3. Empowering store and warehouse associates: Training and technology
Frontline associates play a critical role in shaping the store returns experience. Equipping them with the right training and technology is essential. Associates should be thoroughly trained on return policies, systems, and troubleshooting procedures, enabling them to handle store returns efficiently and empathetically.
Access to real-time customer and inventory data can streamline returns processing, empowering associates to system-driven decisions about inventory disposition —i.e., how to send the item to the next, best, highest-margin channel.
4. Maximizing recovery & profitability: Inventory management, recommerce, and data analysis
When managed effectively, omni-channel returns can become a source of revenue retention rather than a drain on profits. Real-time tracking of returned inventory is key to efficient processing and reintegration of goods.
Blue Yonder’s Smart Disposition technology, for example, intelligently routes returned merchandise to the most profitable destination, whether that’s back on the shelf, an online storefront, transfer to another store, an outlet, or a distribution center.
Recommerce and circularity initiatives offer further opportunities to maximize recovery. Returned items can be refurbished and resold, or businesses can partner with resale marketplaces to tap into the growing secondhand market.
Finally, data analysis is essential for continuous improvement. Analyzing return data can reveal valuable insights into customer behavior, product quality, and operational efficiency. These insights can be leveraged to optimize inventory, refine pricing strategies, and elevate customer service.
Delivering the best in-store returns experience
When evaluating your ability to deliver a friction-free, store returns experience, there are several factors to consider:
- Your target audience – What are their shopping behaviors across channels? What are their expectations when it comes to omni-channel? How can you increase revenue by encouraging omnichannel behaviors?
- Your returns trends & insights – What is your average return rate? Return rates by channel? How do they compare to industry benchmarks? Higher rates/volume and added complexity can often justify a dedicated store returns solution.
- Your current store returns processes – What are you able to do with items returned to a store currently? Do you have instant markdowns or messy piles of salable inventory? How do your store associates feel about processing returns?
- Your technology & software – What systems do you have in place or perhaps need to have in place? How are they communicating relevant order information to each other so that every shopper and associate has the relevant information they need to avoid frustration (i.e., friction). Evaluate your point-of-sale (POS) system, your order management system (OMS), your returns management system (RMS), and your warehouse management system (WMS) to see if they are working hand in hand to tackle your returns issues.
- Your CSAT for omni-channel returns – How well are you performing when it comes to creating delightful returns experiences with omnichannel complexity?
- Your financial recovery for store returns – How much value are you able to recoup from returned inventory? Can you systematically and intelligently route items to the highest-margin channels?
Reimagining returns as a strategic opportunity
Omni-channel returns are not merely a logistical challenge; they represent a strategic opportunity to build customer loyalty, enhance brand reputation, and drive profitability. By embracing a holistic strategy that encompasses a clear and flexible policy, empowered associates, technology-driven efficiency, and a commitment to customer-centricity, businesses can transform returns from a potential pain point into a source of competitive advantage.
Instead of viewing returns as a necessary evil, businesses should embrace them as a valuable touchpoint in the customer journey, one that can foster lasting relationships and contribute to a more sustainable and profitable future.
