Omnichannel
Poor inventory visibility puts customer trust in jeopardy
November 10, 2023
Retailers are struggling to maintain trust with customers due to the persistent sales cancellation caused by poor inventory visibility.
That's because while customer trust used to be all about payment security it's now about how a brand communicates on product description, pricing and availability.
That's a prime finding of a "Global State of the Industry" survey from Fluent Commerce.
For customers the prime connection to trusting a brand is the ability to now if products are available when they buy online and when the product will arrive, according to a press release on the findings.
According to the survey, 38.6% of retailers cancel at least 1 of 10 orders, disappointing 10% of their customers on a regular basis. Only 6% of retailers and brands have a canceled order rate of less than 1%. Seventy-two percent of retailers and direct to consumer brands want to reduce cancellations but are challenged by inaccurate inventory data.
"Neither retailers nor customers find it acceptable to cancel orders," Nicola Kinsella, SVP of global marketing at Fluent Commerce, said in the release. "However, without a clear view of inventory across all sales channels, it's hard to know what is truly available. Retailers are sometimes themselves surprised and are forced to do the unthinkable. To close the gap between demand and revenue, retailers and brands need accurate, unified views of inventory data."
According to the survey, 58% of retailers and direct to consumer brands have less than 80% inventory accuracy. Most retailers are challenged by outdated data from POS and ERP systems, legacy system integration issues, or siloed inventory views.
"When it comes to improving conversion rates and revenue, it's critical to set and maintain clear expectations," Kinsella said in the release. "No one wants to click on an ad only to find that item is out of stock. Or even more frustrating, go through the process of completing the purchase only to have their order cancelled later. That's why retailers must maintain accurate inventory data to cultivate trust and an ongoing positive relationship with customers."
