A recent study by EY revealed that 25% of consumers consider slow delivery speeds to be the most frustrating part of online shopping, with one in five saying they won’t forgive brands that fail to make good on their promises. The results highlight the importance of prioritizing communication between retailers’ marketing and supply chain departments.
Steering a retail business along the path of success comes with several challenges. Companies need a rock-solid strategy to attract, acquire and retain customers. This in turn highlights the need for prioritizing seamless order fulfillment.
Whether you’re running a brick-and-mortar establishment or online store, customer satisfaction is crucial for sustaining the business. A flawless purchase experience helps to win the trust and loyalty of customers. In light of the changing demands and preferences of modern consumers, it becomes all the more essential to focus on the customer experience. In an age of top-notch online stores and marketplaces, consumers are used to fast, affordable, and hassle-free order deliveries. They don’t have the time to wait days or weeks for orders to arrive.
But it’s not enough to lure customers with the promise of free shipping and same-day service. To deliver on their promises, and ensure both timely delivery and stress-free returns, retailers must also have the support of the logistics team. And that requires seamless communication between marketing and supply chain operations.
The most common mistake that retailers make is ignoring the importance of that coordination. Keeping the two departments siloed can take a serious toll on customer satisfaction and revenue.
Say that the marketing department offers free shipping on a bulky product, without consulting the supply chain team. When a customer places an order, the latter calculates the shipping cost. They realize that providing free shipping will affect the profit margin. But asking the customer to pay extra shipping charges will adversely affect the seller’s reputation and credibility. In the end, it’s faced with the dilemma of choosing between customer satisfaction and revenue.
Every retailer must avoid letting its marketing and supply chain teams work in isolation. The two departments must collaborate, to be able to inform each other with relevant data, insights and feedback. For example, the marketing team will have a better idea of evolving consumer preferences and emerging industry trends. Sharing that information with supply chain ops will help it decide on the right logistics in line with changing consumer demands.
Similarly, the supply chain team can evaluate the viability and profitability of certain promotions. Offering free shipping on bulky items might seem like a great marketing move. But supply chain ops can paint a more realistic picture of the costs involved in delivering product to specific locations. It can also provide marketing with a better idea of how its efforts are going to affect overall business revenue and profits.
Marketing and supply chain ops should also work in tandem to improve customer satisfaction through personalized promotions. The marketing department has the data and resources to identify loyal customers who make repeat purchases. Supply chain ops can use that information to prioritize seamless order fulfillment for those buyers.
In the retail landscape, marketing and supply chain ops are indispensable to one another. Both departments must strive to stay on the same page to make mutual and well-informed decisions. Marketing teams must share their promotional calendar with supply chain ops well in advance. Likewise, it’s essential for the supply chain team to support marketing campaigns with useful data collected from real-life customers.
Jay Sackos is a vice president at Dolly.
A recent study by EY revealed that 25% of consumers consider slow delivery speeds to be the most frustrating part of online shopping, with one in five saying they won’t forgive brands that fail to make good on their promises. The results highlight the importance of prioritizing communication between retailers’ marketing and supply chain departments.
Steering a retail business along the path of success comes with several challenges. Companies need a rock-solid strategy to attract, acquire and retain customers. This in turn highlights the need for prioritizing seamless order fulfillment.
Whether you’re running a brick-and-mortar establishment or online store, customer satisfaction is crucial for sustaining the business. A flawless purchase experience helps to win the trust and loyalty of customers. In light of the changing demands and preferences of modern consumers, it becomes all the more essential to focus on the customer experience. In an age of top-notch online stores and marketplaces, consumers are used to fast, affordable, and hassle-free order deliveries. They don’t have the time to wait days or weeks for orders to arrive.
But it’s not enough to lure customers with the promise of free shipping and same-day service. To deliver on their promises, and ensure both timely delivery and stress-free returns, retailers must also have the support of the logistics team. And that requires seamless communication between marketing and supply chain operations.
The most common mistake that retailers make is ignoring the importance of that coordination. Keeping the two departments siloed can take a serious toll on customer satisfaction and revenue.
Say that the marketing department offers free shipping on a bulky product, without consulting the supply chain team. When a customer places an order, the latter calculates the shipping cost. They realize that providing free shipping will affect the profit margin. But asking the customer to pay extra shipping charges will adversely affect the seller’s reputation and credibility. In the end, it’s faced with the dilemma of choosing between customer satisfaction and revenue.
Every retailer must avoid letting its marketing and supply chain teams work in isolation. The two departments must collaborate, to be able to inform each other with relevant data, insights and feedback. For example, the marketing team will have a better idea of evolving consumer preferences and emerging industry trends. Sharing that information with supply chain ops will help it decide on the right logistics in line with changing consumer demands.
Similarly, the supply chain team can evaluate the viability and profitability of certain promotions. Offering free shipping on bulky items might seem like a great marketing move. But supply chain ops can paint a more realistic picture of the costs involved in delivering product to specific locations. It can also provide marketing with a better idea of how its efforts are going to affect overall business revenue and profits.
Marketing and supply chain ops should also work in tandem to improve customer satisfaction through personalized promotions. The marketing department has the data and resources to identify loyal customers who make repeat purchases. Supply chain ops can use that information to prioritize seamless order fulfillment for those buyers.
In the retail landscape, marketing and supply chain ops are indispensable to one another. Both departments must strive to stay on the same page to make mutual and well-informed decisions. Marketing teams must share their promotional calendar with supply chain ops well in advance. Likewise, it’s essential for the supply chain team to support marketing campaigns with useful data collected from real-life customers.
Jay Sackos is a vice president at Dolly.