What is your return rate? At what point do your return policies and practices negatively impact sales? Every retail environment and channel is different, and some formats encourage more purchase and return activity than others. A scientific analysis of this behavior will help you understand the level of return “need” in your customer segments, and therefore help you better understand the return choices you make.
A limiting policy may indeed reduce returns, but at what cost? A lenient policy might drive more initial sales, but could leave you overexposed and lead to reduced net sales from return fraud and abuse. Finally, a process to help recover lost sales following legitimate returns can significantly boost revenue and maximize the margin within your return image.
Return optimization focuses on returns and exchanges and improves the value of the return process by converting returns-to-sales with targeted incentives and validating the integrity of each transaction.
- Improve revenue by maximizing the value of the shoppers in currently in your stores, without the costs necessary to raise foot traffic.
- Deliver great customer service to your best customers.
- Reduce lost revenue from returns and benefit from a corresponding impact to shrink.
The Retail Equation can help you determine and operate at your optimal – and profitable – return rate. To learn more, visit these services.