THE RETAIL EQUATION OPTIMIZES RETURNS, ENABLING RETAILERS TO IMPROVE CUSTOMER SERVICE

 

With Economy Spurring Increase in Product Returns, NRF Data Shows the Need for Retailers to Maintain Lenient Return Policies

IRVINE, Calif. (Nov. 24, 2008) — In response to results from the National Retail Federation (NRF) 3rd Annual Returns Survey stating that product returns are increasing by 23 percent in today’s difficult economic climate, as well as the need for lenient return policies designed to encourage continued holiday spending, The Retail Equation is emphasizing its ability to optimize returns for retailers in support of these return trends. The survey also finds that return fraud is expected to hit $3.5 billion for the holiday season, prompting retailers to increasingly look for ways to combat the issue while maintaining a positive customer experience.

Because a retailer’s return policy plays a significant role in consumer spending, it will be critical this holiday season to strike the delicate balance necessary to protect against return fraud while enhancing the customer experience. By automating the return authorization decision process, retailers can relax simple policy denials and concentrate on properly identifying and removing truly fraudulent and abusive transactions.

“The data from the NRF survey validates a constant challenge facing retailers that has only been exacerbated by these tough economic times: Maintaining lenient return policies in the face of increasing merchandise returns, while still curbing return fraud and abuse,” said Mark Hammond, chairman and CEO of The Retail Equation. “We are proud to be part of the solution by working with retailers to create a positive experience for their good customers, while aggressively managing the bottom line.”

The NRF survey found that the economy is having a dramatic effect on retailers, resulting in increased product returns, continued return fraud, and a move toward looser return policies that attract shoppers and deliver positive customer service. Such challenges can be addressed, however, through The Retail Equation’s return optimization solutions. Verify-1® is designed to distinguish and deter the 1 percent of consumers whose fraudulent or abusive behavior accounts for almost 9 percent of all return dollars. This eliminates the need for retailers to resort to strict policies such as “no receipt, no return” and gives store associates an automatic and unbiased process for handling all returns. Return Rewards® enables retailers to turn the onslaught of merchandise returns into new sales by delivering targeted incentives to their best customers and recovering previously lost sales. With this technology, retailers can generate additional revenue at the return counter and extend more liberal return policies, while still taking a proactive approach to the industry-wide problem of return fraud and abuse.

View the survey here.