Chapter 2: Missed Revenue Opportunity

Reduce Consumer Friction

Return to main page

parcelLab Returns Study Showed That...

of consumers are willing to pay for returns

of online shoppers would accept a voucher instead of a refund if they got it immediately

of consumers asked for better product descriptions

Read the study

Every return order process creates additional customer touchpoints with the potential to drive engagement, traffic, and incremental revenue. Yet, retailers are often unable to leverage this opportunity. Here is why…

Friction

Reliance & Restriction

You may still be reliant on multiple third-party vendors to send post-purchase communications on your behalf. This severely restricts your ability to utilize returns touchpoints due to:

Lost buyer traffic
Limited or no control over your customer experience
No opportunities to drive revenue retention or repeat purchases

Friction

Inconsistent Carrier Data

Inbound scans are often inconsistent and contain multiple events and event-codes. If your data model does not accommodate this, you cannot utilize notifications like “carrier received” for example, which means highly valuable returns touchpoints have to be omitted from your communications flow.

Carrier notifications that end up in the customer's email Spam folder.

Friction

Data Segmentation

Even with full control over your post-purchase communications, there are often gaps in the integrity of segmented customer and/or order data that prevent you from suggesting alternative stock options, exchanges, or instant credits, for example. The opportunity to retain revenue and drive reconversion is lost.

Push Notifications from Apple Pay and Carrier mentioning returns over an image of over the ear headphones.

Friction

Lack of Personalization

Without meaningful information about your customer’s order, you are unable to create relevant, personalized returns notifications and experiences. You have no way to leverage these high-value customer touchpoints in the heightened phase of engagement during a return.

Solution

Empower Consumers

Take control of your returns journey to significantly reduce the cost of your returns and maximize revenue opportunity. By integrating repurchase triggers, you enable your consumers to easily choose refund alternatives and make additional purchases.

Provide alternatives like discounts to minimize uneconomical returns
Simplify exchanges with alternative stock options
Offer instant credit options to retain revenue
Drive repeat purchases with personalized recommendations
Promote store returns to drive additional foot traffic

Book a demo

Case Study: Specialty Women's Apparel Retailer

With an annual global revenue of over $2 billion, this retailer is reducing returns and improving both the customer experience and revenue retention rates with an embedded digital returns experience.

Then

Lack of Refund Alternatives

When customers wished to return a purchase, they were not presented with any refund alternatives, such as an exchange or store credit. Their only option was to return their purchase for a refund.

A return submission for suede-studded loafer that were too small and the customer selected to get store credit.

Then

No Repurchase Incentives

A customer seeking to exchange a product for a different size or style, for example, had to complete a return and place a new separate order. Not only was the process cumbersome, but there were also no incentives to encourage shoppers to make a repeat purchase.

Now

Size Guides

When a customer returns a product due to size, a visual ‘how to measure-up’ banner is displayed in their email communications and on their returns tracking page. It directs shoppers to a sizing guide, which helps them measure themselves correctly, so they can order a better size. This improves the customer experience and reduces the likelihood of future returns.

Product wrong size return reason - with size guide

More retail examples

Higher Conversion

Another well-known international fashion brand created four additional touchpoints per order by implementing a digital returns journey and communications. They leverage the conversion rate of each return touchpoint, which is up to three times higher than the outbound order journey equivalent, resulting in a 4% average conversion of digital returns visitors.

More Retail Examples

Instant Credit Gift Cards

Shoppers returning purchases from this US smart home products retailer are offered instant credit gift cards. It allows the retailer to retain the revenue and actively promotes repeat purchases and customer loyalty – whilst creating a VIP experience for the customer.

More retail examples

Easy Exchanges

Customers of this multi-channel international fashion label looking for a different size or color can effortlessly exchange their purchases with a digital exchange flow that suggests product variations and alternatives, and displays live-stock availability to avoid disappointment.