Dive Brief:

• FedEx is investing in Salesforce Data Cloud to improve its customers’ web experience by integrating its customer service, marketing and sales platforms into one, said Brie Carere, executive vice president and chief customer officer, during a Q1 earnings call last month.
• The delivery provider touted the benefits to customers of its planned merger of its three distinct businesses. FedEx is also now offering an estimated delivery time window and expanding its proof of package delivery option and rewards program in Europe.
• The moves to improve customer service come at a time when FedEx has acquired a flurry of new customers, as rival UPS dealt with labor negotiations and trucking giant Yellow Corporation filed for bankruptcy.

Dive Insight:

FedEx’s acquisition of new business — with the ability to drive “high-quality revenue,” according to FedEx CEO Raj Subramaniam — makes streamlining its operations and digital infrastructure all the more important.

Carere touted how FedEx handled the onboarding of new customers who have made long-term business commitments and its vision to make supply chains better and more efficient for everyone. That includes, she said, advancements in FedEx’s digital infrastructure.

“We will integrate three customer platforms: customer service, marketing and sales into one, giving the customer a more informed, efficient and personalized experience when doing business with FedEx,” Carere said.

The delivery provider is also merging its three distinct businesses — FedEx Express, FedEx Ground and FedEx Services — under one roof. Though the move, which was first announced in April and is expected to be completed by June 2024, is a cost-cutting strategy, Carere emphasized the benefits integrating the three networks will have for customers, particularly for small- and medium-sized businesses, which is a “high-value growth segment” for FedEx.

“For example, our current customer contracts reflect three independent companies,” Carere said. “One FedEx will enable us to change that, making doing business with FedEx and becoming a new customer easier.”

Combining the networks will also save customers time. “When we integrate a market with one truck in one neighborhood that's not just for deliveries, it also means a streamlined pickup experience — one pickup per day versus two,” Carere said. “This is a simple but very impactful change, and customer feedback has been overwhelmingly positive.”

Among the added benefits, FedEx is now offering 48 countries an estimated delivery time window — a four-hour window during which a customer can expect their package — and expanding picture proof of delivery to their European market. The latter Carere credits with reducing the volume of customer calls and claims.

FedEx is also expanding its rewards program beyond the United States to nearly 30 other countries, Carere said. The program is expected to launch in nine more European countries this year.