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How Good Logistics Management Leads to Increase in Customer Retention?


Mayank Nailwal

Content Marketing Specialist @ Shiprocket

November 28, 2019

4 min read

There is a saying that the Customer is king but Customer Service is God. On similar grounds, gaining customers is imperative but their retention is what precedes the rest. It is this quest of understanding the agile tastes and preferences of customers that keep all businesses on their toes. The prevailing business environment is driven by a customer-friendly system in which attaining the loyalty of the customers is celebrated above everything else. 

The pursuit of scaling a business to newer heights warrants the acquisition of customers. However,  the maintenance of the same calls for the formulation of strategies to retain the acquired customers. In this blog, we are going to address how good logistics management is instrumental in increasing the retention of customers. Below are five ways through which you can augment your logistics management and likewise, gain the loyalty of your customers.

Effective Warehouse Inventory Management

The primary step of ensuring utmost customer satisfaction is the effective planning and management of inventory. Since last-mile delivery plays a vital role in the supply chain, it is critical to have your inventory under control.

Irrespective of whether you have in-house warehousing or you outsource the same, you have to review your predictions every day and ascertain safety stocks for maintaining a precise inventory. There are numerous Inventory Management Software for eCommerce sellers. You can click here and find out the software that best suits your needs.

Absolute Transparency

Transparency is the foundation of every good relationship. For acquiring the loyalty of your customers, you need to ensure there is absolute transparency from scratch. Any kind of discrepancies arising afterward due to undisclosed information will lead to a breach in the trust of your customers. 

Be it hidden costs or COD remittance, be honest with your customers from the beginning to lock their trust and gain their loyalty. You can keep your customers updated regarding the multiple options of delivery, the expected dates of order delivery or remittance (inclusive of bank holidays, if any), and so on. Setting realistic expectations and being true to your word will surely win the hearts of your customers. 

Multiple Courier Partners

You must choose your courier partners carefully. Each courier partner has its benefits and drawbacks. Relying on only a few courier partners isn’t the brightest idea.  Courier partners shoulder the biggest responsibility of the supply chain i.e. on-time order delivery. Hence, by adhering to multiple courier partners, you get the option of selecting the ideal courier partner for all of your customers. 

Shiprocket’s AI-based Courier Recommendation Engine evaluates more than 50 data points for suggesting the perfect courier partner for each of your shipments. Considering how a single negative customer experience can undo a lot of your good work, it is recommended that you stick to the best practices of logistics for maximum customer satisfaction.

Robust NDR Management

If your customers don’t get their orders delivered on time, or they don’t get good service upon placing a return request, – they are likely to switch to some other website. In logistics, fake deliveries are not uncommon.  These practices mar the expectations of the customers. 

To tackle every problem related to order delivery and return, you need to have a good NDR team. Nearly 90% of the customers prefer making purchases again from a website that bestows them with on-time order delivery, and a good support team to resolve their issues. 

Post-Purchase Experience

Once a customer places an order, they are provided with real-time tracking for receiving instantaneous updates as their order moves from place to place. However, other services can also be provided to customers that enhance their post-purchase experience. 

Customers can be bestowed with a feedback aggregator to gather information about their experience with the courier partner. This not only makes them feel valued but also enables you to decide which courier partner is best among the lot. Shiprocket’s Post-Ship service packs a plethora of benefits both for the end-customers and the sellers for a delightful shipping experience. Learn more about Shiprocket Post Ship here.


These are some of the strategies you can adapt to acquire the faith of your customers and increase their retention. Since the majority of the customers who have had a bad shipping experience refrain from ordering again from a similar retailer, it is necessary to ensure the satisfaction of your customers for their loyalty and ideal business growth.

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2 thoughts on “How Good Logistics Management Leads to Increase in Customer Retention?

  1. There is a lot of competition in the logistics sector today and customer retention has become a very important point in determining the profitability of the business. Your article has successfully stated some of the hurdles that can be overcome to maintain customers as well as attract new customers. This is really a very helpful article for me it has really helped me a lot in understanding the importance of customer retention. Thank you for sharing these amazing tips with us.

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