Do You Have the Right Shipping KPIs?

One mistake that companies often make is that they treat shipping as a means to an end. Often, shipping is merged into the same step of a business funnel as the sale itself.

But customers don’t think that way. Making a purchase isn’t over the moment that they click the “buy now” button on your e-commerce website. There will be a few days of tracking their package, planning for its arrival, and then actually receiving and opening the box to make sure that everything is in good shape before they will consider the purchase complete.

Similarly, businesses need to think about shipping as its own step in the sales process.

That means that your shipping process will have unique goals and its own set of KPIs.

Because customers care so much about the speed, price, and quality of their deliveries in today’s market, focusing on the finer details of shipping can make a huge difference. Plus, your company will benefit too—monetarily, by volume, and in terms of reputation. But in order to get there, you need to know what you are trying to achieve.

Here’s a thought exercise to get you started:

What is the biggest priority for your shipping process?

o  Saving your company money

o  Saving the customer money

o  Speed of delivery

o  Accuracy of the order

o  Quality of delivery service

o  Quality of customer service

o  Customer experience

While money is often the bottom line when it comes to business decisions, sometimes you have to go a little deeper than the immediate cost-savings of a cheaper shipping partner. For example, your cheapest solution won’t always complete deliveries as fast as other partners might. If your customer values fast shipping, then you could wind up losing sales because of this decision. You might end up losing more money than you saved by choosing the cheap partner. If you happen to know the value of speed to your customers and your company’s bottom line, then you might end up shifting decisions and shifting your goals around speed-based KPIs.

But you might not have the exact data on the value of speed. You might, however, know that your company’s reputation management is important—and that your stakeholders value the brand’s standing within your industry, as well as long-term customer loyalty. In this case, you might want to be sure that customers can easily track their packages and reach out to customer services if they have any questions about the status of their orders. You probably want to work with distribution partners with positive reviews when it comes to packages arriving intact. In this case, you would want to set your targets around customer service and satisfaction KPIs.

Once you know what your company’s goals really are when it comes to shipping, you can start assigning KPIs to track and measure how well you are meeting your goals. You can also easily gather and analyze that data with ShipNow.

ShipNow is a platform that combines artificial intelligence, machine learning, and uberization technologies so that your company can always find the safest, most affordable drivers with the shortest, speediest routes. It will take into effect your distribution partner locations, your stock, and other factors, while providing easy-to-follow tracking information on every order—for you and your customers. There are many solutions for your team to discover and customize so that you can meet each unique KPI. Try it yourself, for free, to learn what it can do for you.

Success is a moving target. But you can meet it anywhere with ShipNow.

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