Maximising consumer experience
Aside from the current crisis situation, we have with the closures in China that are complicating restocking, Eric Daniel Fernandez, CEO & Co-Founder at Kubbo, shares what are the keys we need to follow in a strategy to maximise customer experience:
Delivery time. Reduce delivery time as much as possible to satisfy the consumer.
Provide information to the customer throughout the delivery process. From the moment the consumer makes the check-out until they receive their product at home.
Take care of the unboxing experience. The way the order is received, how well it is packaged and how it is personalised.
A good stock placement strategy will allow you to maximise the customer experience by meeting very short delivery times. To define how this stock distribution policy should be, companies such as Kubbo carry out a study to understand the profile of each brand according to demand.
Analysing the order history of the last 3-6 months allows the identification of where the highest demand occurs, which generally in the case of Spain for most eCommerce brands 60% is located between Madrid and Barcelona. If we have the opportunity to make an excellent impact on this percentage of the population, we must do so by always seeking to exceed customer expectations.
Therefore, by analysing sales history and knowing where and when demand peaks, we can segregate inventory between 1, 2 or multiple fulfilment centres. From here, the algorithms have the ability to recognise when an order comes, which fulfilment centre will be the best one to serve this order. For inventory positioning, companies like Kubbo rely on Business Intelligence and Big Data systems to optimise stock distribution to the maximum.
This type of logistics strategy is similar to Amazon's, which distributes stock among the different fulfilment centres based on consumer demand research to maximise the delivery experience at all times.
Eric says that fulfilment and logistics are core functions for any eCommerce company but it is not a core competency. In other words, it is essential that all logistics and fulfilment are very well managed but it is something that can be outsourced. Relying on the technological and human resources that a company dedicated exclusively to fulfilment can provide, could provide a differential value when it comes to effective management and maximising the customer experience.