There’s no denying the importance of winning over shoppers during the consideration and buying phases of the customer journey, but retailers’ focus on customer experience (CX) shouldn’t end there.
The post-purchase and return-related phases play an increasingly important role in customer satisfaction and loyalty, so brands need to have the right people and technology in place to meet customers’ needs in those moments. Brands that aren’t focusing on these touchpoints are missing opportunities to improve customer satisfaction, foster repeat business, and grow revenue.
Don’t underestimate the impact of returns
Returns have a major effect on the industry, according to a recent report by global shipping company UPS and the U.S.-based National Retail Federation:
- Retailers estimated 17% of their annual sales in 2024 will be returned
- Total returns were expected to reach €820 billion last year
- 68% of retailers planned to prioritise upgrading their return capabilities in the next six months
- Bracketing, when shoppers buy multiple items with the intention of returning some, is particularly popular among Gen Z shoppers
- 93% of retailers said fraud and other exploitative behaviors are significant issues for their business
With return-related interactions on the rise, retailers should be using these touchpoints to deepen their relationship with customers. This is especially true for e-commerce brands, which tend to see a higher return rate than brick-and-mortar stores.
Turn potential detractors into active promoters
Retailers’ handling of returns plays a key role in retaining customers. If returning an item is arduous, inconvenient, or contentious, customers are likely to make their future purchases elsewhere. Reduce churn by making returns easy.
Empower customers to start the return process when they want, and in the channel of their choice, by offering self-service options whenever possible. Not every interaction requires a human touch; delegate those that don’t to chatbots, IVAs, and autonomous AI agents that can handle simple requests quickly. This frees up associates to focus on more nuanced interactions.
Establishing automated self-service return portals, providing instant refunds to repeat buyers and loyalty program members, and otherwise streamlining the returns process will boost associate efficiency, reduce costs, and improve customer satisfaction. Also important: make it easy for automation to hand off to a human associate when needed.
Hybrid retailers that have an online and brick-and-mortar presence should embrace an omnichannel process to make returns seamless for customers. Give shoppers the option, for instance, of buying a product online but returning it in-store.
It’s important for return-related interactions to be quick but they also need to be empathetic. Customers trying to make a return are already entering an interaction dissatisfied, which can heighten emotions and add a sense of urgency, so associates need to come from a place of understanding.
When associates are empathetic and can offer a quick and easy resolution, interactions that could have been relationship enders are transformed into relationship builders.
Put insights to work
The best way to serve customers is to understand them, and the best way to do that is diving deeply into your data. Get a firm grasp on how returns-related interactions are going (what customers like, what frustrates them, where associates need help) by tapping into data in your contact center.
Use conversation AI to listen to all interactions and identify patterns and trends. Then put those AI-powered insights in the hands of quality experts who can use them to inform business decisions and suggest best next steps.
When a high-end retailer wanted a clearer picture of customer sentiment, we worked with our strategic partner LevelAI to help. We implemented our TTEC Insights solution, which includes LevelAI technology that listens to and analyse 100% of customer interactions across all customer support channels.
Among the insights it uncovered:
- 10% of interactions about returns were customers asking specifically about return labels
- 17% of those with return enquiries were repeat contacts.
Armed with those insights, our quality experts took a closer look at the customer journey and recommended letting customers print their own return labels from the company website. It was a relatively simple change that made a big impact, improving CX and reducing contacts.
Combat fraud with intelligent automation
The return process, unfortunately, can be ripe for fraud. AI can help here, too.
Fraud is an expensive problem for retailers, and it’s often tied to returns. In 2023, 7% of all returns made at retailers were fraud or abuse and merchants lost a total of €93 billion due to return abuse and fraud, according to Ekata.
AI has become a powerful weapon in the fight against fraud. AI-powered tools can predict and identity fraud instances through the use of model training, labelling, and machine learning models. They can find patterns, flag anomalies, and predict actions in real time.
This technology, working in tandem with human fraud investigators who know your brand well, can empower retailers with the always-on vigilance they need to protect their customers and their brand reputation.
Tap into expert help
Improving CX during the returns process presents a huge opportunity for retailers, but many lack the expertise or resources to take full advantage.
Working with an expert CX partner that specialises in retail and e-commerce is great way to tap into the highly skilled associates, AI-powered insights and fraud tools, and proven best practices you need to elevate your CX without breaking the bank.
