Non-Delivery Reports (NDRs) are always thought of as a cause of frustration for many e-commerce brands. It is believed to damage the customer experience, increase the operational costs, and delay the fulfillment. With each failed delivery, a company has to bear the loss associated with the logistics effort and also face the risks of an unhappy customer waiting at their doorstep to receive their long-awaited parcel.
Nowadays, it has become possible to manage the NDRs with strategy and intelligence. It has become possible with the evolution of technology, which does not lead to an NDR being a dead end in itself. If used strategically, an NDR can help in strengthening brand loyalty, reducing the return to origin (RTO), and improving the customer experience. The retailers and brands that see NDR as an opportunity will be able to thrive in the ever-evolving marketplace. Those who see it as an operational failure will not be able to create a strong position for themselves.
What Factors Can Lead To A Non-Delivery Report (NDR)?
To effectively manage the NDR system, you should fully understand the root cause behind the occurrence of a non-delivery report. It can happen due to multiple factors, such as a lack of response to courier calls, delivery during uncomfortable time slots, unavailability of the customer during the time of delivery, incorrect address provided by the customer, accessibility issues associated with the delivery, and external hindrances such as weather problems, security issues, and strikes.
Some of these factors might seem impossible to handle. However, with the integration of the latest technology, a company will be able to mitigate or partially resolve these issues with the aid of better communication, more reliable data, and stronger customer engagement. The aim behind these strategies is to regain the trust of the customers and keep them engaged to make repeat purchases.
What Are Some Additional Costs Associated With NDR?
Certain hidden costs can accompany an NDR:
- Higher fuel usage and manpower
- Costs associated with last-mile delivery attempts
- Reduced repeat purchases and customer satisfaction
- Deterioration and damage of high-value goods
- Lower courier performance metrics
- Increased possibility of RTO
- Longer cycles of delivery
By reducing the NDR, you would be able to achieve a substantial amount of savings and also improve the overall brand experience.
How Can A Business Transform an NDR: From Being An Operational Challenge To Being An Opportunity
Earlier, an NDR was treated reactively within the traditional mode of delivery. In case of a failed courier delivery, the seller was notified, and he decided on the next steps to tackle the situation. In the current scenario, data analysis and modern technology have come together to offer a more proactive and customer-centric NDR system. In order to make the most out of this NDR system, every brand should focus on three important aspects: Experience, Intervention, and Visibility.
Experience
With every failed delivery, a brand faces a greater risk of tarnishing its brand image. If the brand is able to handle this with precision and empathy, they will not only handle this situation effectively but they will also strengthen the customer relationship with the brand. If the customer receives a generic message regarding a failed delivery, they will be frustrated and keep contemplating the reason behind the failed delivery.
Visibility
To handle the situation effectively, a brand would need to make the best use of the available data. It would allow the brands to take action much before it becomes a cause for concern for the customers. The strategies to achieve better visibility would include AI-based analysis, geo-tagged courier feedback, customer access to attempt rescheduling and get live tracking, reason categorisation, and instant NDR notifications.
Intervention
Once the company has identified the root cause of the NDR, it needs to act promptly. If they delay this by a few hours, it would impact customer satisfaction and increase the risk of RTO. Some of the methods used for intervention include:
Automated Customer Communication
There are multiple channels through which the customer can receive immediate intervention. These include SMS, emails, IVRs, WhatsApp messages, push notifications with rescheduling options, and chatbot-led interventions.
Delivery Slot Adjustment
This allows the customers to choose between weekend delivery, evening slots, gate drop-offs, or neighbor drop-offs and choose between multiple pick-up points and locker deliveries.
Courier Empowerment
Not only the customers, but immediate intervention would also help the courier partners. If the customer responds promptly, they will be able to re-attempt the delivery in a rapid manner. It would also allow them to manually update the addresses and ensure a better delivery.
Most importantly, the companies need to have an efficient customer support in place. This would enable them to clarify all the misunderstandings with the customers and regain their trust. All of these methods would help give customers a seamless and personalised delivery experience.
How Can Companies Use NDR As A Feedback Engine?
By making full use of the data generated as part of the NDR analysis, a company will be able to improve its future performance. A brand will be able to identify the high-risk zones that are more prone to failed deliveries. They will also be able to keep tabs on customers who frequently provide incorrect addresses or products that get repeatedly refused. They will be able to address the peak-time delivery challenges and rely less on the courier or hubs that have a low delivery efficiency.
With the help of the available insights, the companies will be able to refine address checkout forms, courier allocation rules, delivery time slot recommendations, fraud detection systems, and payment mode options. These measures will make a brand better prepared for the impending RTOs.
How Is NDR Being Utilised Across the Globe?
The importance of an effective NDR system has been recognized by many countries, including Europe, Asia, South Africa, and the UAE. The NDRs in South Africa are more frequent owing to the gated communities and inconsistent address systems. Despite these challenges, the companies have been able to achieve a lower RTO and stronger customer satisfaction with the aid of WhatsApp-based communication and rescheduling, better communication for cash-on-delivery orders, GPS-enabled address correction, and the introduction of delivery lockers in residential complexes. These changes have helped South Africa to come on par with the global giants and compete more fiercely in the global market.
The Future of NDRs In An Ever-Evolving Global Economy
A failed product delivery would not subsequently mean a failed user experience in the near future. Every NDR can be transformed into a growth opportunity by employing the best communication tools and intelligent systems. In the near future, the brands will be able to reduce the operational waste, build better brand credibility, and improve their existing profits. If a failed delivery is able to exceed the expectations of the customer and keep them in a delighted mood, it would mean that a company has utilised an NDR to its full potential.
