Customer Service

4 ways retailers can streamline the return process, boost customer experience

Joe Schultz, who serves as chief revenue officer at Harbor Retail, and DeAnn Campbell, who heads up retail strategy and insights at Harbor Retail, share four ways retailers can streamline the return process and create a more rewarding customer experience.

November 19, 2020 by DeAnn Campbell — Director of Retail Strategy and Development, Harbor Retail

Many retailers that stayed open during the COVID-19 pandemic temporarily stopped accepting returns. Those policies weren't just limited to the essentials (think hand sanitizer), but also popular items such as clothes, groceries, toys, and electronics. This was largely a response to the uncertainty surrounding how long the novel coronavirus could survive on surfaces.

We might know more about how long COVID-19 can linger on surfaces, but we don't know everything. A strict protocol is still required to manage the handling and processing of returned products. For example, some stores are isolating returned products for up to 72 hours before putting them back on the floor.

Today, one of the biggest challenges retailers face is trying to resell returned merchandise instead of having to mark it out. This obstacle hurt department stores and apparel retailers the heaviest, as nearly 17% of all apparel purchased is returned. The pain will be even greater for online retailers handling mail returns: Online returns occur at a much higher rate than those at brick-and-mortar stores. And as more people have remained at home over the last few months, online shopping has become the norm.

4 ways to safely streamline returns

In May, more than 33% of U.S consumers said they were waiting to return at least one item until stores reopened. And as states start to relax their guidelines, this flood of consumers is becoming more and more anxious to complete their returns.

Retailers must be prepared for them as well as any other unexpected changes brought about by COVID-19.

These strategies can help:

1. Address main reasons for frequent returns. Ideally, people should be happy with their purchases — not expect to return them. Understand the reasons behind your highest return categories and address them by educating consumers. Explain how certain clothing items fit before consumers buy them, place instructional displays beside electronic devices, or include (sanitary) trials at shelves.

H&M has successfully leveraged BOPIS to improve customer experience and lower return rates. The retailer's live chat tool helps its staff engage not only with online customers, but also with other staffers who can offer personalized advice and encourage better purchases.

2. Use data and software to optimize how you handle returns. The need to adapt to new market demands isn't new — and it often requires data. Create a sophisticated return protocol that employs data-driven software and algorithms to help salespeople determine how to handle specific returns. Scanning the item should tell the system what it is, and the software should be able to determine whether the item should be resold or marked out.

Having a unified view of inventory is also crucial to activating BOPIS, curbside, in-store fulfillment, returns management, and contactless checkout. Data drives success across every channel of an organization, with BOPIS rapidly becoming the connection point for online shoppers.

The data capabilities that create an optimal BOPIS experience also help optimize returns management and reduce negative impact. Retailers such as Target now leverage data to offer shoppers product replacement suggestions, instant refunds, store credits, or discounts on similar products. This increases the likelihood of shoppers replacing their returned item with another purchase. Besides this, leveraging artificial intelligence to immediately analyze data on a returned item can quickly identify how to obtain the most revenue for it.

3. Simplify return policies and make them clear to all consumers. If your consumers aren't aware of your return policy, they can certainly encounter bottlenecks. Avoid this issue by detailing the specifics of any new return policies and making them highly visible.

For in-store shoppers, place the policy on the walls, counters, and cash registers. For online shoppers, make return policies prominent on applicable product pages. Remember that more than 80% of today's shoppers also use smartphones, making them by far the most efficient and effective way for retailers to communicate with shoppers regarding BOPIS and returns.

4. Train employees on new protocols. Educating consumers on your new return policies and workflows is paramount to success, so it's critical to educate employees on evolving protocols. Conventional training methods cannot keep up with the constant need to update, cross-train, onboard, or support new services, so retailers must turn to technology for help.

KFC used virtual reality to teach its employees how to prepare chicken, all without using kitchen time or other staff during training. Walmart leverages VR to quickly teach employees how to handle difficult situations. In both cases, empowering employees with real-time access to training and information gives teams the tools and confidence to perform their duties well — even through unanticipated events. If you have the training content but need a way to implement it, speak with HR. Many popular HR software platforms also offer hosting capabilities for training content, allowing you to track training in real time for the correct team members.

COVID-19 has created many challenging situations for retailers. However, handling a flood of returned products shouldn't be a daunting one. With these four steps, retailers can make it easier to get back to business as usual — and in record time.

Joe Schultz serves as chief revenue officer at Harbor Retail and DeAnn Campbell heads up retail strategy and insights at Harbor Retail.