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Order accuracy is a percentage of all orders that have been fulfilled accurately and have reached their destination without any error. An error here means that there is an incorrect item or incorrect quantity.
Order accuracy is an important metric to track as it significantly impacts customer satisfaction. Delivery of the wrong order not only adversely affects the unboxing experience of the order but is also very costly and time-consuming because you have to take extra effort and time to recreate it properly.
What is Order Accuracy Rate?
The order accuracy rate is a critical metric that is continuously monitored, and many efforts are made to improve it. To calculate this, you need to find accurate orders that you have placed, divide them by the total number of orders, and multiply them by the hundred.
Order Accuracy Rate = ( Total orders fulfilled accurately )/( Total orders fulfilled )*100
Let's understand it quickly with an example. Let's suppose you have dispatched a total of 50 orders, out of which five charges have been mistaken. So you have successfully fulfilled 45 orders, so accordingly, the order accuracy rate is 90%. Now let's see it from mathematical calculation:-
Order Accuracy Rate = 45/50*100 = 90%
Order Accuracy Rate = 90%
Order Accuracy Definition
There are many moving parts and human intervention in retail fulfillment. Reaching a 100% accuracy rate is not always realistic, but your pace should be close to 100%.
Many direct-to-consumer brands have an accuracy rate of 96–98%. If your business falls in this range, then improving your accuracy rate can help you stand out in the competition.
If your business achieves 90% or below, you are left behind in the competitive race, and you should improve your accuracy rate soon so that customers can repurchase your product.
If you do not improve your accuracy rate, it proves to be a significant disadvantage for your business because customers will not be interested in repurchasing your product.
Importance of Order Accuracy
Your first impression with a new customer determines how likely those customers are to like your product and how much they will repurchase it. The order accuracy rate depends on how long the customer can walk with you. It has the same effect on eCommerce fulfillment as bricks and toy shops.
Suppose you go to a restaurant to eat food and the waiter is very slow and gives you the wrong order. Or would you like to go back to that restaurant to eat if the chef burns your food? How will it be if you go to a jewelry shop and want to buy mangoes from there? What will happen if an online store does not deliver your order in the proper condition or, if not on Diwali, deliver it to your home after 5 to 6 days?
All these scenarios represent the same situation and outcome: Failure of accuracy and customer not showing interest in buying that product again. Maintaining accuracy with regular and old customers and new customers is very important.
Conclusion
In order to keep your customers happy and coming back for more, it’s important to ensure that your orders are accurate. This means taking the necessary steps to check and double-check each order before it ships. If you need help with fulfillment, our team at Simpl is here to assist you. We have years of experience ensuring accuracy in every order we send out, so contact us today and let us help you take your business to the next level.
Recommended: 3 Ways to Improve Order Accuracy
