redefined - UPSlow retail apparel return rates, when you ship out 40,000 to 50,000 packages a day, 6...

2
Photograph: James Schnepf; Illustration: C.J. Burton 6 COMPASS SUMMER 2010 W hen BuySeasons Inc., an online specialty retailer of costumes, accessories and seasonal party supplies, signed up for a UPS Returns ® Flexible Access trial program, company leaders weren’t sure what to expect. Would customers notice and appreci- ate the additional return access points – including their local post office? Would the ultra-convenience lead to an undesir- able increase in returns? What they dis- covered was that customers didn’t return products more often – a good thing – and they had fewer questions, which saved customer service reps time. “We’ve seen fewer [phone inquiries] with our customers,” says Terry Rowinski, vice president of operations for BuySeasons (buyseasons.com). Here are five other ways your returns strategy can benefit your bottom line: 1 Improve customer service. It’s true; a good returns program brings back more than packages. It also brings back customers. If your customers are happy with their overall experience, including returns, they’ll be back. With three different returns options (see sidebar at right), UPS has a program that’s right for your business. Returns are a critical part of PHH Mortgage’s service strategy. The New Jersey-based residential mortgage com- pany provides a UPS return label and envelope in every mortgage package, making it simple for clients to send back essential documents. Terry Rowinski of BuySeasons says making returns more convenient didn’t increase his return rate. “They can track it themselves, which is kind of cool.” Your returns policy is one of the most visible elements of your company’s customer service record. In a 2008 Forrester Research study of online returns, 81 percent of customers agreed with this statement: “If an online retailer makes it easier for me to return a product, I am more likely to buy from that retailer.” While a crucial differentiator for retailers, returns can be a key to growing nearly any business in any industry, allowing you to save time and money and outshine your competition. Cover Story A strong strategy will keep your customers coming back and revenues rising. Returns redefined

Transcript of redefined - UPSlow retail apparel return rates, when you ship out 40,000 to 50,000 packages a day, 6...

Page 1: redefined - UPSlow retail apparel return rates, when you ship out 40,000 to 50,000 packages a day, 6 percent coming back is still a lot,” Rowinski says. Employees carefully inspect

Photograph: James Schnepf; Illustration: C.J. Burton6 COMPASS S U M M E R 2 0 1 0

W hen BuySeasons Inc., an online specialty retailer of costumes, accessories and seasonal party

supplies, signed up for a UPS Returns® Flexible Access trial program, company leaders weren’t sure what to expect.

Would customers notice and appreci-ate the additional return access points – including their local post office? Would the ultra-convenience lead to an undesir-able increase in returns? What they dis-covered was that customers didn’t return products more often – a good thing – and they had fewer questions, which saved customer service reps time.

“We’ve seen fewer [phone inquiries] with our customers,” says Terry Rowinski, vice president of operations for BuySeasons (buyseasons.com).

Here are five other ways your returns strategy can benefit your bottom line:

1 Improve customer service. It’s true; a good returns program brings back

more than packages. It also brings back customers. If your customers are happy with their overall experience, including returns, they’ll be back. With three different returns options (see sidebar at right), UPS has a program that’s right for your business.

Returns are a critical part of PHH Mortgage’s service strategy. The New Jersey-based residential mortgage com-pany provides a UPS return label and

envelope in every mortgage package, making it simple for clients to send back essential documents.

Terry Rowinski of BuySeasons says making returns more convenient didn’t increase his return rate.

“They can track it themselves, which is kind of cool.” Your returns policy is one of the most visible elements of

your company’s customer service record. In a 2008 Forrester Research study of online returns, 81 percent of customers agreed with this statement: “If an online retailer makes it easier for me to return a product, I am more likely to buy from that retailer.” While a crucial differentiator for retailers, returns can be a key to growing nearly any business in any industry, allowing you to save time and money and outshine your competition.

Cover Story

A strong strategy will keep your customers coming back and revenues rising.Returns

redefined

Page 2: redefined - UPSlow retail apparel return rates, when you ship out 40,000 to 50,000 packages a day, 6 percent coming back is still a lot,” Rowinski says. Employees carefully inspect

S U M M E R 2 0 1 0 COMPASS 7

“Purchasing a home is one of the big decisions that someone makes in their lifetime, and we work hard to make it as smooth and as easy as possible,” says Ed Hickson, PHH’s director of distribution and fulfillment. “All they have to do is stick the label on the package we provide them and drop it in a UPS Drop Box, and it’s back to us.”

2 Maximize your inventory. An efficient returns process means faster turnaround, so your inventory spends

less time in no-man’s land and more time working for you. And with UPS technology, packages are tracked every step of the way, so you’ll always know the location of your restockable products.

eCardio, a leading provider of heart monitoring devices, was experiencing a 50 percent loss of inventory. “Patients would claim they returned the device, but we would never receive it,” says Heidi Tomberlin, operations manager for the Houston-based company.

But with UPS Returns Flexible Access, eCardio is seeing a nearly 100 percent return rate, which means the company doesn’t have to replace expensive inventory, and the devices spend more time helping the company serve clients and patients.

3Increase sales. More and more people are used to shopping online, but familiarity does not breed total

trust. That’s why a good returns policy, including a pre-paid return label, often results in higher sales. Confident

customers are more likely to make that purchase, while not increasing your return rate. They simply like the extra security.

4 Streamline routing. Within large businesses, the person who sends out a package is rarely the same

person who processes the return. Clients’ completed PHH Mortgage packages are returned directly to a ven-

dor in Maryland, which converts the documents to elec- tronic images for fast, secure access by PHH employees. “For somebody who is looking to increase timeliness with

a customer transaction, and needs the flexibility to work in this global market, it gives you an excellent tool,” Hickson says of UPS Returns.

5 Anticipate staffing needs. BuySeasons uses UPS’s tracking technology not only to keep an eye on its mer-

chandise but also to plan its staffing needs. “Even with our low retail apparel return rates, when you ship out 40,000 to 50,000 packages a day, 6 percent coming back is still a lot,” Rowinski says. Employees carefully inspect all returned merchandise to determine what can go back on the shelves. UPS tracking technology enables supervisors to anticipate high returns traffic and adjust work schedules accordingly.

Whatever your company’s returns needs, UPS has a returns strategy that’s right for you – and your customers.

UPS offers a robust portfolio of returns options, making returns easier for you and your customers and helping you turn returns into revenue.

UPS Returns® Flexible Access is brand new. Using a unique return label, your customers can now drop off their return packages at thousands of UPS and U.S. Postal Service locations – including their personal mailboxes. Packages given to the USPS are then picked up by UPS drivers and put into the UPS delivery system. Both you and your customers can track the packages’ progress online.

UPS Returns® allows you to process and track return shipments with ease, not just within the United States but in 98 countries and territories. You can print a UPS Returns label to include in your outbound package,

send the return label separately, or request UPS mail or e-mail a return label to your customer. You also can provide your customers with the ability to initiate returns

from your website, track their merchandise and receive a quick return of goods through UPS.

UPS Returns® Plus provides you the most assurance. You can arrange for UPS to pick up a package being returned directly from your customer, with two choices:

n 1 UPS Pickup Attempt: UPS will make one attempt to pick up your package. If the package cannot be collected, UPS will leave the return label at the pickup location.

n 3 UPS Pickup Attempts: UPS will attempt to pick up your package for three consecutive business days.

3 returns options from UPS

To learn more about UPS Returns solutions,

visit ups.com/returns or flexibleaccess.ups.com.