An Introduction to Logistics Marketing

The COVID-19 pandemic has been a transformational event across industries, a once-in-a-century occurrence that made business continuity plans look quaint and left companies grappling with unprecedented business issues with no clear solutions. The logistics industry has traditionally been a late adopter of digitisation, and digital marketing for logistics companies has been a case study of the same. Famous for their relationship-based selling approach to grow their business, the logistics industry needs to embrace the latest logistics marketing tactics that will help them scale in the digital world.

“Digitization and new technologies are rapidly changing all industries, forcing them to prepare for a tomorrow that is unpredictable. This also applies to the industry of container shipping, ports, and logistics, which largely has been driven by the traditional business models focused on optimizing how you move goods.” – Soren Skou

What is Logistics Marketing?

Simply put, Logistics Marketing refers to the organisational processes undertaken by logistics companies to engage its target customer base and build strong relationships in order to capture value in return. But where logistics companies stand apart is its complexity. As an industry that is changing every day and has a high entry barrier, even the most seasoned veterans can struggle to stay on top of everything. Thus, marketing for the logistics industry is a double-edged sword – a hindrance for some and an opportunity for others.

Why Logistics Companies must do extensive marketing?

87 percent of B2B buyers say content is an important factor in vendor selection, as per a CMO Council report. Digital marketing for logistics companies is often overlooked, ignoring the fact that an estimated 97% of people use internet research to find a local company.

We are living in the Internet era, where a company’s first point of contact with a potential customer is almost exclusively online. How a company presents itself on the Internet, therefore, becomes a key mandate of its marketing team. Any company needs a marketing strategy that is flexible enough to adapt to the modern requirements of the world. It is important that digital marketing, for logistics companies, is the primary weapon when developing their marketing strategies. Digital marketing channels can help them expand their reach and find quality leads.

How to use Digital Marketing for Logistics companies?

With an industry-wide stasis when it comes to investment in logistics marketing, ask any logistics marketing consultant and he will be ready to shout from the rooftops that the opportunity is there in digital marketing for logistics companies to enable them to get a leg-up against competition.

Digital marketing for logistics companies, when done right, can be a game changer for two reasons:

  • Digital marketing builds the initial awareness and trust factor which helps get a foot in the door and establish long-lasting customer relationships.
  • Along with effective content writing, it can establish you as a thought leader and help your brand have a top-of-mind recall.

When it comes to digital marketing for logistics companies, the following tools can help elevate the marketing strategy to a new level:

  • Customer Relationship Management (CRM) Software: CRM Software helps a business map out a customer’s journey in full with each touchpoint and interaction recorded. This helps in understanding the customers and how they interact with the organisation.
  • Marketing Automation software: This can help automate repetitive marketing activities (social media, newsletters, etc.) to help re-inforce relationships with existing customers and potential leads.
  • Programmatic Advertising: Programmatic advertising is the final piece of the jigsaw when it comes to digital marketing for logistics companies and helps them reach the right audience through the right channel at the right time.

Should Logistics Marketing be focused on B2B & B2C?

Logistics marketing has traditionally been more focused on B2B rather than B2C. Any logistics marketing strategy, whether it be for B2B or B2C, will involve highlighting the company’s differentials effectively, determining key markets, identifying immediate competitors and developing all available marketing channels through trial and error.

Why every logistics company must hire logistics marketing consultants?

There are obvious benefits of hiring external logistics marketing consultants rather than hiring a marketer on payroll:-

  • Unbiased perspective: Logistics marketing consultants are able to have a fresh view of the organisation and offer his unbiased opinion and prevent inertia.
  • Saving money: Another great benefit is that logistics marketing consultants are often much more cost-effective than hiring full-time employees.
  • Specialised skill-set: With each logistics marketing consultant having his own set of experience and skillset, a company is able to choose a person most suited to solve their business problems.

Key Takeaways

  1. Rather than defining and creating services around the ‘Turn Around Time’ (TAT), logistics companies should focus on building products like B2C companies, with the objective of Value Creation and market those as possible solutions to solve larger business problems faced across industries.
  2. Product Differentiation is often the key for success for every logistics company in creating its own niche, as often it is seen majority of the logistics companies just join the bandwagon in terms of service offerings in order to follow the respective market / industry leaders.
  3. Finally, as any other service business, logistics industry as a whole should align their focus on Marketing and articulating Value Propositions, in order to sustain and achieve long – term business goals.

With so much at stake, it is imperative that logistics companies have a serious look at their logistics marketing strategy, whether in-house or through external logistics marketing consultants.

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