While many fashion and lifestyle brands look at high levels of returns as simply a cost of doing business online, there's more value in those numbers than most realise. What you actually have is data that reveals your shoppers’ behaviour and points directly to how you can streamline your operations. Read on to learn how, with the right integrations, insights and expertise, your logistics operations can help you unlock the value of this information.
How can returns data boost customer satisfaction?
While there are many ways for brands to improve customer loyalty, using data-driven strategies to improve the returns process is one of the most important but least obvious approaches. The key is data entry points. These are the moments in the returns process when data is collected and stored. Think of payment details, when and where a product was purchased (online or in-store), the reason for a return and the condition of the item.
Capturing this data is more straightforward than it sounds. QR codes plus an advanced warehouse management system (WMS) give brands the insight they need to build a more streamlined customer journey, address ongoing product issues, and improve fulfilment efficiency.
How returns data can help deliver a better customer experience
Take sizing and fit, two of the most common reasons to return a garment. Collecting and analysing returns data can help you understand why this is happening. For example, if a particular size or style is coming back more often, it could be that your sizing charts are not clear enough. It could also be a problem with a product description, or it may be that there is a problem in the manufacturing process (e.g. a faulty zipper). Data points you towards the choices that can help you reduce future return rates and improve customer satisfaction.
Gathering returns data for each item can also help pinpoint defects in specific products. A problem with loose seams or broken zips becomes more obvious when you can see patterns and pinpoint recurring issues. That insight can then be shared with suppliers and manufacturers so they can fix the problem during production. The result is a product that better meets customer expectations, with less likelihood of it being returned.
Asking customers to specify the condition of the item they’re returning is another way that data can help you improve operational efficiency. Logistics providers can use the information provided by customers during the returns process to triage incoming products according to whether they can be resold immediately, require repair or need to be recycled. While physical inspections at the distribution centre are still necessary, this pre-return filter can save significant time and effort, speeding up the fulfilment process and reducing operational costs.
Clearer customer communications:
Finally, more systematic data collection can help improve communication with customers. For example, using QR codes to track parcels lets you provide customers with regular updates on the progress of their returns and potentially provide earlier refunds. “Clear and consistent communication is central to a successful returns process,” says Michelle Stolk, who manages Strategic Transport Projects at Bleckmann, “That’s why we’ve updated our reverse logistics process to include 12 key reporting milestones throughout the returns journey. This provides much greater insight into the status of returns, so brands can keep their customers better informed.”
Clear communication can also save a brand time and resources. Bleckmann’s integrated returns management system, for example, allows brands to send customised, branded email notifications to their customers. This keeps them up to date on when their return request has been received, when the return has been processed and when they can expect their refund or exchanged product to arrive. This reduces refund- and return-related calls to customer support, freeing up your team to focus on more complex customer queries. It also ensures a more consistent brand experience by subtly reminding the customer of your visual identity.
The data foundation for a smart returns strategy
With the role of data in logistics extending from what’s happening to include how and why, a logistics partner that can tailor its approach to your brand’s specific needs can be a strategic advantage. Starting from your strategy and target audience, explore how potential providers propose to use data to create a returns experience that works for both. “By providing end-to-end visibility of the returns process, data-driven strategies help you to future-proof your operations and deliver greater value to your customers,” concludes Michelle. “It’s how you start turning what most brands treat as a cost into something that actually supports growth.”
Want to find out more about how a data-driven strategy can deliver a more efficient returns process? Get in contact today for a free consultation with a Bleckmann expert.
