Breaking Through the Noise: A Shipper's Perspective on Logistics Service Provider Marketing
In a recent conversation with John McClymont, a self-described "recovering shipper" with extensive experience in the food and cash-in-transit industries, we gained valuable insights into what really matters when marketing to shippers and how providers can differentiate themselves in a crowded market.
Amid the challenges of a competitive logistics landscape, service providers face an increasingly difficult challenge: how to effectively reach and engage shippers in a meaningful way. In a recent conversation with John McClymont, a self-described “recovering shipper” with extensive experience in the food and cash-in-transit industries, we gained valuable insights into what really matters when marketing to shippers and how providers can differentiate themselves in a crowded market.
The Problem with Traditional Approaches
One of the most common mistakes service providers make when approaching shippers is leading with quality metrics and SLAs. As McClymont points out, “Never, not once did I get the call from the carrier that was like, ‘Hey, we’re kind of like your basic carrier, we only have like 75% SLAs.'” The reality is that quality performance is table stakes – shippers won’t even consider providers who can’t demonstrate basic reliability.
Similarly, the widespread practice of cold calling shippers with generic “Do you have any loads?” pitches misses the mark entirely. “That’s about you,” McClymont explains. “You needing a load is about you. You need the revenue, you have the capacity, you need to fill trucks. That’s not a me problem as a shipper.”
Building Meaningful Relationships
Instead of transactional approaches, successful engagement with shippers requires building genuine relationships and understanding their specific challenges. McClymont suggests several effective strategies:
- Focus on Long-term Value: Rather than pushing for immediate sales, providers should aim to be included in future RFPs or projects. Make your goal about letting shippers know you’re available rather than securing immediate business.
- Understand the Complete Operation: Take time to learn about a shipper’s specific procedures, requirements, and pain points. In the food industry, for example, providers needed to understand complex procedures around seals, temperature controls, and documentation.
- Demonstrate True Partnership: Be willing to recommend changes that might temporarily reduce your revenue but benefit the shipper. “If you want to be a real business partner to that shipper, and there’s an activity that you’re doing that really doesn’t make sense, point it out,” advises McClymont.
Finding the Right Entry Points
While many providers focus on reaching the largest shippers with $50+ million in spend, McClymont suggests this might be misguided. These organizations typically have established solutions and aren’t actively seeking new providers. Instead, consider:
- Industry-Specific Events: Rather than general logistics shows, attend events focused on equipment, technology, or specific industry segments where your target customers gather.
- Alternative Contact Points: Build relationships with equipment providers, repair shops, and other industry partners who might provide warm introductions.
Regional Focus: For large retail organizations, consider targeting regional directors or vice presidents who might be more receptive to trying new solutions.
The Role of Technology
When it comes to technology solutions, McClymont emphasizes the importance of focusing on what truly matters to shippers. Many platforms overwhelm users with data instead of highlighting actionable insights. “The best reports are the ones that get to the most actionable information as quickly as possible with providing the right context,” he explains.
The most valuable technological solutions:
- Prioritize critical information over comprehensive data dumps
- Focus on exception management rather than routine operations
- Provide context for decision-making
- Allow customization to match specific shipper needs
Nurturing Existing Relationships
One often overlooked opportunity is the cultivation of existing relationships. “People bounce around these days. They move organizations, they take promotions into other places,” McClymont notes. By maintaining strong relationships with your current customers’ teams, you create opportunities as people move to new organizations.
Key relationship nurturing strategies include:
- Regular check-ins beyond operational issues
- Asking about challenges and wish-list items
- Sharing industry insights and trends
- Maintaining connections even when you’re not actively selling
The Value of Content and Social Presence
While direct marketing might struggle to break through, maintaining a consistent presence on platforms like LinkedIn can build awareness over time. “Even if you’re not seeing people engage or not seeing directly like liking posts or whatever, that doesn’t mean they’re not seeing it,” McClymont explains.
Content should focus on:
- Industry insights and trends
- Real operational challenges and solutions
- Customer success stories
- Educational material about your specific expertise
Sustainability and Industry Trends
When it comes to broader industry trends like sustainability, McClymont advises against making these central to your value proposition unless they directly impact the customer’s bottom line. “Everybody wants it, but nobody wants to pay a premium for it,” he notes. Instead, focus on how your solution can help shippers achieve their goals while potentially supporting their sustainability initiatives as a secondary benefit.
Key Takeaways for Service Providers
- Focus on Value Creation: Understand how you can solve specific shipper problems rather than just selling capacity or service.
- Build Trust Gradually: Accept that developing relationships with shippers takes time and focus on creating awareness before pushing for sales.
- Demonstrate Understanding: Show that you comprehend the shipper’s industry, challenges, and operational requirements.
- Leverage Multiple Channels: Combine personal outreach, industry presence, content marketing, and relationship building for the best results.
- Think Long-term: Focus on building lasting relationships rather than quick wins, understanding that today’s connections might lead to tomorrow’s opportunities.
The logistics industry may be “simple but not easy,” as McClymont notes, but providers who take the time to understand their customers’ needs and build genuine relationships will find success in this competitive market. The key is moving beyond transactional selling to become a trusted partner who truly adds value to the shipper’s operation.
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