Beyond Transactions: Cultivating Lasting Connections in Air Freight Forwarding

As the logistics industry transforms, especially in air freight forwarding, a shift towards a more customer-centric approach is becoming increasingly evident. Companies that leverage digital transformation to promote transparency and provide personalized services are well-positioned to significantly boost customer loyalty and retention. This evolving trend underscores the pivotal role of technological advancement in shaping the future of logistics, promising increased efficiency and customer satisfaction.

Statistics & Insights…

One recent approach that underscores the benefit of integrating customer service enhancements is the greater focus on personalized interactions and consistent service quality. 

BIMCO forecasts global container volumes will rise by 3% to 4% in 2024, whereas the global ocean fleet is expected to grow by 7.8% to a record 2.7 million TEU. Concurrently, air freight forwarding capacity has increased by up to 9% in 2023 despite tepid demand. In response, Maersk highlighted the necessity for freight forwarders to differentiate themselves through superior customer service and value-added services to maintain customer loyalty in a competitive market environment where demand is not keeping pace with increasing capacity​. [1] 

Furthermore, the role of digitalization in freight forwarding cannot be overstated. Companies that are quick to adopt digital tools, which enhance visibility and responsiveness, are the ones that are truly customer-centric​. ​ On a broader scale, implementing strategies that incorporate loyalty programs and transparency about pricing and services is crucial. These approaches effectively nurture long-term customer relationships by making clients feel valued and well-informed​​.

Enhancing Your Customer Service Experience in Freight Forwarding

Consider this: freight forwarders must think in their customers’ shoes to effectively enhance client relationships and improve customer satisfaction. Based on the user feedback your company has collected, what have your customers mainly complained about? What features did you offer that addressed customers' pain points but still needed a bit more refinement? 

When customers see that their needs are met and their feedback is valued, they are more likely to remain loyal and advocate for the business. To help you get started, here are the key issues reported by U.S. customers regarding their air cargo shipping experiences:

1. Service Quality

“We need our shipments to arrive on time and in perfect condition; delays and damage can severely impact our operations and bottom line.”

"Timeliness and Reliability of Shipments" & "Handling and Condition of Goods" are crucial for customers, as on-time deliveries ensure smooth operations and intact goods uphold physical integrity, preventing costly damages and operational disruptions.

• Providing regular updates and proactively addressing potential delays before they affect the customer can build trust and demonstrate reliability.
• Implementing a loyalty program that offers frequent customers complimentary upgrades to premium handling services underscores the value of their ongoing patronage and enhances their overall satisfaction and loyalty.

2. Customer Interaction

“When issues arise, we expect swift, effective resolutions and thorough tracking. Excellent customer service and real-time shipment updates are crucial for our planning and peace of mind.”

“Customer Service” & “Visibility and Tracking” involve the support team's responsiveness and effectiveness in managing inquiries and resolving issues, coupled with the expectation for comprehensive tracking capabilities that provide real-time updates on shipment status.

• Personalized responses in customer service show dedication and make customers feel valued. For example, your team might recognize a customer's frequent issues with customs clearance and provide direct contact with the customs team.
• Regular and timely updates keep the customer informed and reassured. For example, automated updates about delays, like those caused by weather, keep customers in the loop and enhance their experience.

Leveraging Loyalty: Strategies That Deliver in Freight Forwarding

In air freight forwarding, fluctuating customer retention rates and establishing lasting customer relationships are major challenges. The sector's competitive nature and shifting market demands often result in inconsistent loyalty. The following examples provide an overview of how to build sustainable customer loyalty in air freight forwarding.

Nurturing Customer Loyalty [2]

• Proactive Shipment Monitoring and Response: DHL's service, such as DHL Air Tailored Lift, includes proactive monitoring, where customers receive regular shipment updates. This immediate response to potential issues before they become significant problems exemplifies their commitment to customer care.
• 24/7 Expert Support: Offering round-the-clock customer support ensures that any issues can be addressed immediately, significantly reducing delays and improving the overall service experience.

Practical Tools for Customer Engagement [3]

• CRM Systems: Integrating Customer Relationship Management (CRM) systems tailored for freight forwarding allows freight forwarders to track all customer interactions, from service inquiries to shipment updates, ensuring consistent and personalized communication.
• DB Schenker uses Oracle Sales Cloud CRM to enhance customer relations and employee productivity. By integrating WalkMe's Digital Adoption Platform, they have streamlined the training and onboarding process, making the CRM system more user-friendly and efficient for their global team.

Building Customer Relations with Proactive Communication

Review, Reach out, and Be There for your customers…

Implementing regular, structured client feedback mechanisms in air freight forwarding is crucial for ensuring continuous improvement and high customer satisfaction. Here are some examples you can try today:

1. Post-shipment Surveys

After each shipment delivery, you should always send clients a survey asking about their experience with the service. Include questions about the timeliness of delivery, condition of goods upon arrival, communication effectiveness, and overall satisfaction. Allow clients to provide comments and suggestions for improvement.
For example:

• “On a scale of 1 to 10, how satisfied are you with the timeliness of delivery?”
• “Did your shipment arrive in good condition?”
• “How would you rate the communication throughout the shipping process?”

2. Follow-up Calls/Emails

Assign dedicated account managers or customer service representatives to follow up with clients after significant shipments or transactions. Use these interactions to gather feedback on specific experiences and address any concerns in real-time.

For example:

• Call clients a few days after delivery to ensure everything went smoothly and inquire about their overall experience.
• Send a follow-up email asking for feedback on specific aspects of the service, such as the booking process or customs clearance procedures.
• Provide an option for clients to submit anonymous feedback if they prefer.

3. Customer Advisory Board (CAB)

Establish a CAB consisting of key clients who meet regularly to discuss industry trends, challenges, and opportunities for improvement. Encourage open dialogue and collaboration among members.

For example:

• Discuss emerging trends in air freight forwarding and potential implications for clients.
• Seek input on new service offerings or enhancements under consideration.
• Brainstorm innovative solutions to common challenges faced by clients in the industry.

Conclusion

In the dynamic world of air freight forwarding, small to medium-sized businesses can boost loyalty and gain a competitive edge by adopting customer-centric strategies that emphasize personalized and transparent interactions. These approaches focus on building customer loyalty, improving client relationships, and ensuring companies meet and surpass expectations, thereby cultivating a connection that enhances customer retention.

As the head of logistics, it is crucial to reassess your strategies to incorporate these customer-focused elements. This shift not only streamlines operations but also enhances your reputation, enabling your business to thrive in today’s competitive market.

Primary Research & Draft : Ken Miao

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