In our last blog post, we spoke about what an Order Management process is, what the different steps in the process are and which KPIs to track.
In this post, we want to show you the kind of benefits you can get from improving your process. We have identified 8 benefits to showcase why improving Order Management should be high on your priority list.
Increased customer satisfaction
Customers are especially demanding in the internet age. You should be doing all you can to try and improve the customer's experience with your service.
Having a rock-solid Order Management process can help you deliver orders faster and more accurately, while also enabling personalization. If you take your Order Management process seriously, your customers will be writing rave reviews.
There are two main ways to increase revenue. Here is how your Order Management process can help you boost revenue from both.
1. Get more people to buy from you
Transparency is a huge lever in getting more website visitors to convert into paying customers. Statista estimates that 56% of shoppers abandon their carts due to unexpected costs.
A great Order Management process will enable you to show customers up-to-date inventory and shipping cost information, preventing potential customers from abandoning their purchase at the last step.
Investing in your backend processes doesn't sound too bad now does it?
2. Retain current customers and sell more to them
By investing in your Order Management process and boosting customer satisfaction, you will be investing in future orders and valuable client relationships.
Increased revenue is great, but controlling expenses is often a better way to increase your profits.
Poor inventory management cost companies a whopping $300 billion. in lost revenues in 2018. Your Order Management process can help you effectively manage your inventory and keep associated costs down.
Inventory reports from your Order Management system can help you identify which stock to order more of and which to discount. Those same reports can help you forecast which products you will need and when, so you can effectively budget and plan.
Improved employee experience
We can tell you from experience, there is nothing worse than a company that refuses to update its systems. Don't let that be you.
It's more than just inconvenience — outdated technology and processes cost US companies $13,202 per employee in 2016. That adds up to $1.8 trillion of collective losses annually. This can be for any manner of reasons: the system moves at a snail's pace, creates errors, or was designed for another task entirely.
Make sure your systems are up to date to boost your employee's experience and reduce wasted man-hours.
How can you keep up with seemingly ever-shorter delivery windows? Automation.
Your Order Management process will ensure all ordered items are in-stock and available for delivery. It can then process the payment, create a picklist for your warehouse, and arrange for cost-effective shipping. All without you touching anything.
One of the main drivers behind poor customer satisfaction, high costs, and lower long-term revenue is human error. Human error leads to a lot of avoidable mistakes.
By investing to update your Order Management process, you can automate a lot of manual tasks. This will not only save you money by reducing errors but also free up your and your employee's time to focus on new customer acquisition to increase sales.
ECommerce is growing at break-neck speed and your processes need to be able to keep up with the growing demand. When you are a small operation, doing things manually helps you to optimize your business and understand your customers.
Once you grow past a certain point, manual work will hold you back. Before your manual processes start costing you customers and revenue, it is time to invest in an upgrade to your Order Management process so you can automate tasks and scale efficiently.
Your eCommerce website is probably just one of the channels through which you generate sales. If you want to effectively compete in the internet age, you will need to be engaging your target customers through multiple channels.
Keeping up with orders from a variety of places can be complicated. You need an Order Management system that can help you to integrate all these channels, so you can manage all orders consistently, efficiently, and accurately.
It's time to act
The benefits listed here are by no means exhaustive and depending on your company size and sophistication, some will be more relevant than others.
We hope that by reading this you have realized how important Order Management is to your future success and the role that technology and automation can play.