Dynamic Returns - Reducing Return Abuse and Unlocking a Better Return Experience

Generous return policies are essential for attracting and retaining customers - even more so in times of economic uncertainty. However, with the growing trend of return abuse, retailers are re-evaluating their existing policies. Increasingly, they find themselves trying to balance profitability with customer experience. This is where understanding customer intentionality becomes a driving force.

Clustering users based on intentionality enables the ability to segment and target users more optimally.Yofi is doing this with its retail partners today by layering in dynamic policies through Loop and pre-built integrations with Yofi’s platform. The combined effect is reduced return rates, improved customer retention, and operational efficiencies. 

Once a customer's true intention is understood, friction can be added or removed to the CX through tailored policies that align with the retailer's goals. Below are examples of segments and dynamic policies we have recommended to our customers. 

• Return Abusers: Reduced return fraud by up to 85%.
  • Surcharge or Fee: Implementing a small fee for bad actors, either a dollar amount or a percentage. We have identified that 2% of customers contribute 20% of returns. This policy helps discourage return abuse and recover some of the costs associated with these returns.
  • In-Store Returns Only: Require high-risk customers to return items in-store.
  • Store Credit Only: Offer store credit instead of an original payment refund for certain returns.
  • Category-Based Policies: Apply specific return policies for different categories, such as dresses or electronics.
• High Value Customers: Increase LTV by 12%.
  • Instant Refunds: For good customers with a low likelihood of return abuse, enabling instant refunds can boost Lifetime Value (LTV), retention, and customer satisfaction. This policy rewards trustworthy customers and encourages positive behavior.
  • Extended Return Windows: Give extra time to the customers who deserve it. This policy ensures that customers less likely to return items are allowed additional time to get comfortable with their purchase.
• New Customers: Increase repurchase rates by up to 15%.
  • Credits and Incentives: Offering a credit-based incentive for good returners who are first-time purchasers. This policy helps build loyalty and encourages first-time buyers to return and make additional purchases.
  • Benefit: Credit-based incentive for good returners who are first-time purchasers can increase repeat purchase rates by up to 30%.

Transforming Your Return Experience‍

Combining dynamic policies with customer clusters and risk scores can accelerate brands and retailers. Yofi specializes in this; our proprietary clustering tools and integrations with Loop are the activating ingredients driving profits and enhancing customer experience for multiple retailers.

Book a trial with Yofi to experience the benefits of dynamic policies that support all return platforms, including Loop, Narvar, Returnly, and custom platforms.