By Phil Audley, VP Customer Solutions, at Quantanite.
The logistics industry has grown alongside the e-commerce and retail industries. Each innovation in delivery expectations from consumers, has sparked a wave of change in logistics. This has led to logistics companies exploring autonomous delivery vehicles, blockchain tracking, and the use of Artificial Intelligence to plan routes.
It’s an exciting place to be focused because there is a sense of constant development, but a development in another industry has got me thinking about new ideas and opportunities for logistics brands.
Take a look at the buy-now-pay-later app Klarna. It’s one of the most popular services that is really starting to challenge the traditional credit card. You can buy anything from retailers that support the Klarna payment option and then pay for the item interest-free over the next three months.
Traditionally you might expect Klarna to just be another option alongside credit and debit cards, but they have thought extensively about how to leverage the ongoing customer relationship they are creating. If you need to visit the app occasionally to make repayments, then why not see if the customer wants to buy something else?
So, the retailers that accept Klarna are featured in a marketplace on the Klarna app. Customers can browse special offers and ideas that are only available on this platform then they can buy an item by adding it to their Klarna balance.
This is a great idea. If customers need to check in with the app, then why not offer them additional services? It improves the experience of the customer and by providing unique offers and deals it creates a draw – they want to check out your app more frequently.
The logistics industry has a similar opportunity. When a package is sent from a retail or e-commerce company customers will often use the delivery company app or website to track their package. Under normal circumstances this is all automated – punch in the number and the app tells you where your package is and when it should arrive.
But think just how many companies use TNT Express, Evri, Parcelforce, UPS, or DHL for deliveries. What if you were checking a package that you know is being delivered by TNT Express and alongside the delivery information is a marketplace featuring all the brands that use their delivery service – with special offers only available from this platform.
Sounds interesting, doesn’t it?
The delivery company can create a much more dynamic and interesting customer experience and they can probably take a commission for any sales they earn on their platform. It’s a better experience and additional revenue too.
I haven’t seen a logistics operator in the UK creating a service like this yet. I’ve heard about some experiments taking place in some smaller countries in Europe, but imagine if a brand like UPS tried this in the US or UK. It could create an entirely new channel to customers for the retail brands and additional revenue for the logistics company.
All this, just for designing a more interesting and interactive customer experience.
