the loyalty of modern shoppers, eCommerce brands and their logistics partners need to work closer than ever to ensure that every micro-experience in the customer journey is in sync. APIs offer the visibility and collaboration pathways necessary for businesses to empower their employees to make better decisions, communicate transparently with customers, and problem-solve on the fly. With the right data and communication channels at their fingertips, your sales and logistics teams will be in a better position to create truly seamless delivery experiences, consistently and at scale.

digital-cx-trends-ecommerce2.png

These insights were shared at a panel discussion moderated by 8x8 at Home Delivery Asia 2022. Watch the full panel recording here to learn more about how logistics and eCommerce leaders are using the right digital tools to elevate customer experiences—and stay ahead of the competition.