How Returns Analytics Benefit You
Here’s something many retail business owners and managers aren’t aware of when it comes to returns: A high percentage of frequent returners are also frequent purchasers, research shows. What does this mean for the way you should run your returns management services?
At ReverseLogix, we have the answers to questions like these. Through the use of the analytics involved in our returns management software, we can help you differentiate certain kinds of returners and glean important insights as to why products are being returned by certain demographics. Let’s look at an example of how analytics help here, plus explain why these kinds of insights are so valuable for your brand.
Example of Analytical Value
Consider the following extremely common example among consumers in retail, particularly clothing: About 30 percent of customers in these areas generally order two or more sizes or color options when they purchase a product online, planning all along to return one or more of the items they don’t want. The idea here is to use liberal returns policies to their advantage, offering themselves selection.
With a non-intuitive returns system, this would show up simply as a product return on your balance sheet. But this basic statistic lacks context – namely that by allowing this particular return and return pattern, you’re helping a sizable chunk of your customers stay happy and encouraging them to continue buying things on your site. If they didn’t have access to your great return policy, they would bring their business elsewhere to an outlet that had such a policy in place.
Insight on Why
Why is this information important? Well, because differentiating these kinds of returns can have a huge impact on future business. Research has shown that businesses that use these kinds of analytics to separate true returns from “buy lots, keep one” customers can up their profits per customer by nearly 50 percent over six months, and by nearly 33 percent over three years. Combined with sales data and even your gut instincts as a business owner, this information is enormously valuable.
To learn more about how our reverse logistics system can help, or for any of our RMA management services, speak to the pros at ReverseLogix today.