Understanding customer behavior regarding out-of-stock requests is crucial for eCommerce businesses aiming to optimize their inventory management and sales strategies. This report delves into key behavioral patterns, focusing on the tendency of customers to purchase requested items over time and the varying duration customers are willing to wait for products across different industries. The analysis is based on two main data points:
1. Tendency to Buy After Request
One of the critical behaviors observed is the correlation between the age of the subscription (time since a customer subscribed to an OOS product) and the likelihood of purchase. The data reveals two key trends: a decline in the order rate over time and a gradual decrease in the open rate of restock notifications.
Key Insights:
- Initial Interest: During the first three days after a product is restocked and customers are notified, there is no significant drop in the order rate, and the open rate remains stable. This period is crucial as customers are still highly interested and engaged with the product.
- Declining Order Rates: After the initial three days, there is a noticeable decline in order rates while the open rate slightly decreases. Between 3 to 10 days, we observe a 20% drop in the likelihood of purchase with just a 1% drop in open rate. The trend continues over time, leading to an 80% drop in the order rate and a 13% drop in open rate after 90 days.
Key Takeaway:
The data suggests that urgency in notifying customers and encouraging them to purchase shortly after restock can significantly impact overall conversion rates.
You should aim to restock the requested products as quickly as possible, ideally within the first few days. Delays beyond 10 days substantially increase the risk of losing sales as customer interest wanes.
2. Industry-Specific Waiting Periods for Product Availability
Different industries show varying thresholds for how long customers are willing to wait for a product to become available before they lose interest. The data reveals the following trends:
Key Insights:
- Short Wait Times (15-30 days): Customers in this category such as Furniture, Pet Supplies, and Vehicles tend to expect quicker restocks and have a shorter patience threshold, with many abandoning their requests if the product is unavailable within 15 to 30 days.
- Moderate Wait Times (30-45 days): Industries like Electronics, Office Supplies, and Hardware see customers willing to wait slightly longer, often due to the higher value or personal significance of the items.
- Long Wait Times (>45 days): Products in this category (e.g. Luggage & Bags) have the longest customer wait times. This could be attributed to the unique nature of the products, where substitutes are not easily found, and customers are willing to wait longer for restocks.
Key Takeaway:
You should tailor your inventory and restocking strategies based on the customer behavior towards your industry. For industries like Furniture and Business & Industrial, rapid restocking is essential, while in categories like Toys & Games, retailers have a longer window to fulfill customer requests without significantly losing sales.
Conclusion
The data reveals important insights into customer behavior following an OOS request. The purchase likelihood drops significantly over time, emphasizing the importance of timely notifications. Additionally, the industry-specific wait times highlight the need for tailored communication strategies to manage customer expectations effectively. By understanding these patterns, businesses can better optimize their inventory management and communication tactics to maximize conversions and maintain customer satisfaction.
