Use customer metrics to grow your business

by Arshiya Dey & Mohana Bhattacharyay on 22/12/2016
Successful sellers all have one thing in common: Happy customers. One of the key factors leading to their success is learning about customer behavior. Be it online or offline, if customers have a good experience with you, they will want to buy from you again. They may go that extra mile to wait for your products, buy from you in bulk and even tell other people about your products, which leads to even more business. The way a customer reacts to your products can help you improve your product quality, improve your services which will help your grow your business. At Amazon, the below mentioned metrics will help you understand customer behavior:

Order Defect Rate (ODR): Negative feedback and A-to-Z guarantee claims (for Merchant Fulfilled only) against your orders mean that either your product or your service has scope of improvement or the range of products is defective. Go through the feedback that you receive and try to understand why the customer is unhappy. With this learning, you can work towards eliminating the defects and ensuring a better customer experience. In the long run, this will also help reduce the overall returns due to products not meeting customer expectation. An ODR beyond 1% is considered a cause of concern.


Cancellation Rate (CR) (for Merchant Fulfilled only): You must keep enough stock to ensure a good purchase experience for your customers. If your stock is too less, it may not be sufficient to fulfil multiple orders placed, so keeping a healthy balance of stock is important. Cancelling an order before being able to fulfill it can make buyers feel helpless and sometimes angry. And such customers may never try your product again. We advise maintaining a cancellation rate of less than 2.5% to keep delivering a great customer experience. Sellers who try our FBA services will never have to face this issue, as we handle the shipping.


Late Dispatch Rate (LDR) (for Merchant Fulfilled only): You must ensure delivery of products within the promised time frame to guarantee customer satisfaction. This includes packing your product and shipping it out on or before time. For Easy Ship sellers, you only need the item to be packed (with the shipping label) ready in time for you scheduled pick up slot, and Amazon will get the product sent to your customer. We advise maintaining an LDR of less than 4% . On-time shipping will keep customers happy, and can make you their preferred choice for future purchases.


You must also keep an eye on your Return Dissatisfaction Rate (RDR): In the online space, ensuring a hassle free returns process is as important as the delivery process. A smooth returns experience keeps the customer trust, in spite of the product being returned, and understanding why the customer returned the product will give you ideas on how to prevent it from happening again. Thus, this metric will help you work towards delivering a great customer experience.

It is always important to keep in mind that the first order placed by a new customer could be the beginning of a long relationship, and with a perfect first time experience, you can win a loyal customer for the lifetime. To register, and sell on Amazon please click here and to read more about selling on Amazon please click here.

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