Resource Center/Article • 12/12/2024
Beyond Price and Performance: Where Data Quality Fits into Parcel Carrier Evaluation
Learn how data quality enhances parcel carrier evaluation, driving customer satisfaction, operational efficiency, and long-term success.
Thomas Duke
Director of Strategic Accounts and Partnerships
Tommy Duke is the Director of Strategic Accounts and Partnerships. In his role, Tommy provides executive level support for large enterprise accounts and oversees Green Mountain’s strategic partner ecosystem. He has over 20 years of experience providing executive level oversight and strategy to many Fortune 500 companies. Tommy holds a Bachelors Degree in Business Information […]
When shippers evaluate parcel carriers, they often focus on two primary factors: price and delivery performance. These are indeed critical aspects, as they directly affect profitability and customer satisfaction. However, in today’s data-driven economy, data quality is emerging as an equally important—if not more crucial—element. Understanding the interplay between these factors and the strategic benefits of prioritizing data quality can help businesses select the right parcel carrier for long-term success.
Price Alone Doesn’t Tell the Whole Story
The cost of shipping significantly impacts profit margins, making price an essential consideration when choosing a carrier. Competitive pricing can enable businesses to offer free or discounted shipping options, which are known to drive sales and customer loyalty. However, focusing solely on price can be shortsighted. A cheaper carrier with poor service or unreliable data can cost more in terms of unexpected charges, delayed shipments, lost packages, and dissatisfied customers.
While price is a vital factor, it must be weighed against the value delivered by other aspects, such as service reliability and data capabilities.
While price is a vital factor, it must be weighed against the value delivered by other aspects, such as service reliability and data capabilities.
Delivery Performance and Data Reliability for Greater Customer Satisfaction
Delivery performance is a key component of customer satisfaction. Speed, reliability, and the ability to meet promised delivery times are critical to ensuring a positive post-purchase experience. Late or lost shipments can tarnish your brand reputation and lead to lost sales, negative reviews, and increased customer service costs.
Top-performing parcel carriers excel in providing consistent delivery times, minimizing damage, and offering responsive customer support for resolving issues. However, while delivery performance builds trust with customers, it cannot be evaluated in isolation—reliable data is needed to measure and optimize performance effectively.
As the saying goes, “Cash is King,” in a world dominated by e-commerce, shippers should consider data is king. High-quality, accurate, and timely data enables businesses to streamline operations, gain actionable insights, and provide a superior customer experience.
Top-performing parcel carriers excel in providing consistent delivery times, minimizing damage, and offering responsive customer support for resolving issues. However, while delivery performance builds trust with customers, it cannot be evaluated in isolation—reliable data is needed to measure and optimize performance effectively.
As the saying goes, “Cash is King,” in a world dominated by e-commerce, shippers should consider data is king. High-quality, accurate, and timely data enables businesses to streamline operations, gain actionable insights, and provide a superior customer experience.
The Strategic Advantage of Data Quality
So, what do we mean by “data” and what defines “quality”? The data in the context of this article is the shipment detail, billing, and shipment events provided by the carrier. Quality is measured by the content and usability of the data. The higher the quality of data, the better you can use it for both tactical and strategic analysis.
- Shipment Detail – The carrier should be providing detailed information about every shipment that includes a unique tracking number, ship date, delivery date, origin and destination address, package weight, package dimensions, and the service level used.
- Billing Data – Data included in the billing should contain all the details needed to match the pricing in the shipper’s contract. For example, if the contractual rates are based on a weight, zone and service then those data elements must be included in the billing file for each shipment. Other important data elements include the billing account numbers, reference numbers (order number, BOL number, PO Number, etc.), and each charge listed separately.
- Shipment Events – Package status notifications are critical for managing the customer experience. Whether shipping to a residential or business customer, insights into the delivery progress should be required. These events should include pickup scans, hub scans, and delivery attempt scans. Exception responses can then be created from the presence of certain scans or when expected events are not received.
Why is data quality so important?
- Accurate tracking data allows businesses to provide their customers with real-time updates on package location and delivery status. Carriers with robust data systems reduce uncertainty, empowering customers with better visibility and boosting trust in the brand.
- High-quality data makes it easier to identify and address potential issues, such as delayed shipments, billing discrepancies, and fraud. By leveraging this data, shippers can proactively notify customers and offer solutions, minimizing frustration and increasing loyalty.
- With robust carrier-provided data, businesses can better understand shipping trends, seasonal demand fluctuations, and geographic performance. They can also establish robust reports that further assist in tracking KPIs and meeting audit requirements. These insights are invaluable for network optimization, planning inventory, forecasting demand, budgeting, and enhancing customer experience strategies.
When businesses choose carriers that excel in providing rich data, they allow for a range of strategic benefits:
- Enhanced Customer Loyalty: Clear and accurate communication about deliveries builds trust, which translates to repeat business and positive word-of-mouth.
- Fewer Errors and Disputes: High-quality data reduces the likelihood of billing discrepancies, lost shipments, or incomplete tracking information.
- Improved Decision-Making: Detailed, reliable data equips businesses to make smarter, faster decisions about inventory, shipping methods, and carrier contracts.
- Competitive Advantage: As customer expectations for transparency and speed rise, companies with superior data capabilities are better positioned to differentiate themselves in the market.
When evaluating parcel carriers, shippers should consider price, delivery performance, and data quality as interconnected pillars. While price and performance are critical for day-to-day operations, data quality is the foundation for long-term growth and customer satisfaction. A carrier that offers competitive rates and fast deliveries but lacks robust data capabilities may ultimately hinder a business’s ability to scale effectively.
Price and delivery performance will always play pivotal roles in parcel carrier evaluation. However, data quality is the differentiator that drives operational excellence, enhances customer satisfaction, and fuels long-term success. By prioritizing data quality alongside cost and reliability, shippers are better equipped to meet the demands of modern consumers and stay ahead in an increasingly competitive market.
Price and delivery performance will always play pivotal roles in parcel carrier evaluation. However, data quality is the differentiator that drives operational excellence, enhances customer satisfaction, and fuels long-term success. By prioritizing data quality alongside cost and reliability, shippers are better equipped to meet the demands of modern consumers and stay ahead in an increasingly competitive market.
At Green Mountain, we know data quality is central to conquering the shipping summit. That’s why we’ve launched Green Mountain Certified, our carrier certification program. Discover how working with Green Mountain Certified carriers can help you deliver an exceptional customer experience.
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