Recover Lost Sales at the Point of Return
The point-of-return, though often overlooked, is one of the most critical moments in the entire retailer/customer relationship. Research shows that 54% of consumers will fail to make a new purchase within 18 months after returning merchandise. Often this can be improved by creating a better return experience; this is an opportunity to win customer confidence and earn their loyalty at a vital time. It’s also an opportunity to convert returns-to-sales and generate new revenue from shoppers you might not have previously considered.
Using Return Rewards allows you to identify your best customers that are making returns and reward them for their shopping loyalty—turning a negative financial transaction into a revenue opportunity and contributing to your immediate sales and margin objectives. Return Rewards utilizes sophisticated modeling to identify the targeted incentives most likely to keep that customer in the store, spending that refund money now. Employing predictive analytics, it enables recovery of lost sales and improves conversions from your existing store traffic.
How It Works
Return Rewards really begins with your objectives. Looking for a revenue increase, market share growth, at what margin? Have specific products to move, markdowns or seasonal items to clear out? Wish to encourage cross-shopping? Customer segments you need to address?
From these requirements, The Retail Equation’s analytics team designs offers, formulates rules, and builds statistical models that are used to predict consumer behavior necessary to achieve your goals. These models are based on thousands of customer, store, and transaction attributes – comprising billions of scenarios – to form the basis for your Return Rewards margin optimized decision process, which intelligently determines the right incentives for the right customers to drive the expected results.
Proven Results and Guaranteed ROI
Although Return Rewards sounds complex, and there’s a lot of science behind the optimization, TRE makes it easy by focusing your attention on the business results, not the technology. As a flexible offering that guarantees you achieve your expected return on investment, Return Rewards delivers to retailers:
- Increased revenue by recovering lost sales, a 1–2% revenue lift.
- Significant increases in customer satisfaction by creating a “wow” factor during an uncomfortable moment.
- Maximized gross margin dollars per shopper by identifying the best possible incentive to influence customer behavior.
- Increased customer conversions without the need to increase foot traffic.
- Increased inventory turns or reduce markdowns/clear seasonal items faster.