Loyalty link: How supply chain resilience impacts customer retention?

Resilient supply chains can boost customer retention and subsequently loyalty of firms by taking customer experiences and satisfaction to a whole new level.  

The importance of a resilient supply chain couldn't be overemphasized today. Especially in the context of increasing customer churn, the ability to deliver products timely and reliably holds a strategic significance for firms.

No wonder, organizations across the board are making efforts to make their supply chains resilient to boost customer retention, repeat purchases, and brand loyalty. Here's a complete lowdown on how resilient supply chains can help you retain customers and evoke brand loyalty:

Enriching experiences: Unilever is a shining example of what resilient supply chains can achieve. The UK-based company delivers products in more than 190 countries which is quite challenging given the large portfolio and assortments of brands it boasts,  through its lean, agile, and resilient supply chain operations.

From developing customer connectivity models to integrating tech solutions, Unilever’s supply chains deliver enriching experiences to customers, enabling its brands to retail customers and enjoy impeccable brand loyalty. As McKinsey's research revealed enhanced customer experiences can boost sales and profitability by up to 7% and 2% respectively, brands make their supply chains resilient to reap rich dividends on customer engagement and loyalty. 

Consistent availability: Can you spot the commonality among Walmart, Amazon, or McDonald's? All these brands are known for their consistent availability. These firms never fail to provide for their customers and hence, enjoy a strong loyalty among target consumers. But, how do these companies do that?

The answer lies in their strong, robust, and resilient supply chains that ensure farm-to-counter availability of products around the clock. In addition, demand forecasting, customer analysis, and inventory management also play a critical role in saving firms from stock-out issues and switching their customers to rival offerings. 

Responsive agility: Resilient supply chains enable firms to respond quickly to demand fluctuations and fulfill delivery promises even during challenging times. Resilience in supply chain operations also equips firms to quickly shift their sourcing, make production alterations, and recalibrate delivery channels. This responsiveness, in turn, helps the target market develop faith and confidence, eventually making them loyal to brands in the long run.

The responsiveness of brands like Mamaearth and Xiaomi India in changing their customer touch points (from completely online to now a mix of online and offline) testify to how resilient supply chains can help brands forge deeper connections with customers. 

Transparent communication: Resilient supply chains constantly share the data across stakeholders even during disruptions or challenging circumstances. The seamless flow of communication improves transparency and enhances efficiency besides boosting the productivity of customers in brands. The data-sharing capabilities also help brands predict potential disruptions and proactively solve issues even before they hit their supply chain operations.

Transparent communication also encourages customers to share feedback with brands that can be analysed to make consistent and relevant improvements in products. By involving customers in the co-creation process, brands get repeat purchases and win over their loyalty in the long run. 

Word of mouth: Satisfied consumers can play an important role in increasing customer retention and brand loyalty by actively talking positively about their experiences with brands.  By delivering consistently on promises of quality and reliability, resilient supply chains help brands achieve a competitive edge over rivals.

These positive sentiments also become conducive to organic growth and performance on key indicators such as brand image, customer loyalty, and profitability. Brands can further leverage the positive environment by creating communities, driving engagements, and organising get-togethers with their loyal customers. 

Conclusion
Resilient supply chains offer multi-faceted benefits to firms. From strategic growth to operational implementation, supply chains built on resilience and adaptability prove crucial for customer retention, satisfaction, and brand loyalty.

Brands can also achieve enhanced collaboration while improving cost efficiency through adaptable and optimized supply chains. Summarily, resilient supply chains are the backbone of a loyal customer base and by leveraging their capabilities, brands can achieve the next level of growth and profitability in their respective markets. 

-- Arsh Kabir Singh Gujral, Chief Revenue Officer, Genefied.