Reimagining Your Returns Experience For The Next Era Of Retail

By Genefa Murphy, Five9

The explosion of eCommerce during the pandemic has shed new light on a familiar challenge for shoppers and retailers. According to the National Retail Federation, online shopping returns doubled in 2020, and, of the $565 billion in merchandise purchased online, approximately $102 billion of it was returned.

The latest research also shows that the return experience is now a make-or-break factor in the loyalty of the post-pandemic shopper. In a 2020 consumer survey by Doddle, 84% of respondents said the returns process is important in shaping their opinion of a retailer – slightly more than the 83% also said delivery and payment services are also important. This is interesting data given that three out of four of those same respondents feel that retailers’ return experiences need improvement.

Now for the good news: Based on research by eCommerce management platform Narvar, 95% of customers who are satisfied with a returns process say they will purchase from the retailer again. This means retailers can leverage returns as a touchpoint to drive customer loyalty. They can transform refunds into retention programs and repeat purchases – so long as they can reduce the friction and frustration that have traditionally plagued this process. Setting up your customer contact center to improve communication and efficiencies around returns is one of the best places to start.

Create The Foundation For A Positive Post-Purchase Experience

Most customers want to know a retailer’s return policies before they make a purchase. This information should be readily available and visible to customers - whether they are shopping on your website, using your mobile application, or speaking with a sales associate over the phone. However, fewer than one-third of respondents to the 2020 and 2021 Five9 Customer Service Index surveys said they can easily find the information they need when reaching out to a contact center. The rest either struggle to find the right info or fail to find it at all. Retailers can improve this experience by providing on-demand resources and proactive updates via intuitive, always-on self-service channels.

Frequently asked questions about return eligibility, refund status, store or shipping locations, and many others can be automated over the phone, text, or chat channels using intelligent virtual agents (IVAs). Powered by machine learning and conversational AI technology, IVAs are much more evolved than their chatbot ancestors, which were limited by inflexible, hard-coded, rules-based functionality. IVAs can have more interactive and dynamic conversations with customers and complete simple tasks such as processing a transaction or sending additional information via text message or email. You also can use them to automate outbound messages letting customers know when their return has been processed and when to expect their refund.

Over the phone, IVAs deliver a far superior experience to IVRs of the past and provide a similar experience to speaking with a Google Home or Alexa device, allowing customers to ask their questions naturally (rather than pushing buttons on a keypad) and get fast, accurate answers. This is an excellent option for customers who are on the go, or who simply prefer voice to touchtone. Other customers might prefer to use a mobile application instead of voice, and those sitting in front of a laptop will appreciate a chat option.

The key is to provide options for all types of shoppers and to make sure they know these resources are available. Include clearly marked return-related web addresses, mobile app information, and phone numbers with receipts and purchase confirmations.

Optimize Issue Resolution 

However, not all return questions or issues can be resolved using self-service, and many customers would rather speak to a live person right away – especially if they are unhappy with their purchase or concerned about receiving a timely refund. In fact, the same Five9 Customer Service Index cited earlier also showed that when issues are urgent (like getting your money back for a refund) customers often preferred phone as the channel of engagement. This is why the right contact center technology and integrations are essential and can often smooth these conversations significantly.

For example, intelligent omni-channel routing allows you to send incoming customers to your best available people based on your business priorities. Furthermore, integrating your contact center with your CRM database enables customers to be routed based on a customer’s contact information, account number, or other useful information. Routing rules can be applied based on a customer’s location, language preferences, lifetime value, risk of churn, and loyalty or account status. Additionally, agents are more prepared for difficult conversations by using CRM integration to easily surface each customer’s purchase and interaction history.

An IVA also can increase routing accuracy. It can collect customer information during a self-service interaction, route the customer accordingly, and pass key context to a live agent so they can pick up where the last conversation left off. Even better: Advanced conversational AI technology such as sentiment analysis can be used to detect if a customer is frustrated and immediately route the call to an appropriately skilled agent, such as a retention specialist. Ensuring that your live, digital, and self-service channels share the same back-end integrations will allow live agents to easily pass interactions back to an IVA to process a credit card transaction or follow up with a text message directing a customer to their nearest return or shipping location.

Efficient contact center routing and integrated systems cut down on customer effort during returns and reduce the time it takes to resolve frustrations leading to more satisfied customers who are more likely to return.

Use Customer Data To Drive Personalization And Convenience

In addition to accelerating problem-solving during the returns process, robust customer data can make each return experience feel more personal – but only if the data is actionable and actioned.

AI and analytics tools can help you make the most of your contact center reporting and CRM data to guide customers and agents to the best outcomes. For example, imagine that a shopper calls about an item that isn’t working for them. Speech analytics technology can capture real-time data from that conversation and feed it to an AI engine that can immediately provide insights and guidance via an agent coaching tool. The coaching tool can use screen pop messages to recommend alternative items that an agent can suggest and whether those items are in stock at a store that is convenient to a shopper. Or it can recommend providing a “make-good” discount on an item that the customer has previously purchased, demonstrating that the retailer knows and understands the shopper.

Good reporting and analytics also can help you optimize your overall returns experience. It can reveal additional FAQs or service tasks related to returns that are ripe for automation. Or it can help you discover common customer preferences and frustrations that can inform better policies and processes. Tracking trends to gain actionable insights and credible data helps support strategic changes that will require executive buy-in.   

Looking Ahead

The next era of retail is built around post-pandemic shoppers who have embraced shopping from home or a hybrid experience (buy online, pick up in store). Yet, retailers must address purchasing and making returns as frictionless as possible or risk losing customers. Retailers that optimize their contact centers for intuitive, efficient, and personalized return experiences across channels from self-service to live agents will not only retain their customers but also will grow their base and attract new customers.

About The Author

Genefa Murphy is the CMO of Five9.