Customer service strategy for missing parcels

The last few years have seen enormous growth in the e-commerce sector and as more businesses enter the market, customers expect timely delivery of their products in perfect conditions. If a company fails to deliver quality products or its parcels go missing, this can cause a significant blow to the business. According to the report Fixing Failed Deliveries: Improving Data Quality in Retail, conducted by tech firm Loqate, more than 300 retailers revealed that failed deliveries amounted to an approximate £200,000 loss for each business. 

In the event a parcel goes missing, businesses have to figure a way to retrieve the parcel or offer compensation, in terms of refund. This goes without saying, and especially so when 78% of consumers expect the retailer to find a solution, as reported in the aforementioned research. 

Businesses need to assure customers that their needs are being cared for and convince them to continue shopping with the brand again. This entails a well devised customer service strategy.

Issues faced by businesses when a parcel goes missing 

1. Impact on reputation

When customers buy a product online, not only do they expect it to come on time, but they have already planned on how and when they want to use it. As such, they can be frustrated, annoyed, and dissatisfied upon learning that their parcel is delayed, or worse, when it has gone missing. Since 94% of customers refuse to purchase from a brand after reading a negative review, ReviewTrackers revealed, a missing parcel not only impacts your reputation but also compromises your chances of drawing potential leads.

2. Reduced brand loyalty and trust

Brand reputation and loyalty are interlinking factors – when a business suffers a negative impact on its reputation, there is a higher chance that it may lose consumer trust. A Voxware study found that 69% percent of customers will most likely not purchase from a brand again if they did not receive their goods within two days of the scheduled date of arrival. 

3. Decreased customer retention

When brand reputation, trust and loyalty are affected, businesses will find it difficult to retain customers over time, with many choosing a competitor over them. Oftentimes, this stems from feelings of being underappreciated, which is the top reason why shoppers switch to products from another brand. Beyond retention, the inability to draw new customers will also be impacted. 

4. Decreased sales

The decreased brand loyalty, customer satisfaction, and retention will eventually cause your company to make fewer sales, lowering your revenues and ROI. This means implementing sound customer recovery strategies that focus on quality service is necessary, especially in situations when the order is left unfulfilled on the last-mile.  

The different touchpoints a business must consider when a parcel goes missing

Any customer service strategy, whether that is to retain disgruntled shoppers or amend delivery issues immediately, involves a series of steps, alongside a high level of urgency and commitment to clients or customers.

1. Respond to customers' inquiry as soon as possible

Proactively responding to your customer’s queries on missing parcels – which means immediately after the query is made – lets them know that they are being heard and that your team is working to resolve the issue at hand. You can inform them that you are checking the status of their shipment and getting in touch with your vendors along the supply chain to locate the package.  

2. Offer refunds or product re-shipping

Your customer service strategy doesn’t just stop at responding to customer queries. Provide your customers with a plan on what you intend to do if the parcel cannot be retrieved – offer options such as re-shipping the product or reimbursement, while dropping in a discount voucher or the equivalent, so they’ll feel more appreciated and willing to shop with you again. Surely, this may cost you, but this strategy is worth an investment if you’re looking to retain your loyal customers.

3. Estimate delivery dates by including length of delays

Sometimes, packages are not lost. Instead, they are just delayed. To assure your customers that their products will reach them in a sound manner, albeit delayed, inform them of any probable delays due to unforeseen circumstances when estimating the delivery time for the products when they check out. Being transparent at the start keeps customers well-informed and less worried about whether their parcel will arrive. 

In the event that a parcel goes missing and the customer has requested for a replacement, or the misplaced parcel is found and is on the way to the customer, estimate the time it will take for these packages to arrive. Offer them the ability to track the movements of the package while you do the same, and ensure that it reaches the customer as promised.  

4. Offer insurance and extended liability on shipments

Since businesses are unable to control any unforeseen events that happen along the supply chain, having the shipments insured is one way you can cover the costs incurred. This helps you cater better to affected customers. Choosing a reliable express courier service like DHL Express Singapore lets you achieve just that. 

How DHL Express can help you protect your customers

1. Shipment insurance

DHL Express covers the complete invoice value of the shipment in a situation where it is damaged or goes missing during the shipping process while in our care. At S$30 or 3% of the insured value (which is the value of your shipment), you can rest assured that your shipment is fully covered till your customer receives it. So whether your customer requests for the product to be reshipped or prefers to be reimbursed, you’ll have the resources to cater to them accordingly, whatever your strategy may be. Simply submit a claim for the lost shipment online and one of our Customer Service representatives will get in touch with you. 

2.Standard liability

All lost parcels shipped by DHL Express are covered under standard liability if they are not insured. It covers a percentage of your shipment value when it is deemed lost after our Customer Service department investigates the status of the parcel. 

3.Extended liability for documents

While this does not apply to parcels, it pays to know that you can also have your documents covered at a flat rate of S$7 without the need of an declared or insured value. This means that you can safely send important documents to your stakeholders with DHL Express and feel assured that any costs incurred during affected deliveries will be covered. 

As an international shipping company, we take pride in knowing that our customers are well taken care of, from the moment they choose us to deliver packages to any unforeseen circumstances that come our way. Why not create a business account and learn how we can support you in your customer recovery strategy?