Cancellation Rate Metric
Essential knowledge
Intended Audience:
Business User
Author:
Movyn John
Changed on:
20 Oct 2025
Overview
Learn about the Cancellation Rate Metric in Fluent Analytics
Key points
- Customer-initiated cancellations may indicate product or delivery issues
- System-initiated cancellations - may indicate operational problems
- High cancellation rates reduce effective revenue and increase operational cost
What it measures
Percentage of orders that are cancelled after being placed.
When to use this metric
- Monitor customer satisfaction and order experience
- Identify potential product or pricing issues causing buyer's remorse
- Assess the impact of delivery delays on customer behavior
- Track the effectiveness of order confirmation and communication processes
How to interpret
- Good performance: Cancellation rate below x% indicates smooth operations
- Potential issues: Rates above x% suggest customer experience or operational problems
- Benchmark guidance: Industry averages vary by sector (2-8% is typical for retail)
Technical details
Formula:
(COUNT(orders) where order.status = {STATUS_CANCELLED} / COUNT(orders)) * 100 within the selected time period
Configuration:
- STATUS_CANCELLED: Status definitions for rejected fulfillments (default: CANCELLED)
