How to Reduce Delivery Costs and Increase Customer Satisfaction by Boosting First Attempt Delivery Rates

Key Takeaways:

• Improving first attempt delivery rate (FADR) is essential for reducing operational costs and enhancing customer satisfaction. 
• Real-time tracking and self-service portals empower customers to manage deliveries, reducing missed attempts and improving delivery efficiency. 
• Two-way communication between customers and drivers allows real-time updates to delivery details, further minimizing failed deliveries. 

With the average failed delivery in the U.S. costing $17.20, a business handling hundreds or thousands of deliveries daily could face significant losses if issues are not addressed promptly. A missed delivery not only adds unnecessary costs due to return trips but also negatively impacts customer satisfaction, reflecting poorly on both the distributor and the retailer. 

Improving first attempt delivery rates (FADR) might seem challenging, but the solution is often straightforward: implementing effective order tracking and customer notification software. With solutions like real-time ETA tracking, self-service portals, and two-way communication between customers and drivers, businesses can reduce missed deliveries and boost customer satisfaction. 

FADR refers to the percentage of orders delivered successfully on the first attempt without requiring re-delivery or follow-ups. High FADR is crucial for reducing operational costs, enhancing customer satisfaction, and maintaining your brand reputation. 

Every failed attempt means a wasted trip, extra fuel costs, and more time spent coordinating a second attempt. More importantly, customers expect a seamless experience. When they don’t receive their order on time, their perception of your service suffers, and this can impact repeat business and future sales. 

Reducing failed deliveries is about more than logistics—it’s about creating a customer-centric experience. By investing in solutions that give customers more visibility and control over their deliveries, you can align with modern expectations and drive long-term value for your business. 

If a delivery fails on the first attempt, it’s easy to assume the customer wasn’t available. But consider this: if your delivery window spans several hours, and there’s no way for customers to track the delivery in real-time, how can they be expected to plan around it? 

Consumers today are accustomed to self-serve experiences—such as food delivery or ride-share apps—where they can track their orders in real time and receive accurate ETAs. In fact, 85% of consumers say they would buy from a retailer again if they could track items this way. 

By sending real-time updates, your customers are ready when the driver arrives, reducing both missed deliveries and the time spent handing off the package. This not only improves your FADR but also increases overall delivery efficiency. 

There are many reasons why a customer might not be able to answer the door or sign for their order. They may be on a work call or have mobility issues, causing delays. Whatever the reason, failed delivery attempts can be minimized by offering customers more control over their delivery options. 

With self-service portals and customer engagement software, customers can easily update their home delivery tracking preferences before the driver arrives. They can reschedule, leave specific instructions, or notify the driver of potential delays. Simple messages like, “Please wait, it takes me a few extra minutes to get to the door” or “I’ve had to go out, please leave the package at the side gate” can help prevent a failure-to-deliver scenario.  

Workflows can even be set up to automatically prompt the customer to update their delivery information when they receive their first delivery ETA notification. Without a system allowing customers to connect via browser, smart device, or mobile phone, drivers may be left unsure of how to proceed, increasing the chances of a failed attempted delivery. 

Traditional delivery systems often involve a lengthy process where customers must call customer service to relay delivery changes, which are then passed on to drivers via the dispatch team. This process can be slow and frustrating, resulting in failed deliveries and dissatisfied customers. 

With two-way communication between customers and drivers, customers can communicate directly with the delivery team to update delivery details or provide directions. This streamlined process reduces wait times and frees up your customer service team for more complex issues. 

Delivery tracking and customer notification solutions, made available through Descartes’ Customer Engagement Platform™, are designed to address the root causes of missed deliveries. Here's how they work: 

• Real-Time Tracking and ETA Delivery Reminders: Customers receive automatic updates via email or SMS throughout the delivery process, from the moment their package leaves the warehouse to just before it arrives. This gives them the information they need to be available for the delivery. 

• Self-Service Delivery Management Portal: Customers can confirm, reschedule, or cancel deliveries through a simple portal, eliminating the need to call customer service and reducing manual intervention. 

• Two-Way Communication: Customers can directly message the driver or delivery team if they need to update delivery instructions, such as leaving the package in a specific location or adjusting the timing. It also enables the driver to ask directions for a hard-to-find property, which can also help improve FADR.  

Descartes’ innovative solutions have helped companies like Fairhive Homes and Welsh Water become more responsive and increase customer satisfaction. 

“We chose the platform to improve the customer experience and saw additional benefits, such as a reduction in missed appointments and increased response to feedback,” said Andrew Rysdale, Assistant Director of Property at Fairhive. Six months after implementation, the affordable housing provider experienced a 37% decrease in the no-access rate for repairs compared to the previous period. 

Welsh Water, a not-for-profit water company, automated its customer communications. Feedback from customers has been positive, with a 50% decrease in “where’s my technician?” query calls and fewer “close-the-loop” calls, saving customers time and allowing staff to focus resources on other priorities. 

To learn more about their results, read the full case studies. 

Enhancing your first-attempt delivery rate doesn’t just reduce operational costs—it elevates customer satisfaction, fosters repeat business, and strengthens your brand reputation. By integrating advanced customer notification and engagement solutions, you’re making a strategic investment in the long-term success of your business. 

Contact a Descartes solution expert today to learn how we can help you achieve these goals with order tracking and customer notification solutions.