priority mail vs. surepost/smartpost - idrive...
TRANSCRIPT
Glenn GoodingPresidentiDrive [email protected](678) 567-6847
Priority Mail vs. SurePost/SmartPost:Cost, Customer Experience, Branding and Execution
Presented by
www.iDriveLogistics.com
Optimizing the Customer ExperienceThings to consider moving forward
Understanding the MarketDiscuss the implications of rapid ecommerce growth
The Amazon EffectHow customer expectations have shifted
The Brand Advantage Customer experience with Priority Mail vs. SurePost/SmartPost
Objectives
UNDERSTANDING THE MARKET
UNDERSTANDING THE MARKET
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
THE AMAZON EFFECT
77% abandon cart due to
shipping concerns
(61% cost, 16% time-in-transit)
THE AMAZON EFFECT
How do you meet customer expectations and provide
FREE 2-DAY SHIPPING without breaking the bank?
It’s a Catch 22
THE AMAZON EFFECT Higher
shipping rates
Higher carrier costs
More residential shipments
More ecommerce
sales
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.
Option 1: SurePost/SmartPost
THE BRAND ADVANTAGE
THE BRAND ADVANTAGE
Nearly half abandon their cart due to slow
time-in-transit
1 in 3 choose a different marketplace because of slower time-in-transit
How do customers feel about shipping speed?
THE BRAND ADVANTAGE
USPS PM aligns beautifully with customer expectations and provides a “Premium customer experience”
THE BRAND ADVANTAGE
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
Option 2: USPS Priority Mail
30%
38%
11%14%
0%
5%
10%
15%
20%
25%
30%
35%
40%
E-commerce vs. Small Parcel Volume Growth
(‘13-’16):THE BRAND ADVANTAGE
Priority Mail for Better
Customer Service
Daily Home Deliveries
Growing faster than ecommerce
Seamless, Cohesive Tracking
Fastest Economy Shipping
Free Packing
Materials
Simpler Billing
THE BRAND ADVANTAGE
Similar Shipper B - Priority Mail
Transit DaysNumber of Packages % of Total
1 1,905 18.1%
2 6,427 61.0%
3 1,576 15.0%
4 372 3.5%
5 102 1.0%
6 54 0.5%
7+ 92 0.8%
Total 10,528 100.0%
Shipper A - SmartPost
Transit DaysNumber of Packages % of Total
1 26 0.2%
2 1,601 15.2%
3 3,201 30.4%
4 2,557 24.3%
5 1,385 13.2%
6 953 9.1%
7+ 805 7.7%
Total 10,528 100.0%
54.1% Shipments
Delivered in 4 days or more
94.1% Shipments
Delivered in 3 days or less
Fast Order-to-Fulfillment, Slow Time-in-Transit
• % of consumers who will buy something again if returns are easy92%
• FedEx/UPS returns – customer has to find a drop-off site, time it right, etc.
Tricky
• Returns are easy with USPS: place in your mailbox and voila
The Easy-Return Edge
THE BRAND ADVANTAGE
Best-in-class experience
CUSTOMER EXPERIENCE
Priority Mail
Express Service
SurePostSmartPost
Customer expectations should guide your service
Brand Visibility Depends on Contact Point
CUSTOMER EXPERIENCE
USPS seen as carrier
Left in mailboxHanded to customer
Direct contact w/ carrier
Visible FedEx/UPS brand
Left at doorGiven to front desk
Delivered to mailroom
USPS is the final-mile deliverer for SurePost/SmartPost
Avoid breaking the bankStay afloat with fast, economic USPS shipping
Align with customer expectationsThrive under new customer shipping expectations
Capitalize on brand advantage Deliver premium brand experience
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:
How do I switch to Priority Mail?
CUSTOMER EXPERIENCE
Terms ● Performance Language ● Conditions
Impact to your existing contracts
Strategy in your approach
QUESTIONS? www.iDriveLogistics.com
iDrive Speakers at NPF | Don’t Miss Out
Shaun Rothwell (Founder & CEO)[email protected]
(801) 492-1850
Carl Hutchinson (COO)[email protected]
(385) 336-6402
Glenn Gooding (President)[email protected]
(678) 567-6847
Monday—May 22 @ 11am-12pmUsing the USPS to Enhance the E-Commerce Customer Experience
Tuesday—May23 @ 2:45pm – 3:45pmPriority Mail vs SurePost/SmartPost: Costs, Customer Experience & Branding
Tuesday—May 23 @ 11am-12pmUSPS Shipping: Debunking the Myths