Customer Service
3 ways retailers can reduce return costs in 2021
Jean Shin, director strategy and content at tyntec, shares insight on why retailers need to meet the new digital experience standards set by customers to continue to grow post-pandemic. Accessibility and efficiency are crucial to making customers feel valued and remain loyal.
March 26, 2021 by Jean Shin — Director of Strategy and Content, tyntec
E-commerce is exploding during the pandemic, but it can still be challenging for customers to find the right fit without the luxury of a physical dressing room. That is leading to consumers returning clothes en masse.
These returns are turning into large expenses for retailers. As people are stuck at home during the pandemic, online returns are up 70% in 2020 compared to 2019.
Here is a quick look at three ways retailers are leveraging technology to reduce these costs:
#1 Making the fitting room virtual
Virtual experiences are taking off right now, from virtually trying on clothes in virtual fitting rooms to make-up. Consumers can upload a photo of themselves, and the retailer can overlay an image on top of their photo to give them a sense of how the make-up would suit or a particular item of clothing. In this way, most shoppers' experience is pretty realistic, making the right clothing or make-up choices easy and minimizing returns.
Technology can now map out the human body, so the clothing advice customers receive is pretty accurate. Boosting engagement with virtual fitting rooms, a concept previously used only by high-end retailers, is now broadly employed by fashion brands, with Amazon and H&M leading the way. They do it via uploading a 3D body scan of their body or using a questionnaire with their measurements, which retailers use to create a unique clothing pattern for that customer. It will then be sent to the factory to make clothes to these specifications.
#2 Better understanding of CX
Although many different technologies are being explored to address this, the real issue is that retailers are not sure why customers are returning products.
This is why some retailers address customer returns by carefully reviewing the product experience issues — such as product descriptions being inaccurate or problems with suppliers.
Technology suppliers are helping retailers better understand where they fall short in the customer experience department. They look at product reviews and social media to understand the return process from the consumer's perspective and analyze sentiment in replies.
#3 Getting feedback where the customer is
Retailers believe e-commerce has advanced during the pandemic, and it's not going back to where it was before. They think adoption will only be increasing post-pandemic, and they are heavily investing in recreating the in-store shopping experience online.
While being able to touch and feel clothes can somehow still be replicated online, shopping in fashion retail involves decision-making. In this industry, advice plays a significant role. Therefore, the most critical lever to pull is continuing the in-store conversation and experience where the customer is — on messaging applications like WhatsApp.
Retailers can recreate the in-store experience online on WhatsApp by providing tailored customer support, personalized offers, and even allowing customers to purchase items without leaving the application. Moreover, delivery tracking and returns can be managed in WhatsApp without the use of countless emails or calls.
Looking ahead
Businesses need to meet the new digital experience standards set by their customers to continue to grow post-Pandemic.
Accessibility and efficiency are crucial to making customers feel valued and remain loyal. In a world of uncertainty, customers want to feel that they control their purchases of goods and services.
If businesses converse more with their customers in a one-to-one setting, they will gain insights about the causes of their returns — and act before it's too late.
Jean Shin is director strategy and content at tyntec
About Jean Shin
Subscribe
Get the latest news and resources from Retail Customer Experience.
