By now, retailers should already know that acquiring a new customer can cost as much as 25 times more than getting an existing customer to repeat a purchase. So, it is inevitable that online retailers sell their goods at a loss when a customer purchases with them for the first time. A good performance marketeer will tell you that this loss is an investment in a customer that will repeat purchase and provide you with excellent LTV (lifetime value). But what if it doesn't?
A study has shown that 69% of customers are much less or less likely to shop with a retailer in the future if an item they purchased is not delivered within two days of the date promised.
So, if your last mile operations and customer engagement are not in excellent shape, it might just be that your are wasting your marketing money to capture customers that will never come back because the last mile is failing. Not only will your performance marketing money be wasted, but so will the existing loyal customers potentially drop out in favor of better service elsewhere, creating a spiral of death for your business.
Invest on your last mile first. Make sure your operations are automated and ready for scale. Prepare a well thought strategy with your shipping partners and have backup partners in place in case your primary ones fail. Predict delivery delays before they happen and fix them. Have your teams re-assign shipments that are late for collection and communicate delays to your customers, keep them informed and let them know you care. Make sure your customers can check the status of their orders at any time and reduce calls to your customer service team so that they can handle real issues. Finally, collect your customer's feedback and improve on your performance.
Invest on your last mile with us. At Carriyo, we offer a plug & play solution that gives you everything you need and more to run a healthy last mile. Then, go ahead and start putting money on your first mile and make your business flourish.