The Hidden Cost of Coordination : Evidence from Last-Mile Delivery Services
Problem definition: Communication and customer interaction design have been used as elements to improve customer satisfaction and future purchasing behavior, but little is known about how they can be used as levers to improve operational efficiency.Methodology/results: We partner with a last-mile delivery company and, using natural and field experiments, explore the effects that communication channels and customer interfaces have on a key metric of the process: failed deliveries.We show that communication can be used as a lever to improve operational outcomes -- when no communication is possible, failed deliveries increase. We find that using more salient communication channels increases the reach of the information. However, against expectations, it increases the likelihood of failed deliveries. The reason is that customers try, unsuccessfully, to coordinate the delivery times and locations. We explore the value of self-service information gathering. While we find no effect on the process outcomes, we show that these channels can be used to identify customers that are harder to serve.Managerial implications: Our work shows the relevance of communication channels as levers of operational performance. We provide evidence that these channels can be used to manage customers’ expectations and improve operational processes. We also show the importance of alignment between the communication channel and the operational process, deciding the type of channel is key to shape customers behavior and expectations. Understanding and supporting channel norms and expectations is essential to achieve such alignment
Year of publication: |
2023
|
---|---|
Authors: | Epstein, Natalie ; Gallino, Santiago ; Moreno, Antonio |
Publisher: |
[S.l.] : SSRN |
Description of contents: | Abstract [papers.ssrn.com] |
Saved in:
Extent: | 1 Online-Ressource |
---|---|
Type of publication: | Book / Working Paper |
Language: | English |
Notes: | Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments February 3, 2023 erstellt Volltext nicht verfügbar |
Source: | ECONIS - Online Catalogue of the ZBW |
Persistent link: https://www.econbiz.de/10014261672
Saved in favorites
Similar items by person
-
Showrooms and information provision in omni-channel retail
Bell, David R., (2015)
-
Gallino, Santiago, (2014)
-
How to win in an omnichannel world
Bell, David R., (2014)
- More ...