THE INCREASE IN RETURNS IS ALSO DRIVING HIGHER CALL VOLUME TO CUSTOMER SERVICE CENTERS , SPIKING COSTS THAT CAN BE DIFFICULT TO RECOVER .
Also , and especially true for eCommerce , the cost of shipping , processing , and other key actions within the returns pipeline , means it ’ s often difficult to recover the product ’ s value .
Increasingly popular today is the business of resale , where many of these returned items are transferred to third-party companies and resellers through liquidation .
Addressing the returns conundrum has meant a tightening of returns policies across the retail world , but in a way that limits the erosion of customer loyalty .
Nearly 60 % of retailers adopted “ returnless ” or “ keep it ” returns policies , signaling the overwhelming reality that most returns are overridden by their depleted value .
Others have implemented fees to cover costs and others are offering store credit instead of refunds , with some retailers directing customers back to the physical store to make their returns .
The increase in returns is also driving higher call volume to customer service centers , spiking costs that can be difficult to recover .
Regardless of the way forward , maintaining customer loyalty must be the priority , which means more strict policies must be done in a way that doesn ’ t alienate customers .
SECRET SAUCE : COMMUNICATION AND TRANSPARENCY
Too often , not enough credit is given to the simple effectiveness of communication and transparency . Communication that is honest and transparent is a customer trust builder . Retailers should be up front about their returns policies and qualifying reasons for returning an item .
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Having a proactive approach to sharing this information is even better , making sure customers understand such policies before even making a purchase .
It ’ s also important to manage customer expectations throughout the returns process , including timeframes and information about refunds and exchanges . This does wonders for reducing frustration and dissatisfaction .
To this end , it ’ s equally important to make certain that product information is clear and accurate before a purchase is ever made , effectively reducing the chance an item will be returned in the first place .
ASSURE ADEQUATE STAFFING AND RESOURCES
It probably goes without saying , but because it ’ s often overlooked , it ’ s worth reiterating here : retailers and brands that lack the staffing and resources required on the customer-facing side of the business are setting themselves up for a world of hurt .
First , it ’ s critical that there be adequate staffing on the phone and online , as well as where applicable in-person , to assist customers promptly and effectively . Prompt , friendly , knowledgeable , and attentive customer service can quickly overcome any negative factors a customer may face .
Second , and to this end , well-trained employees are equally important . Trained staff can add value to the product and brand , helping customers find products , offering recommendations , and addressing concerns with personalized attention .
Third , ensuring such resources shouldn ’ t end with customer-facing employees . Having the right staffing to move returns through the process efficiently and on time is yet another layer here that can vastly improve the customer experience ( CX ).
STREAMLINED RETURNS PROCESSES
Customer satisfaction and loyalty don ’ t end with the customer service center . Streamlining the entire returns process is the true linchpin to maintaining that loyalty . It matters what we do behind the scenes just as much , if not more , than what the customer sees .
A clear and transparent returns policy is a great place to start . Make sure that policy is communicated clearly at multiple customer touchpoints , including the website / marketplace , point of sale , and on the receipt . The policy should be easy to understand too .
Returning an item should be made as simple as possible . Retailers can provide multiple return options , including instore , online , and via mail .
Of most importance here is ensuring it ’ s simple for the customer from start to finish . Customer-friendly online returns portals that provide a one-stop shop for these items , initiating the returns , printing shipping labels , and tracking returns can elevate this part of the CX .
While making returns easy is important , it must be balanced in a way that protects the retailer . Be careful not to message returns policies in a way that encourages returns . Returns fraud is a growing problem , costing retailers $ 101 billion in 2023 alone , reports the NRF .
With many customers already taking advantage , a balance must also limit customer abuse of these policies that could worsen the returns fraud problem .
Putting parameters in place , such as “ no returns after 30 days , no returns on sale items ,” or “ exchanges only , or store credit for your return ,” is a great buffer that can help minimize the impact : and reduce the losses .
Finally , don ’ t be shy ! Retailers and brands should solicit feedback from their customers detailing their experiences with returns , identifying areas for improvement .
One more thing : leverage returns into an opportunity . There is now a profitable business model in which third-party companies are helping retailers liquidate this merchandise .