Internet Retailer - Strategies For Multi-Channel Retailing

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News Stories Thursday, April 4, 2002   
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Fulfillment vendors are finding more uses for customer data


The role of fulfillment vendors is changing as consumers’ expectations about shopping on the web keep rising. Case in point: Customers are demanding to know where their orders are and so fulfillment companies that used to pride themselves just on their ability to pick, pack and ship quickly and efficiently are suddenly finding themselves delving into their databases to keep customers informed about their order status.

“We’re all struggling with trying to translate the physical experience into the virtual experience,” David Himes, senior vice president of NewRoads Inc., tells Internet Retailer. “And we’ve all know customers are the most frustrated when they can’t find out about their orders. Those are the details that our systems are able to provide to customers and it’s time to take advantage of that ability.”

NewRoads is one of several fulfillment and CRM companies that are providing pro-active order status to customers. That not only makes the customers feel better, but it also saves the retailer money by heading off the Where-is-my-ofder calls. “There is a trend towards shaving off fulfillment costs now that vendors have gotten the process down,” says Jim Bunn, senior manager of KPMG Consulting Inc.’s retail practice.

And automated notification is a great way to use data that exists already. “Retailers and vendors are collecting a lot more customer information now and they’re getting more sophisticated about how they use it,” he says.

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