Ways to Enhance Customer Experience
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Ways to enhance customer experience Read the latest edition of our Postal Express & Logistics Newsletter covering • ways to increase customer experience, • new technologies, • Augmented Reality use cases, • open innovation & venturing strategies and • green mobility solutions Conten t EDITORIAL 3 Bernhard Bukovc THE FUTURE OF CUSTOMER EXPERIENCE 4 Henry Cartwright | Elmar Toime THE THREE PILLARS OF OPEN INNOVATION AND VENTURING AT SWISS 7 POST Thierry Golliard REIMAGINING CUSTOMER ENGAGEMENT 10 Wayne Haubner INFOGRAPHIC - CUSTOMER EXPERIENCE 12 by Escher Group AUGMENTED REALITY SOLUTIONS AT LA POSTE 15 Denis Cadarion GREEN MOBILITY DRIVEN BY POSTEUROP 17 Saso Turk SAFE THE DATE 20 World Mail & Express Americas, 16 - 18 February 2020, Miami NAVIGATING THE FUTURE 21 Foresight training & workshop Postal Express & Logistics Newsletter | This newsletter provides original analysis, information and opinions on current issues. Opinions are the sole responsibility of the author(s). the Postal Innovation Platform (PIP) is an open platform and forum which focuses on innovative postal services and studies the future of the postal industry with a solution oriented approach. It provides a conference, think tank and research platform that is unique in the postal world and shall ease the implementation of new and innovative postal business solutions. Letters | We do publish letters from readers. Please include a full postal address and a reference to the article under discussion. The letter will be published along with the name of the author and country of residence. Send your letter (maximum 450 words) to the editor-in-chief. Letters may be edited. Publication director | Matthias Finger Editor in chief | Bernhard Bukovc Publisher | Chair MIR, Matthias Finger, director, EPFL-CDM, Building Odyssea, Sta- tion 5, CH-1015 Lausanne, Switzerland (phone: +33 6 21796824) email: <[email protected]> Website: <https://www.postal-innovation.com/> Published in Switzerland Cover image: Jeremy Bishop on Unsplash 2 Editorial Editorial by Bernhard Bukovc It’s all about the customer. But is the customer really in control today, does the customer have full visibil- ity and get the service that he wants? Postal and logistics companies are competing for the best customer experience, knowing that their eCommerce customers demand for it and that whoever will create the best customer experience will get the business. We have discussed how postal and logistics companies can increase their customer focus during the PIP Innovation & Startup Days at Parcel+Post Expo in Amsterdam in early October. In our discussion partici- pated Henry Cartwright of Accenture and Elmar Toime of Postea Group and I asked them what they think will be the main challenges and opportunities for providing the market and customers with what they de- mand. You can follow part of their discussion in this edition of our Postal Industry Newsletter. You always wondered why Swiss Post has been repeatedly selected as the most innovative postal opera- tor? It seems that they are doing many things right. Thierry Golliard of Swiss Post shares with us some insights and explains why the open innovation and venturing approach is a key success factor and is the foundation of Swiss Post's future. As posts embark on digital transformation projects, they will have a lot of choices to make. This includes decisions about financial expenditures, technology selection, and introducing new service lines and chan- nels. Wayne Haubner of Escher Group explains how digital transformation projects present exciting possi- bilities for postal operators and how postal operators can keep these transformation efforts focused by zeroing in on what their customers want and need and by meeting those expectations consistently. If you attended our Innovation & Startup Days at Parcel+Post Expo you have seen the exciting Augmented Reality solutions of La Poste. Denis Cadario of La Poste highlights the unique opportunities of new AR technologies in marketing and explains how posts can increase customer focus and turnover with AR. Green mobility is another topic which becomes increasingly important for postal, express and logistics companies, which is also highlighted by the fact that this year's winner of the PIP Startup Award at Par- cel+Post Expo is Nüwiel, a German startup providing impressive solutions in the area of Green Mobility. Saso Turk explains the PostEurop green mobility initiatives and talks about a joint green mobility event which we organized in June. Enjoy reading our Postal, Express & Logistics Industry Newsletter ! Get in touch: https://www.postal-innovation.com/ [email protected] 3 Dossier The Future of Customer Experience Interview with Henry Cartwright * Elmar Toime * It’s all about the customer. But is the customer while pain points do remain the same the custom- really in control today, does the customer have full er’s expectation has got more stringent. For exam- visibility and get the service that he wants? Postal ple, a significant cause of inconvenience are parcels and logistics companies are competing for the best not being delivered on time. 5 years ago “on time” customer experience, knowing that their eCom- typically meant 1-3 days. Now it can be as specific merce customers demand for it and that whoever as a 1 hour delivery window tomorrow morning. will create the best customer experience will get The consumer expectation remains meeting your the business. promise even when that promise is much harder to achieve. I have discussed with Henry Cartwright of Accen- ture, Olaf Klargaard of Geopost/DPD and Elmar Toime of Postea Group what they think will be the Today, what do customers really want? main challenges and opportunities for providing the market and customers with what they de- Henry: That’s the million dollar question but we mand. think you can sum it up by saying its cheaper, faster and greater control. ‘Cheaper’ is largely driven by the battle for custom- Henry, based on your research the overall delivery er differentiation in eCommerce. The last mile has experience is improving. However, you also say become the epicentre of that battle and retailers that the pain points broadly remain the same. are offering ‘free’ shipping almost as standard. This What does that mean? Is the industry not doing has set the expectation for the price of deliveries in enough? Or is the speed of change so fast that it is general. However, we do see a willingness from nearly impossible to keep up? customers to pay for same day delivery or to accel- Henry: Unfortunately there’s no simple answer to erate speed of shipping when desired. this. Our 2019 Postal Consumer Survey found that ‘Faster’ isn’t simply offering instant delivery for only 28% of respondents globally said they thought everything but rather providing the range of speeds that the overall delivery experience was “very to suit the customer needs. There are certain prod- easy” (an increase from 23% in 2013). That’s clear- ucts that customers tend to want instantly (hot ly not high enough but its certainly not for lack of food, replacement phones, prescription medicine trying by the industry. There have been great ad- etc.) and others that are less urgent. Providing op- vancements in capabilities like forecasting ETAs, tions around the speed of delivery is key to ensur- providing delivery windows, improving customer ing customer satisfaction. Meeting those commit- contact etc. which mean that what was considered ments is absolutely vital. industry leading 5 years ago can be seen as BAU now. ‘Control’ is where the real delivery differentiation occurs but ultimately for the customer this all However, the problem is more that what ‘good’ about allowing them to stipulate when, where & looks like has shifted as consumers have become how they receive a parcel. Its about providing the more discerning and are experiencing more and customer with choice, relevant and accurate infor- more slick digital interactions elsewhere in their mation and potentially even some ability to make daily lives. Customers are demanding more of the decisions and change the parcel journey. delivery experience even as it improves steadily. So Henry Cartwright, Accenture, Senior Manager, Global Post & Parcel Industry Elmar Toime, Chairman Postea Group 4 The difficulty for delivery companies will be in find- email. And it has to be accurate, that is your parcel D o s s i e r ing how they can meet these expectations in a cost is arriving in 20 minutes, not it's arriving in next few effective and sustainable manner. days. Henry: We think that the key tools & technologies needed for meeting customer expectations and How can postal operators make sure that they are creating a positive customer experience are those designing new solutions or products with their cus- that improve customer control and communication. tomers in mind rather than just pushing the latest shiny toy or technology at the customer? If you want to offer customers ETAs or delivery win- dows then you will need to have end to end visibil- Henry: Ultimately, we believe that this boils down ity of a parcel through your network and control to becoming a customer centric business from the over it at all stages. ground up. When it comes to creating new prod- ucts or solutions this can be best achieved through If you want to make sure you meet delivery win- applying service design methodologies from the dows then you need to have really strong route very beginning of the design process. optimisation capabilities that consider the windows as constraints and also consider other variables like There also needs to be an awareness that, while traffic, weather etc. following the market for innovation, can provide directional confidence for new innovations or Finally, you need to be able to open up and present products, postal operators will need to design with your data to the customer in the right way.