“Retailers are expected to see the value of merchandise returned in 2008 increase a whopping 23% to reach $219.1 billion, fueled in large part by a combination of shaky consumer confidence and retailers’ desire to develop shopper loyalty with flexible return policies, according to a new report by the National Retail Federation” reported in Wall Street Journal
Wow. This is huge. As marketers we mostly focus on the topline and margin mazimization, but when returns are expected to go up 23% that cuts to the bottom line in tough times.
Our applications, such as Ratings & Reviews and Ask & Answer, are mostly focused on helping drive traffic, conversion, average order value. However, we are pleased to announce that User Generated content can reduce returns. Reducing returns will be a strategic priority for your CFO this year, and obviously maintaining customer satisfaction and loyalty to retain customers.
So, I’ll point you to a case study showing how Ask & Answer reduced returns for a major retailer. It makes sense…a customer more researched, thoughtful and invested in their purchase will be more likely to retain their purchase.
Reviews reduce product returns 20%
PETCO found that products with reviews have lower return rates, and those with more reviews have even fewer returns.