Shipping perfect orders is a crucial goal for manufacturing and distribution leaders. In fact, delivering perfect orders is considered the second-most important objective in this industry. However, achieving this goal isn't without its challenges.
Every year, companies lose a significant portion of their business to competitors due to customer dissatisfaction caused by delays and errors in order fulfillment. The primary cause of customer churn is the failure to deliver a perfect order – one that's on time and in full.
The Cost of Imperfect Orders
Shipping perfect orders is not just a matter of customer satisfaction; it has a direct impact on your bottom line. In fact, failure to deliver a perfect order is the number one cause of customer churn. Every year, companies lose a significant portion of their business to competitors due to delays and errors in order fulfillment.
According to a study by the Indian Rivers Consulting Group, companies lose 10% of their business to competitors over customer experience. This means that if you're not shipping perfect orders, you're not only losing customers, but you're also losing revenue and market share.
The cost of shipping imperfect orders goes beyond the immediate loss of a customer. It includes the total cost per order error, which can be substantial. On average, the direct cost of an order error is $5,000. However, when you factor in the costs of making good on the error and the subsequent customer churn, the total cost per order error can balloon to $17,800 or even higher.
But it's not just the financial and reputational cost that you should be concerned about.
Learn more by reading our new infographic below that includes data from our recent survey report.
How to Retain More Customers by Shipping More Perfect Orders (Infographic)
*Click image to view or download the full-size version
