Warehouses are constantly searching for new customers, as the nature of their business requirements continues to evolve. The demand for warehousing in the UK has grown considerably over the past few years and in the UK, available warehouse space is at a record low. According to CBRE, vacancy rates were just 1.5% in Q321, versus 5% in the same quarter 2020.
It’s not hard to see which actors are gobbling up the capacity. Back in 2015, high street retailers were the dominant occupiers of bricks and mortar, but in 2021 the leading occupier group is 3PLs, with increased occupation levels of 42% and online retailers, who have increased warehouse occupancy by an astonishing 614%.
One billion square foot of new warehousing space has been built globally over the last decade, according to CBRE. This growth can primarily be attributed to the rise of e-commerce, and for every 1 billion pounds spent online, an additional 1 million square foot of warehousing is needed to service that demand. The increase in demand driven by e-commerce, means that it makes sense for warehouse operators to acquire customers through digital channels especially since this has become the norm for customers looking for warehousing solutions.
Traditional warehouses are being replaced by a new wave of fulfillment centres. A fulfillment centre is a warehouse where incoming orders for e-commerce are received, processed and filled. Once a fulfillment company receives a customer's order, they process the order for shipment before dispatching to customers. To stand out from the competition, warehouses must not only offer quality services but they must also be open to adopting new and innovative methods in an effort to acquire customers.
It is important to understand what methods have been used by warehouse operators in the past to acquire customers. First, we must look at how useful these channels are in the modern-day digital economy?
How can warehouses use digital tools to acquire new customers?
Some of the digital tools used by warehouses to acquire customers include:
- Company website
- Email Marketing
- Social Media - e.g. Facebook, Twitter, Linkedin
Many warehouses and logistics companies are using more digital channels of marketing to acquire customers. Warehouse staff are increasingly using email marketing campaigns and Linkedin email campaigns in an effort to acquire customers. This includes deploying ‘push’ and ‘pull’ marketing strategies and creating tailored content to engage target customers.
What is Email Marketing?
Email marketing involves sending direct commercial messages to a group of individuals via email. For warehouses, this strategy can be a powerful tool for customer acquisition and retention. By building an email list comprised of potential leads, existing customers, and industry contacts, warehouse managers can share relevant content about services, promotions, and industry news.
Effective email marketing helps warehouses maintain engagement with their audience. Here are some approaches you could take:
- Personalisation: Tailoring emails to meet the specific interests and needs of recipients can enhance engagement. This may include addressing recipients by their names, referencing their previous interactions, or suggesting tailored solutions based on their business requirements.
- Segmentation: Dividing your email list into smaller groups based on characteristics like past purchases, location, or industry allows for a more targeted approach. For instance, a warehouse might send different emails to local businesses compared to large retailers, showcasing services that are relevant to each group's needs.
- Compelling Content: Providing useful and informative content, such as industry trends, tips on optimising supply chain operations, inventory management, inventory control, updates on your storage space or case studies demonstrating successful partnerships, can position your warehouse as a thought leader in the logistics sector. This fosters trust and loyalty among potential customers
Most warehouses today have a company website, however, warehouse operators require a certain amount of brand awareness to drive customer traffic to their websites to generate a sufficient number of enquiries. Most companies need to hire a marketing resource, in addition paying for adverts across various digital marketing channels, both of which are costly and have an unknown return on investment. Not all warehouses can afford to spend thousands or millions of pounds per year on marketing, and there is not a ‘one size fits all solution’. This presents a high risk for warehouses, a risk not all logistics companies can afford to make.
Part of the challenge is that building a marketing can be costly for the quality experience and it takes time. Where FLOX is unique is that it naturally puts your company in front of potential clients already looking for your services.
What Are Traditional Warehousing Marketing Channels?
Some of the marketing methods used by the warehousing industry include:
- Customer referrals
- Company websites
- Agents / brokers
- Adverts in newspapers
- Print media
- Networking events
- Street signage
Logistics has been dominated by human relationships for decades, where agents/brokers and customer referrals have been a large part of the industry’s success. Customer referrals are an important part of warehouse customer acquisition, given the additional credibility of a referral from an existing customer. Other popular avenues pursued by warehouse operators were newspapers and print media. This was an effective marketing channel used in the past, however, there has been a significant decline in newspaper readership, despite transferring print media content online.
According to the BBC newspaper circulation figures have declined up to 28% since 2013, and these figures are predicted to decline further in the next few years. This illustrates how traditional media methods are not getting warehouse operators/logistics companies in front of the correct audiences for successful customer acquisition.
Agents / brokers have traditionally been used by logistics companies to acquire customers, but how do customers know if they are getting the best deal? In short, they don't.
How can warehouse managers understand customer demands better?
Understanding customer demands and the pain points plays a crucial role in successfully acquiring new clients in supply chain management.
Here are some effective strategies that warehouse operations managers can implement to gain deeper insights into their customers' needs:
Leverage Customer Data Analytics
Utilising customer data analytics can provide valuable insights into purchasing behavior and trends. By collecting and analyzing data from existing customers, warehouse managers can identify patterns, preferences, and pain points. Tools like customer relationship management (CRM) systems can help track customer interaction and preferences, allowing for more tailored services.
Conduct Market Research
Engaging in thorough market research can help warehouse operations managers gain a better understanding of industry trends, competitors, and customer expectations. Existing surveys and interviews that outline how to get high customer satisfaction can provide actionable feedback to your own processes directly from potential customers. This direct engagement allows businesses to adapt their services based on customer needs more effectively.
Regularly Communicate with Customers Old and New
Open communication channels with both current and potential customers can reveal a wealth of information regarding their expectations and satisfaction levels. Regular check-ins, feedback forms, and customer service touchpoints can facilitate a better understanding of customer demands. Active engagement not only fosters a good relationship but also surfaces valuable customer insights leading to the customer satisfaction that you're looking for.
What are potential customers looking for in warehouse storage?
What exactly are potential customers, from start-ups to enterprise, looking for in warehouse storage solutions? If you are a start up looking for storage services then FLOX have discussed this before!
Understanding their needs and expectations is vital in crafting your communication strategy and showcasing the right offerings.
Efficiency and Reliability
Potential customers prioritize efficiency in their logistics operations and warehouse teams. They often look for warehouses that can ensure timely stock handling and distribution. A warehouse that demonstrates a history of reliability in turnaround times and delivery schedules has a competitive edge. Providing evidence of your operational efficiencies, such as fast order processing times and accurate inventory management, can be compelling elements of your communication.
Advanced Technology
In today’s fast-paced market, customers are increasingly drawn to warehouses that utilise advanced technologies in warehouse management. Automation, real-time tracking, and inventory management software are highly sought-after features. Communicating your investments in technology, such as warehouse management systems (WMS) and integrated tracking solutions, not only attracts tech-savvy clients but also reassures them of seamless processes and warehouse efficiency.
Customised Solutions
Every business has unique needs, and potential customers often seek warehouses that can offer tailored solutions throughout the entire supply chain. Whether it be specialised storage for sensitive materials, demand forecasting, accurate order fulfilment, tailored logistics strategies etc. warehouses that can cater to specific requirements stand out.
What unique selling proposition (USP) does your warehouse offer?
Articulating a clear Unique Selling Proposition (USP) is essential for warehouse managers looking to acquire new customers. A strong USP not only distinguishes your warehouse from competitors but also effectively communicates the unique benefits that customers can expect when choosing your services. Here’s how to define and leverage your USP:
Identify Your Core Strengths
Begin by assessing what sets your warehouse apart from the competition. To help you narrow down what your USP could be, here's a list to get your started:
- Your storage capabilities
- Your operational efficiency
- The warehouse management software you use
- Your warehouse management process
- Effective warehouse management solutions
- Your storage capacity
- Your storage locations
- Your warehouse management team
Or perhaps, it's that you focus on delivering exceptional customer service?
Conduct internal assessments and gather feedback from your team to discover your warehouse's strengths.
Align Your USP with Customer Needs
Once you have identified your warehouses core strengths, you should ensure that they align with the needs and preferences of your target market. For instance, if your warehouse excels in temperature-controlled storage, and your target market includes businesses dealing with perishable goods, highlight this feature prominently in your marketing. Tailoring your USP to meet specific customer demands makes it more compelling and relevant.
Harness Customer Testimonials and Case Studies
Real-world examples and testimonials can substantiate your USP by showcasing your track record of success. This is known as social proofing. You can use this tactic on your website and social channels. Remember, people buy from people and they're much more likely to purchase from a credible recommendation.
What is the ideal warehouse customer?
In order to successfully acquire new customers, warehouse managers would be wise to understand what the make up of their ideal warehouse customer looks like.This is unique to each warehouse. One of the most effective ways to gain this insight is through a customer feedback loop. This systematic method allows warehouse managers to collect, analyse, and act on feedback received from current and prospective customers.
Understanding Your Ideal Warehouse Customer Needs
The first step in implementing a customer feedback loop is to establish clear channels for feedback. This may include surveys, direct interviews, or suggestion boxes for clients to express their needs, challenges, and preferences. By making it easy for customers to share their thoughts, warehouse managers can gain valuable insights into what potential customers are looking for in a warehouse partner.
Analysing Your Customer Feedback
Warehouse managers can categorise feedback into common themes such as service quality, pricing models, technology use, and delivery speed.
Understanding these trends allows managers to identify areas for improvement and differentiate their offerings from competitors. For example, if customers often cite delays in order fulfillment as a concern, it may prompt managers to invest in technology that enhances operational efficiency.
Acting on Insights
Merely collecting feedback isn't enough; warehouse managers must also demonstrate that they are willing to act on the insights they gather. This not only builds trust with existing customers but also attracts new ones who may be watching how a company responds to feedback. It also increases the chances of a referral should you continuously do a good job.
What Warehouse Marketing Material Do I Need?
Understanding what to create and how to present it can significantly impact customer acquisition efforts. Here are essential marketing materials that warehouse managers should consider:
Company Website
We discussed this but it's a must for today's digital climate. A well-designed website serves as the digital storefront for your warehouse operations. It should clearly communicate your services, capabilities, and value propositions.
As ideas of what information about yourselves that potential customers would need to make an informed decision, it would be worth communicating:
- Warehouse floor size
- Amount of warehouse space you have,
- The warehouse management software or inventory management software you operate with
- The distribution centers you work with
- Your fulfillment process
It's encouraged that you obtain customer testimonials and case studies that can provide social proof, enhancing the credibility of your warehouse. From 2024, all websites need to be optimised for mobile devices to accommodate all potential customers.
Build a Comprehensive Asset Profile
You can build an asset profile on FLOX with the assurance that your company is more likely to be discovered by potential clients looking for your services. FLOX lists all warehouse and transport capabilities so you know that potential clients have the information they need before they contact you.
Brochures and Catalogs
Printed materials like brochures and catalogs can be powerful tools in your marketing arsenal. They provide prospective clients with detailed information about services, technologies, pricing structures, and operational capabilities. Consider distributing these materials at industry events, networking meetings, or sending them to inquiries as part of a follow-up package. We also highly recommend creating digital versions that can be hosted on your website and sent to all potential customers.
Social Media Presence
Having an active presence on social media platforms helps warehouse managers connect with a broader audience. Use the channel that the majority of your audience is likely to be on to showcase your operations, share industry news, and highlight client success stories. This engagement helps foster partnerships, attract potential customers, and build a community around your brand.
Create an Effective Sales Process for Your Warehouse
An effective sales workflow allows you to nurture leads, qualify prospects, and ultimately convert them into loyal customers. Here’s how to create a more streamlined sales process that can drive customer acquisition:
Lead Generation Strategies
Begin by developing strategies to generate leads. These can include digital marketing tactics such as search engine optimisation (SEO), pay-per-click advertising, and targeted email campaigns as we mentioned above. Networking at industry events and leveraging existing customer referrals are also powerful means of identifying potential clients. Ensure that you are capturing contacts through sign-up forms on your website and through social media interactions.
Qualifying Your Leads
Once leads are generated, the next step is qualifying them to ensure they align with your warehouse's offerings. Develop a customer criteria based on factors such as budget, timeframe, and specific needs. By ranking leads according to their potential and readiness to buy, you can focus your resources on the most promising opportunities.
Personalised Outreach
A generic pitch is less likely to resonate with prospective clients. If you're in the position to then investing time in personalising your outreach efforts to specific companies can be worth while. Tailor your communication to the specific needs and challenges faced by each prospective customer. Start by researching their business, industry trends, and potential pain points. Craft messages that not only highlight how your warehouse services can solve their problems but also express an understanding of their unique circumstances.
How to make existing customers loyal?
Building strong relationships with your existing customers is just as crucial as acquiring new ones. Loyal customers can become your most significant advocates and provide a steady stream of referrals. Here are some suggestions for enhancing customer loyalty in your warehouse operations:
Always Deliver Excellent Customer Service
One of the most impactful ways to foster loyalty is by providing outstanding customer service. Make it a priority to have well-trained warehouse employees who understand the importance of responsiveness, empathy, and problem-solving. Show your customers that you value their business through personalised communication, timely delivery, and proactive solutions to any issues that may arise.
Consistently Meet (and Exceed) Expectations
You need consistently meet or exceed the expectations set regarding your services. This can involve maintaining high delivery speeds, ensuring accuracy in order fulfillment, and following through on promises made to your customers. When customers know they can rely on your warehouse to consistently deliver quality service, they are more likely to remain loyal and recommend you to others.
Implement a Customer Feedback Loop
Soliciting feedback from customers not only shows them that you value their opinions but also helps you identify areas for improvement. Regularly reach out through surveys or informal check
Customer Communication
Progressing as not just a logistics operations management platform, FLOX enables parties to communicate and transact specifically through the FLOX platform. There’s no need for unnecessary admin like spreadsheets or email. FLOX offers your customers visibility and reporting out of the box. As a customer-facing portal, the convenience helps your services stand out.
How to use your Warehouse Management Systems to improve your customer service
One effective way to leverage your Warehouse Management Systems (WMS) to gain intelligence on your customer interactions is by establishing a customer feedback loop. This involves consistently gathering, analyzing, and acting on customer feedback to improve service quality and operations.
It’s worth noting that FLOX is able to be directly connected to your WMS system and act as an integrated customer-facing portal removing the need for any additional integration with your client's SRM, ERP, or any other systems.
Use of Warehouse Management Systems (WMS) for Feedback Management
WMS play a pivotal role in enhancing customer service. Here’s how you can leverage WMS for an effective customer feedback loop:
Automated Surveys and Feedback Forms: Many modern WMS platforms come equipped with tools that allow for automated feedback collection post-delivery. By integrating customer satisfaction surveys into your WMS, you can easily solicit feedback about delivery times, order accuracy, and overall experience. Analyzing this data provides insights into areas of excellence and those needing improvement. It's worth checking if your current tools are capable of this and if not, switching to one that is.
Tracking Customer Interactions: A comprehensive WMS can track all customer interactions and order history. By analyzing this data, warehouse managers can identify patterns in customer preferences and behaviors. For example, if feedback indicates frequent issues with warehouse processes, managers can delve into inventory handling and shipping processes for that category to identify and rectify the problem.
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