Dive Brief:
- FedEx has launched two new tools powered by artificial intelligence aimed at enhancing tracking and returns capabilities for consumers and shippers alike, the company announced on Monday. These advancements are made possible through a collaboration with ParcelLab.
- FedEx Tracking+ and FedEx Returns+ utilize AI to automatically respond to frequently asked questions, such as “Where is my order?” and “Where is my refund?” This technology identifies patterns and irregularities in delivery and returns data, spotlighting potential issues and opportunities.
- The tools also equip merchants with valuable insights about their tracking and returns performance, enabling them to observe trends. Merchants can adjust automation settings for returns policies and customer experiences as needed.
Dive Insight:
FedEx’s AI solutions aim to enhance communication between merchants and their customers during the crucial last mile of delivery and beyond.
Jason Brenner, SVP of the digital portfolio at FedEx, emphasized the significance of the post-purchase experience, stating, “Customer loyalty is often earned after the sale, and the post-purchase experience plays a critical role in strengthening customer lifetime value.”
Research indicates that the last mile is vital for fostering customer relationships. A recent Locus survey revealed that 93% of U.S. consumers believe a company’s delivery performance directly affects their perception of the brand.
These new tools are specifically designed to empower merchants to engage with their customers without needing them to visit an external website, aligning seamlessly with the shipper’s last-mile experience.
As consumer expectations for last-mile delivery evolve, brands must adapt to provide accessible updates. Jadah Hawkins, SVP and global market leader for retail and e-commerce at Alorica, commented, “Customer expectations have shifted from broad delivery estimates to real-time precision and personalization.”
Hawkins added, “They expect GPS-level tracking, accurate arrival windows, and control over how and where updates are delivered.”
