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Cresencia Marjorie Chiremba
“The goal, as a company, is to have customer service that is not just the best but legendary” – Sam Walton
CUSTOMERS are often subjected to “out of stock” responses when they are looking to purchase a certain product.
But what causes companies to run out of stock when demand exists?
There are numerous reasons, but one of the main ones is a surge in demand of a product due to unforeseen circumstances.
For instance, an unexpected change of weather, such as rain in winter, can force travellers to look for umbrellas, which may be out of stock because they are a seasonal product.
Sometimes when a business gains sudden popularity, it is not uncommon for some items to quickly sell out.
However, when products are simply unavailable due to supply chain issues, some businesses may allow customers to purchase a product that is currently out of stock.
Other organisations may simply have a poor stock management system.
In 2022, a significant number of global online shoppers reported being unable to purchase products because they were out of stock.
This can be frustrating for the customer and draining on the customer service team.
It also forces firms to dedicate additional resources to handle such issues.
There are optimal ways for a business to handle the situation.
One way is to have a vibrant stock management system, which quickly alerts if the stock levels are getting low and when it is time to re-order.
This means the organisation is always stocked up, and sales representatives avoid the embarrassment of selling a product that is not there.
Here are some best practices for managing stock-outs:
1) Let your customers know
Organisations that have a database of their customers can send out an out-of-stock email, WhatsApp or a text message. This way, they are alerting them that the product that they are either looking for or that they have already purchased is currently unavailable.
2) Apologise for the inconvenience
Acknowledging the fault and validating the customer’s feelings will show them that you are taking responsibility and are prepared to do your best to make it right. For instance, you can send out a message like: “We sincerely apologise for the inconvenience. We have experienced an unusually high number of orders and have run out of inventory.”
It is important to be brief with the apology and focus mostly on how to make things right, whether it is an immediate refund or links to similar products that are available. Your customers will appreciate your sincerity, and are more likely to shop with you again.
3) Have a small inventory of ‘out-of-weather’ products
Businesses should consider the possibility of unexpected weather changes.
They should also know that some customers prefer to buy products for the next season in the current season. Hence, they should keep a small inventory for summer products during the winter months for those who prefer to buy summer products in winter. Additionally, businesses could consider offering similar products that are available or providing information on when the summer products will be back in stock. One example of a work-around when items are out of stock is recommending an alternative but similar item. This can help maintain customer satisfaction even when the desired product is not available.
- Provide customer service information
Provide customers with all the information they will need to reach you both online and in person, especially if they have questions about out-of-stock items. Customers must be notified with all the details they need in the out-of-stock message to take the action that best meets their needs. This can include making it clear that they have not been charged for the item or that it will be refunded within a short timeframe.
- Vibrant stock control management
Businesses, especially those that deal with the mass market, should invest in stock management software.
Such an investment can help businesses anticipate demand and re-order certain products and certain sizes for clothes and shoes before they go out of stock.
There is nothing as frustrating as liking a certain dress in a shop and when you try to purchase it, the attendant then tells you that the size you are looking for is out-of-stock. Stock management software can help prevent the issue of sizes being out of stock and improve customer satisfaction.
This can be made simpler if the organisations use past sales data and trends to analyse the demand level at certain periods.
In this way, businesses can make informed decisions on when to re-order certain sizes to ensure they are always in stock.
This proactive approach can help businesses meet customer demand and improve their overall customer service.
Sometimes products going out of stock is inevitable.
Customers will be disappointed, but how you will handle the out-of-stock communication is of paramount importance.
It could either turn them into loyal customers or turn them off for good.
*Cresencia Marjorie Chiremba is a marketing enthusiast with a strong passion for customer experience. For comments, suggestions and customer experience training, she can be reached at [email protected] or at +263 712 979 461, 0719 978 335
Online Reporter