What smart scaling solutions from competitors does your online store use?
Analysis of the E-commerce market shows a rapid growth in the number of its consumers. More than 70% of the population makes purchases online and this number is growing steadily. Not only the number of users is growing, but also the number of online stores themselves, which puts the latter in a competitive struggle for customers and searching for ways to scale. Cost management is becoming one of the first places in this competitive struggle. So that the elements of the service and all the invested costs do not eat up the margin and the business can grow and earn money.
A customer retention strategy is a set of tools with which you can constantly extract benefits from existing customers who are maximally loyal to the brand. To retain their customers, online stores have to “spin”: loyalty programs, support services for managers, connecting various payment systems, various delivery methods, etc.
Using a specific example
When describing the case of INFINIUM’s work experience, you can do without the name of a specific online store, because everyone has the same pains – to deliver as quickly as possible, improve the quality of service and not lose your customer.
Standard operating scheme for an online store
Before using the INFINIUM LOGIMUS System, our client worked using manual methods of building delivery logistics – a map on the wall with receipts pinned to it by district. Based on this “cartography”, an approximate analysis was carried out on how many drivers needed to be involved in delivery – i.e. printed receipts were given to couriers and a delivery deadline was set.
Delivery routing was organized manually. Drivers themselves decided how and where to go first, delivered goods without any logic and the ability to use the company’s resources economically. No one had guarantees and information that the driver was driving consistently and logistically competently.
INFINIUM LOGIMUS specialists proposed an automatic solution that integrates all requests and uploads data from the My Warehouse application to the System, geocodes by points and distributes delivery with the click of just one button. Taking into account all the parameters, distribution by vehicles and drivers is carried out – a complete picture of who is going where is formed.
Previously, logisticians of the online store worked without raising their heads, trying to keep everything in mind, but still lost concentration during the holidays and sales, when orders simply fell from the sky. 20-30% of deliveries were simply lost due to their extreme workload. Because of this, customers were also lost, who, not receiving their order, went to competitors. CLEAR routing was required.
INFINIUM LOGIMUS made it possible to automatically plan routes for field personnel, thereby providing logisticians with a tool that allows them to take into account all the parameters and build profitable delivery scenarios.
Many people are familiar with the situation when a courier arrives at the wrong address, making the client nervous while waiting.
The driver thinks he knows how to get to the address and drives incorrectly. The client waits, the time is lost, subsequent deliveries are also delayed in time + extra mileage due to moving to the correct client address. With LOGIMUS, all client points are now included in the System. Now logisticians first verify them and geocoding occurs with accuracy down to the house and the required entrance. The hired driver has all the information clearly displayed in the LOGIMUS Route mobile application. From there, he goes to the navigator and drives straight to the desired point. This is especially important for drivers who are not so well oriented in the city and for them it is important to drive as if on rails laid directly to the delivery points, without getting lost in the labyrinth of streets.
An important bonus is that the application is additionally integrated with the cash register software, which makes the payment process more convenient. The functionality of the LOGIMUS Route application offers a lot of customization options, and the versatility of the application allows you to customize it “for yourself”, which is very convenient.
Automation of document flow
Previously, drivers were very distracted when a client started calling and specifying the time of receiving an order. With the INFINIUM LOGIMUS System, everything works specifically – the time of departure from the warehouse, paperwork, arrival to the client and completion of a specific order is known. All information is automatically integrated with the warehouse of the online store and when the client wants to find out information, he sees the statuses of his order – this is how the smart notification system works (a Telegram chat bot is configured).
When problematic situations arise (refusal of goods, rescheduling due to the customer’s fault, defective goods, etc.), all information promptly reaches the dispatcher who is specifically responsible for this order. He contacts the client and clarifies the problem, offering possible solutions (discount, delivery rescheduling, etc.). When this did not happen, information about the rescheduling, defective delivery, and other problems was learned after the fact, it was no longer possible to solve the problem promptly, and the client was already embittered and lost.
Refusal of transport manifest
The INFINIUM LOGIMUS Online Store System has also freed the store from unnecessary paperwork. Now the logistician can see all the information about the order, the delivery point and the amount directly in the LOGIMUS Route mobile application: what is being delivered, who is being delivered to, the customer’s phone number, the order amount, the payment method, etc. This solves many issues before the start of the trip and saves time that can be spent on additional delivery.
Fast and automatic calculation of flight profitability
In the practice of the Internet store, the calculation of flight profitability was not previously performed. The main criterion – to deliver the goods quickly and on time was sometimes achieved at the expense of their own savings.
INFINIUM specialists suggested using a special intelligent formula for calculating the profitability of a flight – parameters are entered into the System and it calculates the costs for a specific flight without going into the minus. That is, now the online store does not refuse to carry goods because the delivery point is far from the built and calculated routes, and the delivery is simply moved to another day, when the delivery of the rest of the products is planned in the area of the location of this point.
Calculation of payment for hired drivers
Hired personnel have their own requirements – some want to be paid per day, some per week, and some are ready to wait a month, but it is important for all of them to know the amount they will receive at the end of the trip. For ease of calculation, the LOGIMUS System calculates the amount of payment for the courier service and when transferring money, the driver can immediately receive payment for all of his trips. It became possible to see from the very beginning how much money can be earned, analyze how profitable it is and whether it is worth taking these orders.
And that’s not all…
Already today, thanks to the implementation of the INFINIUM LOGIMUS System in the business processes of the Online Store, we can note:
- logisticians manage to build cost-effective routes regardless of their daily workload
- delivery percentage has already increased to 20%
- financial costs for delivery have decreased to 30%
- the level of couriers’ loyalty to the online store has increased
- the level of customer trust has increased
The uniqueness of LOGIMUS tools allows you to fully inform the client about the delivery process and carry it out promptly. The order was received in the morning, the System immediately processed it, put it in the chain of formed routes according to the most profitable scenario and the goods went to the client that same morning.
The functionality and capabilities of the System help the Online Store scale up from its competitors who do not use INFINIUM LOGIMUS, because routing occurs as quickly, accurately and profitably as possible – millions of algorithms are calculated, hundreds of orders are optimized and delivery is competently organized, and most importantly, the client is SATISFIED!
