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On Demand Businesses 101

5 mistakes you must avoid in your Delivery Business

When it comes to delivery management, there are a lot of things that can go wrong. In the competitive delivery business, customer retention rate and the average lifetime value of the customer are most important factors to consider. A single bad impression of the delivery business results in loss of customers forever. To put it another way, you are sending your customers into the hands of your competitors. Is there any way to prevent such cases?

With the rise in on-demand services, the delivery business attracted a lot of entrepreneurs managing the backend of on-demand services. Most of the on-demand companies are outsourcing their product deliveries by third-party delivery enterprises. High demand and high profit attract a lot of entrepreneurs to step into this competitive delivery business. Thus, the delivery business can be defined as a “Backbone of the on-demand industry” to deliver products at customers’ doorstep.

You must be wondering that the delivery cost incurred for delivering each order or product must make it really difficult to generate revenue. In fact, it’s actually true, but it solely depends on the number of orders to be delivered each day. Here’s a catch, more quantity, low margin results in higher profitability. But still to grow your delivery business, you must consider these 5 ways to avoid your business to fail:

1. No Unique Selling Point

You may be confident about your delivery business mission and vision but failed to do competitor analysis. You can solve the consumer pain points but your competitors in delivery business might be able to solve pain points in a more convenient and better way. Stand out in the crowd by differentiating your delivery business from your competitors or by creating the unique POD for your business.

2. No defined mission and vision

Vision and mission of a business are to define the boundaries of your delivery business with an aim to grow. The vision of business remain same but the mission might change as your business grow. Vision is the dreaming milestone and mission is the achieving milestone of business. Stick to vision and mission for significant growth of your delivery business.

3. Not focussing on Packing

Packing is the core part for any delivery business. Customer will retain and use your services only if you are able to deliver products safely. They expect that their parcel will be delivered to their doorstep in the expected time without any damage.

4. Secure Delivery is a myth

Secure parcel delivery is based on the performance of the delivery business. Real-time tracking of each parcel on map interface makes your customers updated, secured and ensures hassle-free delivery. Offering security to your customers can enhance the customer experience to build trust for your business.

5. Taking Point of Parity too seriously

Point of Parity are those attributes of the brand which are common in every competitor. Usually, new entrants in delivery business just focus on competing with competitors rather than creating the brand value or creating the new market for your delivery business by offering unique and valuable features.

Most of the entrepreneurs focus on competing on the basis of pricing, offers, and bonuses. The half of game is won by attracting customers to your business. But the real game starts now by retaining the customers and not letting customers go to your competitors. To sum up, if you can retain your customers, you can make money in long-term.

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