An exploration of logistics-related customer service provision on Twitter: The case of e-retailers

The success of e-retailers is intrinsically linked to the effectiveness of their logistics processes which, inevitably, involve third party service providers. As the most tangible representative of the e-retailers it is inevitable that customers expect the e-retailer to resolve delivery queries, including on social media platforms. The purpose of this paper is to investigate the effectiveness of e-retailers’ logistics-related customer service interactions on Twitter with a view towards identifying effective and ineffective social media customer service strategies.

The design and public nature of Twitter encourages organic conversations between e-retailers and customers as well as between customers and other customers. The methodology applied here accounts for this by collecting and analysing interactions within and as part of conversations, not as independent observations. In total, 203,349 tweets were collected from 22 of the most popular e-retailers. A random sample of 5,000 logistics-related conversations (16,998 tweets) is used for the analysis presented here and forms a foundation for future research.

Conversations are initiated by customers on the basis of 24 event triggers which can be categorised as occurring either before or after an order is delivered. These can be general queries or related to a specific order or delivery issue. The paper identifies a number of significant findings such as the extent to which e-retailers and logistics providers redirect customers to other channels to resolve queries, ignoring the implicit preference by customers to use Twitter to resolve their problem. Similarly, the lack of interactions between e-retailers and their logistics providers within the Twitter platform to help resolve customer queries results in ineffective customer service.

The study identifies the way in which e-retailers can substantially improve the effectiveness of the customer service they provide on Twitter by ensuring that customer queries can be resolved within the platform and by working with their logistics partners to do the same. This is critical since problems may be directed to the e-retailer or the logistics provider but both companies jointly suffer the consequences of poor customer service.

The study examines a hitherto underexplored aspect of retail logistics – the social media-based customer service activities of e-retailers. Methodologically, the study is rooted in the acknowledgement that interactions on Twitter form conversations and analyses should take this into account. This is a distinctly different approach from existing Twitter-related studies which conduct an automated sentiment analysis of tweets. This approach reveals a rich picture of interactions and, importantly, identifies where conversations between e-retailers begin, how they develop and how they conclude.