Why Smart Lockers Are More Efficient Than Manual Package Management

Package Problems Aren’t Going Away

In the era of e-commerce, online shopping has become a staple of everyday life. The convenience of purchasing goods with a few clicks and having them delivered to your doorstep is unmatched. However, for multifamily property managers, this surge in e-commerce brings a daunting challenge: package management.

According to industry projections, parcel shipping volumes are expected to reach 200 billion by 2025.¹ It should come as no surprise, then, that a recent National Business Research Institute (NBRI) study found that 90% of apartment residents receive at least one package delivery per week, with some receiving as many as seven to ten per week. To meet consumer demand for secure, on-demand package management, communities must offer appropriate amenities. By investing in smart lockers, property managers can not only address package management challenges but also enhance the appeal of their communities, making them more attractive to potential residents.

Your Largest Resident Demographic is Driving the Package Boom

Millennials have overtaken baby boomers as the largest generational group in the US, boasting over 70 million people with a spending power of $2.5 trillion.² Despite being in their prime home-buying years, preliminary data from 2022 reveals that one in four millennials view themselves as “always renters.”

Millennials’ preference for connectivity and convenience is reflected in their shopping and amenity preferences. During the pandemic, 56% of millennials shifted from in-store to online shopping, and by 2022, four in five were primarily shopping online.³ The average consumer now places four to five online orders monthly, resulting in daily deliveries to multifamily communities.⁴ It’s no wonder this demographic seeks amenity-rich communities that offer flexibility and convenience.

Multifamily property owners and managers must adapt to serve this tech-savvy, online shopping cohort. By embracing the preferences of younger residents, including millennials and Gen Zers, property managers can stay ahead of the curve and ensure the long-term success of their communities.

Manual Package Management: A Lose-Lose for Your Community

Manual package management processes are inefficient and inconvenient for everyone involved:

• Time-Consuming for Property Staff: Manually processing packages requires significant staff time and effort, detracting from more critical responsibilities that ensure smooth community operations. Brickell on the River, a luxury condominium community stretching over two towers in Miami, reduced its headcount after installing Parcel Pending by Quadient smart lockers to support its package management.
• Increased Error Rates: Manual logging and distribution increase the likelihood of errors, such as misplaced or lost packages. Human error is inevitable, but when it comes to residents’ valuable deliveries, mistakes can severely damage the trust and satisfaction levels within a community.
• Limited Access: Residents relying on manual package management systems may face restricted access to their deliveries, particularly outside of office hours. This limitation also means that residents may have to wait until property staff are available, causing inconvenience and potential security risks if packages are left unattended.
• Frustration and Inconvenience: Manual processes often result in longer wait times and increased frustration for residents, negatively impacting their overall living experience. Frustrated residents are less likely to renew leases and more likely to spread negative feedback about the property through word-of-mouth.

How Smart Lockers Deliver More

The value that residents place on secure, on-demand package management solutions — particularly lockers — cannot be understated. According to a recent National Apartment Association announcement, residents now rank “secure package receiving options” as their most important amenity.⁵ And, after ranking third in a 2022 NBRI study of apartment residents, parcel lockers jumped in 2023 to the second most important amenity — just after secure parking.

Advantages of Smart Lockers

• More Time for What Matters: Property management teams no longer need to support package management or resident package pickup, freeing up valuable time for other important leasing activities.
• More Staff Efficiency: Instead of manually logging and distributing packages, carriers quickly place deliveries in the lockers, generating automated notifications for residents. For example, Optima Camelview, an upscale 700-unit resident-owned condominium community in Scottsdale, Arizona, had a concierge team spending nearly nine hours daily on manual package management. After implementing a Parcel Pending by Quadient smart locker solution with a package room for oversized items, they saw a 66% reduction in staff time spent on parcel management.
• More Security and Convenience: Residents no longer need to rush home or adjust their schedules to ensure their parcels aren’t left unattended. Instead, they can retrieve their packages conveniently, 24/7. This level of convenience is not just a luxury, it’s becoming a baseline expectation.
• More Resident Satisfaction: Smart lockers contribute to higher resident satisfaction by providing a seamless and secure package retrieval experience. When residents feel their needs are being met efficiently, their overall perception of the property improves, leading to positive reviews and referrals.
• More Lease Renewals: The correlation between resident satisfaction and their decision to renew is well-established, and the convenience and security offered by parcel lockers significantly boosts this satisfaction. Some communities have seen renewal rates surge by as much as 40% after installing parcel lockers, making them a wise investment in the future of your property.
• More Scalability: Smart locker systems can be scaled to accommodate varying package volumes, making them suitable for properties of all sizes. As package delivery volumes increase, additional lockers can be added to meet demand.

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Smart lockers offer a modern, efficient, and secure solution to the challenges posed by manual package management. For community managers, adopting smart lockers streamlines operations and significantly enhances resident satisfaction and retention.

Ready to lock in your property’s package management solution? Contact a Parcel Pending representative today.

Sources:

1. Von Szczepanski, K., Wagener, C., Mooney, T., et al. Only an Ecosystem Can Solve Last-Mile Gridlock in Package Delivery. www.bcg.com. June 24, 2021. https://www.bcg.com/publications/2021/solving-the-package-delivery-system-problems-with-a-new-ecosystem
2. CouponFollow. CouponFollow Millennial Shopping Habits Report Finds 73% Changed Shopping Habits Due to Pandemic. www.businesswire.com. September 15, 2022. https://www.businesswire.com/news/home/20220912005909/en/CouponFollow-Millennial-Shopping-Habits-Report-Finds-73-Changed-Shopping-Habits-Due-to-Pandemic
3. Ibid.
4. NMHC/Grace Hill. 2022 Renter Preferences Survey Report. www.nmhc.org. January 18, 2022. https://www.nmhc.org/residents
5. National Apartment Association. 5 Key Consumer Preferences of Renters. www.naahq.org. April 26, 2023. https://www.naahq.org/5-key-consumer-preferences-renters