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Backorder Issues: The High Cost of Reduced Inventory

Heart of the Customer maps customer journeys for a wide range of B2B organizations, from healthcare to manufacturing to distribution and more. We’ve found one area of friction common across industries: backorder issues.

Whether mom and pop retail storefronts or global manufacturers, customers with products on backorder face similar situations. Here’s how it generally plays out:

  • They take an order from their customer and promise a delivery. Then they find out that the product is on backorder. That puts them in an difficult position. Do they scramble to find a new supplier? Look for an alternate product? Disappoint their customer?

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How Hard is it to Be Your Customer Book Cover

Develop a Killer Metric to Drive CX Action

How Hard Is It to Be Your Customer Journey Mapping BookAs our book gains traction, readers tell us they appreciate our focus on starting journey mapping by targeting an identified business problem and using this to drive customer-focused change.

We interviewed dozens of CX leaders on how they did this, including Mark Smith, formerly of Element Fleet Management Corporation. Mark spoke on multiple topics, but my favorite was the need to develop a Killer Metric.

The Killer Metric isn’t NPS, Trust, or Customer Satisfaction. It’s one business KPI (Key Performance Indicator) that you use to rally the team to focus on meaningful change. He discussed how Amazon uses contacts per order – the more people call or chat, the worse the experience (in Amazon’s world – notice that Zappos, owned by Amazon, has a very different philosophy). Delta uses canceled flights, which has the biggest impacts on their customers. Read more