Happy Returns Equals Happy Customers At Re-Imagined Dressbarn Brand
SEP 17, 2020
In a recent press release, Happy Returns announced a partnership with Dressbarn to offer customers box-free returns at locations nationwide. In an interview with the CEO of both companies, the relationship appears to be a winning strategy and offer customers the best experience with online apparel returns.
Returns create a major pain point with customers
Shopping for apparel online can be a costly endeavor for retailers and can create many inconveniences for customers including returning unwanted products. Returns of apparel purchased online can run between 20-40% depending on the retailer, and the return process itself can be a daunting task for the customer. David Sobie, Happy Returns CEO, adds, “Returns would become an arts and crafts project at home for customers using boxes, tape, scissors and creative packing material.” Customers would then have to go to the post office (usually not a pleasant experience for most) or a mail-drop off and then wait three weeks for a refund.
Before Sobie founded the company that would remove this pain point from a customer’s shopping journey, he reminisced on how “tape” was a four-letter word. Happy Returns’ software and over 700 return bar networks nationwide allow shoppers to easily return or exchange without printing or packaging in under 60 seconds and receive refunds immediately.
Where it began
Happy Returns was founded by David Sobie and Mark Geller who met at HauteLook, an early flash sale retailer that was acquired by Nordstrom JWN -0.5%. After the acquisition, Sobie and Geller worked on the highly successful Return to Rack program that enabled HauteLook shoppers to return products to Nordstrom Rack stores. The insights gained working on Return to Rack (specifically the notion that that online shoppers overwhelmingly prefer to return in person to avoid the hassle and wait of returns by mail) led to the founding of Happy Returns.
Re-Invented Dressbarn launched right before the pandemic
Retail Ecommerce Ventures (REV) acquired Dressbarn’s IP in late 2019. Prior to the acquisition, Dressbarn had 650 stores and an online platform. The decision was made to re-invent Dressbarn as an e-commerce only brand and close all stores, which was done prior to the pandemic under the previous owner, Ascena. Shayan Zadeh, CEO of Dressbarn, stated, “Our transition to e-commerce back in January has been instrumental in our ability to continue to grow through the pandemic. By switching to an e-commerce model, we didn't suffer from store closures, and we were able to respond more quickly to changes in consumer behavior by relying on our data-first merchandising approach.”
The transition to online prompted the company to better understand potential markets for the brand beyond the current target customer. According to Zadeh, Dressbarn historically has been more popular with women in their 40s, saying, “That customer segment continues to be the core of our business since the relaunch.” However, the use of data analytics and leveraging personalization has provided Dressbarn opportunities to expand beyond the current target audience while still serving the core customer effectively.
Technology, analytics and systems provide a competitive advantage
Zadeh believes in implementing the best of breed technology in all aspects of the business, “The new leadership of Dressbarn is bringing decades of experience in building and using artificial intelligence, as well as analytics tools and systems. Providing the right level of personalization, effectively predicting demand and supply, and managing the cost structure of the business are important competitive advantages that have been achieved by putting together the right tools and people in place.”
Partnering with companies like Happy Returns helps Dressbarn achieve these goals. Retailers using Happy Returns’ full offering average 20% cost savings, high customer service scores, 50% program adoption, and up to two times higher exchange rates. The company guarantees 10% savings in the first year.
Dressbarn has a strong position as a storied brand with a huge and loyal following and, Zadeh says, “Priority number one is to continue serving this base. We want to continue to build on the momentum provided by this community, by both expanding the depth and breadth of product offering and opening the platform to a new generation of women that might not have even considered the old Dressbarn as a destination.”
The customer following will gain deeper loyalty with Dressbarn as it works through providing a seamless experience in an otherwise more painful aspect of the shopping journey with returns. Zadeh stated, “While the overall return rate has not shifted much since the launch, the partnership with Happy Returns has made the return process more convenient and cost effective for our customers.”
When asked about other initiatives that provide a better experience and more profitable business model for online apparel, Zadeh said, “We are continuing to innovate on the business model of Dressbarn. Historically, the company used to own 100% of merchandise and therefore, all of the risk. We are blending in dropship and consignment models into a hybrid system where we can find win-win-win situations with our trade partners and ultimately deliver even better value to our consumers.”
Sobie was very pleased to help solve the issue with returns and appreciates the loyal branding that Dressbarn has cultivated for almost 60 years. He states, “Dressbarn has been a leader in women’s apparel for decades, and we’re thrilled to support the next evolution of their business.”
Dressbarn may open physical stores again
When asked about the possibility that Dressbarn will eventually open brick-and-mortar stores, Zadeh said, “It is very likely that the company will have physical locations in the future, while still maintaining an e-commerce first model. The brick and mortar experiences will be there to augment the digital side of the business, not the other way around.”
Dressbarn can be American’s great come-back story and the talent at Dressbarn along with partnerships like Happy Returns can make the brand successful. In the first 30 days since launch, over 75% of Dressbarn shoppers have opted to drop off returns in-person at a Happy Returns location rather than enduring the hassle and wait of returning via USPS. Dressbarn shopper feedback on the return experience has been overwhelmingly positive, earning a Net Promoter Score of 90 for the ease, speed, and safety of the service.
Happy returns, happy customers and a better business model.
Article was originally published here.