Parcel company DPD is dropping the text messaging charge it makes to retailers opting for its one-hour timeslot service, Predict.
DPD currently sends out a million Predict messages each month advising people when to expect their parcel. Until now, retailers have been charged up to 10p to cover the cost of texting customers. However, DPD said the success of Predict means it will now be dropping the charge.
DPD launched Predict in March 2010 and to date it is reported to have generated over £50m in new business with major retailers choosing to switch to DPD.
The service utilises the latest GPS tracking technology to provide customers with a one-hour delivery window so they do not have to wait in all day for their parcel. A personalised text message or email is sent to customers giving a precise one-hour window for delivery. The customer can then either accept the one-hour window or reply to the message to rearrange the delivery.
Predict is said to have been responsible for improving retailers ‘right first time’ (RFT) delivery rates on average by 10% nationally, and in one case by as much as 38% as customers find it more convenient to wait in for one hour than potentially waste a whole day.
Dwain McDonald, DPD’s CEO, said: “Predict has been a huge success story. The service is responsible for generating more than of £50m of new business for DPD. The feedback from retailers has been fantastic as Predict provides tangible benefits for both retailers and their customers. By making the service free of charge we aim to increase the take-up still further. In the last two years Predict has consistently been the single biggest reason given by retailers for switching to DPD. So as well as being a big win for retailers, Predict works for us too as it drives new business and improves customer loyalty.
“Delivery is an integral part of e-retailing, the cost and speed of delivery are now key factors in customers’ purchasing decisions. Innovative products like Predict can help retailers maximise online sales by driving-up first time right delivery rates to customers’ homes, in a cost effective and environmentally-friendly way. The service has reduced instances of ‘sorry we missed you’ cards, a bugbear of home deliveries, by 10% on average, driving both goodwill and savings for retailers.
“In addition to removing ‘lost days’ waiting in for parcels to arrive. Predict notifications to customers now also incorporate the delivery driver’s name, helping to make deliveries more personal.”