What: Returns are an inherent part of the retailer’s life and there are some methods to make them an efficient growth lever.

Why it is important: Individualization and targeting the right profile might help to maximize the customers’ lifetime value while providing them with an optimal experience.

Returns are a necessary component of the consumer journey but this does not mean that they should be harmful to the retailer. However, it is often the case that return policies apply indiscriminately to all customers, independently from their history, relationship or even reason to return. The Robin Report argues that returns should be treated as a marketing channel to know more about customers and ultimately improve the relationship.

Not all returns are equal: there is a difference between the big spender, the customer who returns more than what she keeps, and the one who systematically returns the product after having worn it. All three might want to return the product 31 days after the purchase, and in some cases, sticking to the 30 days limit rule might prove more harmful on the long range than the sheer cost of the return, when it comes to nurturing the relationship with customer.

According to the Robin Report, the use of AI, engagement on the point of return, individualization of policies according to the customer and targeted incentives are easy ways to improve the profitability of the return and at the same time improve the customer lifetime value.

Returns are the next frontier