The Seven Principles Of Effective Returns Management

Reducing returns, especially fraudulent returns, is one of the few operational areas where improvements impact the top and bottom lines simultaneously. Reducing return fraud improves net sales, gross margins, and cash flow, and results in more accurate inventory and commission payments. Providing a faster and better returns experience, including seamless cross-channel returns, increases customer loyalty.

An effective returns management solution should support your overall returns management strategy without leading to actions that cause you to lose customers. Oracle Retail has identified the following seven principles that should be integrated into the design of a returns management solution:

1. Align your return policy with your brand promise, including service objectives and merchandise assortment, to ensure customer satisfaction.
2. Clearly communicate to your customers your return policy and their return compliance status to prevent surprises.
3. Empower your employees to better serve customers and prevent conflict.
4. Speed the returns process to keep your good customers.
5. Proactively prevent fraud at the point-of-return.
6. Enable cross-channel returns to retain your most profitable customers.
7. Regularly review your policy to ensure it strikes the right balance between fraud reduction and customer service.