6 Factors Why Customer Service In Logistics Is Important

Given the structure of the global economy that exists these days, the definition of a good brand or good quality service depends on the customers. As in any other business, also in the logistics industry, it is the customer who determines the reputation and goodwill of the company. Hence, customer service in logistics is the key to success.

Logistics is a critical determining factor in the efficient operation and productivity of an organization. A good logistics plan is crucial for the supply chain. Moving merchandise in the market, or receiving raw materials, becomes a very tedious task if you do not have a good logistics plan. However, logistics alone is not enough. A key component of a successful logistics plan is logistics customer service.

A satisfied and happy customer adds value to the brand and helps the company stand out from the crowd and stay ahead of all the competition. And in today’s global economy, it is customers who set the standard for service or product quality.

6 Factors Why Customer Service In Logistics Is Important

In all vertical markets, customer service plays an essential role. Logistics companies are constantly faced with countless queries throughout the day. For this reason, a contact center that offers all the functionalities that benefit operational efficiency is key.

To establish a long-term relationship with customers, and win consumer loyalty, the customer service approach should be changed from a product-oriented strategy to a customer-centric strategy.

What Indicators Explain the Relevance of Customer Service in the Logistics Sector?

1) Good Customer Service Helps Win Customer Loyalty and Keep It

A simple 5% increase in customer retention equates to almost a 25% increase in profits. Customer Acquisition Cost (CAC) is the equivalent of acquiring a new customer. For a company that does not spend a small percentage of its budget on customer service, CAC can add up to considerable numbers.

2) Good Customer Service Enhances the Brand Image

Customers are the creators of the brand. Great customer service, also multi-channel, enhances the brand image and makes it attractive in the market. Positive user reviews and positive feedback on the brand’s products and services, and consequently on the business, increase your overall profits and opportunities.

3) Good Customer Service Depends On Cheerful, Responsive, and Positive Customer Service Representatives

Agents are the contact points between the brand and the customer. Therefore, all customer service interaction relies heavily on them. Naturally, an unhappy agent will not provide good customer service. It has been observed that 87% of customer service representatives, who are happy with their occupations, are flexible to customer needs and queries.

For agents to do their best work, they need to feel respected and recognized. This provides the psychological incentive and inherent inspiration to do excellent work and serve customers in the best way, making them feel the same way too.

4) Satisfied and Happy Customers Are the Best Publicity For the Brand

Effective customer service ensures happy and satisfied customers. This not only means repeat customers, but also good publicity for the brand. A happy customer refers the brand or company to other partners, co-workers, friends, etc. It’s a chain reaction.

Therefore, investing in keeping agents motivated strengthens customer service.

5) Great Customer Service Is a Key Factor That Establishes a Competitive Advantage

Regardless of the type of industry or business, it is imperative to stand out and shine above the competition. Standing out from the competition helps a business thrive, and customers need to know they’re with the best. Thus, 60% of customers stop working with a brand after a bad customer service experience, but this percentage decreases if the user’s problem is resolved satisfactorily during the first communication. Therefore, customer support can be a great differentiator for the brand.

6) Long-Term Customer Retention

Earning customer loyalty is the ultimate reward for a business. It translates into good profits. A great customer service experience ensures that users make the brand a part of their lifestyle and personality, and use your services and products regularly.

In conclusion, for a large company or a complex supply chain, maintaining satisfactory customer service can be challenging and difficult, due to the multiple stages and people involved, each of which affects a company’s reputation through of the customer experience (CX).