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In October 2024, ZigZag gathered some of the biggest names in retail to share experiences and take a look at the recent research we compiled with Retail Economics on the scale of UK returns.
Richard Lim, CEO of Retail Economics kicked off the day highlighting some of the key characteristics of the four returner cohorts that were uncovered by the Annual Shopper Research 2024. Richard highlighted the behaviour and expectations that shoppers had, from their likeliness to buy with the intention of returning to their need for locker drop-off options, and ultimately their financial impact on retailers. You can watch his session here >>
We then explored the strategies and tactics retailers can deploy to reduce the impact of each of the four returner cohorts, and how to turn them from frustrated returners to lifelong brand enthusiasts.
The session was led by Laura Davies, Director of Client Success at ZigZag, and Jason Taylor, Commercial Director at ZigZag. Both speakers have just passed their 4-year ZigZag anniversaries and share similar backgrounds that spread across logistics and retail.
You can watch the session below:
In this presentation, Laura and Jason discuss the importance of retailers to better understand the type of profile their customers sit in and consider their motivations and desires when returning to better adapt the process to their needs. Laura also looked at some simple but effective methods for introducing paid returns without alarming or irritating customers.
Some of the strategies to employ to manage and delight each of the four returner cohorts.
Serial Returners
If you have customers buying items in multiple sizes and colours with the intention of returning, or just return a high percentage of their order, it could be wise to take a closer look at the type of marketing promotions you offer, particularly those that encourage over-ordering items.
Our research showed that 17% of over-ordered products to activate a free delivery promotion with the purpose of returning some of the items.
You can also charge for returns! Serial returners are the cohort most likely to be unperturbed by a returns fee, so offset some of the financial burden by charging for part or all of the returns process.
Slow Returners
For customers that drag their heels and take more than 10 days to process their return after downloading a label, why not send SMS or email reminders.
Distance Selling Regulations give customers 14 days to initiate a return and a further 14 days to get the return back. So, you could consider really pushing the 14 days, to create some urgency. Some retailers and even carriers ask their customers to return within 7 days after downloading the label.
Efficient Returners
These returners can be your best friends, they don’t want to make a return if they don’t have to, but when they do, they want a hassle-free experience. If you give them the tools they need to return quickly, they will.
Provide this group of returners with a clear, concise, and easily findable returns policy on your website. Efficient returners want to get the return done, the last thing you or they want to be doing is contacting customer support.
Occasional Returners
Occasional returners are typically the lowest spending cohort. Baby Boomers make up the biggest chunk of this cohort and they might be more wary of shopping online, so why not reassure them with a seamless returns process that builds their confidence? You should also keep them in the loop with tracked returns and proactive post-purchase comms.
When looking at goods outside of clothing and footwear, more than 20% of returns are processed due to the item arriving defective or damaged. And for occasional returners, they are 30% more likely than any other cohort to report their clothing purchase as damaged. So monitor your toxic products through a service like ZigZag’s Returns Reporting Hub, and act accordingly.
If you want to find out more about the data discussed in this presentation, please head to our reports section and download the latest insight.
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