Customer retention is attention to every detail. Don’t Pull a FedEx.
Have you ever had to ship a package? Have you ever encountered problems? Has your package always come on time? Was it ever damaged?
The answer is most probably “Yes”.
FedEx is one of the Top 3 shipping companies, losing only to UPS in terms of Ground Delivery Volume, which is famous for its shipping misconduct. Basically, after receiving your package, and generous shipping coverage (Infographic), FedEx handles your package as it pleases, often not fulfilling promises, delaying the promised arrival date or even damaging the goods inside. Now let’s see how it works for them in terms of customer retention, and what you can learn from it.
Where did the FedEx’s Purple Promise go?
In the world of shipping couriers FedEx Corporation stands as a Goliath, shipping over 10 million shipments for express, ground, freight and expedited delivery services daily. Solid figure, however, how many of those customers are left satisfied? Encourage you to take a look at the real customer opinions of FedEx on TrustPilot, here. Remember their motto? “I will make every customer experience outstanding”. Yeah, it’s outstanding alright.
Some of the reviews from TrustPilot.com :
This was the worst customer service/shipping service I ever had. It was my first experience with Fedex and will be my LAST!!! I WILL NEVER USE FEDEX AGAIN!
and
They are unprofessional, no concept of efficiency.
Well, this means one thing – FedEx focuses on customer acquisition, rather than customer retention, which may I add would cost a lot less.
“Acquiring a new customer costs between 4 to 10 times more than keeping an existing one”
The Chartered Institute of Marketing
I fail to understand why such a giant corporation isn’t thinking in terms of increasing customer retention, and bidding on customer loyalty and word of mouth rather than extremely expensive marketing campaigns designed to outweigh the quality with quantity.
Customer retention is paying attention to every detail.
According to HelpScout’s Gregory Ciotti, Customer Retention strategies include the following:
1. Clear communication
2. “Correct” way of selling
3. Reciprocity, or going above and beyond
4. Loyalty Programs
5. Support, or customer service
How come while covering most of the above-mentioned strategies, such a quality-winning giant manages to lose in Customer Retention? Remember, it’s not a pick one that suits you best situation. Every detail matters. FedEx satisfies the requirements up to creating Loyalty Programs, but fails at providing Support, or customer service. Customer retention is going to save you a fortune, and you can’t afford not paying attention to your customers.
In fact most of you have probably Unchecked the FedEx option at least once in your life, because you’ve either heard or experienced the shipping mishap that FedEx represents. What does this teach us? It teaches us just how big of a part customer service plays in customer retention and in turn in increasing your sales.
Don’t treat customers like FedEx does its packages
There is currently a Youtube video going viral, showing a compilation of shocking package treatment by FedEx couriers.
https://www.youtube.com/watch?v=WCGBNj-aSwA
The commentary section is currently becoming a hub for sharing negative reviews of FedEx, uncovering more delivery and customer service misconducts, which are being liked and shared on Google+, Facebook, and Twitter.
With social media engagement being the Top Internet Activity in the U.S., according to BusinessInsider, even FedEx can’t afford to Not Deliver on their Promise to customers. Word of mouth is being shared through Social like through magnifying glass, enhancing its impact on brand’s reputation.
Think what impact it can have on your business. Don’t treat your customers like FedEx does its packages, remember that customer retention is paying attention to every detail, including Customer Service.
Photo Credit: Flickr @Salvamesoto
