5 actionable insights from Retail Dive’s customer lifetime value webinar
Last month, I had the privilege of speaking at Retail Dive’s webinar on building year-round customer lifetime value in retail alongside CARIUMA Chief Digital Officer Felipe Araujo and Klarna Chief Revenue Officer Rafe Petkovic.
We focused on how the return process is a huge opportunity for retailers to retain revenue and reduce costs while also creating a more seamless customer experience that grows lifetime value. In case you missed it, here are five tips we shared to help retailers create a returns strategy that builds lifetime value all year long.
1. Reduce shipping costs with aggregation and reusable packaging
Consumers have come to expect free shipping when they’re mailing back returns, so how do you give them what they want without a massive hit to your bottom line? One way is by aggregating returned items at drop off and shipping them in bulk, instead of individually. It’s far more expensive to ship 20 one-pound boxes than it is to ship one 20-pound box.
2. Increase your exchange rate with customized recommendations
By giving customers as many opportunities as possible to exchange a product instead of returning it, you’re able to keep more sales while ensuring they get what they want. For example, if an online customer selects the size as too small at the point of return, offering to immediately dispatch a larger size might help them choose to keep the purchase instead of returning it.
3. Reduce the need for shoppers to call customer support
No one wants to make a call in order to return something. If you can automate your return process via software, you won’t have confused and frustrated shoppers calling customer service for help. You can reduce those calls even further by offering instant refunds at drop off or carrier scan, eliminating the need for shoppers to check their credit card statements or worry that their return was lost or forgotten.
4. Enhance customer convenience with multiple return methods
Over 75% of shoppers say returns are the most painful part of buying online, so it’s a major advantage if you can solve that problem for them. Most retailers already provide several delivery options, including the ability for shoppers to pay more for expedited shipping. The same idea applies to exchanges and returns. Make shoppers happy by providing multiple methods for returning, beyond the hassle and wait of returning by mail. This can include returns to your stores or in-person returns to a third party network like Happy Returns. Neither of these options require a box or label, and both offer the shopper an immediate refund or exchange.
5. Proactively promote your return policy to remove customer uncertainty
Don’t build a seamless return process that shoppers love and then hide it in your site FAQ. Highlighting information about your policy does not encourage returns, but rather comforts your shoppers that it won’t be a huge hassle if things don’t work out. Shoppers look at these policies before they buy for the first time, so promoting your process will help them feel more confident about making the purchase.
Ready to dive even deeper into how a great returns experience not only improves the customer relationship, but helps you reduce costs at the same time? Watch the on-demand recording of the Retail Dive webinar here.
