Chapter 7: Lack of Segmentation Flexibility

Reduce Retailer Friction

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Lack of Segmentation Flexibility header image - generic returns experience

Most retailers have sophisticated customer segment fields but are often unable to leverage them in the returns experience, resulting in a lack of personalization and unnecessary cost…

Friction

Lack of Product Specific Content

Without being able to utilize information on specific products or product types a customer has purchased, you are unable to provide an engaging unboxing experience, offer product guidance and advice, or suggest alternatives, which can all help to reduce returns.

Friction

No VIP Experience

If you are unable to leverage customer data about VIP or loyalty program membership, special customer segments such as staff, partners, and suppliers, or the number of purchases a customer has made over a set period of time, you won’t be able to create differentiated experiences, such as extended returns periods or free return shipping options.

Return policy stating the same conditions for all customers regardless of loyalty status.

Friction

Insufficient Revenue Protection

Without access to information about customer spend, lifetime value, or returns behavior, you will lose revenue and drive up operational costs unnecessarily due to a lack of protection mechanisms that prevent uneconomical or frequent returns or promote refund alternatives, like instant store credits.

Self-service returns portal that does not accept exchanges.

Friction

Inability to Scale

Relying heavily on a vendor to make changes to your returns experience can mean waiting longer than you want. Without self-service capabilities, the campaigns you want to run can’t make a quick impact, and it is difficult to evolve in a way that makes your brand stick out amongst competitors.

Email to a returns management software vendor to make a change to their returns notifications which takes 5-10 business days to make.

Solution

Empower Your Team

Give your team the personalization capabilities needed to decrease the cost of returns and increase reconversions with a hierarchical data model and tools that support flexible segmentation and targeting.

Create personalized experiences that drive loyalty for select customer groups
Provide product guides and suggest alternatives to reduce returns and refunds
Protect revenue with flexible rules for returns eligibility, methods, and refund options

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Delivery notification email with loyalty member personalization.

Case Study: Specialty Women’s Apparel Retailer

With an annual global revenue of over $2 billion, this brand is personalizing their returns journey and recovering revenue.

Then

Generic Returns Process

This retailer had the desire to treat their VIP customers differently, but their returns process was the same for all customers. Due to the restrictions of their previous vendor, they could not track and create personalization journeys based on their data.

Generic returns instruction email for all customers regardless of loyalty status

Then

Influx of WISMR Calls

With the brand’s previous communications, the returns process was confusing, reactive, and not personalized. Customers ended up calling customer service for anything involving returns which resulted in high costs for the retailer.

Customer service help options of shipping, payments, returns, or contact us 24/7.

Now

Proactive and Personalized Communications

They now leverage flexible data targeting tools to support customer segmentation. Adding specific personalization capabilities has enabled them to offer their VIP customers an Instant Store Credit refund option, which helps provide a differentiated experience and protect the brand’s revenue.