Reduce returns through insights into return data
Reducing the number of returns brings many benefits. For example, the return process is not only time-consuming, but also costly. Moreover, many returns can also have a negative impact on customer satisfaction and the image of your webshop.
What are return dates?
Return dates are the data collected from the products customers return. This data can vary from the reason for return, the type of product, and the carrier that delivered the product.
Anaylsing return data can provide valuable insights for your business. It can help identify patterns, increase customer satisfaction and ultimately improve profitability.
Different types of return dates
So analyzing return data is essential if you want to optimize your return process. Read here which different data you should pay attention to and what exactly they mean.
1. Return rate
The return rate is the percentage of products sold that are returned by customers and gives an indication of how much of the total revenue is lost after a purchase is made. You can further distinguish between the return percentage per product and per carrier.
If you notice that a particular product is getting above-average returns, you can start investigating why. Perhaps the size falls differently than usual, the product photos on the website do not give a good impression of the product, or the quality of the product is not what customers expected.
By examining these questions, you can make improvements that increase overall customer satisfaction.
Carriers play a crucial role in the customer experience. A reliable carrier can make the difference between a satisfied customer and an unsatisfied one. By analyzing the return rate by carrier, you will gain insight into which carrier contributes to the best customer experience.
These insights help make strategic decisions about which carriers to use for future shipments. It just might be that the cheapest carrier is not the one that will get you the most.
2. Return impact index
The Return Impact Index is a list of products that have the most impact on your return rate. This index helps identify which products are strategically important to reduce your return rate.
Some products can have a greater impact on the return rate than others. This may be due to quality, price, or even customer expectations.
It is important to identify these products and take appropriate action in, for example, graphics, product description or sizing.
3. Exchange ratio
The exchange ratio is the ratio of the number of returns that are exchanged. This can be an indicator of customer satisfaction and the quality of your products. A high exchange ratio can indicate satisfied customers who are happy to buy from your store, even if the first product does not meet their expectations.
Actively offering exchanges during the return process can greatly increase the exchange ratio. By converting more returns into exchanges, you retain sales that would otherwise be lost.
4. Net sales by country
Net sales by country is the returned value/order value by country. Different countries may have different return rates and their own net sales. By analyzing this data, you can develop effective marketing strategies for each market so you can invest more in the markets that bring you the most profit.
Get more insights from your return data
Managing returns and analyzing return data is an essential part of running a successful webshop. By paying attention to return rates, Return Impact Index, exchange ratio, and net sales per country, you can optimize processes within your company and thus increase profitability.
Did you know that with Returnista you can monitor more than 50 data points in real time? By taking strategic action based on return data, you can dramatically increase the turnover of your webshop. For example, read in our case about Filling Pieces how they reduced the return rate by 21% in 2 months and increased turnover by 20% by actively offering exchanges.