As a business, you need to understand that the cost of cancelling an order is much higher than just the order cost itself! When a user is choosing a business to order from, they are trusting your business after evaluating your menu, reading your business reviews/ratings.
But, when you cancel that order it raises questions about your seriousness and trustworthiness. Here is how!
Your online application is no different from your physical store – when a customer walks into your store, they see the products available and ask your shop representative for assistance. Similarly, your online product catalogue is what online shoppers see and the app is your virtual Shop assistant. When shoppers log into your online store, they assume that everything displayed on the menu/catalogue is available. a
But, on occasions when their orders are cancelled or edited, the following are the 5 major repercussions that affect your business growth
Shoppers feel that the Business is not serious about online selling
The business can’t be trusted
The business is rude (Cancellation of orders by service providers are often considered as rude customer service)
Chances of repeat order reduce drastically
Attracts negative reviews and ratings
As a result, the chances of generating more orders from that customer become less, and to top it up it breaks the chain of organic growth. Not only do Shoppers stop recommending your business to other users they discourage users to order from your business. Attracting negative reviews and rating is another outcome of cancelled or edited orders.
How to avoid Order Editing & cancellations
Make sure your product catalogue and prices are up to date
Spend 10 mins everyday morning to review your product catalogue
Make the items Unavailable when items are out of stock
Make items available when items are back in stock
Remember to mark the item as unavailable in real-time if the stock gets over, it just takes 5 sec of your time!
Provide a proper description of Items if they are for pre-order
If cancellation/editing is unavoidable discuss with your customer and service provider before cancelling to come up with a mutually agreed solution that doesn't offend anyone.
Make sure you are cancelling orders within 5 mins so that your customer gets time to make alternative arrangements.
Reach out to support executive for assistance in customer coordination
Xirify doesn’t penalize a business for cancelled or edited orders and understands that there can be various reasons for cancellation, such as the item being sold out, too much rush in-store, out of ingredients, less staff, etc. However, as a platform with a vision to empower neighborhood business, we must explain the serious implications of Cancelled, Edited, or Wrong orders that directly affects business growth.
According to analysis the major reason for order cancellation is item out-of-stock, catalogue old/stale and not updated for a while, business is closed at the moment.
This week the Xirify team studied its order data and trend to examine the effects of these undesirable sales situations on the financial performance of an online retailer on the Xirify platform. A total of 1500 transactions made by 250 shoppers involving 112 businesses are used to come up with the following statistics.
90% of consumers are unlikely to order from a business where there was a cancellation, edit, or wrong items delivered in the first 3 orders.
65% of customers will write a negative review about your business and rate between 1 to 2 stars if wrong or incomplete items are sent, even if the business process a full refund.
40% of loyal customers move to different businesses if the order cancellation ratio is more than 3%
If 2 orders are consecutively cancelled it requires 300% more effort and customer retention cost to retain that customer.
Customers are 80% more likely to become long-term loyal customers by placing repeat orders periodically
Customers are more likely to bring in 2 new customers every month
Your business has 60% more chance to increase order count by 10x in 2 months
Few businesses on Xirify platform has see up to 3000% mom growth in the first 3 months if businesses share business catalogue regularly with customers and service orders with >98% accuracy
The customer base of business of Xirify Top rated business has increased 5x in 3 months if order cancellation/edit/wrong order ratio is less than 2%
Hope you found this information helpful. If you have any questions or suggestion please contact Xirify Support at +91 800 700 2856 or email us on email@example.com