Running a delivery business is no easy feat. Not only do you have to ensure that your service is up to par, but you also need to ensure that your customers keep coming back for more. That’s where customer retention comes in.
Customer retention strategies are the key to keeping your business afloat. After all, you need to shell out 5 to 25 times more money to acquire a new customer than to retain an existing customer, according to Harvard Business Review.
Happy customers will recommend your service to others, which can help you win new businesses down the line. According to research by Frederick Reichheld of Bain & Company, increasing your customer retention rate by just 5% can increase your profits by 25% to 95%.
So, it’s a no-brainer that customer retention strategy should be your priority. You can implement several customer retention programs, but it’s important to tailor them to your specific business and customer base.
To make your job easier, we will discuss seven strategies to retain customers that are proven to work for delivery businesses.
Table of Contents
1. Let Customers Choose their Delivery Time Slot
Setting strict delivery times can be a great way to ensure your business runs like a well-oiled machine. But what if your customers don’t always want their packages to arrive at 9am sharp?
These days, customer retention is about giving people what they want when they want it. And that’s why you need to allow customers to choose a delivery time slot that works for them.
There are a few key reasons why you should allow customers to choose their delivery times.
- Build customer loyalty: If customers feel they have some control over when they receive their deliveries, and you value their time and convenience, they’re more likely to stick with your service.
- Save on labor costs: By allowing customers to choose their own delivery times, you won’t need to staff as many workers during busy periods.
- Upsell other services: Customers who choose their delivery times may be more likely to add additional items, such as rush delivery or insurance.
- Avoid Failed Deliveries: When customers are available to receive the packages, you will have zero failed deliveries, reducing fuel and labor costs you had to incur for re-delivering the same package.
Of course, offering such a service isn’t without its challenges.
You’ll need to be prepared for the occasional customer who tries to take advantage of the system by requesting an unreasonable delivery time. Also, you may need to hire enough drivers to cover all the different delivery times.
However, you can mitigate such challenges with robust delivery scheduling software like Route4Me to make all deliveries on time, irrespective of the delivery times set by the customers. And that also without spending a single penny on additional resources.
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2. Keep Your Delivery Services Affordable
Customers keep looking for ways to save money and are likelier to continue using a delivery service that doesn’t break the bank.
That’s why keeping your delivery services affordable is one of the best customer retention strategies you can use.
Moreover, affordable services can help to attract new customers. Word of mouth is still one of the most powerful marketing tools available, and existing customers are more likely to recommend a business if they’re happy with the price they’re paying.
But how can you offer inexpensive services without sacrificing the customer experience? Here are a few strategies:
- Offer discounts for repeat customers or those who refer new customers to your business.
- Keep your vehicle well-maintained to avoid costly repairs or breakdowns. Learn the six vehicle maintenance tips you should be following.
- Negotiate pricing with customers, especially if they are loyal or have been with you for a long time.
- Use a route optimizer to automate route planning, order tracking, and customer communications. This can help you reduce fuel and labor without inhibiting excellent customer service.
3. Respond to Customer Complaints Quickly and Effectively
Customer complaints are inevitable. And while it’s tempting to ignore or brush them off, doing so can jeopardize your efforts to retain customers. Because when customers feel like their concerns are being dismissed, they’re more likely to take their business elsewhere.
That’s why you must have strategies for dealing with difficult customers quickly and effectively.
By responding quickly, you show that you care about your customers and are willing to take the necessary steps to resolve the issue. This can go a long way toward maintaining customer loyalty and keeping them returning for more.
Additionally, by being effective in your responses, you show that you are competent and capable of handling customer concerns. This builds trust and confidence, which are essential for retaining customers.
Here are a few key things to remember when responding to complaints:
- Listen to the customer’s complaint. This might seem quite obvious, but you’d be surprised how many businesses fail to do this. You need to listen carefully so that you can fully understand the issue.
- Apologize for the inconvenience. Even if it’s not your or your team’s fault, apologize. This shows that you’re taking responsibility and care about resolving the issue.
- Offer a solution. Once you’ve listened to the customer’s complaint and apologized, it’s time to offer a solution. This could be a refund, a discount, or something else entirely. Whatever you do, make sure it’s an acceptable solution for the customer. You can also ask the customer how to resolve the issue to their satisfaction.
- Follow up with the customer. This is important for two primary reasons. First, it shows that you’re serious about providing great customer service. Second, it allows the customer to provide feedback on your resolution process.
Use complaints to identify areas for improvement in your business. Maybe there are areas where you need to provide more training to your employees or make some changes to your policies or procedures.
4. Make Faster Deliveries to Retain Customers
Everyone wants their deliveries to be fast- whether it’s a pizza or a new pair of shoes. In today’s world of instant gratification, customers are less likely to tolerate long wait times.
According to a report by Engageware, the long waiting time can make businesses lose 75% of customers. You must focus on developing a customer retention strategy with faster delivery times.
Customers appreciate businesses that value their time. When you make deliveries quickly, you’re showing that you’re a reliable company that can be counted on. And they will reward you with repeat purchases or hiring of your services.
Plus, they’re more likely to recommend your business to others. Additionally, quick delivery times give you a competitive advantage over other companies that are not prioritizing speed.
But it’s easier said than done.
Imagine you’re trying to deliver a pizza. You could just pick the shortest route (that you think!) and hope for the best.
But what if there’s traffic?
What if you get lost?
And what if the customer isn’t home when you finally arrive?
Suddenly, the shortest route isn’t looking so good anymore. That’s where you need to take the help of route optimization software like Route4Me.
By considering factors like traffic, weather, and delivery time windows, the Route4Me route planner can help you find the fastest route for your delivery in 30 seconds leading to zero missed deliveries and happy customers.
Plus, the dispatch routing software comes with a commercial GPS tracker that helps track your vehicles on the road in real-time and ensures drivers don’t engage in reckless driving or make unnecessary stops that could jeopardize the delivery schedule.
Want To See For Yourself How Route4Me Can Help Retain Your Customers?
5. Keep Customers Updated About Their Delivery Status
If you’re looking for a strong customer retention strategy to increase customer lifetime value, try keeping your customers updated about their delivery status. Here are a few reasons why:
- Customers are less likely to become impatient or anxious when they know their delivery status.
- Keeping customers updated about their delivery status makes them feel valued and more likely to stick around.
- It helps build trust between you and your customers, which could lead to repeat business, positive reviews, and referrals.
So, how can you provide status updates without driving yourself crazy?
A multi-stop route planner like Route4Me can make the job easier. It offers a customer portal feature that lets customers see exactly where their package is at all times.
In addition, Route4Me’s delivery route planner comes with a customer alerting and notification feature that allows you to send customers an update through email or SMS at each significant milestone. You can let them know when the item is picked up, when it’s loaded onto the truck, when it’s en route, when it’s near the customer location, and when it’s delivered.
6. Ask for Feedback to Boost Customer Retention
Another way to improve customer retention rate is by asking for customer feedback. According to a report by Microsoft, 77% of customers prefer using brands that request and accept input.
Plus, feedback can help you identify potential problems and address them quickly before they have a chance to cause long-term damage. You can unlock valuable insights into what your customers like and don’t like about your service. With this information, you can make changes that will increase customer retention.
You can call customers directly to get their input, add a short survey to your delivery confirmation email, or include a link to the survey on your website or social media pages.
You can even leverage Route4Me’s Driver Rating feature to automatically send an SMS or email requesting feedback on the delivery experience as soon as an order is completed. The software helps customize surveys as per your needs.
No matter how you collect customer feedback, take the time to review it and use it to improve your service.
7. Train Your Drivers to Be Courteous to Improve Customer Relationships
Businesses take several steps to encourage customers to keep hiring their services. But one customer retention strategy is often overlooked: being courteous and helpful.
Of course, this doesn’t mean drivers need to be obsequious or servile. But a little bit of politeness goes a long way and can make a big difference in customer satisfaction.
For example, suppose a customer’s package is delayed. In that case, a driver who takes the time to apologize and explain the situation will likely be forgiven more quickly than one who simply shrugs it off.
Plus, it’s not just good customer service — being courteous and helpful can make your drivers’ jobs easier.
If they can build up a rapport with customers, they’re likely to find that they get fewer complaints and can resolve issues more quickly. In other words, it’s a win-win for everyone involved.
Final Thoughts about Customer Retention Strategies
Customers should feel like they’re in control of their package’s delivery, not the other way around.
Make sure that your drivers are courteous and helpful and that you respond quickly to complaints. Ask for feedback to improve your services, and train your staff regularly to maintain high standards. And do not forget to optimize routes with a route planner to make faster deliveries.
By following these simple tips for customer retention, you can ensure that your company provides a top-notch customer experience that will keep your customers happy and encourage them to return and do business with you again.
Want To See For Yourself How Route4Me Can Help Retain Your Customers?
