Priority Mail vs. SurePost/SmartPost: Cost, Customer Experience, Branding and Execution

Transcription

1 Priority Mail vs. SurePost/SmartPost: Cost, Customer Experience, Branding and Execution Presented by Glenn Gooding President idrive Logistics (678)

2 Understanding the Market Discuss the implications of rapid ecommerce growth The Amazon Effect How customer expectations have shifted Objectives The Brand Advantage Customer experience with Priority Mail vs. SurePost/SmartPost Optimizing the Customer Experience Things to consider moving forward UNDERSTANDING THE MARKET 2

3 UNDERSTANDING THE MARKET THE AMAZON EFFECT Amazon Walmart Target No Membership Free over $35 Free over $35 Free over $25 With Membership Free with Prime None needed Free with REDCard Shipping Speed 2 day 2 day 3 5 day Customers now expect Free 2 day shipping 3

4 THE AMAZON EFFECT 77% abandon cart due to shipping concerns (61% cost, 16% time in transit) It s a Catch 22 THE AMAZON EFFECT More ecommerce sales More residential shipments Higher carrier costs Higher shipping rates How do you meet customer expectations and provide FREE 2 DAY SHIPPING without breaking the bank? 4

5 Option 1: SurePost/SmartPost FedEx SmartPost, UPS SurePost are the brand name economy ground options. Low price, so they solve the FREE expectation but not the 2 DAY expectation. 5

6 How do customers feel about shipping speed? Nearly half abandon their cart due to slow time in transit 1 in 3 choose a different marketplace because of slower time in transit Option 2: USPS Priority Mail USPS PM aligns beautifully with customer expectations and provides a Premium customer experience Priority Mail SmartPost/SurePost Cost $$$$$ $$$$$ Time in Transit 1 3 calendar days 2 6 business days Weekend Deliveries Yes Yes (via USPS) Tracking Visibility Cohesive Awkward handoff 6

7 Simpler Billing Daily Home Deliveries Growing faster than ecommerce 40% 35% 30% E commerce vs. Small Parcel Volume Growth ( 13 16): 38% 30% Free Packing Materials Priority Mail for Better Customer Service Seamless, Cohesive Tracking 25% 20% 15% 10% 5% 0% 11% 14% Fastest Economy Shipping Fast Order to Fulfillment, Slow Time in Transit Shipper A SmartPost Transit Days Number of Packages % of Total % 2 1, % 3 3, % 4 2, % 5 1, % % % Total 10, % Similar Shipper B Priority Mail Transit Days Number of Packages % of Total 1 1, % 2 6, % 3 1, % % % % % Total 10, % 54.1% Shipments Delivered in 4 days or more 94.1% Shipments Delivered in 3 days or less 7

8 The Easy Return Edge 92% % of consumers who will buy something again if returns are easy Tricky FedEx/UPS returns customer has to find a drop off site, time it right, etc. Best in class experience Returns are easy with USPS: place in your mailbox and voila Customer expectations should guide your service CUSTOMER EXPERIENCE Priority Mail SurePost SmartPost Express Service 8

9 Brand Visibility Depends on Contact Point CUSTOMER EXPERIENCE Left in mailbox Handed to customer Direct contact w/ carrier USPS seen as carrier Left at door Given to front desk Delivered to mailroom Visible FedEx/UPS brand USPS is the final mile deliverer for SurePost/SmartPost CUSTOMER EXPERIENCE Capitalize on brand advantage Deliver premium brand experience Avoid breaking the bank Stay afloat with fast, economic USPS shipping Align with customer expectations Thrive under new customer shipping expectations 9

10 How do I switch to Priority Mail? CUSTOMER EXPERIENCE It s not always cut and dry Consider the impact to your existing contracts Terms Conditions Performance language Be strategic How do I switch to Priority Mail? CUSTOMER EXPERIENCE Not so cut and dry. Consider: Strategy in your approach Impact to your existing contracts Terms Performance Language Conditions 10

11 QUESTIONS? idrive Speakers at NPF Don t Miss Out Shaun Rothwell (Founder & CEO) Shaun@iDriveLogistics.com (801) Monday May 11am 12pm Using the USPS to Enhance the E Commerce Customer Experience Carl Hutchinson (COO) Carl@iDriveLogistics.com (385) Tuesday May 11am 12pm USPS Shipping: Debunking the Myths Glenn Gooding (President) Glenn@iDriveLogistics.com (678) Tuesday 2:45pm 3:45pm Priority Mail vs SurePost/SmartPost: Costs, Customer Experience & Branding 11