Small and medium enterprises (SMEs) have long been the driving force behind economic growth, especially in the Asia-Pacific (APAC) region, where they dominate the business landscape. Yet their strength in number is not the only thing they need to thrive. 

Complexities often loom over SME operations, hindering further growth. For one, the business-to-business (B2B) and business-to-business-to-consumer (B2B2C) markets can be an elaborate web difficult to traverse.

FedEx, a transportation, e-commerce, and business services provider, has made it its mission to empower SMEs through its operations. 

In MARKETECH APAC’s latest What’s NEXT in Marketing interview, Salil Chari, FedEx’s senior vice president of marketing and customer experience in Asia Pacific, details how the company is transforming its trade and SMEs alongside it.

Supercharging the ‘backbone of economic growth’

As an advocate of the small business community, FedEx recognises how it is the backbone of economic growth in APAC, making it a priority in its mission.

“With SMEs accounting for 90% of businesses, 50% of employment, and 40% of national GDP in emerging economies, supporting their growth is not just a focus for us—it’s a priority,” Salil said.

To support the sector, FedEx leads the transformation within its network to power global trade with a data-driven approach while leveraging technology. It aims to make its network efficient, streamlining its shipping process and allowing real-time tracking. FedEx also allows for flexibility in deliveries, adapting to changing demands. Additionally, it leverages advanced and data-driven insights into its platform, ‘FedEx Surround® and SenseAware ID, which ensures transparency for businesses on their shipments.

“By optimising operations and creating a resilient infrastructure, we’re reshaping how

we work to deliver exceptional customer experiences. Our vision is clear: to make supply chains smarter for everyone,” Salil said.

Beyond logistics, FedEx has also tapped into funding with its FedEx Small Business Grant Program, which is tailored for innovative entrepreneurs who want to grow their businesses.

“Additionally, resources like the FedEx Small Business Center and FedEx Business Insights provide expert guidance with practical tips, and insights to SMEs looking to navigate market complexities, and business challenges,” Salil said.

Navigating B2B, B2BC markets

SMEs seeking expansion would find significant opportunities in tapping global B2B and B2B2C markets, Salil said.

“With B2B commerce projected to surpass $20.9 trillion by 2027 and global trade growing at 4% annually, SMEs are well-positioned to leverage these trends. FedEx supports them with the tools, expertise, and technology to navigate global markets confidently,” he explained.

Expanding beyond local borders is undoubtedly complex, as SMEs must consider custom regulations, logistics, and costs. However, Salil shares how FedEx can simplify these concerns.

“In B2B markets, where high-volume shipments and reliability are critical, FedEx ensures timely, efficient deliveries through its global network spanning over 220 countries and territories,” Salil said.

“Whereas in B2B2C markets, speed and flexibility are key to meeting customer expectations. FedEx® International Connect Plus (FICP) offers cost-effective shipping between APAC, the U.S., and Europe within one to three business days, helping SMEs compete in a fast-paced e-commerce environment,” he added.

FedEx also enhances its customers’ experiences by allowing them to personalise and customise delivery times and locations depending on their needs.

“Consumers can manage their deliveries directly through platforms like WhatsApp or WeChat, offering flexibility and ease. By combining a robust global network, advanced logistics solutions, and personalised delivery options, FedEx enables SMEs to build trust, strengthen relationships, and succeed in today’s competitive global marketplace,” Salil said.

Strengthening digital-first strategy

At the centre of FedEx’s strategy to streamline and optimise its operations to empower SMEs is digital transformation. Salil shares how SMEs, particularly in Asia, are investing more in technologies that improve their performance through digital solutions.

“Digital transformation can be a game changer for small businesses. While startups are often tech-savvy, smaller firms sometimes face challenges in navigating the complexity and cost of tech investments. However, technology is a great enabler, offering these businesses the tools to generate value quickly,” Salil said.

“We’re evolving into a digitally led company, leveraging the value of data alongside our extensive physical network. This dual focus allows us to help SMEs transform their operations by offering digital tools and platforms that are easy to integrate into their existing systems,” he added.

Salil also shared how FedEx was able to deliver real-time intelligence to its customers through investments in artificial intelligence and machine learning. These tools also help businesses across all phases of their operations.

“Digital transformation doesn’t have to be complex. By collaborating with logistics experts like FedEx, SMEs can access expertise and digital solutions to simplify their operations, enhance performance, and unlock growth opportunities in international markets. It’s about helping businesses build a bridge between the physical and digital, driving sustainable success and enabling them to thrive in an increasingly competitive landscape,” Salil said.

Through its commitment to empowering SMEs, FedEx has not only optimised its network but extended its impact to the businesses it works with. While FedEx strengthens its logistics, SMEs are also able to tap into digital strategies, unlocking opportunities for further growth.

Data-driven strategies have become a requirement for businesses across sectors to engage customers. For companies operating across markets in the Asia-Pacific (APAC) region, the challenge heightens. To meet the customers’ needs for personalisation and seamless interaction, traditional methods may be insufficient.

FedEx, a transportation, e-commerce, and business services provider, has found its traditional customer segmentation based on last shipment data ineffective to personalise experiences for its customers, lacking nuances in the approach.

Although its ‘Always On’ campaigns have long been rolling out monthly in APAC to address all customer lifecycle (CLC) stages, the company sees the need to boost its strategy to continue engaging its customers.

This case study digs deeper into FedEx’s strategy to engage its customers from initial acquisition to long-term retention and reactivation through tailored campaigns.

The Challenge

Prior to having CLC models, companies like FedEx may rely on last shipment data for customer engagement. However, this has proven ineffective due to the lack of granularity in segmenting customers. FedEx needs extensive data sources to gain various dimensions that affect customer engagement, navigating the challenge of personalisation for different audiences in the vast market.

Additionally, FedEx found limitations in its initial set of CLC campaigns in 2021 with its previous email platform provider, which were static with fixed email sequences triggered by events. These campaigns also took significant time and effort from the email team when setting them up quarterly.

The Objectives

With the aim of addressing the CLC stages, FedEx’s objectives cover the entire cycle with the ‘Always On’ campaign’s nurture, grow or retain, and reactivation phases. Specifically, the company aims to acquire new customers, grow its active customers’ ‘share-of-wallet’, and win back its lapsed customers and revenue.

The Solution

With its need for scalability, automation, and personalisation, FedEx collaborated with Salesforce professional services to develop multiple CLC campaigns targeting various segments. Each customer segment, including prospects, new joiners, active and dormant customers received tailored email journeys. Through different campaigns, FedEx’s objectives of converting leads, engaging new customers, and reactivating lapsed ones were addressed. The campaigns also used English and local languages to cater to 14 APAC markets and ensure cultural relevance.

Additionally, it also allowed the FedEx team to build and manage campaigns in-house, upskilling its marketing operations team for future campaign automation. The team conducted internal testing, developed reusable templates, and automated the customer registration process.

To further reduce its reliance on external support, FedEx worked on building, testing, and deploying its emails for customers using an Excel template. A self-service platform, also created by the marketing operations team, turns the file into an email and sends it to customers once campaign owners are satisfied with it.

Furthermore, they created a self-service platform that enables non-technical campaign owners to build and deploy emails using Excel, eliminating the need for complex technical skills and Salesforce expertise. This solution has been implemented in various APAC markets, leading to campaign efficiency.

The Results

Through the new strategy, FedEx’s campaigns across the CLC stages led to a growing customer base and revenue. It also significantly saved the company’s hours by 60% to 80%, with the automated campaign needing only a one-time set-up, ready to be sent to different customer groups. The strategy also allowed for scalability and flexibility, leading to improved customer engagement.

Hong Kong – PluginHive, the e-commerce shipping solutions company based in India, has partnered with carrier service provider Hong Kong Post, to boost e-commerce merchants in Hong Kong. This move comes after its recently signed agreement with FedEx, to launch a new campaign across the APAC and MEA regions.

The recent partnerships aim to provide e-commerce merchants with automated shipping solutions for free when using e-commerce platforms Shopify, WooCommerce, and BigCommerce. It also comes with added benefits for the Hong Kong-based small e-commerce merchants, as the partnership offers up to a 75% discount on the shipping cost on successful signup with FedEx.

Ahammed Mirdas, PluginHive’s CEO and founder, believes that Hong Kong is a budding market for e-commerce in 2021, and this integration is aimed to boost the small and medium e-commerce business across the country by bringing together reliable shipping services from Hong Kong Post, with the reach and quality of service that FedEx provides in more than 220 countries across the globe. 

“PluginHive is excited to be the catalyst in driving this partnership and believes e-commerce merchants will take advantage of it in the upcoming weeks,” said Mirdas.

In addition, PluginHive has ensured a streamlined carrier account sign-up process that involves a single click account registration and a smooth merchant onboarding, with the help of dedicated shipping experts that will be available 24/7 via multiple channels.