The past few years have brought a windfall to the logistics industry as the number of vendors exploded to meet astronomical demand from consumers who were forced to spend more time at home. Despite the rapid rise in demand for fast-moving consumer goods (FMCG), logistics vendors have largely kept up thanks to a happy convergence of multiple factors: ongoing infrastructure upgrades, high network capacity, and distancing measures that minimised congestion on transportation routes over air, land, and at sea.

The Philippines had only 1,700 online sellers in March 2020; this skyrocketed to 93,318 by January 2021.

But the task of fulfilling orders at breakneck speed is expected to become more difficult in the months and years ahead. Roads, airways, and seaways are starting to become congested once more, extending the time it takes for customers to receive their parcels. And it’s not as if customer expectations will let up anytime soon. Having grown accustomed to the luxuries of same-day delivery, customisable delivery times, and parcel tracking, customers won’t be enthusiastic about reversing this new normal. For instance, businesses might need to invest in inbound package tracking software to keep up with customer expectations by providing real-time updates on their deliveries.

In fact, 32% of Southeast Asian consumers switched eCommerce websites to secure faster delivery time.

If anything, research shows that customers are more than willing to switch vendors until they can find one that satisfies them. In other words, the winners of tomorrow’s logistics race will be the ones who can sustain or raise the already sky-high bar even further.

How logistics companies can offer even better customer service moving forward

The task of improving logistics is actually far from impossible, even though it may seem that way on the surface. For one, logistics companies still have to iron out some kinks along the supply chain. For example, as much as 53% of the total delivery fee can come from last mile delivery, leading to greater expense and frustration for both customers and vendors. Additionally, focusing on optimizing middle mile logistics can significantly streamline the supply chain, reducing costs and improving delivery times.

Despite the challenges ahead, the logistics industry is still in a good position to keep up its prodigious momentum. The Thai freight and logistics market alone is expected to grow by almost US$40 billion between 2020 and 2026. Companies that adopt automated, personalised, and secure communications in real time are the ones that can expect to remain the top choice for customers and ride this wave of growth.

The global freight and logistics market is forecasted to grow at a CAGR of 4% between 2022 and 2030, reaching a total of US$21.13 billion by the end of this decade.

That’s where communication APIs can help. These nifty code-based interfaces facilitate communication between apps, allowing you to set up communication channels with the apps that your customers frequently use—all without building a new software infrastructure from scratch.

Here are a few important ways that communication APIs can help streamline your eCommerce logistics and provide a great customer experience.

1. Notify customers of delivery times in real time via chat apps and SMS

Chat app usage varies widely between customers, especially when you’re targeting an international audience. Providing customers with the option to choose where they receive your notifications can circumvent this problem while simultaneously giving you a chance to expand your presence on multiple platforms. This direct form of communication also helps you skip the queue for your customers’ attention on a saturated internet by popping up on chat apps that they already frequent.

Furthermore, logistics companies can buy themselves time and reduce the workload of their customer service teams by providing timely alerts of a parcel’s location in real time. These alerts can be sent directly to a customer’s preferred channel whenever a delivery vehicle reaches a checkpoint, allowing customers to have an accurate gauge of when their parcel is arriving, and whether they should make alternative arrangements in the event of delays.

8x8 Chat Apps API allows logistics companies to automate promotional materials and delivery updates directly to customers on six of Asia’s most popular chat apps (Facebook Messenger, WhatsApp, WeChat, Zalo, Viber, and KakaoTalk). In tandem with SMS messages, your customer service teams can notify customers of time-limited offerings and inventory numbers around the clock, even when internet networks are down.

Tokopedia uses 8x8’s bulk SMS APIs for delivery notifications and promotions. The Indonesian eCommerce giant amassed $8.2 billion in logistics and eCommerce investments in 2021.

2. Provide a personalised touch with video conversations

Customers who make big purchases will likely want to check in now and again to make sure that their order is on its way. Two-way communication makes it convenient for customers to voice their concerns and queries, which goes a long way in creating a memorable customer journey.

8x8 Video Interaction lets you quickly set up one-to-one video chats for customers to provide delivery riders with specific directions on how they can get to their address and if they would like their goods to be placed in a specific location or manner. All this can be done through shareable video links with no signups or downloads needed. Customer interaction is literally just one click away.

3. Authenticate user transactions before they occur with SMS OTP

The number of unscrupulous actors in digital spaces has exponentially increased in the past two years, and the logistics industry has not been spared. With customers entering sensitive financial information, such as credit card numbers, when making purchases online, the onus is on logistics companies to put the necessary safeguards in place to protect customer data and retain their trust.

Digital fraud attempts in shipping have increased 52.2% between 2019 and 2021.

Businesses should make it easy for customers to verify every purchase with OTPs. Temporary passwords can also be converted into audio snippets using voice messaging to eliminate the digital footprint that hackers often use to infiltrate accounts. These little touches will speak volumes about how your company goes out of its way to keep customer transactions safe and secure.

4. Protect your customers’ personal data and privacy with call masking

Security is paramount at 8x8, which is why we make sure that convenience and privacy do not have to be mutually exclusive. With call masking, the personal phone numbers of both your vendors and customers are concealed. This preserves their anonymity and reduces the possibility of repeat harassment calls.

8x8 systems use high-level encryption and we are continuously monitoring for vulnerabilities in order to protect against hackers who want to extract customer data. These security measures let you focus on the day-to-day with a peace of mind without having to worry about the next cyberattack.

Get advanced communication tools for the new era of logistics and delivery

From providing the latest updates on delivery to safeguarding the privacy and security of customers, communication tools are critical in today's on-demand world. The logistics industry needs to be agile and adaptable in order to provide real-time updates to customers on their preferred channels.

What that looks like will vary widely between customers, but with low-code communication APIs that can be installed within minutes, 8x8 empowers businesses to give all customers a top-notch experience.

Contact us at hello-cpaas@8x8.com for a real-time demo on how we can upgrade your logistics processes.

Join us at Home Delivery Asia 2022 on 6-7 July 2022 to find out what’s next for eCommerce in Asia. It's the biggest virtual event in retail, eCommerce, and FMCG featuring virtual talks and panel debates from 60 industry experts. Tune in live to be a part of the latest conversations in logistics. 8x8 is proud to be an official sponsor of the event, and we hope to see you there!

Join 8x8 at Home Delivery Asia 2022!