The insurance industry is in the middle of a profound digital transformation. Innovative new companies such as Lemonade have disrupted the way insurance companies used to work. The digital insurance market is currently growing rapidly.
Current Scenario and Pain-points
The number of people using digital insurance plans has doubled in the past five years, and it’s expected to grow even further in the next five years. On the flip side, due to digitization of the insurance sector, the human touch is being replaced by the digital interface, and establishing trust among users has become a major challenge as it is a key component of a good user experience especially in the insurance sector. To overcome this challenge, it’s imperative to have the right trust markers in place. When users do not trust an insurer’s website, they are quick to switch to an insurer that has relevant trust markers and a better digital user experience.
According to the Capgemini and Efma research report, “policyholders no longer waver when it comes to dropping a provider in pursuit of solution providers with better digital user experience”.
PAIN-POINTS
There are various pain points associated with the Insurtech sector given the complexity of their products and offerings.
Pain points such as:
Legalese and jargon lead to an increase in intellectual load.
Lack of tailored, personalised recommendations
Tedious self-servicing, including claims management and policy surrender.
Lack of advice and communication regarding policy-related queries demotivates the user.
Lack of transparency and visibility in procedures affect the credibility of the organization.
Organization-centric Information Architecture and Navigation do not match the user’s mental model.
Lack of human touch negatively impacts engagement and user trust.
Complicated forms confuse the users and reduce engagement
Possible Solutions
Turn complex and cumbersome journeys into simple but informative experiences – Provide a simple information architecture and reduce the cognitive load, avoiding users from being overwhelmed with information but at the same time, ensuring they can expand the information if they need to dig deeper to understand the product to its core.
Nudge users to make well-informed choices – Providing transparent and clear information regarding the most crucial information such as what is covered and not covered, dispute resolution, etc that the user needs to make an informed choice.
Generate trust and transparency – By providing relevant information regarding crucial processes and information such as claim management, setting the right expectations, explaining why certain questions are asked and how it impacts pricing, what the company does with this private personal data, etc…
Keeping the choices minimum – By chunking information, showing only relevant information at a time to reduce cognitive load.
Prompt advice – To help users with their queries at any point in time because users are going to need some level of guidance and reassurance during the purchase process for something as complex and important as insurance.
Promoting user control – Users need to feel in control of their purchasing and decision-making process. We can promote that by giving them the freedom to choose what they want to do to ensure that they are getting good coverage at an acceptable price.
Case Study
Lemonade offers renters/homeowner’s insurance. It uses A.I and chat-bots to handle claims and offer personalised policies. No bureaucracies or insurance brokers, just a desktop and a mobile interface. The Lemonade website is extremely intuitive and easy to use and it’s designed by keeping the users front and center, following UX design best practices and a simple interface.
Let’s see how they achieved it:
Using a conversational tone – helps in more conversions.
Using easy-to-understand UX copy – reduces the cognitive load and increases engagement and retention.
Smooth and conversational onboarding – The onboarding process is as seamless as a continuous conversation and each screen answers a question that complements the previous.
Humanising digital experience – Adding a virtual assistant Maya, makes users feel like they are talking to an actual human being and helps build the user’s trust.
Provides relevant information – In every instance, only the content you need at the moment is presented to you and that significantly reduces information overload.
Builds certainty and promotes making informed choices– By giving users all the information they need to make choices.
our perspective
The insurance industry is in the process of transitioning to digitalization, but in general, is not fast enough as its traditional system complexity needs to go through a thoughtful shift. To bring that thoughtful shift, there are 3 best design practices that Insurtech can apply to improve their digital customer experience.
Integrate digital and human interaction – Even though consumers prefer digital transactions, they need to be sure that a natural person will be there for them when necessary and will understand their goals, desires, and frustrations.
Personalised user experience – The experience should be as personal to the user as possible based on the complex set of products offered by the insurer and the consumers’ different needs and circumstances.
Design with empathy – Designing with the consumer at the centre requires empathy for what they are going through at a particular moment when they interact with the company.
Conclusion
From a customer perspective, insurance can be a complex industry, with a vast range of products and options. Following design best practices while putting consumers at the center, seamlessly integrating digital and human interactions, personalising products to their circumstances, and treating them with empathy, companies can earn customers’ trust and loyalty.
Conversational Design is a human-like-filter that’s layered on top of bots. Conveying information to the users fulfills the objective, but being conversational brings a natural touch and boosts user engagement.Conversational Design is a rapidly growing field as it mimics real-life conversations, allowing users to interact with technology in a more intuitive and personalized way, imagine a bot that can be just as silly, smart or humourous as the user. Conversational design makes the interaction seem organic, even if it’s just a system of networks. Though we know it’s a machine on the other end, tailoring these interactions for users makes it feel more human, natural and effortless.
Forms of Conversational Design in our everyday lives
1. Digital voice assistants
Voice assistants are one of the most advanced implementations of conversational design. They can do everything from telling jokes, stories to informing us about the weather and much more. Experts predict that by 2024, there will be 8.4 billion digital voice assistants in use worldwide, outnumbering the global population. And by 2025, the transaction value of purchases made through these devices is expected to reach $164 billion!
So, it’s safe to say that our AI friends are here to stay.
Hey Siri, tell us what you can do!!
Siri can perform various tasks such as making calls, sending messages, setting reminders, providing weather updates, searching for information on the internet, playing music, controlling smart home devices, and more. With advanced features such as voice recognition technology, it recognizes individual voices and provides customized responses based on individual preferences. Siri can also integrate with third-party apps to provide personalized and relevant responses to users. It can even entertain you by telling jokes, singing songs, and providing live sports updates.
2. Chatbot
A chatbot, on the other hand, is designed to understand and respond to a conversation in a natural, human-like manner. The chatbot is equipped with artificial intelligence and access to knowledge databases to become ‘contextually aware’. It can then pick up variations in a customer’s question and give relevant answers to numerous users simultaneously, thanks to the incredibly short reaction time.
Chatbots will Now Book Tickets To Events & Shows for you
The chatbot of a Cinema theater website lets visitors book tickets and view the trailer for the movie they want to watch – which helps them make a buying decision. The chatbot, in addition to providing support, also helps increase sales.
This application of chatbot isn’t just limited to movie theaters. Performers, sports teams, organizations, nonprofits, and anyone creating an event can use chatbots to smoothly sell tickets to their fans and audiences.
3. Interactive applications
In the online world, you’ll find various conversational design examples. From ecommerce platforms to news websites, modern technological solutions are being adopted by all leading organizations, particularly when it comes to customer service and improving the user experience.
How Duolingo interacts with users who come to learn languages
Duolingo helps users learn a language with small conversational exercises. The number of downloads for Duolingo has surpassed 500 million, which speaks for its good conversational design and ease of use.
Duolingo has made a partnership with Open AI. GPT-4 deepens the conversation on Duolingo. It will now offer English-speaking users AI-powered conversations in French or Spanish, and can use GPT-4 to explain the mistakes language learners have made. With the help of GPT4, they have introduced 2 new features – Role Play, an AI conversation partner, and Explain my Answer, which breaks down the rules when you make a mistake.
Ever chatted with a bot or voice assistant and thought it was a human on the other end?
That’s the magic of conversational design! It’s all about creating a conversation that’s structured yet engaging between you and your digital friend. It typically involves creating a script of potential user interactions and identifying the intents and entities that the chatbot or voice assistant should recognize.
Phases of the process :
Converts speech to text using Automatic speech recognition (ASR).
Interprets the meaning of the user’s request by using Natural language understanding (NLU).
By leveraging machine learning, it generates a response that simulates human-like language –Through Natural Language Generation (NLG).
Finally, it converts the response into speech using text-to-speech software
Fundamentals of Conversational Design
Responsiveness – Quick response is expected out of bots. It also means that the design can be interacted with using different devices and platforms.
Availability – With conversational services like chatbots, the users can get issues resolved at any time of the day. Time is precious, speed is everything.
Simplicity – Language that is simple and easy to understand is extremely crucial. This is what makes it conversational.
Error tolerant – To err is human. It becomes important for machines to understand imperfect information from users and still provide them with relevant answers.
Conversational design Vs Conversational UX
Conversational design and conversational UX are two related but distinct concepts in the field of conversational interfaces.Conversational design is all about creating a chatbot or voice assistant that can have natural and engaging conversations with users. It involves designing the conversation’s structure, content, and flow to meet users’ needs. On the other hand, conversational UX focuses on the overall experience of using a conversational interface. This means designing the conversation to meet user goals, understanding their preferences and limitations, and making the interface intuitive and enjoyable to use.
Best Practices
Understand the balance between technology, psychology, and language – Structured data like variables, and entities are necessary for the artificial brain. Whereas the human brain functions with empathy, direction, and encouragement. And the common factor that unites them both is language. Understanding these three dimensions gives users a better experience.
Design a persona for trust– Create a strong persona that enables you to use a consistent vocabulary that speaks to the users. This ensures likability and trust.
Have a human-centric design process – The foundation of a positive conversational experience is human centricity.When there is a lack of empathy, the user feels lost and unimportant. Understanding users’ concerns, motivations, and context builds trust. It makes the conversation natural and human-like.
Use role-play and sample dialogue – One will play user and one will play the role of voice assistant or chatbot. They talk for the most part while seated back to back from one another. This enables them to eventually reach their most natural conversation after a few iterations.
Keep it simple with edge cases – Avoid wasting too much time attempting to resolve rarely occurring situations. 80% of your time should not be spent on 20% of your users in all those strange exceptions. Instead, it’s better to direct them to an agent or a website for more information.
Chat GPT empowering the specially abled
Be My Eyes uses GPT-4 to transform visual accessibility.
With the new visual input capability of GPT-4 (in research preview), Be My Eyes began developing a GPT-4 powered Virtual Volunteer™ within the Be My Eyes app that can generate the same level of context and understanding as a human volunteer.
It helps to analyze and respond to images that are submitted alongside prompts and answer questions or perform tasks based on those images. The advantage of using GPT4 is the ability to have a conversation and the greater degree of analytical prowess offered by the technology.
What the future holds for Conversational Design
Increased personalization – That could include chatbots and virtual assistants that understand individual users’ preferences and can adapt their responses accordingly.
Multimodal interfaces – We can expect to see conversational interfaces that incorporate other modalities such as gesture, touch, and even brain-computer interfaces.
Emotionally intelligent interactions – As conversational agents become more human-like, they will need to be able to recognize and respond to users’ emotions.
Integration with other technologies – Conversational design will become more powerful as it is integrated with other technologies such as augmented reality, virtual reality, and the internet of things. This could enable conversational interfaces to interact with physical environments in new and exciting ways.
Greater accessibility – Conversational design has the potential to make technology more accessible to people with disabilities.
Natural Language Processing – As NLP technology continues to advance, chatbots and virtual assistants could become even better at understanding and interpreting complex language structures and idioms.
The demand for conversational design is expanding, and the underlying technologies are becoming more advanced. It will be interesting to see what the future holds and what new use cases and experiences we start to see as technology advances and more businesses use conversational design.
Our Design Perspective
The opportunity for conversational design is immense. Users’ use of different platforms such as websites and mobile applications may be simplified due to this technical advancement, which can also help businesses increase the quality of their services. Customer support, marketing, and online information design can all be made more valuable with the implementation of conversational design. Conversational design involves creating engaging, natural, and interpersonal interaction between computers and users. Conversational designers must consider how users will engage with them, what the interface will say or do in response, and how to provide an intuitive and efficient user experience.
The finest quality, exclusivity, and extravagance are all attributes associated with luxury. It describes goods, services, or experiences that go above and beyond the bare essentials of life and are connected to a certain degree of luxury, pleasure, or prestige. It is deemed highly desirable within a culture or society that portrays a person’s social status, standards, and wealth.
The luxury consumers of the digital age
The impact of the digital age and technology is evident when evaluating the performance of luxury brands in the current market. Consumer responsiveness has greatly increased, with typical buyers becoming more technologically savvy.
Types of luxury product shoppers & designing for them
Lavish spenders
People who lead a lavish lifestyle, filled with travel and entertainment and have the money to spend lavishly on luxury.
Opportunists
Opportunists are those with a smaller but still sizable amount of money who occasionally splurge on luxury items.
Aspirationalists
They prioritise company ethics and brand integrity even more than Millennials do.
Digitize end-to-end supply chain
During the epidemic, we witnessed what the internet world can do for us. People discovered ways to stay connected through the tech/digital world while the real world collapsed.
Before the pandemic, there were dreamlike retail spaces. However, with the development of technology, increased accessibility, and millennial consumers with their smarter and more dynamic lifestyle choices, the online market for luxury products saw an axis shift.
How luxury brands create unique digital experiences
Storytelling
To create a distinctive digital experience that goes beyond product descriptions and sales pitches, luxury brands embrace storytelling. They provide material that highlights the brand’s origins and values, conveys its story, and evokes customers’ emotions.
Virtual events
To provide an exclusive and immersive digital experience, luxury businesses conduct virtual events like fashion shows, product launches, and brand partnerships. These gatherings aim to engage customers, spark conversation, and foster a sense of community around the brand.
Customized interfaces
Luxury brands create unique digital user interfaces that convey their visual character and exude elegance. The user interface of the website, social media pages, and mobile apps are all created to provide a premium experience that appeals to the brand’s intended market.
Limited edition products
Limited edition products made by luxury firms are frequently sold online only. These goods are intended to evoke feelings of exclusivity and urgency, encouraging people to buy right away before they run out.
Personalization
Through features like virtual shopping assistants, tailored product recommendations, and customised content, luxury businesses provide highly personalised experiences.
Authenticity treasures value
For those who understand the value of authenticity, luxury goes beyond materialistic possessions. The value of luxury lies in the sense of status that it provides. They seek out luxury products that are expertly made, and have the best craftsmanship with the utmost care, paying close attention to every last detail.
It is simpler for counterfeiters to create and sell fake luxury products in the digital age, as e-commerce has replaced traditional retail. For luxury firms to set themselves apart from copycats, they must emphasize the authenticity of their products.
Higher price = Better quality?
Luxury items are often marketed as exclusive and rare, and a high price tag can contribute to this perception. Consumers may believe they are getting a higher quality item simply because it is more expensive and exclusive. While expensive luxury goods are often considered to be of higher quality, it isn’t always the case.
Luxury goods are frequently produced using premium materials and with greater care and precision during the crafting process. The materials and craftsmanship used in luxury items frequently reflect the quality, even though the price may not always directly reflect it.
How the digital world is responsible for counterfeiting luxury products?
Online marketplaces
Online stores like Amazon, eBay, and Alibaba have made it simpler for counterfeiters to entice naive buyers with bogus luxury goods. These sites are challenging to monitor, and counterfeiters frequently conceal themselves by using many accounts and false identities.
Social media
Social media sites like Instagram and Facebook have developed into ideal platforms for counterfeiters to advertise and sell their knockoff versions of high-end goods. To reach a big audience, they frequently make use of trending hashtags and influencers.
Digital printing
The development of digital printing technology has made it simpler for imitators to create high-quality replicas of expensive goods, including apparel, accessories, and packaging.
Cybercrime
Cybercrime is a problem that is getting worse, and hackers are employing digital technologies to steal people’s financial and personal information to sell fake luxury goods or carry out transactions using false identities.
What the brands are doing to keep the counterfeiters at bay?
Beyond The Logo
Logos are easy to replicate, but quality craftsmanship is not. A brand can be given a tremendous boost of authenticity by highlighting traditional workmanship, handcrafted elements, and heritage processes.
Redefine Customer Connection
The consumers of luxury goods are evolving. The new rich of today are millennials and there is a shift where experience and sustainability are being prioritised over items, consumption, and exclusivity.
Supply Chain Management
To trace the flow of their products and stop fake goods from entering the supply chain, they are putting in place measures like barcoding and tracking systems.
Collaboration
To prevent counterfeiting, brands collaborate with governments, law enforcement organizations, and business associations. Additionally, they are collaborating with digital firms to create cutting-edge technologies that can help identify and stop the entry of counterfeit goods.
Public Awareness
Consumers are being educated on how to spot real goods and what to look for to avoid buying fake goods.
Luxury could be the upcoming trend
Although there are still plenty of people who spend extravagantly to show off their status, we can see an alternative rising trend of minimalist luxury over the past decade or two. Consumers are increasingly choosing and putting into practice the opposite tendency, which is buying fewer items and buying better.
Our perspective
The luxury market is a growing industry in fashion, jewelry, watches, home decor, and more. Designing for luxury requires a unique skill set and a deep understanding of user psychology, the luxury market, and the risks associated with it. Understanding current trends and connecting with upcoming consumers can help brands go a long way. Staying relevant can help businesses stay competitive, attract new customers, create new opportunities, and build their brand image in their respective industries.
The field of UX has been advancing rapidly over the past several years due to the introduction of enhanced technologies and innovative ideas. In the midst of such advancements, it is crucial to understand the long-term implications and gain perspective on the bigger picture, and this is where Green UX or sustainable UX plays an important role.
Environmental Impact
Before we dive deep into the topic, let us try to understand the current scenario and get some context.
Global warming has been increasing, and we can see its impact in our daily lives. But how does the internet and the digital world contribute to this phenomenon?
According to statistics, if the Internet were a country, it would be the 7th largest polluter. It produces nearly 1.6 billion annual metric tonnes of greenhouse gases, significantly contributing to the greenhouse effect and the consequent changes in our environment. Furthermore, the data centres that support the internet, which are being used by numerous devices every day, contribute another 2% to carbon emissions, increasing the impact of the internet in our environment. Now, imagine billions of people browsing through billions of pages on the internet and the resulting amount of carbon dioxide produced from this activity.
Given these jarring numbers and facts, how can we as experienced designers work towards reducing the environment’s suffrage through our designs and ideas? This is where Green UX or Sustainable UX comes in.
Sustainable Web Manifesto
A sustainable web manifesto is a movement led by designers, to encourage and educate people about the importance of designing for sustainability.
The manifesto employs a people and planet-first approach and helps articulate how digital products and services can help enable this change. It respects the principles which call for an internet that is:
Clean-The services we provide and services we use will be powered by renewable energy.
Efficient-The products and services we provide will use the least amount of energy and material resources possible.
Open-The products and services we provide will be accessible, allow for the open exchange of information, and allow users to control their data.
Honest-The products and services we provide will not mislead or exploit users through our design or content.
Regenerative-The products and services we provide will support an economy that nourishes people and the planet.
Resilient-The products and services we provide will function in the times and places where people need them most.
What should we do?
In order to design for sustainability, it is important for us to identify the steps in the design process that can be changed to make a more sustainable end product.
The following suggestions are provided on how to include sustainability in our designs:
Optimise user journey
Make sure that every component on the page assists the user in achieving their goal. Therefore, the task should be accomplished in the minimum steps possible.
The amount of time people spend on a digital product is equal to the amount of data they have to load.
If something is not used — get rid of it as it surely affects the loading speed in a negative way, even if you do not see it.
For example, the website for the Aliter Network is a low carbon website and has a clean, effective design with all the elements specified up front.
Efficient Visual Aids
Remove unnecessary visuals to reduce load time and dependency, as the more visual elements you have on your page, the more effort it requires to load. Eg:-Auto-play videos, Large Images. This can be replaced with adaptive images & videos.
Compress your content to enhance scannability and reduce load time, which will increase the performance of your website as well.
Optimised videos and images: To reduce server load, use lower resolution images and videos with the option to request a higher quality.
Remove unnecessary visuals to reduce load time and dependency, as the more visual elements you have on your page, the more effort it requires to load. Eg:-Auto-play videos, Large Images. This can be replaced with adaptive images & videos.
Compress your content to enhance scannability and reduce load time, which will increase the performance of your website as well.
Optimised videos and images: To reduce server load, use lower resolution images and videos with the option to request a higher quality.
Mobile first approach
When you design for small screens, you focus your design process on highlighting the core features around what works with less real estate.
The principle of progressive enhancement, which says that if something offers a great experience on a smaller device with fewer resources, the experience can then be enhanced for users with more powerful devices and using larger screens.
This consumes less energy and data, making the product more accessible.
Low Energy Colours
Choose sustainable colours that require less energy, and yet provide a good user experience.
Mindfully introduce dark mode as it can be beneficial only for certain use cases and also keep accessibility in mind.
As you might expect, darker colours require less energy and brighter colours require more energy.
Volkswagen has committed to decarbonize all aspects of its business, and when planning the Canadian launch of the ID4 electric vehicle, Type 1 asked if the website could both support the company’s vision and be low carbon. This leads to a 50% cleaner website compared to the earlier version.
Encourage eco friendly behaviour
Minify your code by removing unnecessary design or white spaces.
Use cache to load user information and browsing styles faster and produce less demand on server as well as reducing number of steps to achieve a task.
Increase exposure to eco-friendly options by creating awareness through your design and remind users about recycling, reusing, and reducing in several app screens.
Similarly, Google’s aim is to run on carbon-free energy by 2030, which includes their data centres, devices, and services, as well as their workplace.
They are adding features to products to help users make sustainable choices. For example, in Google Maps, while looking for hotels and flights, you can find eco-certified properties as well as flights with CO2 emissions.
On the other hand, designing an engaging sustainable website can be difficult, therefore, to understand it better, there are websites of various design agencies that have sustainable content and approaches, as shown below.
These websites had also contributed to the sustainable web manifesto, to be a part of the solution along with their specific sustainability factors.
Manoverboard
Manoverboard is a design agency that uses a sustainable approach in both their website as well as their design solutions .Their work and principles include:
Easy to navigate, audience-centric websites where the user can immediately understand what to accomplish.
Fast-loading content with a low carbon footprint
Authentic and honest services with creative brands that endure.
Design that meets clear accessibility and sustainability standards.
Years of user experience expertise, which includes design development, branding, identity and website care along with the audit.
This design agency also meets the highest standards of social and environmental impact. As a result, it is certified as a B corporation and donates 1% of its revenues.
The managing director of Wholegrain Digital, Tom Greenwood leads the sustainable web manifesto and has written a book on sustainable web design. This agency promises that their website as well as the website they build are 67% less polluting than the industry average.
Their mission is to create critical low-carbon websites, and they include all of the necessary certifications to be recognised as a sustainable agency. (Source-https://www.wholegraindigital.com/)
Benefits of green ux for businesses
So, how can we as a company benefit from Green UX?
It can minimise your carbon footprint
Sustainability can not only help you lower your carbon impact but also increase your financial security. Utilising sustainable techniques will help you use fewer resources in the construction and hosting of your website.
It’s beneficial to the environment
Sustainability is beneficial to both your company and the environment. By lowering emissions and resource usage, you can benefit the environment by designing and developing a sustainable website.
It can enhance consumer experience
You can improve the usability and accessibility of your website by implementing sustainability measures. This will enhance the user experience and motivate users to return to your website in the future.
It can assist in optimising business workflow
Your business workflow can be optimised with the aid of sustainable web design. Utilising sustainable practices will help your website run more efficiently and load pages faster. This will enhance your general effectiveness and optimise your business workflow.
It separates you from your competitors.
Consumers are placing more and more value on sustainability in the modern corporate environment. You may differentiate yourself from the competition and convince your clients that you care about the environment by adding sustainable techniques into your website design.
It benefits business.
Users are becoming more aware of environmental issues, which can help you grow your business by attracting new clients. This is due to the fact that sustainability is frequently viewed as a positive quality and can support the development of credibility and trust with your target audience.
Consumers’ perception regarding sustainability
According to a corporate social responsibility study conducted in the USA, it was noticed that:
63% want corporations to drive social and environmental change in the absence of government action.
87% of consumers will make a purchase because a company advocated for an issue they care about.
76% expect companies to take action against climate change.
73% would stop purchasing from a company that doesn’t care about climate change.
Summary
We have a long way to go before we can fully embrace sustainability at every level of the organisation and differentiate ourselves in the market. Sustainability needs to be practised with transparency at each vertical and needs to align with our vision and motto.
You are now in the lead. For our users and the Earth, let’s design something that is extremely “Green and Sustainable”.
In a world where everything is moving at a fast pace, a business owner has to wear many hats. From sales and marketing to product development and customer service, there never seem to be enough hours in the day. That’s why many businesses turn to third-party logistics (3PL) providers for help managing their supply chain.
What is Third-Party Logistics (3PL)?
In simple terms, 3PL is when a business outsources all or part of its logistics operations to a third-party provider. This can include everything from warehousing and transportation to order fulfillment and inventory management. By partnering with a 3PL provider, businesses can reduce their operational costs and focus on what they do best – growing their business.
Difference between 1PL vs 2PL vs 3PL vs 4PL
The world of logistics has recently introduced a new concept called Fifth-Party Logistics (5PL), which refers to the use of an external party to manage and coordinate the entire logistics network on behalf of the client. These providers act as consultants and offer end-to-end solutions for managing and optimizing their clients’ supply chains.
Role of 3PL in supply chain management
3PL plays a vital role in supply chain management by providing specialised services to improve the efficiency, flexibility and profitability of supply chain operations. Here are some key areas that illustrate how 3PL can assist in different stages and segments of the supply chain:
3PL’s Interaction with Technology
3PL providers leverage a combination of technology, systems, and devices to streamline their logistics operations, reduce costs, and enhance customer service. Some of the key tools and techniques used by 3PL providers are:
Design suggestions for 3PL
The 3PL (third-party logistics) industry is responsible for managing the movement of goods from one place to another on behalf of businesses. UX design can play a crucial role in improving the efficiency and effectiveness of 3PL operations through the following design suggestions for the 3PL industry:
Some Challenges and their Design Solutions for the 3PL Industry
1. Challenge :
Rising transportation costs
Fuel prices and other transportation costs are rising, which can increase the cost of logistics services.
Solution :
To develop a set of tools that would enable 3PL providers to optimize their transportation operations and reduce costs. To achieve this goal, we propose to design route optimization tools that can minimize fuel consumption, reduce travel time, and enhance vehicle utilization.
How can route optimization help third-party logistics providers?
Third-party logistics (3PL) companies handle thousands of orders on a daily basis, therefore manually tackling these orders can add to expenses and hamper deliveries. The best way to improve transport and logistics efficiency is through route optimization.
Route optimization helps fleet supervisors find the shortest, fastest, and most cost-effective routes for their vehicles, reducing costs, improving delivery times, and enhancing customer satisfaction.
Effective ways to reduce cost by designing and using route optimization solutions
Fleet drivers can reach the right customers at the right time by using AI-based route optimization software that helps in cutting down the logistics costs through the usage of a smart vehicle routing algorithm by
Minimizing the exposure to violation, traffic, and safety risks to decrease costly liabilities such as insurance expenses.
Optimizing routes to reduce the distance traveled, thereby lowering fuel costs.
Decreasing the time that vehicles spend on the road, resulting in lower maintenance costs and a reduction in overall operational costs.
Here’s how to implement the solution
1. By using a software to speed up deliveries
Manual delivery of 5k+ products will raise the operational cost of logistics while route optimization software automates and plans the route, hence reducing the cost-effectively. An efficiently designed route optimization software provides information on the Expected Time of Arrival (ETA) and immediate delivery status. The software automatically allocates, optimises and adjusts the ETA and routes in terms of delivery constraints like traffic and congestion.
2. Route optimization to organise activities of 3PL companies
The software is designed in a way that the dispatchers provide a clear input of tasks to get accurate results. This input will help drivers deliver the shipment and receive an invoice for it. Also, it can make a big difference in real time delivery of the right product and the right place.
3. By assisting when there is a shortage of delivery personnel
Delivery agents are an important part of the logistics industry as the human effort increases the overall cost of a logistic operation. Hence, route optimization is the best solution for 3PL companies in different ways:
Increases the number of completed deliveries and drops
Showcases planned routes and possible stops
Reduces the working hour of workers and offers enough breaks
4. By managing different types of delivery options
If you want to cover various delivery options, then you need an integrated and cohesive order fulfilment centre that can give you information about the current status of every product in the logistic. Route optimization helps your diverse delivery options in the following manners:
Improves end-to-end visibility of the entire shipping process
Real-time optimization and communication after placing the order
Enhances the experience of customer services
Provides options for affordable delivery options
2. Challenge :
Labour shortages
The logistics industry is facing a shortage of warehouse workers, which can lead to increased labour costs and difficulty in meeting customer demand.
Solution :
By leveraging cloud-based technology to create a platform that seamlessly integrates with major robotic fleets and software systems, 3PLs can significantly increase automation in manufacturing plants and distribution centers. This can ultimately alleviate the shortage of warehouse workers in the logistics industry.
Here’s how to implement the solution –
1. Consolidate warehouses to streamline fulfilment process and reduce costs
As e-commerce continues to grow, maintaining separate warehouses for retail and e-commerce orders can result in increased expenses and duplicated inventory. To address this challenge and reduce costs, 3PLs are integrating their warehouses and networks, gaining better inventory visibility, and streamlining their fulfilment processes to address staffing and retention challenges.
2. Implement automation technology to modernize manufacturing and distribution processes
To meet modern fulfilment demand, 3PLs must keep up with the latest technology and systems, especially when labour is scarce. Automation is essential to handle fluctuating e-commerce volumes, global staffing changes, and rising labour costs. By implementing automation technologies, fulfilment centres can satisfy rising consumer demands, modernize their processes and workforce, and enable workers to manage high-volume fluctuations with greater ease and precision.
3. Leverage cloud technology-based platforms and robotic fleets
The 3PL industry is facing a significant labour shortage, and robotic fleets and software systems can help reduce dependence on human labour. Robotic fleets can automate several processes, such as picking and packing, which are typically carried out by human workers. By automating these processes, 3PL companies can reduce their dependence on human labour, lower recruitment and retention costs, and modernize their operations.
3. Challenge :
Time consuming long packaging process
The logistics industry is facing issues of higher packaging time before dispatching orders for deliveries.
Solution :
Designing a unified platform that combines automation, standardisation, predictive analytics, multi-packing, and incentives all of which help in speeding up the packaging process and ensure that orders are processed quickly and efficiently.
Here’s how to implement the solution
1. Automate packaging systems & design interface
Implementing automated packaging systems with user-friendly interfaces is an effective way to reduce packaging time in logistics. These systems create custom packaging for each order, reducing manual labour and increasing efficiency. User-friendly interfaces simplify the packing process, reducing human error and the need for extensive training. Overall, this solution optimizes packing processes, reduces labour costs, and enhances productivity in the logistics industry.
2. Optimise the packing process by designing a suitable technology
Optimizing the packing process by creating standardized procedures and leveraging technology can also reduce packaging time in logistics. For instance, using mobile devices to scan products and generate shipping labels can speed up the process and reduce errors. Employing barcoding or RFID technology to track inventory can also help ensure accurate packing and reduce the time spent searching for products.
Ex: Amazon Supply Chain
Amazon’s supply chain basically refers to storage , warehousing of the products, costing , inventory management, delivery and returns, etc. Amazon has enhanced each of these elements to ensure a seamless supply chain. With third-party sellers being responsible for 55% of all sales made on Amazon, Amazon offers two fulfilment options to sellers – Fulfilled by Amazon (FBA) and Fulfilled by Merchant (FBM).
Strategies to speed up the packaging process by Amazon :
Automation: Amazon uses advance technologies such as robots and conveyor systems to automate the packaging process. These technologies help to minimise manual labour, reduce errors, and speed up the process.
Standardisation: Amazon has standardised its packaging process, with all products packed in a similar way using standardised materials. This helps to streamline the process and reduce the time required to pack each order.
Predictive analytics: Amazon uses predictive analytics to anticipate demand and adjust its inventory levels and packaging resources accordingly. This helps to ensure that the right packaging materials and resources are available at the right time.
Multi-packing: Amazon has developed a system of multi-packing, in which multiple orders are packaged together in a single box. This helps to reduce the amount of time and resources required to package each individual order.
Incentives: Amazon incentivizes its employees to work quickly and efficiently, offering bonuses and rewards for meeting packaging targets.
Manufacturing and logistics professionals face numerous challenges when interacting with digital systems for 3PL.
Harsh working environments, crowded conditions, and multitasking can negatively impact productivity, employee satisfaction, and customer experience. To address these challenges, companies can invest in design solutions that prioritize safety, efficiency, and comfort. By creating a well-designed workspace, companies can improve productivity, reduce costs, and enhance customer satisfaction.
E-commerce companies can collaborate with logistics partners to optimize the supply chain and reduce shipping times. By adopting digital technologies such as automation, robotics, machine learning, and data dashboards, companies can improve order fulfillment accuracy and speed, enhance customer experience, and build brand loyalty.
Our design perspective
Designing for the 3PL industry involves a user-centred design approach that leverages research, prototyping and testing to create solutions that address the specific challenges faced by 3PL providers. The goal is to create interfaces and tools that are easy to use, efficient and improves the overall logistics experience for 3PL providers and contribute to a more sustainable future.
Gen Z has grown up with technology, the internet, and social media, thus they are commonly stereotyped as tech addicts, anti-social, or social justice warriors.
Introduction
This generation in their 20s feels they’re too old and have not achieved enough. The hustle culture comes from the pressure to achieve success quickly in this fast-paced nature of the digital age. One of the reasons is that, with several devices, this generation is accustomed to multitasking and rapidly switching between activities. Furthermore, Gen Z grew up with access to any information they require. Because of this ease of availability, Gen Z has developed shorter attention spans.
Hedonistic life has become a way to catch up for the lost times
The pandemic denied them access to important milestones of their lives. This altered state, post covid and the opportunity to reflect on their mortality during lockdown is expected to unlock a more hedonistic and carefree way of life.
Our take on Designing for Gen Z
Gen Z is known for its individualism and they expect designs to cater to its need for uniqueness and individuality. As a result, the designs that appealed to the Millennials are now outdated. Gen Z has different expectations from digital product experiences. And since they are currently the target market for brands, it is crucial to develop brand messages, visuals, and online experiences that engage them and cater to their needs.
Here we have discussed how designers can stay ahead of the competition while designing for Gen Z.
What Gen Z is seeking from brands
Inclusivity
Gen Z is more accepting of people irrespective of their gender, race, or color. This is one of the factors brands are using to lure Gen Z and Millennials. Younger consumers expect brands to stand for something, not just sell products. In fact, 69% of Gen Z say they are more likely to buy from a company that supports social causes.
Personalization
91% of consumers are more likely to shop with brands that provide relevant offers and recommendations. As personalization becomes a non-negotiable for Gen Z, brands are increasingly reimagining activities that were typically done in a physical space, such as digital experiences.
Instant Gratification
Generation Z prefers video and image-sharing apps, online messengers, and social networking services mainly for likes, comments, shares, and followers which encourages them to create more content to receive social validation.
Value for Digital Identity
Users of Gen Z are eager to share information in exchange for a more personalized experience. For instance, if it results in a better experience by seamlessly connecting to their friends and interests, users will have no trouble logging in to a new app using their Instagram or Twitter credentials.
What is Gen Z’s buying behavior like
They lean more toward sustainable shopping
The concern that Generation Z has for the environment and the future presents a tremendous potential for sustainable corporate growth.
“Did you know? 73% of Genz consumers are willing to pay 10% more for sustainable products.”
Social Commerce Growth
Social commerce is expected to account for 4.3% of all retail e-commerce sales in the US in 2021. Social commerce is an e-commerce trend that is here to stay, and it will be very powerful in the future.
Influencers have a great influence
Compared to older age groups, Genz shoppers are less likely to trust companies. Instead, they choose to follow influencers on Instagram and YouTube, who have a high following and reach and decide if the product is worth buying or not.
Mobile Payments
Gen Z embraces mobile payments like mobile apps and mobile wallets. Over the past years, mobile apps have been increasing in popularity, and have given great results.
Gen Z consumer characteristics
Educated Consumers
They frequently conduct research and analyze choices before making a purchase decision since they tend to be “educated/informed consumers.”
Compare Prices
They frequently have far less loyalty to particular companies and instead seek to compare prices to get the best deals.
Company Ethics
They prioritize company ethics and brand integrity even more than Millennials do.
Shop via Social Media
Out of all the generations, they’re the most likely to shop via social media as they are open to exploration.
Seek High-Quality Products
Gen Z consumers have high standards for both customer service and product quality.
How brands are creating a habit-forming loop
Fomo
TikTok uses FOMO to keep users engaged & provides a steady stream of new and trending content that they might not want to miss out on
Engaging Rewards
Rewards in this case are the number of likes/comments one receives. The users mostly go back to the app to check to see how it’s performing & end up scrolling for hours.
Intuitive UI
The interface is easy to use. Simple features like a scrollable feed, easy to edit videos tool – Encourage users to experiment and create videos themselves.
Social Validation
Features such as likes, comments, shares, and followers encourage users to create more content to receive social validation.
Personalization
Based on a user’s profile, browsing history on the app, etc, the app’s algorithm curates content through machine learning to personalize the feed which helps increase engagement.
Let’s understand how TikTok, an app which is designed and developed, especially for Gen Z & is using this habit-forming loop to cater to their needs –
The app is highly engaging and interactive.
Ease of use – all they have to do to get new content is SCROLL.
Accounting for shorter attention span – Short, catchy videos.
More user control – Creating and sharing is easy and gives users control – making it hard for the users to pull themselves away from the app.
Personalization – Use of algorithms to PERSONALISE content.
The use of rewards – likes, comments, increase in the number of followers (instant gratification) makes the app more addictive.
The Road Ahead
Gen Z consumers will hold the largest share of the consumer market within the next few years. Given how different this generation is from the Millenials, we, at The Minimalist, believe that in order to keep Gen Z engaged, we need to be more inventive, explorative, and creative with our designs.
For organizations to stay ahead of the competition, having a creative and out-of-the-box solutions approach will certainly appeal to Gen Z.
