In the fast-paced world of e-commerce, any disruption in the delivery process can potentially cause significant disruption. One such looming disruption is the possible strike by UPS, one of the world’s largest shipping companies.
Representing over 340,000 UPS workers, the Teamsters union seeks better wages, improved working conditions, and essential necessities like air conditioning in delivery vans. With the strike’s potential to be the largest against a single business in U.S. history, its effects on e-commerce are projected to be unprecedented.
In this article
This article aims to help businesses navigate these turbulent waters using strategies and tools provided by WISMOlabs, focusing on reducing the frequency of “Where is my order?” (WISMO) queries and maintaining customer loyalty.
Understanding the UPS Strike
Timeline of the UPS Strike
The entire process began a year before the proposed strike date, with the launch of the “Call to Action” campaign and the release of the UPS Teamsters app in August 2022. Following this, union contract surveys were distributed, regional meetings held, and results compiled. By December, the union was reviewing contract proposals, which culminated in negotiations for the master agreement contract from April to July 2023. The current contract expires on July 31, 2023, and if no agreement is reached, the strike will begin on August 1.
How e-Commerce Businesses Can Prepare for the UPS Strike
The potential UPS strike requires businesses to plan, adapt, and communicate effectively. The initial step in preparation involves identifying alternative shipping providers. While USPS and FedEx are likely alternatives, they have already stated their inability to handle the full volume of UPS. Thus, consider regional or specialized carriers. Businesses also need to renegotiate contracts with UPS, considering extensions, changing rates, or adding additional services.
Implementing contingency plans and increasing inventory stock can mitigate the impact of a strike. A significant part of this preparation is communication, ensuring your customers are informed about the possible impact on their orders. Staying up-to-date on the strike’s progress allows businesses to make informed decisions and implement contingency plans effectively.
Navigating a UPS Strike with WISMOlabs
WISMOlabs provides post-purchase tools that assist online businesses in managing customer inquiries about order status (WISMO queries) and dealing with potential disruptions from a UPS strike, all while improving the customer experience. By putting in place a system that engages with customers right from the moment they place an order and guides them throughout the shipping process until their order is delivered, a crucial link is established between shipping data and your order tracking system. This connection is particularly vital during events like a UPS strike.
WISMOlabs’ enables businesses to segment customers based on the carriers, and shipping statuses including shipment exceptions, making it easy to identify problematic orders and automatically handle all necessary communications with the customers. This will be critical if the strike happens, as you will need to identify and update customers whose packages could be affected.
The WISMOlabs platform can also identify stalled, lost, or late shipments. This data is vital in managing customer expectations and altering displayed messaging during a strike.
Moreover, having pre-prepared updates to transactional messaging for new segments and flows could be invaluable. Drafting potential messaging early allows for quicker implementation when necessary.
Winning Customer Loyalty Amid a UPS Strike
Turning a potential negative event like a UPS strike into a positive requires transparency, flexibility, and exceptional customer service. First, keep your customers informed about the strike’s impact on their orders. This proactive communication not only manages customer expectations but also builds trust.
Next, offering alternative shipping options shows your customers that you are actively working to minimize any inconvenience. This flexibility could be extended to your shipping policies and procedures, which might need adjustments to accommodate the potential disruptions.
Customer service remains a key area of focus during a strike. Be prepared for increased customer inquiries and handle them promptly and effectively. Using AI-powered shipment tracking tool like WISMOlabs could ensure relevant and easy-to-digest information is provided to consumers to help maintain customer satisfaction levels and brand loyalty.
Offering incentives and exclusive deals can also help retain your customers during this challenging period. It signals to your customers that you value their loyalty, further cementing their trust in your brand.
Conclusion
While the potential UPS strike is indeed a daunting prospect, with the right preparation and strategy, e-commerce businesses can navigate this challenge. Tools like WISMOlabs can play a vital role in maintaining smooth operations and customer satisfaction. The key is to remain adaptable, proactive, and committed to excellent customer service. It’s about turning a potential crisis into an opportunity, leveraging it to strengthen your relationships with your customers, and showcasing your brand’s resilience and dedication.
FAQ
The UPS strike is about union workers demanding better working conditions, significant wage increases, and air conditioning for delivery vans.
The UPS strike was set in motion a year prior, beginning with the launch of the “Call to Action” campaign in August 2022. The strike is authorized to commence on August 1, 2023, if an agreement isn’t reached by July 31, 2023.
Businesses can prepare by identifying alternative shipping providers, renegotiating contracts with UPS, implementing contingency plans, increasing inventory, and communicating effectively with customers.
Businesses can retain customer loyalty through transparency about potential disruptions, offering alternative shipping options, being flexible with shipping policies, providing excellent customer service, and offering incentives and exclusive deals.
