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When only a few dollars separates freight rates, customer service can be the differentiator
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What exactly is a ‘good’ customer experience?
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People do not buy products but benefits
The global industries of shipping, freight and logistics are very dynamic with new changes and technologies being introduced rapidly and regularly.
Shipping lines are entering into mergers and acquisitions and forming alliances for their growth and survival.
If we look at the 2M, Ocean Alliance and THE Alliance, 3 of the biggest shipping line alliances in history commencing from 1st April 2017, all the 11 shipping lines within these alliances will play on a level field wherein there is no uniqueness in terms of product offering as far as trade routes, port pairs, ship types are concerned.
On the east-west routes, all these 11 shipping lines are offering sailings between the similar port pairs, on the same trade route, using the same ships, offering the same transit times within their own alliances with only minor differences.
So, what is the differentiating factor for the customer and how would a customer choose which of these lines to use within these alliances as each of the lines have their own commercial arrangements.
The differentiating factor
In such cases, one of the main differentiators is “Customer Service” because in an alliance like above, even the crucial freight rates may be different only by a few dollars.
While the industry has changed, the customer service delivery methods have changed and the technology has changed, what has not changed is the expectation of the customer.
In its most simplistic form, a customer’s expectation is relatively simple. They are interested in knowing the status of their cargo on a real-time basis if possible and when the cargo will reach its destination.
This is too simplistic a view however, and it is what happens between these two expectation points that is considered by the customer as REAL customer service. This is the real test of a logistics service provider and how effective their customer service is.
According to Michael Wax, CCO of Freighthub, “We believe customer service is the most important factor in freight forwarding – we like to put customers in control of their cargo by enabling them to steer it via our platform while still being on-call to support them in person.”
Many freight forwarders claim their organisation is using a customer-focused approach and integrated services as a means to growth. According to them, their profound knowledge of individual specific industries allows them to give their customers an excellent advice on all aspects of logistics and provide them tailor-made solutions.
This in turn supports their customers to achieve greater cost-effectiveness and provides them with excellent opportunities for closer partnerships and collaborations.
What exactly is good customer service?
While a good customer service may mean different things to different people, some of the generic points would be :
1) Creating, building and developing a good relationship with the customer.
2) Even more importantly, demonstrating that you understand the customer’s requirements. Nothing is better than catering to the customers’ concerns before they know they have them.
3) There is a saying that “Customer service is an attitude and not a department”. A positive, caring and friendly attitude shines through in your interactions with a client whether it is on the phone or in person or on email. Proactive communications enable customers to act in combination with a good attitude.
4) Customers always look for promptness and efficiency with regards to their queries whether the resultant answer is a positive one or not. One example would be, that a service provider can do nothing in case bad weather delays shipments, however prompt and pro-active communication allows the customer to make their next decision (like air freight some urgent cargo that is stuck on the ship due to bad weather).
5) Problem solving is an integral part of customer service and one of the key aspects which customers consider when it comes to continuing service with a company.
Conclusion
In the current competitive climate, customer service is an important means of differentiating your service from the one of competitors and to ensure customer loyalty.
Especially in an industry like logistics which is time sensitive, ensuring that the various components of customer service are maintained provides a great competitive edge over the competition.
Customers measure the value of your customer service in relation to how it helps to meet their needs or solve their problems. Everything else is secondary.
It was Theodore Levitt who said “People don’t want quarter-inch drills. They want quarter-inch holes” which one can translate as “people do not buy products, but benefits” in terms of customer service. (Click to tweet this)
Read more: Future of Tracking is Not to Track The Box But The Contents, Documents, Transactions
