5 Order Fulfillment Metrics You Should Be Tracking
Customer satisfaction is one of the gauges to measure a business’s success. Customer satisfaction takes on a whole different meaning for online and eCommerce businesses. Since the order fulfillment process defines its success, it needs to be highly efficient and smooth running to ensure maximum customer satisfaction. However, certain features make a fulfillment company ideal for your business; https://redstagfulfillment.com/order-fulfillment/ offers a total-value solution to simplify domestic and international shipping and improve the customer value chain. Following are some metrics that you should always look for in an order fulfillment company.
5 Order Fulfillment Metrics
1. Delivery Times
According to some surveys, nearly 70% of customers will not buy from your business if you fail to deliver their order on time. Therefore, on-time deliveries are key metrics to look for in a fulfillment company. Use a simple formula to determine the on-time delivery percentage of a company. For example, if the company processed 100 orders in a week but only shipped 20 orders on time, their on-time shipping percentage stands at 20%. This reading is not good and doesn’t look good for a fulfillment company or your business.
2. Order Accuracy
According to recent studies, 23% of customers return the product either due to late delivery, faulty or damaged product, bad packaging, and other such factors. Order fulfillment companies are experts at avoiding such mistakes, but they can occur nonetheless. Ideally, a good fulfillment company will have a 100% order accuracy rate; therefore, always look at this metric when choosing such a service. Accurate order delivery is directly responsible for client satisfaction and compels them to come back with another order.
3. Return Rate
Returns are inevitable in all online and eCommerce businesses. Nearly 30% of customers return the products they buy online. Several factors can be responsible for returns, but how a fulfillment company deals with such issues determines its success. A fulfillment company with a higher return rate is not ideal for your business, especially if the shipping is free. You will get an accurate return rate percentage by dividing return orders by fulfilled orders. However, a company’s response is also a key aspect to consider. Selecting such a company is vital if the returning order is processed and shipped back to the customers without any delays.
4. Order Tracking
This is a vital metric to look for in any fulfillment company. Your order-fulfilling company should allow you and the customer to track the orders in real-time. Apart from living tracking options, constant updates via emails and messages are also something you need to consider when selecting such a service.
5. Order Cycle Time
Order cycle time is simply the time between order placement and its delivery. Always look for this metric because it determines how quickly your order is processed and shipped to the customer. Customers want same-day deliveries, and fulfilling companies should manage their operations accordingly to meet their expectations.
A fulfilling company has the potential to expand your business overnight. Therefore, always look for the above metrics to select the best one that suits your business and its customers.
