How to Boost Customer Loyalty Using Analytics and Actionable Insights
Returns data offers companies priceless insights that improve the customer experience.
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September 9, 2016
As ecommerce grows, so do return rates: About one in three online purchases is returned . For online apparel purchases, the rate is closer to 40 percent. That has triggered the growth of the returns-management software marketplace, offering retailers solutions aimed at making the processing and dispensation of returned goods faster and more efficient.
That’s important. The more quickly and efficiently a return is processed, the better the outcome: The consumer gets his or her refund faster. The retailer minimizes reverse-logistics costs. And the company offering the product recoups the maximum recovery value.
Retailers should absolutely be taking steps to make returns-processing more efficient for everyone, including the setting up of effective omnichannel returns processes.
But there is a significant lost opportunity just making product returns more efficient, and it’s this: Returns represent an untapped opportunity to build customer relationships with high lifetime value.
It may seem counter-intuitive to look at a product return — an inherently negative experience that reflects customer disappointment — with building strong customer relationships. But the opportunity to gain information about that customer and the reason behind the return is a valuable and underused resource.
Retailers that embrace the opportunity to leverage such returns data stand to gain priceless insights about their products and their customers that will help them prevent future returns from happening in the first place.