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What Is Customer Order Management, and Why Is It Important?

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</div></div> </div> </div> </div> <div class="content redesign-2024"> <div class="inner-content"> <main class="main" role="main"> <div class="article-wrap Split"> <article id="post-7510" class="post-7510 post type-post status-publish format-standard has-post-thumbnail hentry category-customer-experience" role="article" itemscope itemtype="http://schema.org/BlogPosting"> <header class="article-header"> <div class="grid-container post-split"> <div class="inner-content grid-x grid-margin-x grid-padding-x align-center"> <div class="cell large-6"> <div class="preheading2 category-tag"> Customer Experience </div> <h1 class="h0 entry-title single-title" itemprop="headline">What Is Customer Order Management, and Why Is It Important?</h1> <div class="post-meta"> <p class="p0"> <span class="post-date">November 17, 2024</span> </p> <p class="p0"> <svg width="8" height="8" viewBox="0 0 8 8" fill="none" xmlns="http://www.w3.org/2000/svg"> <circle cx="4" cy="4" r="4" fill="#6C6965"/> </svg> <span id="time"></span> min read </p> </div> </div> <div class="cell large-6"> <div class="post-hero"><img width="1200" height="700" src="https://s17233.pcdn.co/blog/wp-content/uploads/2024/10/hero_customer-expereience_v7.png" class="attachment-full size-full wp-post-image" alt="" decoding="async" fetchpriority="high" /></div> </div> </div> </div> </header> <!-- end article header --> <section class="entry-content" itemprop="text"> <div class="grid-container post-content-inner"> <div class="inner-content grid-x grid-margin-x grid-padding-x align-center"> <div id="blog-content" class="cell large-8 small-order-2 large-order-1"> <p>In modern retail, connecting with consumers has never been easier—or more complex. From social commerce and ecommerce to delivery lockers and in-store pickups, the omnichannel experience is booming. But with this surge of touchpoints comes the challenge of mastering customer order management.&nbsp;</p> <p>Delivering goods quickly and safely is no longer a luxury—it’s an expectation. And that expectation is only growing. Customers now want products delivered in as little as a day, sometimes even faster.&nbsp;</p> <p>While speed is essential, it’s only part of the equation. Businesses also need to keep operations running efficiently and maintain profitability. So, how can organizations like yours navigate these rising consumer demands and manage costs effectively?</p> <p>This article will explore strategies that can help you master customer order management and thrive in this evolving retail environment.</p> <p><strong><em>Note:</em></strong><em> The brands and examples discussed below were found during our online research for this article.</em></p> <h2 class="wp-block-heading" id="what-is-customer-order-management"><strong>What is </strong><strong>customer order</strong><strong> management?</strong></h2> <p>Customer order management is the end-to-end system that tracks, processes, and fulfills customer orders from start to finish. It’s about ensuring every online or in-store order moves seamlessly from the initial purchase stage to the moment it lands in the customer’s hands.&nbsp;</p> <p>Here’s a breakdown of the workflow:</p> <ul class="wp-block-list"> <li><strong>Order processing: </strong>The journey begins with order processing—where the order is received, verified, and routed for fulfillment.&nbsp;<br><br></li> <li><strong>Order tracking: </strong>Once processed, orders need to be tracked in real time. Customers crave visibility, so offering updates at each stage builds trust and satisfaction.&nbsp;<br><br></li> <li><strong>Order fulfillment: </strong>The fulfillment process involves picking, packing, and preparing the order for delivery. It’s not just about getting it right—it’s about getting it fast. Research shows that most fulfillment centers take <a href="https://www.mckinsey.com/industries/retail/our-insights/retails-need-for-speed-unlocking-value-in-omnichannel-delivery#" target="_blank" rel="noreferrer noopener">four to eight hours to pick and pack orders</a>. With customers expecting two-day (or even same-day) delivery, every second counts.<br><br></li> <li><strong>Post-purchase support: </strong>After an order has been delivered, post-purchase support kicks in. Whether it&#8217;s handling returns, exchanges, or customer inquiries, effective customer relationship management (CRM) ensures that the customer remains happy even after the sale.&nbsp;</li> </ul> <p>With so many steps and so little time, the customer order management lifecycle is moving beyond manual processes. Today, retailers and manufacturers—big and small—are tapping into automation and data-driven insights to streamline every single aspect of the product journey, from order entry to final fulfillment.&nbsp;</p> <section class="feed-ad-blog color-" > <div class="card "> <div class="grid-container "> <div class="inner-content grid-x grid-margin-x grid-padding-x align-middle"> <div class="cell large-12"> <div class="content-padding"> <h3>Boost your marketing game with Bitly!</h3> <p>Get started with custom short links, QR Codes, and landing pages. </p> <p><a href="https://bitly.com/pages/pricing" class="button button-primary" id="boost_your_marketing_game_with_bitly_blue">Try now</a></p> </div> </div> </div> </div> </div> </section> <h2 class="wp-block-heading" id="why-is-customer-order-management-important"><strong>Why is </strong><strong>customer order</strong><strong> management important?</strong></h2> <p>Digitized customer order management is a game-changer in the omnichannel world. You can uplevel your business by perfecting every step of the logistics process—from the instant a customer clicks &#8220;buy&#8221; to the moment their package arrives at the door. Here’s how:&nbsp;&nbsp;</p> <ul class="wp-block-list"> <li><strong>Improve operational efficiency: </strong>Streamlining order management eliminates common errors like sending the wrong item or uncovering discrepancies in storage management. With a smoother process, every order gets handled quickly and accurately, reducing friction and keeping things running smoothly.&nbsp;<br><br></li> <li><strong>Boost customer satisfaction:</strong> More than 90% of U.S. online shoppers now expect <a href="https://www.mckinsey.com/industries/retail/our-insights/retails-need-for-speed-unlocking-value-in-omnichannel-delivery" target="_blank" rel="noreferrer noopener">free two- to three-day shipping</a>. When you consistently meet tight delivery windows, you don’t just satisfy customers—you give them confidence that your brand can be trusted. Reliable, timely deliveries help prevent customers from jumping to competitors and reduce the risk of losing valuable business.<br><br></li> <li><strong>Spark long-term loyalty and advocacy: </strong>When customers feel valued, they don’t just keep coming back—they become your strongest advocates. A positive order experience encourages them to spread the word, leave glowing reviews, and recommend your brand to others. These loyal customers drive organic growth and foster a sense of community around your business.<br><br></li> <li><strong>Minimize costs and maximize </strong><strong>profitability</strong><strong>: </strong>Fewer delays and refunds mean less money spent on fixing problems. Plus, satisfied customers are more likely to stick with your brand, reducing churn and improving long-term profitability.</li> </ul> <h2 class="wp-block-heading" id="important-challenges-to-address-in-managing-customer-orders"><strong>Important challenges to address in managing </strong><strong>customer orders</strong></h2> <p>Customer order management can be a powerful differentiator that helps you stand out in the crowded retail space. But getting it right isn’t easy. From inventory tracking issues to communication silos, here’s a look at the common hurdles organizations need to overcome to streamline their order management and boost customer satisfaction.</p> <h3 class="wp-block-heading" id="h-inaccurate-inventory-tracking"><strong>Inaccurate inventory tracking</strong></h3> <p>Inaccurate inventory tracking can quickly lead to big problems—overselling, stockouts, and delays in fulfillment—all of which hurt the customer experience. In fact, 63% of consumers have faced the frustration of trying to buy something online only to <a href="https://www.accenture.com/content/dam/accenture/final/accenture-com/document-2/Accenture-The-Empowered-Consumer.pdf" target="_blank" rel="noreferrer noopener">discover it’s out of stock</a>. This highlights the importance of getting inventory visibility right.</p> <p>A real-time inventory management system is your ticket to solving this issue. Digital tools like IBM’s order management suite and Shopify’s inventory dashboard harness the power of cloud software, automation, and data analytics to ensure your inventory levels are configured across ecommerce platforms, warehouses, and sales channels. This way, you maintain 24/7, real-time accuracy over your inventory availability.&nbsp;</p> <h3 class="wp-block-heading" id="h-late-deliveries"><strong>Late deliveries</strong></h3> <p>Few things frustrate customers more than eagerly awaiting a package, only to be left in the dark or stuck waiting longer than expected. Their excitement can quickly turn into disappointment, and just one delayed or poorly managed delivery can permanently damage a customer’s trust. After all, no one enjoys playing the game of, “Where’s my order?”</p> <p>To avoid this scenario, transparency in the delivery process is crucial. This is where order management software comes in handy. Tools like Zoho Inventory and ShipBob offer real-time shipment tracking, automating updates to keep customers informed every step of the way. When customers feel empowered with clear, accurate delivery info, it boosts their confidence in your brand and significantly reduces the need for unnecessary support inquiries about order status.</p> <h3 class="wp-block-heading" id="h-communication-breakdowns"><strong>Communication breakdowns</strong></h3> <p>Sales, fulfillment, and customer service teams rarely work in the same building—let alone the same time zone. When these departments don’t have access to accurate customer information, it can create a cascade of issues—mismanaged orders, incorrect shipments, and delays in handling returns. It’s no wonder internal communication is a <a href="https://www2.deloitte.com/content/dam/Deloitte/in/Documents/consumer-business/in-cb-future-of-retail-profitable-growth-through-technology-and-AI-noexp.pdf" target="_blank" rel="noreferrer noopener">major pain point</a> for many retailers.&nbsp;&nbsp;</p> <p>To overcome this challenge, businesses should once again look to a centralized order management system. A best-in-class solution ensures every department has access to the same up-to-date information about order statuses, inventory levels, and customer inquiries. This seamless access to data enables your team to master supply chain management and deliver a smoother customer experience.&nbsp;</p> <section class="feed-ad-blog color-" > <div class="card "> <div class="grid-container "> <div class="inner-content grid-x grid-margin-x grid-padding-x align-middle"> <div class="cell large-12"> <div class="content-padding"> <h3>Boost your marketing game with Bitly!</h3> <p>Get started with custom short links, QR Codes, and landing pages. </p> <p><a href="https://bitly.com/pages/pricing" class="button button-primary" id="boost_your_marketing_game_with_bitly_blue">Try now</a></p> </div> </div> </div> </div> </div> </section> <h2 class="wp-block-heading" id="best-practices-for-streamlining-customer-order-management"><strong>Best practices for streamlining </strong><strong>customer order</strong><strong> management</strong></h2> <p>Ready to take your customer order management approach to the next level? Keep these best practices in mind.&nbsp;</p> <h3 class="wp-block-heading" id="h-centralize-the-order-management-system"><strong>Centralize the </strong><strong>order management system</strong></h3> <p>Centralizing your order management solution means bringing together all the data and business processes involved in the order lifecycle into one streamlined, cloud-based platform. This approach not only boosts operational efficiency but also gives you full visibility into every step of your order flow.&nbsp;</p> <p>With a unified order management system,&nbsp; your teams can seamlessly manage every part of the process—from order entry to routing them out for delivery—using tools like <a href="https://bitly.com/blog/qr-codes-in-supply-chain-management/">QR Codes for supply chain management</a> to reduce errors and speed up fulfillment. Refining your order management leads to smoother operations, happier customers, and fewer resources spent on fixing preventable mistakes.</p> <h3 class="wp-block-heading" id="h-automate-key-order-processes"><strong>Automate</strong><strong> key order processes</strong></h3> <p>Automation is a surefire way to improve accuracy and efficiency across the order lifecycle, but it’s also a game-changer for your team’s productivity. By automating repetitive tasks like order confirmations or stock tracking, your team can focus on delivering even better customer experiences and driving growth.</p> <p>That’s why it’s best for businesses—especially smaller retailers—to focus on low-risk, high-reward automation opportunities. For example, automating the order confirmation process ensures that customers instantly receive updates about their purchase status, giving them peace of mind and reducing the need for manual follow-ups. </p> <p>Stock tracking automation, including <a href="https://bitly.com/blog/qr-codes-for-storage/">QR Codes for storage</a>, helps maintain real-time visibility over inventory levels, preventing overselling, backorders, bottlenecks, and stockouts. This not only ensures that your customers can always find what they’re looking for, but it also allows your team to spend less time on tedious inventory management and more time on higher-value tasks like customer service and strategic planning.</p> <p>The result? A faster, more accurate order fulfillment process and a team that’s free to focus on what really matters—growing your business.&nbsp;</p> <h3 class="wp-block-heading" id="h-use-clear-trackable-order-confirmations"><strong>Use clear, trackable order confirmations</strong></h3> <p>Order confirmation emails may seem minor, but they’re a golden opportunity to make a stellar first impression. As the first communication a customer receives after placing an order, these emails set the tone for the entire post-purchase experience.</p> <p>To get it right, ensure your confirmation email includes key order details: an order summary, an estimated delivery date, and a tracking link. By using branded links for tracking, you can elevate the experience further. Not only are you sharing a link, you’re creating a meaningful connection with your customer while strengthening your brand’s recognition.</p> <p>With <a href="https://bitly.com/pages/features/branded-links">Bitly branded links</a>, you can create short, custom URLs that reflect your business, build trust, and offer a professional touch that leaves a lasting impression.</p> <p>Plus, they’re trackable—meaning you can gain insights from every click. By monitoring when, where, and how customers interact with your emails, you’ll gather valuable data to identify <a href="https://bitly.com/blog/customer-engagement-trends/">customer engagement trends</a>, fine-tune your messaging, and deliver even better experiences in the future.</p> <h3 class="wp-block-heading" id="h-optimize-shipment-and-fulfillment-times"><strong>Optimize</strong><strong> shipment and fulfillment times</strong></h3> <p>Optimizing shipment and fulfillment times is essential to keeping your customers happy and coming back for more. One way to achieve this is by leveraging localized warehouses. These strategically placed hubs shorten the distance between you and your customers, which means faster deliveries, lower costs, and happier shoppers.</p> <p>Another important factor is partnering with reliable shipping providers. Choose carriers that offer expedited delivery options, like same-day or next-day shipping. In fact, <a href="https://www.ontrac.com/new-ontrac-study-consumers-expect-online-orders-to-be-delivered-within-2-days/#:~:text=Faster%20delivery%20matters%20and%20consumers,%2Dday%20delivery%20(55%25)." target="_blank" rel="noreferrer noopener">58% of consumers are willing to pay higher shipping costs for faster service</a>, so offering flexible shipping and pricing options gives you a competitive advantage while enhancing the customer experience.</p> <h3 class="wp-block-heading" id="h-offer-real-time-order-tracking"><strong>Offer </strong><strong>real-time</strong><strong> </strong><strong>order tracking</strong></h3> <p>Keeping customers in the loop throughout order fulfillment is key to building trust and credibility. It also helps reduce time-consuming customer support requests.&nbsp;</p> <p>Just as with your confirmation email, branded links are the secret weapon for making customers feel in control of their order—while ensuring your emails deliver a polished, branded experience. Each time you send an update, whether via email or mobile notification, you represent your brand, so make it count.</p> <p>Branded links not only add a professional touch to your messages, but they also streamline access to tracking info. Instead of cluttering your emails with long, messy URLs, you can offer clean, concise links that lead customers directly to their order status. This small change plays a key role in <a href="https://bitly.com/blog/customer-experience-optimization/">customer experience optimization</a>, helping to create a smooth, efficient, and more satisfying interaction for your customers.</p> <h2 class="wp-block-heading" id="h-enhance-your-customer-order-management-process-with-bitly-today"><strong>Enhance your </strong><strong>customer order management process</strong><strong> with Bitly today</strong></h2> <p>Optimizing your customer order management process is essential to staying competitive in today’s fast-paced world. As customer expectations for speed, accuracy, and transparency continue to rise, businesses that deliver consistently will thrive.&nbsp;</p> <p>While you’ll need to harness the power of specialist inventory software to help you on the back end, don’t forget the importance of impressing your customers on the front end.&nbsp;</p> <p>By integrating Bitly’s branded links into your order communications, you’ll build trust, credibility, and transparency with your customers. Plus, with every click, you gain access to real-time data that helps you improve operations and drive stronger business results.</p> <p><strong>Ready to level up your customer order management strategy? </strong><a href="https://bitly.com/pages/pricing"><strong>Get started with Bitly for free today</strong></a><strong>.</strong></p> </div> <div class="cell large-4 social-share sidebar small-order-1 large-order-2"> <div class="sidebar__container"> <div class="toc-sidebar"> <section id="7510" class="toc-sidebar__container"> <h5 class="preheading2">Table of contents:</h5> <ul class="toc-sidebar__list"> <li class="toc-sidebar__item"> <a href="#what-is-customer-order-management" class="toc-sidebar__link" data-js="hash-location"> What is customer order management? </a> </li> <li class="toc-sidebar__item"> <a href="#why-is-customer-order-management-important" class="toc-sidebar__link" data-js="hash-location"> Why is customer order management important? </a> </li> <li class="toc-sidebar__item"> <a href="#important-challenges-to-address-in-managing-customer-orders" class="toc-sidebar__link" data-js="hash-location"> Important challenges to address in managing customer orders </a> </li> <li class="toc-sidebar__item"> <a href="#best-practices-for-streamlining-customer-order-management" class="toc-sidebar__link" data-js="hash-location"> Best practices for streamlining customer order management </a> </li> <li class="toc-sidebar__item"> <a href="#h-enhance-your-customer-order-management-process-with-bitly-today" class="toc-sidebar__link" data-js="hash-location"> Enhance your customer order management process with Bitly today </a> </li> </ul> </section> </div> <div class="hide-for-small show-for-large"> <div class="social-share__inner"> <h4 class="social-share__title preheading2">Share:</h4> <div class="social-share__icons"> <a href="https://www.linkedin.com/sharing/share-offsite/?url=https%3A%2F%2Fbitly.com%2Fblog%2Fcustomer-order-management%2F" 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