Last updated: Returns process during crisis: Empathy and flexibility go a long way

Returns process during crisis: Empathy and flexibility go a long way

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The Covid-19 pandemic has delivered anxious times for retailers. Stores are closing, customers are staying at home, and staff are being stood down. But there is a future for retail post Covid-19. It will look a little different, but customers will come back. What retailers need to try and focus on over the coming weeks is the relationship they have with those customers – which includes the returns process during crisis.

Flexibility is key.

In times of uncertainty, when customers may have lost their jobs, a little empathy goes a long way. Having a more flexible returns process can help support customers who are in financial distress or who are unable to return items to stores.

According to a recent APAC online shopper study, 75% of customers say the returns process influences their buying decision. Indeed, a good returns process can remove friction and turn a disappointed customer into a loyal advocate.

Here are 5 ways to make the returns process during crisis easier:

  1. Invest in flexible order management

Retailers need to be able to respond flexibly and quickly to changing market conditions. With a customizable order management system, retailers can for example turn in-store returns on and off without any development work, but just a simple rule change.

They can do this on an individual level so they can select which stores they turn this off for and which stores they turn it back on for and when.

  1. Explain your returns policy  

It’s vital your returns policies are clearly stated and posted visibly online, including in shipped packages. Offer a variety of options for customers to return items on their own, without the need to go into a post office or shop at this time.

Consider offering satchels to leave in the customers mailbox that are pre-paid on receipt so they don’t have to buy stamps. Or leave a return parcel at their door that they can fill and pop in a post office box with minimal effort. It also helps to lay out clearly defined policies that address several types of return situations. For instance, if you don’t accept returns for sale items, remind shoppers of this when they purchase an item on clearance. This will help prevent any potential frustration further down the line.

Due to Covid-19, the Australian Government has restricted parcels from overseas entering our country and our ability to send certain parcels overseas. So if a return needs to be sent overseas, then the window has to be extended till this has lifted.

  1. Identify compulsive returners so you can reduce excess replenishment

There are compulsive shoppers, who buy, buy, buy. Then there are compulsive returners, who don’t just buy, but return, return, return. But there are ways to identify them through their behavior of adding and removing items from their online shopping cart many times before they purchase.

Savvy retailers who can identify this type of pattern or trend, are then able to identify potential returns early, and prevent excess replenishment.

  1. Know the lifetime value of customers so you don’t blacklist the most profitable

Do you have a different returns policy or process for high value customers? Or customers that tend to buy items at full price? When it comes to process optimization, it’s important that you take care of the customers who will provide the greatest long-term benefit to your business.

You want to maintain their loyalty. Particularly as some of them may be frequent returners. So, while returns may be expensive, be sure your returns process doesn’t result in blacklisting your best customers.

  1. Track the average condition of returned items so you can resell earlier 

Returns must be quality checked and depending on the item, hygiene checked now due to Covid-19, before they can be released as sellable inventory. But say you’ve received several returns of the same SKU in different locations. What is the chance that at least some, if not all of them, can be resold?

If you know the average condition of returns for that type of item, and, say, 10 units of that item are returned, could you safely assume that 50% of those items will be in good condition? And if so, can you expose that 50% as being in-stock for your online channel. If you make that inventory available, it could prevent an out of stock online that would otherwise result in a lost sale and a disappointed customer.

The current challenging retail climate means that when your customers see empathy and understanding, they’ll trust you more because the relationship becomes personal—it’s not just a business interaction, we’re all in this together.

This means they’ll be more likely to purchase from you in the future and more inclined to share their positive experiences with their friends and family.

Your customers are managing 85% of their relationships online. Omnichannel CX can provide everything they want – and more.
Get started HERE.

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