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In the logistics business, why is your customer retention so poor?

Release Time:

2025-02-18

These days, it's not easy to be in logistics. In the internet age, although the level of informationization is high, and business looks prosperous and good, the reality is full of hardship. For example, the following scenarios may be unspoken pains in your heart.

  These days, logistics isn't easy. In the internet age, although the level of information technology is high, and business seems prosperous and thriving, the reality is quite different. For example, the following scenarios may reflect your unspoken pain points.

  Scenario 1

  Xiao Song is a manager at a manufacturing company, responsible for product scheduling and arranging cargo transportation for suppliers in various cities. Through a logistics information platform, he successfully placed an order with truck driver Xiao Zhou after a phone call. After this, they successfully completed two more transactions on the platform. After several successful transactions, when Xiao Song had further transportation needs, he would directly call Xiao Zhou and arrange for long-term cooperation, bypassing the platform.

  With a stable source of cargo, Xiao Zhou was very happy. He also found that many of his colleagues responsible for transportation in other cities were familiar faces he had met before.

  Comment: Once familiar, they bypass the platform and handle things directly. Although this seems a bit unfair, this is the reality. After all, "the shortest distance between two points is a straight line." It saves time, effort, and resources. Currently, many logistics companies complain about poor customer loyalty; this may be one of the reasons.

  Scenario 2

  Xiao A runs a logistics company. Although it hasn't been in operation for long, it has relatively good resources. At a bidding conference, Xiao A was initially very confident in his company, but ultimately lost to a company that he considered inferior. Later, he learned that the winner had a prior working relationship with the cargo owner, and the cargo owner had previously experienced issues such as delayed delivery, damage, and even the carrier absconding with the goods.

  Comment: Once bitten, twice shy. No matter how good you say it is, I won't use your services. Transportation relies on trust and stability. Compared to strangers with no prior cooperation, most people would still rely on personal connections.

  In addition, we often hear logistics professionals complain that some truck drivers agree to transport goods one moment, but change their minds the next, because they have a regular customer and cannot refuse. There are countless similar cases.

  In the logistics industry,

  Why do people prefer to transact with familiar contacts?

  I think there are several reasons:

  ① Reduce worries and risks

  With multiple transactions, trust between partners increases. Cargo owners can reduce concerns about cargo theft or the carrier absconding; logistics companies can reduce concerns about drivers being unfamiliar with routes or encountering unexpected situations; and drivers can reduce concerns about unstable cargo sources, fluctuating prices, and delayed payments.

  ② Reduce collaboration costs

  Logistics is a series of interconnected processes requiring collaboration. All parties in the logistics chain are part of the same team, and the efficiency of the team's operation is closely related to the harmony, trust, and understanding among its members. When everyone is familiar with each other, communication is smoother, and understanding is quicker. This avoids wasting time or misunderstandings due to miscommunication. Therefore, collaboration costs are naturally lower.

  However, cooperation with strangers may require additional costs to establish processes and standards, or repeated communication, to facilitate collaboration.

  ③ Increase customer loyalty

  Familiar customers are more likely to develop into stable trading relationships, increasing customer loyalty and repeat business. In the logistics industry, over 80% of people prefer to transact with familiar contacts, preferring stable cargo sources and transportation teams. After all, periods of inactivity mean wasted resources. In recent years, to deepen relationships and secure stable transportation resources or cargo sources, many companies have explored various creative methods.

  ④ Increase repeat transactions and maximize profits

  When the various benefits of transactions between familiar contacts combine, it leads to maximized profits for both parties.

  Feng Lei, a veteran in the logistics industry, has extensive experience in transactions between familiar contacts and proposed the concept of "familiar relationships" early on. Feng Lei believes that logistics is not a simple transaction of matching vehicles and goods, but a long chain of business activities within a relatively stable chain of trust, and trust often occurs between familiar contacts. He defines familiar relationships as those that maximize the value and efficiency of each role in the logistics industry ecosystem by building mutual trust and improving collaboration, ultimately achieving maximum benefits.

  Will familiar relationships limit business expansion?

  Many people have this question. They believe that familiar relationships have obvious limitations, especially in the internet age, hindering business expansion and growth. After all, in a vast country, there are fewer familiar relationships and more unfamiliar ones. If a company relies solely on a few familiar relationships, it will inevitably hinder its development and may develop a habit of relying on relationships.

  Is this really the case?

  Not necessarily. The "familiar relationships" we are talking about in logistics do not exclude "unfamiliar relationships." Instead, it advocates for transactions with familiar contacts while finding ways to develop "unfamiliar relationships" into "familiar relationships" and stable customer relationships.

  How to develop "familiar relationships"

  and secure a stable customer base?

  In real life, the transition from unfamiliar to familiar is a slow process. However, there are ways to "accelerate" this process.

  We all know that opinion leaders have a strong influence on a group or a segment of people with similar goals. Opinion leaders often increase familiarity, identification, and trust among individuals.

  For example, the influence of fashion buyers on ordinary people: If you and A are strangers who are online friends, and you both trust buyer B's judgment; one day, when A recommends a fashion item to you, you may initially be indifferent and skeptical. However, when you know that it is recommended by fashion buyer B and it is a trendy item of the season, you may believe A without any reason, because you both trust B.

  Similarly, in the logistics industry, we can choose such opinion leaders, and these opinion leaders are often logistics platforms that truly serve transactions between familiar contacts.

  Why is it trustworthy and helpful in developing strong relationships? Because it provides a space for interaction and repeated communication that fosters rapid relationship development. Secondly, the platform can use its big data to analyze and assess the trustworthiness of all parties involved, and offer guidance on handling trust crises. After cooperation, there's a high probability of developing a stable relationship. Of course, problems like funding shortages may arise, but don't worry, because this logistics platform, acting as a thought leader, can provide assistance and support your cooperation, eliminating your worries. Such a platform is unlikely to be abandoned by clients due to its comprehensive services and trust-building system.