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Chapter 7: Lack of Segmentation Flexibility

Reduce Retailer Friction

Lack of Segmentation Flexibility header image - generic returns experience

Most retailers have sophisticated customer segment fields but are often unable to leverage them in the returns experience, resulting in a lack of personalization and unnecessary cost…

 

 

Friction

Lack of Product Specific Content

Without being able to utilize information on specific products or product types a customer has purchased, you are unable to provide an engaging unboxing experience, offer product guidance and advice, or suggest alternatives, which can all help to reduce returns.

Lack of product specific content results in a bland delivery and unboxing experience.

Friction

No VIP Experience

If you are unable to leverage customer data about VIP or loyalty program membership, special customer segments such as staff, partners, and suppliers, or the number of purchases a customer has made over a set period of time, you won’t be able to create differentiated experiences, such as extended returns periods or free return shipping options.

Return policy stating the same conditions for all customers regardless of loyalty status.

Friction

Insufficient Revenue Protection

Without access to information about customer spend, lifetime value, or returns behavior, you will lose revenue and drive up operational costs unnecessarily due to a lack of protection mechanisms that prevent uneconomical or frequent returns or promote refund alternatives, like instant store credits.

Self-service returns portal that does not accept exchanges.

Friction

Inability to Scale

Relying heavily on a vendor to make changes to your returns experience can mean waiting longer than you want. Without self-service capabilities, the campaigns you want to run can’t make a quick impact, and it is difficult to evolve in a way that makes your brand stick out amongst competitors.

Email to a returns management software vendor to make a change to their returns notifications which takes 5-10 business days to make.

Solution

Empower Your Team

Give your team the personalization capabilities needed to decrease the cost of returns and increase reconversions with a hierarchical data model and tools that support flexible segmentation and targeting.

  • Create personalized experiences that drive loyalty for select customer groups
  • Provide product guides and suggest alternatives to reduce returns and refunds
  • Protect revenue with flexible rules for returns eligibility, methods, and refund options
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Delivery notification email with loyalty member personalization.

Case Study: Specialty Women’s Apparel Retailer

With an annual global revenue of over $2 billion, this brand is personalizing their returns journey and recovering revenue.

 

 

Then

Generic Returns Process

This retailer had the desire to treat their VIP customers differently, but their returns process was the same for all customers. Due to the restrictions of their previous vendor, they could not track and create personalization journeys based on their data.

Generic returns instruction email for all customers regardless of loyalty status

Then

Influx of WISMR Calls

With the brand’s previous communications, the returns process was confusing, reactive, and not personalized. Customers ended up calling customer service for anything involving returns which resulted in high costs for the retailer.

Customer service help options of shipping, payments, returns, or contact us 24/7.

Now

Proactive and Personalized Communications

They now leverage flexible data targeting tools to support customer segmentation. Adding specific personalization capabilities has enabled them to offer their VIP customers an Instant Store Credit refund option, which helps provide a differentiated experience and protect the brand’s revenue.

A VIP customer's returns portal experience offering instant credit.

Business Impact

Average Conversion Rate

Point Increase in NPS

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parcelLab retain logo

returns flow

Digital Returns Portal

Front-end digital experience easily embedded on your site by JavaScript snippet.

Track & Communicate

Deliver personalized post-purchase emails and a page for tracking return status end-to-end.

Exchanges

Facilitate product exchanges for same-SKU variations like color or size through self-service.

Watchlists & Alerts

Instant Credit

Implement instant credit upon return initiation, package drop-off, or arrival for processing.

Personalization Capabilities

Drive web traffic and repeat purchases with hyper-relevant content to engage your customers.

Click & Collect

Store Returns

Offer retail stores as a returns method to drive customer traffic.

Custom eligibility icon

Custom Eligibility Rules

Reduce invalid returns by setting custom rules and reasons to reinforce return policies.

Order API Connection

Ensure best-practice data access with no compromise on data privacy.

multi label & split returns

Multi-Label & Split Returns

Handle complex multi-item returns requiring more than one label, returning to one or more locations.

Comprehensive RMA Sharing

Reduce manual warehouse processing and enable further automation.

Confirmation Page Survey

Collect customer rating and reviews on the confirmation page.

Frequently Asked Questions

What specific segmentation criteria are most effective for personalizing the returns experience?

Effective segmentation criteria often include purchase history, customer behavior, product type, and return reasons. These can help tailor the returns experience more closely to individual customer needs and preferences.

How does improved segmentation flexibility impact overall customer satisfaction and loyalty?

Improved segmentation flexibility typically enhances customer satisfaction by making the returns process more relevant and convenient, which can lead to increased loyalty as customers feel understood and valued.

Are there industry-specific challenges or benefits to implementing advanced segmentation in returns processes?

Industry-specific challenges in implementing advanced segmentation might include varying customer expectations and regulatory requirements. However, the benefits usually involve more precise customer insights and improved operational efficiency.

What technologies or platforms do retailers use to achieve this level of segmentation and personalization?

Retailers use a variety of technologies to achieve advanced segmentation, including CRM systems, data analytics tools, and personalized marketing platforms. These tools help in analyzing customer data and applying insights to tailor the returns process.

Customize Returns, Delight Customers

Unlock personalized experiences that drive loyalty and reduce returns.

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