Event overview
Returns are a major cost in online retail, and a disproportionate share can sit with a relatively small group of high returners. In a study (Nudge Letter) of 485 UK consumers, banning serial returners scored 68.7/100 for perceived effectiveness against wardrobing, versus just 33.7/100 for shortening the returns window. This finding mirrors our own study found, click here, and when shoppers were asked what they would thought was the most effective way to reduce returns, returns fraud and abuse, they shared that an email, letter or call from retailers investigation team” would be seen by them the second most effective deterrent, only narrowly less attractive than the addition of a return fee, which when introduced has a known negative impact on sales. So could simply contacting the serial returners be a more effective intervention, that avoids the introduction of a returns fee?
Regrettably, for while there is a growing body of good theory supporting the use of this “yellow card”: via a targeted warning letter or email, or series of letters and emails, telling customers with unusually high return behaviour that their activity has been noticed and may lead to restrictions if it continues, there remains remarkably little evidence on the effectiveness of this communication, did the returns rates with these serial returners actually change post the communications, if yes, what was the magnitude of the change in returns rates, and what about the lost sales? And then what about the cost savings in shipping to and from the customers? Finally, were any “gains” held or did the serial returners revert back to being serial returners over time?
This retailer-only working session will bring together 30+ ecommerce businesses and will aim to move the dialogues beyond anecdote and quantify what yellow cards are worth with real world case studies from the retailers in the working group who we know have adopted this communication based approach to reducing returns.
Expect to leave this meeting reassured, inspired and energised from your retailers peers learnings and then retailer feedback and ideas for your own “yellow card” programme.
