Dive Brief:
- FedEx introduced a pair of AI-powered tracking and returns tools designed to offer shoppers more visibility into their orders and improve last-mile capabilities for shippers, the company announced Monday. The capabilities are delivered in partnership with ParcelLab.
- The AI embedded in FedEx Tracking+ and FedEx Returns+ automatically answer common questions such as “Where is my order?” and “Where is my refund?” It detect patterns and anomalies in delivery or returns data to highlight potential problems or opportunities as well.
- The tools provide merchants with insights across their tracking and returns activity to help them monitor trends. Merchants can set parameters around automating returns policy and experience adjustments, too.
Dive Insight:
FedEx’s AI tools are designed to help merchants improve communication with their customers during the last mile and beyond.
“Customer loyalty is often earned after the sale, and the post-purchase experience plays a critical role in strengthening customer lifetime value,” Jason Brenner, SVP of digital portfolio at FedEx, said in a prepared statement.
Studies have shown that the last mile plays an important role in building customer relationships. The vast majority of U.S. consumers — 93% — said a company’s delivery performance directly impacts their brand perception, according to a Locus survey from last month.
The new tools aim to help merchants support their customers directly. FedEx Tracking+ and FedEx Returns+ are designed to fit within the shipper’s own last-mile experience, rather than requiring customers to visit a third-party website, according to FedEx.
Customer’s last-mile expectations have grown, according to Jadah Hawkins, SVP and global market leader for retail and e-commerce at Alorica. Brands need to own the experience with easily accessible updates.
“Customer expectations have shifted from broad delivery estimates to real-time precision and personalization,” Hawkins said in an email last month. “They expect GPS-level tracking, accurate arrival windows, and control over how and where updates are delivered.”
