Last-mile delivery – boosting consumer confidence with frequent tracking notifications. 

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Last-mile delivery – boosting consumer confidence with frequent tracking notifications. 

Last-mile delivery experts, Pargo, shares some unexpected insights.

Johannesburg, 21 November 2022 – South African consumers have had enough of high shipping fees.

In the 2022 edition of the South African Digital Consumer Experience Report, an overwhelming 71% of the 2000 respondents surveyed said they wanted reduced or free shipping, while more than half indicated they wanted quicker and more convenient delivery.

Underscoring just how important delivery has become to online shoppers, it featured as two of the top three reasons people fail to conclude a purchase online.

For e-commerce businesses still believing their online presence is enough, these statistics are a wake-up call: if they want to make inroads in the market, they need to bring their delivery A-game.

A big part of the service offering is the ability to gain consumers’ trust, and for this to happen, there needs to be effective communication and transparency.

This is where frequent notifications become so important.

Parcel safety is a big concern for customers.

In South Africa, couriers can get lost trying to find specific areas in rural districts and townships, while breakdowns stemming from shoddy road conditions can further delay deliveries.

Being able to monitor an order from placement to delivery is a huge benefit to both consumers and retailers. For shoppers, there is peace of mind that their purchases are on the way, while for businesses there is the advantage of being able to spot any problems that may arise and address them accordingly.

It’s why many South African online stores are now partnering with click & collect and returns solution specialists like Pargo, known as an industry leader when it comes to SMS/email notifications on a parcel’s supply chain journey.

The company’s myPargo platform easily integrates with any online store, no matter the size of the business or how their store is built.

It not only gives customers options by offering a full suite of delivery services – including home delivery, returns and click & collect, where shoppers place orders online which are then delivered to a store near them for pickup – but also excels in keeping both retailers and customers informed of status changes.

The result is that drivers can complete first​-​attempt deliveries to customers and retailers can take action if any problems crop up.

The SMS notification system also resonates strongly with residents living in rural areas and townships, since many people still don’t have access to smartphones. There is the added advantage of better planning for bi-weekly or monthly town visits to more remote areas.

What is significant about the click and collect model is that it helps reduce delivery costs through consolidated deliveries to its more than 3,000 pickup points around South Africa. The fact that couriers are not travelling further distances to make deliveries also means that carbon footprint is considerably reduced – a point that appeals to sustainability-conscious younger consumers.

Furthermore, customers are incentivised to use this service by way of festive season competitions, where they stand the chance to win prizes like Nintendo Switches, Lenovo tablets, shopping vouchers, gadgets, clothing and jewellery.

The obvious advantage about effective tracking is that it puts consumers at ease, thereby connecting them to a business’s brand. The overall customer experience is enhanced, which translates into increased revenue for the retailer.

Finally, there are real savings on operational costs. Since crucial information about the delivery is sent to customers via an automated notification, there is less need for customer support teams to attend to complaints and queries, saving time and money which can instead be used in other parts of the business.

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About Pargo

Pargo is a Cape Town-based tech company that solves the challenges of last-mile logistics through its smart logistics platform and fulfilment solutions, which are anchored by a vast, nationwide network of thousands of Pargo Pickup Points. Pioneering Click & Collect back in 2015, Pargo continues to develop their technology and processes to make fulfilment solutions fit for the African logistics landscape, including Home Delivery, Returns and micro-warehousing. Clients that use their tech include Edgars, rain, TFG, Cape Union Mart, Clicks and HomeChoice.
Lars Veul is the CEO and co-founder of Pargo, a smart logistics platform that simplifies online delivery through its tech-enabled network of Pargo access points. Prior to starting Pargo, Lars was part of the founding team at Groupon, where he headed up the online marketplace, which exposed him to the challenges of online delivery. He is also an Alibaba eFounders fellow and is part of Endeavor.

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