Evolving to Fulfill Customer Needs in Real-Time
Brand loyalty is fading – 7 out of 10 shoppers are willing to switch brands even for products they regularly consume.
People are quickly jumping ship, changing their toothpaste or shampoo, or even opting for a local coffeehouse over their favorite coffee chain. A separate study found that 38% have tried a different brand in the last three months. And hey, even I changed our soap brand earlier this month!
Interestingly, this shift is not exclusive to younger demographics like Gen Z and millennials. Even the older generations, known to stick to their preferred brands, are now more open to options.
Customers are influenced by price, competition, and online feedback when making choices. These factors affect how fast decisions change. Your ability to predict and meet needs, plus deliver quick results, is key.
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Meeting the Need for Speed
So, how do you meet the need for speed?
We live in a time where putting someone on hold leads to lost interest and missed sales. Thus, it becomes essential to shift your focus from asking what the customer expects to asking WHEN they expect it.
Digital transformation has made instant results the norm. Brands like Uber and Netflix have trained us to expect everything quickly, easily, and nearby.
You are under pressure to improve your operations and technology to stay competitive. Equally crucial is recognizing the interdependence of various industries. For example, a retailer needs timely deliveries, which depend on the manufacturer sticking to production schedules, contingent on the availability of raw materials. Additionally, logistics and distribution must be factored in.
Implementing Agile Manufacturing Strategies
Manufacturers are reimagining existing frameworks and adopting strategies emphasizing flexibility, adaptability, and rapid response.
Among the things you should reconsider is the practicality of using a just-in-time (JIT) inventory system. While JIT can bring in substantial savings on storage costs, it can also cause disruptions due to breakdowns or non-fulfillment on the raw materials supplier’s side.
You can collaborate with suppliers to establish agile supply chains or flexible manufacturing lines that can be easily reconfigured to accommodate shifting production needs. Some have also found success in breaking production processes into smaller, manageable iterations. This allows for continual improvement and adaptation to changing market demands.
Consumer Need for Instant Gratification in Food Choices
Imagine scrolling through Instagram late at night and stumbling upon a tempting video of someone indulging in delicious chicken wings. In the past, you’d just have to bury your face in the pillow and sleep that craving away. Thankfully, we now have UberEats and DoorDash to ease those midnight cravings. But imagine you decide to order those mouthwatering chicken wings only to find out that they are currently unavailable at the restaurant you have in mind. Faced with disappointment, you start searching for alternative dining options on the app, hoping to find a satisfying meal.
To prevent such scenarios and make sure customers always find what they crave, it is crucial to optimize the supply chain process. By closely monitoring sales data, you can accurately predict demand for specific ingredients based on the popularity of dishes. This enables you to maintain optimal inventory levels so that fresh produce and ingredients are always available to meet customer needs promptly and efficiently.
Meanwhile, you can also establish self-service kiosks on-site to facilitate order fulfillment. By offering customers the option to place their orders themselves, you not only provide convenience but also free up valuable time for your employees to concentrate on food preparation and other essential tasks. Furthermore, it would be beneficial to explore menu innovation, including quick-service and ready-to-eat options. This appeals to busy individuals who are always on the move and caught up in the fast-paced nature of daily life. By catering to their needs, you can attract a wider customer base and ensure they can easily grab a satisfying meal, even in the midst of their hectic schedules.
Rise of Same-Day and Instant Delivery Services
We get so caught up in the day-to-day that we tend to forget things like picking out your mom’s birthday present or a dress for a party coming up in two days. While planning ahead is always the ideal scenario, reality often sees us scrambling for last-minute solutions.
From this previously unmet need sprung the popularity of same-day and instant delivery services. Gone are the days of making a trip to the mall or enduring a week-long wait for your package to arrive. With these services, you can have that special gift or outfit at your doorstep almost as soon as you hit the “order” button.
Today, the absence of these expedited delivery options can spell disaster for retailers, resulting in abandoned carts and missed opportunities. It’s crucial to adapt to this trend by developing processes that cater to the need for immediate gratification.
For instance, real-time inventory management systems promise clear, up-to-the-minute information on stock availability. This not only reduces the risk of customer disappointment but also ensures swift order fulfillment.
Building strong partnerships with logistics providers and delivery services can significantly improve the speed and reliability of deliveries, meeting the escalating demand for quick turnaround times. However, the ultimate key to success lies in maintaining regular, real-time communication with customers. This practice keeps them informed and effectively manages their expectations, creating a positive and satisfactory customer experience.
Lastly, explore and experiment with social commerce. While not yet a surefire path to success, social commerce is projected to grow to $145 billion in the US by 2027. Better early in the game than too late to make a breakthrough.
After the “When” – Addressing the “How” of Customer Fulfillment
My advice: Quicken the pace before the next trend comes up…and that’s in about a few months from now or tomorrow. Who knows?
Real-time inventory management systems, strong partnerships with logistics providers and courier services, and regular real-time communication with customers are just a few examples of strategies that can help businesses stay ahead.
If you’re a few steps behind, my team and I can give you the head start to position your company for success, not just today but well into the future. We can create customized strategies to improve your processes and operations. Additionally, we identify potential cost savings to allocate more budget towards your new approaches.