It is difficult to know how to expand your logistics company effectively, especially when you are dealing with external factors like competition, shifting economies, and increasing customer expectations. At the same time, you must field all the internal factors that go along with running a business. It can be hard to know how to expand your logistics business when the industry is consistently adapting.
In this article, we’ll explain seven best practices that answer how to expand a logistics business effectively.
In order to grow your logistics business, it is essential to instate an effective and sustainable sales process. Outline a clear sales process for your whole sales team, so you can move leads more effectively through your sales pipeline and convert them into customers.
For example, when a salesperson identifies or captures a potential lead, they should move that potential customer from lead generation to lead qualification to assessing their needs in order to write a proposal. They should persist in sales touches until they can close the deal, and then they must continue to follow up with new and existing customers to ensure they are satisfied with your services.
Qualifying leads is essential to gaining new customers, and following up is essential to converting leads to customers and retaining them. Outline an effective and sustainable logistics business sales process so your sales team can succeed. To learn more about best practices to increase sales in a logistics company, click here.
Utilizing logistics technology to your advantage can set you apart from the competition and help you expand your logistics business. According to Supply Chain Digital, digital transformation in the supply chain industry is proven to drive growth, mitigate risk, and optimize costs. However, as of November 2020, more than 50% of organizations had not actively started to build a roadmap for supply digital transformation. Implementing technology now will enable you to stay ahead of the curve and save valuable time and money.
Implementing a CRM (customer relationship manager) is a great step toward integrating technology into your business. A CRM specifically designed for 3PLs can give you even more of a competitive edge because it has specialized features that allow you to better cater to your customers’ unique needs. SCRM (Supply Chain Relationship Management) is a logistics CRM designed to help you secure more shipments and better manage your leads and customers. It allows you to access a full logistics quoting tool, specialized logistics dashboard, sales pipeline, real-time market conditions, and more. All the capabilities and data you need are at your fingertips because SCRM was explicitly designed for 3PLs.
To learn more about some of the must-have features of a CRM for logistics industry, click here.
Building a lead generation engine is a must to expand your logistics business. This best practice utilizes two types of lead generation: inbound and outbound.
Inbound lead generation allows you to generate leads by creating and sharing content that draws potential customers’ attention and converts them into leads. This can be in the form of content marketing, SEO, social media, newsletters, and more.
On the other hand, outbound lead generation is reaching out to prospects rather than waiting for them to contact you. This involves researching leads, cold calling, direct in-person sales, events, and more.
These are just a few ways to build a marketing engine that ensures consistent lead generation.
Your company represents a brand, and investing time and resources to strengthen your brand is an important way to expand your logistics company. First, define a unique brand identity. What sets your logistics company apart from your competitors? Next, ensure your brand messaging is consistent across every platform, from your website to social media to your sales team’s pitches. Then, stick to your brand identity and message at every point of contact with leads, prospects, and existing customers to build a strong, recognizable brand.
New customers are a crucial part of growing your logistics business, but you cannot ignore your existing customers. Loyal customers provide a foundation for continued growth. When you utilize SCRM, you have the capability to rate your customers, so you can better serve the people bringing the most business to you. You can automatically set your most profitable customers to become five-star customers. Strategize and prioritize connecting with these customers.
SCRM also enables you to implement and systemize call or meeting cycles. Staying in touch with your customers allows you to proactively address their needs, which is a major stride toward retaining their business.
Satisfied customers can provide some of the best advertising and social proof. Hopefully, they will refer your services to colleagues, but a simple way to elicit more referrals is to ask. Follow up with customers to thank them for their business and ask if they know anyone who might benefit from your services.
Your reputation is inseparably tied to the reputation and reliability of your carrier/transportation network. Pricing matters, but it should not outweigh quality service. You need a carrier/transportation network that you can count on if you want your customers to be able to count on you.
Conduct a thorough screening process when considering a new carrier/transportation partnership for your logistics business. Check their successful delivery rates, delay rates, safety ratings, and customer service statistics. Determine your standard for carrier requirements, and do not compromise. Additionally, proactively continue to expand your network. This ensures that you have sufficient capacity to meet customer demand.
You are not the only one seeking to know how to grow your logistics business. Your competitors are likewise investing in new technology and marketing to expand. Study your competitors, frequently visiting their websites. Sign up for their social media accounts and email newsletters so that you can keep the pulse on what they are doing and how effective their attempts are. Knowing this allows you to adapt more quickly and stay on top of your competition.
If you are seeking to know how to expand your logistics business, these seven best practices are a great place to start. Examine your logistics business sales process, evaluate whether or not you are maximizing the benefits of technology, and focus on having consistent lead generation and branding. With existing customers, follow up consistently to ensure you continue meeting their needs. Intentionally cultivate a reliable carrier/transportation network and be aware of your competitors' actions. All of these strategies will help you grow your logistics company.
If you want to grow in these areas, a CRM built specifically for 3PLs can help you.
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