KPI Framework to Measure Omnichannel Performance
Whether you’re in the process of implementing a new omnichannel order management system, or you’ve been relying on one for a while now, it’s important to keep a pulse on your omnichannel performance.
But that can be tricky to do if you don’t know which key performance indicators (KPIs) to track. After all, there are a lot of metrics you can use to check in on your order management, fulfillment, and sales — and each one offers a different perspective and level of specificity.
There are a few KPIs you can use to get a clear picture of your omnichannel solution’s ROI, though. Let’s dig into 3 of them here.
No matter the reason you decided to integrate an omnichannel OMS into your operations, your underlying goal is to keep customers happy. So naturally, it’s important to know if you’re actually accomplishing that goal or not.
Tracking customer satisfaction is easier than you think. A couple of ways you can do it is by sending out customer surveys or measuring your Net Promoter Score — as both can show you exactly how your customers feel about your business. And since happy customers are more likely to stick around, spend more money, and advocate for your business, knowing this is crucial to your overall success.
Now, obviously there are a lot of factors outside of your supply chain that can play into your customers’ overall level of satisfaction, so this can’t be the only (or even the primary) metric you use to measure the performance of your omnichannel solution. But, it is a great foundational piece to start with.
Order Cycle Time
One purpose of an omnichannel OMS is to help you decrease the time between a customer placing an order and receiving their desired product. Thus, knowing the average speed of your order cycle is valuable, as it helps you identify areas where you can streamline your fulfillment process and pinpoint ways to improve your inventory management further.
At the same time, since 69% of people are less likely to purchase another product from your business if their order isn’t delivered within 2 days of the promised delivery date, you need to keep tabs on the length of your order cycle to make sure you stay in your customers’ good graces.
To get a little more perspective on your order fulfillment performance, you can also track your backorder rate. This will show you exactly how many times your customers were faced with the dreaded “out of stock” label when trying to buy a product or received an apologetic email telling them their order would be arriving later than expected.
If your backorder rate is high, it may shed some light on your customer satisfaction rate, as backorders can play a key role in your customers’ overall opinion of your company, and by extension, the way their friends and family perceive your company.
From a logistics perspective, your backorder rate can also point you to potential inventory management issues — like where products are stocked, how much of each product is stocked at a time, and more importantly, how you can use your omnichannel OMS to enhance these logistics.
The fact is, there are dozens of KPIs you can track and measure to see how your omnichannel order management system is performing — and the 3 we mentioned here are only just scratching the surface. However, by checking in on your customer satisfaction rate, your order cycle time, and your backorder rate, you’ll have a solid foundation in place for reviewing and monitoring more specific KPIs for your omnichannel OMS.