The “Phygital” Strategy Behind The UPS Store’s Top Spot on Forbes’ List

Making it on top of the best customer service list is nothing to sneeze at. Doing it thrice as a franchise system? Now that’s a feat. It’s no secret the past three years have come with plenty of changes in the CX space. Between AI’s growing prevalence, labor shortages, and vast changes in customer expectations, the landscape has evolved greatly. Despite these challenges, The UPS Store has managed to earn and maintain a top spot in customer service, even with extra considerations when operating as a nationally standardized franchise system.

For three years running, The UPS Store has ranked #1 in overall service, according to Forbes’ Best Customer Service List. Brands of all categories were evaluated on four criteria, including “personal interaction, speed, services, and resolution.” As the largest franchisor in the United States according to Forbes, The UPS Store offers postal services, retail shipping, printing, and business service centers. Each franchise location operates like a disciplined national brand, while behaving like a local business. Rolling out updated digital experiences at scale and ensuring brand consistency without taking away from the franchisee’s autonomy can be tough, but UPS has been able to do all of these well.

How UPS Made it On Top, Three Years Straight

The UPS Store’s dedication to consistently excellent customer experiences shows as they combine digital and physical tech, offer transparency, and demonstrate that they’re actively listening to their customers. Brick and mortar locations are essential for The UPS Store’s services, and they are employing innovative technology and qualified individuals to bring out the best in both. This combination of digital and physical structures, often nicknamed “phygital” technology, keeps empathy a key component of the equation while making the customer experience as frictionless as possible. In an increasingly AI-driven world, The UPS Store has managed to keep humanity in the picture, even as they’ve incorporated updated technology. It’s this commitment to a customer-centric experience that has earned the recognition of Forbes, the business media giant.

Transparency as Empathetic CX

It’s CX 101 that a brand’s transparency often positively correlates with a consumer’s trust in the product or service. As companies continue to center empathy in their customer experiences, transparency is a great place to start. Our world depends heavily on shipping services, and The UPS Store goes above and beyond in prioritizing transparency with its customers. A core part of UPS’s brand is their Pack and Ship Guarantee, promising customers reliability. Sean O’Neal, VP of Retail Operations at The UPS Store, explains, “We're always striving to do what we say we are going to do…Our customers know they can count on us to meet their needs or take ownership when we do miss the mark.” Shipping items can be a stressful and high-stakes part of customers’ lives, but UPS prioritizes parcel visibility to increase trust and keep customers as updated as possible. Predicting customer pain points and putting systems in place to alleviate potential friction helps UPS go the extra mile in a space where trust and reliability is so crucial. They are keeping understanding and sensitivity a part of the customer service equation, a challenge in an increasingly digital world. The brands that are winning are those that are operationalizing empathy, and UPS’s visibility shows their commitment to speaking their customers’ language.

The Conscious Integration of Digital & Physical

Many industries offer in-person experiences by virtue of the services provided, but The UPS store offers the customer a choice between a digital or in-store experience. In the United States, around 86% of the population lives within ten miles of a UPS Store, a figure further reinforcing its accessibility. UPS is using digital technology to expedite experiences known to be hassles for most. Returning items is faster and easier than ever, with employees at the ready to simply scan a QR code or self-service kiosks with a few prompts to get the item on its way. This model of automation in tandem with human contact is not only effective, it places choice in the customer’s hands. Whether a consumer wants to ask an associate a printing question, or would rather not interact with a human during a return, The UPS Store allows its customers to pick the interaction point that works best for them. UPS’s model shows that the future of effective customer service isn’t strictly digital or physical, it’s a conscious integration of the two.

Listening to Customers, & Actually Hearing Them

At the root of The UPS Store’s constant customer-focused changes is a firm commitment to listening to customer needs. Using customer surveys and satisfaction scores, UPS drives constant improvement and allows for adaptation. Franchisees use intuitive dashboards and employ customer listening tools to constantly improve. Staying tuned-in to consumers requires constant evolution, and UPS’s global study, “The Pulse of the Online Shopper” both provides the brand with real-time data and tells the customer that their voice is valuable. But The UPS Store makes providing feedback simple- a maximum of “one transactional survey per interaction” through SMS helps gather quality data. This feedback both empowers franchisees to make customer-focused changes as well as positioning The UPS Store as a brand listening to its consumers.

A Blend of Technologies to Speak Your Customers’ Language

As evidenced by The UPS Store’s three-time win, well-organized, thoughtfully scaled integration of digital and physical technology is the future of customer service. Phygital technology not only makes customers feel heard, it allows them to choose the medium they feel most comfortable with. The future may feel increasingly digital, but humanity and technology working in tandem is a great way to signal to consumers that you can speak their language, whether it’s through a QR code, a chatbot, or a warm smile.

Image credit to RoseBox on Unsplash.