We’ve all experienced the frustration of missing a delivery. Route optimization already allows businesses to offer substantially smaller delivery time windows. Yet there are always times when recipients can’t be present for their deliveries or service appointments. According to industry reports, roughly 5% of all deliveries don’t reach their destination on the first attempt, with each missed delivery costing retailers an average of nearly $18. Failed service appointments, too, take an average of four and a half days to reschedule. These failed delivery attempts substantially increase the cost of delivery, while the delays frustrate customers.
Why Redirect to PUDOs?
“Businesses can easily offer better customer experiences – and reduce the heavy cost of missed deliveries – with no additional development.
Missed deliveries are avoidable – and reducing missed deliveries improves both your margins and your customer experience. The cost of secondary delivery attempts is quite high. The inventory must be returned to the depot, the deliveries must be rescheduled, and then delivered.
The solution is clear: let customers redirect their orders to an alternative pickup location (aka PUDO). Customers can then collect the package from the PUDO at their convenience.
PUDOs can take many forms, from lockers to gas stations and even retail stores. Retailers are increasingly open to partnering as alternative pickup locations, as this generates additional foot traffic when customers come to pick up their deliveries.
The advantages of redirecting orders to alternative pickup or dropoff points (PUDOs):
Eliminate the cost of missed pickup or delivery attempts
Reduce expenses by delivering orders from multiple customers to a single location
Eliminate customer frustration from missed or delayed deliveries
Provide end-customers more flexible, convenient delivery options
How it Works: The End-Customer Experience
Redirecting deliveries requires the technology and operational agility to both communicate with customers in real-time, and reroute deliveries in the field. Below is a typical flow from a leading post & parcel carrier that demonstrates how this works in the real-world.
1. When an order is scheduled for delivery, customers receive a notification via SMS confirming the delivery time and date. This message includes the option to change the pickup location to one more convenient to the customer.
2. When a customer wants to redirect their delivery, they click on the link. They can then select an alternate pickup location.
3. When the delivery arrives at the pickup location, the customer receives a ready for pickup notification.
Offering The Right Alternative Pickup and Dropoff Options
In Bringg, each business can define the alternative pickup locations available to customers. Here are three sample variables for deciding which pickup locations will be offered to each customer:
Distance: Display all alternative or PUDO locations within a given radius (e.g. 3 miles) of the customer’s location.
Number of locations: Display the 5 locations closest to the original destination address.
Distance and number of locations: Display the 5 locations within a 3 mile radius of the original pickup location.
By redirecting potential missed deliveries, businesses can easily offer better customer experiences – and reduce the heavy cost of missed deliveries.
If you’d like to learn more about Bringg’s Delivery Orchestration Platform, feel free to get in touch with our sales team.