Guest Blog: Parcel Lockers – A Retailer’s Secret Weapon

This week we feature an article by Gaven Rolfe who writes about parcel lockers and how they can offer benefits for retailers. I really like anything that can offer convenience for our customers. – Shep Hyken

Parcel Lockers: A Retailer’s Secret Weapon

When you think of parcel lockers you probably think of lockers found at apartment buildings and condominiums. Even Amazon has launched parcel lockers into the residential industry. But this innovative, final-mile delivery method can also be a secret weapon for retailers.

From lower shipping costs to a better customer experience, parcel lockers can offer big benefits for retailers.

Delivery and Returns

Retail parcel lockers are different from the manual, low-tech residential parcel lockers you often see today. They are a convenient and easy click-and-collect delivery solution. As soon as an order is delivered and placed into a parcel locker, the customer receives a notification via email or SMS message with a one-time PIN code or QR code. The customer then goes to the parcel locker station and enters or scans the code. The parcel locker door opens and the customer retrieves the order. This provides a complete chain of custody and added security for retailers.

This delivery method can also offer an easy return process. Customers simply drop off their returns at a parcel locker station rather than mailing through a carrier or standing in line at the service desk, two tasks many customers hate. Instead, they place the return label on their parcel, scan the label at the parcel locker station and place the parcel in the locker door that opens. Retailers can then process the returned orders at a convenient time for them.

Enhancing the Customer Experience

Parcel lockers greatly enhance the customer experience by offering a convenient 24/7 delivery option. By placing these weather-resistant parcel lockers outside of a brick and mortar store, retailers can achieve instant customer satisfaction. But these systems can also be placed inside a store to not only offer an additional delivery method but to also increase in-store traffic as customers walk through the store to see what’s new.

For retailers, this final-mile delivery solution can save both time and money. Instead of shipping hundreds or thousands of small orders to individual residences, retailers can use their own transportation to ship bulk orders to the brick and mortar store for placement into the parcel lockers. This lowers shipping costs while providing flexibility for customer service staff.

While your customer reviews will confirm the success of this innovative delivery method, there’s one more benefit: many retail parcel lockers also offer robust reporting capabilities. You’ll be able to receive reports and metrics on a number of key performance indicators, including occupancy, turnover, pickup times, parcel size and more. This allows you to determine the parcel locker station’s return on investment as well as the need for additional parcel locker stations on site.

So, when it comes to providing a unique customer experience, parcel lockers can be a win-win for all.

Gaven Rolfe is the Western Regional Territory Manager of Packcity Intelligent Parcel Lockers and ProShip, Inc., a Neopost company and global provider of logistics software and product solutions. ProShip’s powerful solutions enable goods to be delivered faster, more efficiently and more cost-effectively than ever before. 

For more articles from Shep Hyken and his guest contributors go to customerserviceblog.com.

Read Shep’s latest Forbes Article: Is Your Customer Support Killing Your Business?