The ultimate guide to usage-based pricing
Launching a usage-based pricing model
Measure and track usage
Pricing and packaging for usage
A CFO’s guide to usage pricing models
Revenue recognition for usage
The pros and cons of usage-based pricing
The technology to support usage pricing

Order management best practices

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Effective order management offers many benefits, but the market is constantly changing. Carefully configuring, managing, and adjusting your OMS is crucial to success and profitability.

Subscription models and multi-channel sales are growing more complex, so businesses must adapt by streamlining their order management processes as much as possible. 

Follow these order management best practices to maximize the potential of your OMS, both today and in the future.

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Workflow optimization and automation

Optimizing your workflows stops waste and removes redundancies in your order management system. However, you need a solid understanding of where inefficiencies come from, and that requires a thorough audit of your existing order management processes.

Workflow visualization tools can help with this. Use process mapping services, flowcharts, or visual stream mapping to gain more insights into your order workflows and how their changes affect customers.

Workflow optimization is a helpful order management best practice, but automation takes these efficiencies to the next level. With more businesses transitioning to a recurring model, it’s important to consider how to implement certain layers of automation and artificial intelligence (AI) into order management.

The customer life cycle is shorter with subscriptions, and every order could lead to a recurring relationship. Automation and AI can help cut down on order-capturing time and save costs. That’s not to mention the boost in customer experience.

Automation and AI can fit easily into your order management system through third-party AI-powered virtual agents. These services connect with a company’s CRM or inventory management system through an application programming interface (API). They access the order management data like a live agent would, automating order placement, returns, and more.

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Real-time tracking and visibility

The more visibility you have into your order management process and performance, the easier it is to finetune the operation. Instead of making changes and hoping they will improve results, rely on real-time data to decide where and how to focus your efforts.
Monitoring KPIs is one of the most important order management best practices because it ensures your order management system performs as well as it should. Regularly reviewing key metrics makes it possible to quickly identify and fix issues in your workflows. Every organization is different, but KPIs to consider include:

  • Order cycle time
  • Fulfillment rate and time
  • Customer lifetime value
  • Churn rate
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Streamlining communication across teams

Miscommunications account for as much as 70% of all business errors. Since order management involves departments such as IT, billing, customer service, fulfillment, logistics, and more, the process is prone to errors and miscommunications without proper guidance.

Improving communication is a key order management best practice that reduces rework and leads to flawless order execution. Follow these tips to streamline communication across teams:

  • Automate routine updates
  • Schedule regular cross-team meetings
  • Standardize roles and communication protocols
  • Integrate systems like ERP and CRM for a unified view of the order management process
  • Provide consistent order management training across teams
  • Gather feedback from your team to make workflows more intuitive and efficient

Improving customer experience through order transparency

Order transparency gives customers real-time visibility into their order throughout its lifecycle, from placement to delivery. It requires clear communication about order confirmations, shipping updates, estimated delivery times, and the process for handling returns or exchanges.

This order management best practice builds trust because customers appreciate the clarity. It also minimizes customer support inquiries, saving the customer service team more time. Order management systems make it much easier to execute this best practice. Leverage your OMS to:

  • Implement real-time order tracking via email, customer portal, or SMS
  • Proactively send notifications for key milestones
  • Create a customer self-service portal
  • Integrate with your CRM, ERP, and other systems to provide end-to-end visibility into every order
  • Personalize communications with the customer’s name, order details, and other specifics
  • Simplify and automate the returns and exchanges process
  • Gather post-delivery feedback

Managing returns, exchanges, and refunds efficiently

Customers expect to be able to return, exchange, or request a refund in just a few clicks. A hassle-free returns process shows customers that the business values their satisfaction and stands behind its products or services. 

A simplified returns workflow makes it possible for customers to complete the entire process without engaging a customer service agent at all, reducing time and hassle for everyone involved.

Whether you sell physical products requiring physical returns or offer a SaaS product with a refund policy, make it easy for customers to manage the process independently. You can also streamline returns, exchanges, and refunds by:

  • Sharing clear policies with both employees and customers
  • Automating the processes with an OMS
  • Offering multiple options, such as in-store returns
  • Removing additional steps or requirements
  • Incentivizing exchanges over refunds by providing discounts or store credit bonuses

Returns, exchanges, and refunds are a cost of doing business. Still, analyzing this data could give you helpful insights into things that need to improve. Analyze return data to identify common issues, such as inaccurate product descriptions or quality concerns, to reduce returns in the future.

Regular training and up-skilling of staff

Implementing order management best practices requires a well-trained team. Regular training and up-skilling provide employees with ongoing education and development opportunities to enhance their skills and knowledge. 

This process ensures that staff stay updated on the latest tools, technologies, and best practices, especially in areas like order management, customer service, and operational efficiency.

Not only does training make your staff more productive, but it boosts employee engagement and retention. Customers will also be much more satisfied, so this approach is a win-win. Follow these training best practices to maximize the impact of up-skilling:

  • Conduct a skills gap analysis to identify opportunities for growth
  • Offer multiple learning formats, such as in-person workshops, online courses, or webinars
  • Cross-train employees on other roles and processes
  • Send out feedback surveys to assess the effectiveness of your training program
  • Reward employees for growth, whether through raises, awards, or company-wide recognition

Data-driven decision-making

Instead of relying solely on intuition or past practices, organizations should use data to identify trends, measure performance, and make informed decisions across all operations, including order management. This is data-driven decision-making at its finest, allowing you to make decisions gleaned from your unique situation, customers, and data.

Many organizations pride themselves on being objective, but it can be difficult to accept what the data is saying, especially if it means changing your order management practices. Still, the best organizations pivot quickly based on data, not emotion. This approach makes your business more accurate, scalable, and customer-centered.

Data collection is the basis for data-driven decision-making. Gather data from various sources, including order management systems, CRM platforms, inventory software, and customer feedback tools.

Focus on key data points like order cycle time, customer lifetime value, churn rate, and fulfillment accuracy. AI-powered analytics tools can then parse the information to forecast demand and trends.

A/B testing, also known as split testing, is another helpful way to test different workflows to determine which are the best. For example, experiment with delivery timeframes, packaging options, or pricing strategies to see which options yield better results.

Scalability and flexibility

Risk is an inherent part of running a business. However, geopolitical risks, economic turmoil, and climate change are making business less predictable than ever before. Businesses that scale — while maintaining a flexible mindset — can succeed in an uncertain future.

This order management best practice helps companies adapt systems, processes, and operations to accommodate growth and changing market conditions. That might mean implementing workflows that can handle increased order volumes, diverse customer demands, and new market opportunities without sacrificing efficiency or customer satisfaction.

Flexibility might seem like a buzzword, but companies can pivot and scale more efficiently by:

  • Investing in scalable cloud-based OMS and other tools
  • Automating key processes
  • Setting up dynamic pricing models and subscription plans
  • Integrating CRM, ERP, OMS, and more systems through APIs
  • Designing workflows to be modular, which allows for change and expansion over time
  • Cross-training employees on multiple roles
  • Identifying and fixing workflow bottlenecks when you find them
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