In the highly competitive retail industry, every brand needs to optimize sell-through and decrease returns in order to succeed. This is especially true for luxury-focused shops who sell fewer items at higher price points. One big return can drastically affect profit statements for the month. Besides cutting into finances, retail returns also represent reduced satisfaction and customer loyalty. These can have far-reaching effects that may be difficult to recover from.
Decreasing retail returns requires a proactive approach that addresses the root causes of common issues. The likelihood of returns depends on a huge array of factors from product quality to post-sale customer service. In order to track all these potential trouble spots, it takes smart technology that can handle copious amounts of data and efficient analysis.
These 10 ways to decrease retail returns will help business owners create a functional, effective plan to minimize the impact of returns and keep the customer experience high.
1. Clienteling for a personal touch
Clienteling and the art of personal service is a powerful strategy for reducing customer returns. When you develop more meaningful connections with the shoppers and collect sufficient data, you understand their preferences, needs, and expectations more fully. This allows everyone from sales associates at physical stores to the marketing department for an ecommerce site to provide tailored assistance and guidance. The more individualistic the shopping experience, the better equipped the consumers are to make smart buying decisions. This reduces the average return rate.
2. Improve product descriptions
While flowery, creative product descriptions can entice by creating an emotional response, you run the risk of confusing customers if you don’t also provide the basics like material, washing instructions, and similar details. Sync product tags to the online app or use QR codes so shoppers can make informed decisions. This may cut down on impulse purchases that boost revenue, but will also get rid of one of the most common reasons for returns.
3. Help customers get the right fit in fashion
Fashion brands should clearly list not only sizes but measurements for the individual products. Everyone who has ever bought an item of clothing knows that the same size can look and feel quite different between brands or even specific pieces. Reduce the return rate by making things absolutely clear. Augmented reality tools that allow customers to try on an outfit or accessory virtually before purchase help minimize buyer’s regret.
4. Stricter quality control and testing
Even if a shopper knows the item will fit, likes the material, and is comfortable hand washing it, if their new shirt loses its buttons or comes apart at the seams after a couple of wears, they will initiate a product return. You may also get a poor review, which can affect future sales. Avoid these types of negative experiences with better quality control during the manufacturing and product acquisition process. Extra oversight can increase retail sales and decrease consumer returns.
5. Provide more powerful social proof
Great products still get returned if the buyer has second thoughts or has doubts about its use or benefits to their life. Every retail company knows that people buy things largely based on emotions. Things like social proof, especially with fashion, cosmetics, and other trend-reliant industries, are especially powerful. Leverage customer reviews, social media mentions, and user-generated content to show shoppers that they will not regret their purchase.
6. Return policies that make sense
A complicated or abrasive return process will not reduce the rate of returns for damaged or unwanted items. Instead, it will leave customers with a bad impression of the retail company. Keep things clear and simple. State return time limits upfront. Avoid excess return fees. Also, attempt to give customers multiple return options including cash back and store credit. This is especially important during the busy holiday season when people might want to exchange gifts.
7. Demonstrate product benefits clearly
Along with size and materials, let shoppers know exactly what they will get when they buy a particular product. This can range from practical things like hotter coffee in a top-of-the-line travel mug to increased social standing when they show up at a party in a brand name dress. In order to do this effectively, you first need to know what your target audience values. When you understand this through comprehensive data collection and analysis, you can reduce returns by increasing value before the purchase or recommending alternative products that might suit the person’s needs and interests better.
8. Improve packaging and shipping
Disappointed buyers who receive their products damaged during the shipping process deserve prompt returns or exchanges. These are largely out of your hands. However, there are a few steps you can take to minimize the risk for people who shop online rather than in one of your physical locations. Choose sturdy packaging made from rip-proof or tamper-proof materials. Package things with protective layers inside the box or bag, too. While this will increase shipping expenses slightly, the cost of returns will go down over time.
9. Offer post-sale support and service
The period directly after someone buys an item provides the perfect opportunity for retailers to make a great impression. Post-sale support, especially if someone contacts you with a complaint or concern about a product, allows you to take steps to prevent a return while creating a positive customer experience. Fix the problems. Communicate empathetically and with absolute transparency. Apologize if necessary. Provide options for the return process or promote things like loyalty programs that can turn a single letdown into repeat future business.
10. Use data to solve unique brand problems
The absolute worst thing when it comes to customer returns is not knowing why they happen. Your brand cannot reduce them if you cannot identify the issues. Use a powerful tool like Clientbook to gather as much consumer information as possible at every stage of the buying and customer relationship lifecycle. Then, leverage the data into smart decisions that can increase product and service satisfaction, create a more customer-friendly return policy, and leave your shoppers with a much better impression of the brand overall.
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