and the best of analytics can help manage Returns leading to a significant boost to the bottom line.
As an illustration - for a $1B annual revenue retailer; the impact to the bottom line in terms of increased revenues and lower expenses can be as much as $20MM.
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A few areas where analytics can positively impact Returns:
1. Treat Returning Customers Differentially
- Handling product returns should be an important component of a retailers CRM strategies
- Retailers should capitalize on product return occasions and treat them as additional touch points to strengthen their relationship with customers
- A cross channel return policy will create cross-selling opportunities. For example, retailers can encourage customers to shop in stores when they come to return online and catalog orders
- Fraudulent and abusive returns cost retailers approximately $10-15B annually, accounting for nearly 10% of the return dollars
- 30% of the top 100 retailers actively use a returns solution that can verify if the receipt is valid, but cannot intelligently advise the store about the validity of the return
- Handling returns costs US retailers over $165B each year
- Expenses related to returns such as product repackaging, markdowns and item disposition cost retailers even more