FreightCasts Podcast Summary
Episode: How Supply Chain Partners Can Improve Customer Engagement EP09 Running on Ice
Host: Sydney Edwards
Guest: Michael Niederhauser, Vice President of Customer Success at Parcel
Release Date: August 12, 2022
Introduction
In the ninth episode of FreightCasts, host Sydney Edwards delves into the critical topic of customer engagement within the supply chain sector. The episode features Michael Niederhauser, Vice President of Customer Success at Parcel, who brings valuable insights from his extensive experience in customer success across technology, healthcare, and supply chain industries.
Understanding Customer Success
Customer success is a central theme of this episode. Michael explains its evolution and fundamental principles:
"Customer success started the very first time someone sold something to someone else. Right. Thousands of years ago, someone had a problem. And we were able to provide a solution to that problem." [07:16]
He emphasizes that modern customer success revolves around understanding the customer's mission and aligning the company's objectives to meet those goals. It's not merely about meeting expectations but exceeding them to build lasting trust and foster growth.
Importance of Customer Success
Sydney and Michael discuss why customer success is indispensable:
"A good customer success approach creates trust between a customer and a vendor or partner, and it really should help solve a problem and potentially even expand upon opportunities that that customer may not have even known existed." [08:45]
Michael highlights that in today's competitive landscape, where many businesses engage in a "race to the bottom" primarily focused on pricing, a robust customer success strategy can differentiate a company beyond just cost-efficiency.
Challenges in Enhancing Customer Success
Addressing the hurdles companies face, Michael identifies the pervasive focus on price and the difficulties in meeting diverse customer needs:
"We are feeling [the price pressure] as consumers today more than ever. And there are a very limited number of very large organizations that can truly win at that race to the bottom, the minimum price." [09:01]
He underscores the necessity of developing engagement platforms that understand and cater to the unique needs of customers, moving beyond price competition to offer differentiated value.
Parcel's Approach to Customer Success
Michael provides an in-depth look at how Parcel implements customer success strategies:
Mission-Driven Foundation
Parcel originated with a mission to support global health initiatives, particularly in vaccine distribution:
"We're very much a mission-driven organization focused on reducing waste, reducing risk, and going further than simply just reducing those things, but trying to be predictive in the way we're helping our customers identify potential problems in the supply chain so we can avoid them altogether." [04:55]
Change Management and Technology Integration
Understanding that change is often met with resistance, Parcel employs a structured change management approach to introduce new technologies:
"We have a change management structure that we put into place and are constantly adapting based on commodity, based on conveyance, etc. But just understanding and realizing that change is hard." [11:54]
Data-Driven Solutions
Parcel leverages data to optimize supply chains, using sensor data and other sources to assess and mitigate risks:
"We use data from a number of different sources, including sensor data as well as any other data sources to better understand and price risk for our customers." [04:02]
Customer Success in Action: A Real-World Example
Michael shares a compelling case study illustrating Parcel's customer success in action:
"We were protecting a customer, both in terms of risk management data solutions, our platform for data monitoring, and then insurance as well. And they were shipping a little over $300,000 worth of goods from China into the Chesapeake Bay." [14:00]
Due to delays, the shipment faced a significant overrun. Parcel's proactive customer success team intervened by:
- Compassionate Communication: They acknowledged the customer's concerns promptly [14:49].
- Seamless Data Integration: Upon arrival, data from loggers was instantly offloaded to assess the product's condition.
- Preventative Measures: Determined that the product maintained quality, avoiding unnecessary claims and preserving the customer's premium rates.
This example underscores the importance of proactive engagement, real-time data utilization, and empathetic customer interactions in effective customer success strategies.
Overcoming Data Challenges in the Cold Chain
A significant portion of the discussion centers on the challenges of real-time data in cold chain logistics:
"There's no cell out there, right?" [19:23]
Michael explains the limitations of real-time data connectivity in remote or maritime locations and how Parcel navigates these challenges by providing actionable insights from collected data:
"We're going to do our very best to guide them in the way that we think will make the most sense for their supply chain, for their risk, so that we can help them ultimately reduce risk." [19:48]
Success Stories and Future Directions
Michael recounts a story about vaccine storage in Senegal, highlighting the life-saving impact of effective data monitoring:
"Vaccines have typically been on there. Being able to see a fridge and the temperature of that fridge from a remote location and be able to identify, we believe that this is faulty... that could be the end result of saving hundreds, if not thousands of lives." [21:14]
Looking ahead, Parcel is expanding its operations, including opening a new office in London and increasing its footprint in the insurance sector. Michael also mentions ongoing efforts to enhance their data analytics capabilities to provide even more tailored solutions for their clients.
Opportunities and Community Engagement
As the episode wraps up, Michael highlights Parcel's growth and hiring initiatives, encouraging listeners to connect and explore career opportunities:
"We're also searching for some insurance team members as, as potentially some sales team members. We have needs, very unique needs for many different languages. So if you know anyone that parlez francais or habla ingles, please send them my way." [26:35]
Conclusion
This episode of FreightCasts offers a comprehensive exploration of customer success within the supply chain industry. Through Michael Niederhauser's insights, listeners gain a deeper understanding of how proactive engagement, data-driven strategies, and a mission-focused approach can significantly enhance customer relationships and drive business success. The real-world examples and practical advice make this episode a valuable resource for professionals seeking to elevate their customer success initiatives.
Notable Quotes:
- "Customer success started the very first time someone sold something to someone else." – Michael Niederhauser [07:16]
- "A good customer success approach creates trust between a customer and a vendor or partner." – Michael Niederhauser [08:45]
- "We're very much a mission-driven organization focused on reducing waste, reducing risk." – Michael Niederhauser [04:55]