E-Commerce Boom’s Rise In Returns Presents A Unique Opportunity For Marketers
Australian e-commerce continues to boom amid COVID-19, with the latest figures showing online shopping for April shooting up 31 per cent year-on-year.
And in April alone, 5.2 million people made an online purchase, with online retail accounting for 11 per cent of total retail turnover.
Increased demand inherently means increased returns. Yet many Australian businesses still treat returns like a problem to manage, rather than the treasure trove of data and insights that it actually is, Rachel Caton (pictured), head of sales and marketing at delivery and returns company Doddle, told B&T.
“Data is at the heart of it,” said Caton. “If you think about e-commerce journey today, retailers – largely spurred by Amazon – have invested really heavily in making the front end experience seamless.
“Things like a one-click checkout and all of these components make it so easy for the consumer, so that they’re really incentivized to shop with them.”
The second half of the process, however, is where retailers are massively missing out, said Caton.
“When you look at the second half of the journey, if for whatever reason that product isn’t what you wanted, or isn’t what you expected, it’s a bit like going back in the dark ages to return it.
“The number of retailers that make a consumer call a customer service centre in order to initiate that return or actually want you to print out a form and fill it out is totally incongruous to the slick digital experience you went through it to get the item.
“What that means, particularly when you think about those paper experiences, it means that the retailers are missing out on all that valuable data to help them understand why consumers are returning in the first place.”
Caton adds that it’s not just retailers missing out, but consumers are missing out, too.
“Both numbers and stats that we’ve got around making that experience better whow you’re going to increase the purchase frequency, which ultimately is going to drive a better business outcome and customer loyalty.
“Consumers are missing out because they’re having a pretty dodgy experience going through it, and I think some of that comes from a perhaps slightly misguided belief that if they make returns less convenient, that consumers will be less inclined to return.
“Yet when we surveyed consumers, 72 per cent will check the return policy and process before they commit to purchasing. So I think retailers sometimes don’t appreciate how many customers they’re missing out on because of how they’ve marketed returns to them.”
Doddle’s survey also revealed 41 per cent of consumers have said they will stop shopping with a retailer due to a poor online returns experience
“What we’re doing [at Doddle] is trying to help retailers by educating them around the value of digitising that journey – things like return portals where a customer is able to give you the exact reasons they’re returning a specific item.
“That data can then be crunched by marketers and you can then start to know things like: is there a problem with our product? Is there a problem with our marketing? You also know which customers have a higher lifetime value. Because we’ve traditionally only looked at what they’re buying, we’re not matching that against it in returning.
“Bringing all of that together, it gives retailers a much richer sense of who their customers are and how they’re performing.
“If you have this old fashioned way of trying to prevent customers from returning, they’re not going to keep shopping with you.”
Not only does digitising the returns experience offer plenty of marketing opportunities, but it can also boost brand reputation, said Caton.
“Both numbers and stats that we’ve got around making that experience better whow you’re going to increase the purchase frequency, which ultimately is going to drive a better business outcome and customer loyalty.
“If it’s so easy to leave the retailer because you’ve had a bad experience, a good experience makes you more inclined to go back to them because you trust the experience you’re going to get and you trust how they are going to treat you as a customer.”
And, with COVID changing the way consumers are shopping, marketers need to look at a variety of delivery options to support consumers, whichever way they choose to shop.
“COVID has completely changed how consumers are shopping. Some have just shopped online for the first time, while others are becoming more astute to the experiences they expect.
“Up until quite recently, most people have been home all the time, so home delivery has been a more convenient proposition. But that’s come with its problems in that the network has been stretched to capacity and overcapacity.
“It’s created delays, which then hinders that experience. So services like click and collect or pick up, or Australia Posts collect and return network – all of these services which consolidate deliveries and enable more deliveries to be made quicker and more cost-effectively.
“This not only supports deliveries but is also a great end to a buying experience rather than a frustrating one because you’ve received a ‘sorry we’ve missed you card’.”
Please login with linkedin to comment
doddleLatest News
Revium Snags Peter Bauld From Deloitte Digital
Revium, a leading full-service digital and AI consultancy, has announced the appointment of Peter Bauld (lead image) as Executive General Manager. Revium is a full-service digital and AI consultancy with over 20 years of experience creating engaging digital experiences for leading organisations and their customers. Bauld joins Revium after an illustrious career spanning over two […]
EMG/Gravity Media Names New Managing Director
The makers of Australia's Got Talent has been a magnet for senior hires in recent times.
Opinion: Shark Tank’s Sabri Suby Slams Politicians Jumping On TikTok Ban Bandwagon
Are politicians actually scaremongering about TikTok or just fed up of you doom-scrolling in the work bogs?
TV Ratings: “Ivana Was Robbed” – Final Three Contestants Revealed On Australian Idol
B&T's unsure if these Idol contestants look extra young or whether we are as old as we feel.
Veridooh Snatches Prashand Menon From ScentreGroup
Out-of-home OOH) and digital media leader Prashand Menon (lead image) has joined OOH ad tech company Veridooh as group business director within NSW and QLD. Menon joins Veridooh from his most recent role as ScentreGroup’s group business director and brings with him more than 10 years of experience in Australian media. Previously, he held positions […]
Creative Content Studio OK COOL Answers APAC’s Call, Opening In Melbourne
Life set to get extra confusing for new agency staffers mistaking OK COOL for a pass-ag housemate text message.
Harry’s Cafe de Wheels & Hipages Launch New Pie To Fuel Tradies While On The Tools
The pies should apparently be better for tradies' health, apparently but won't be better for on-site ribbing.
Women Leading Tech’s Woman Of The Year Megan Dalla-Camina: What’s The True Cost Of Cutting DEI Spending?
Cutting DE&I spending might seem easy but you might change your mind when faced with Dalla-Camina's ire.
Thrive Introduces A Batch Of New Senior Leadership Roles
You could say that Thrive is set to thrive with these new hires. But that would be too obvious.
It’s Coming Home! Sponsors Make Subbuteo World Cup Finals Free
No idea what Subbuteo is? You clearly had a more exciting childhood than our editorial team.
Media Bigwigs Bet On Predictive Intelligence Platform Prophet In $5M Seed Funding
Prophet, profit, geddit? Must be laugh-a-minute in this startup's office.
CommsDeclare Brands Shell Energy An “Olympic Gaslighter” & Urges Agencies Not To Pitch For Creative Account
And we thought the gaslight Olympics took place in the Coogee Bay Hotel smoking area!
AFL Wins Battle With Warner Bros. As New AFL Team Is Revealed
There hasn't been this much wrangling over a cartoon animal since, well, ever!
BBC Podcasts Go Global With Amazon Music
Ironically, BBC podcasts unlikely to be available in the Amazon given the lack of signal.
Johnson & Johnson’s Former Consumer Healthcare Arm Reviews Creative
J&J inspired by Scottish term for knowledge 'ken' in its rebrand; nothing says 'wise' like a shot of Listerine.
Kat & Co Transforms Into THE WORLD OF Experiential Agency
After more than twelve years of producing experiences for some of the world’s most innovative brands, including Hermes, Van Cleef & Arpels, Louis Vuitton, and Tiffany & Co, Kat & Co has quietly metamorphosed into THE WORLD OF. THE WORLD OF is an experiential agency at the juncture of culture, technology and the human condition. […]
Adobe Brings Firefly Generative AI Into Substance 3D Workflows
Still unclear of what generative AI actually is? Steer clear of this story.
Clemenger BBDO Introduces Saucy Campaign With Declan Cleary & Lee Kum Kee
When we heard this was a saucy campaign, we thought it be the barbecue and ketchup showdown we'd been waiting for.
Gawk Acquires 40 Billboard Locations From Transad
Gawk makes it move out of VIC into NSW with acquisition. Has promised to stop going on about Melbourne nightlife.
All About Attribution: Commission Factory Releases New eBook
Ever wanted to dive deep into channel attribution? Consider this the perfect springboard.
SMG Studio Launches Risk: Global Domination X Dune Part Two
Through a licensing agreement with Legendary Entertainment, SMG Studio inked the rights to adapt Dune: Part Two into a game based on Risk: Global Domination, Hasbro’s interactive board game. Inspired by Denis Villeneuve’s cinematic masterpiece, Dune: Part Two, this new digital adaptation, RISK: Global Domination X Dune: Part Two, is poised to captivate players from […]
RMIT Study Reveals That 73% Of Employees Don’t Believe Gen AI Is Relevant
Noticing staff switching off when you tell them about gen AI? Understand why here.
Australian Eggs Launches Egg-citing New Campaign Via Connecting Plots
How do you like your eggs in the morning? We usually skip them and go straight for the darts and whisky.
Future Lions 2024 Invites Young People To Be Heard With Spotify
Future Lions, of course, is the AKQA-backed student initiative at Cannes Lions, not a feeder for the rugby team.
QMS: Taylor Swift, Lunar New Year & Mardi Gras Were Boon For OOH Market
Taylor Swift, Lunar New Year and the Sydney Gay and Lesbian Mardi Gras Festival have had a dramatic impact on the number of people moving in and around Sydney over the past month, drawing big crowds into the heart of the city and its surrounding suburbs. New data from digital outdoor company QMS reveals a […]
Legend John McEnroe Joins Pepperstone’s Team Of Global Tennis Ambassadors
Despite the deal, McEnroe remains confused about difference between above- and below-the-line marketing.
LinkedIn Launches New Thought Leader Ads For Companies To Promote Member Posts
Though LinkedIn couldn't get any more insufferable? You thought wrong.
Latrell Mitchell Smacked On Wrist After Dropping Multiple F-Bombs In Post-Match Triple M Interview
Andrew Abdo has confirmed he is not angry... just disappointed.
TV Ratings: “When You Do Love Yourself, You’re Amazing” – Is This MAFS Most Heart-breaking Split?
Hold the press. MAFS groom and bride actually shown to be nice people.
Opinion: The Only Drag Marketers Should Be Worried About
Thought Transactional Drag was a lifeless club night in Newtown? Read this and you'll think again.
AWARD School Welcomes Class Of 2024
It's best to think of AWARD School like Survivor but with pitch decks instead of swimwear.
Interest In Motorsports Reaches New Heights As Formula 1 Grand Prix Revenue Expected To Surpass $100 Million
Need to get a dull sports client some quick results? Rustle up a Netflix series and watch the dollars roll in.
Chair Rob Murray To Depart As SCA Considers ARN’s Latest Takeover Bid
Struggling to make heads or tails of the SCA & ARN saga? Add this to your woes.
Adland Legend John Singleton Separates From Seventh Wife
Singo calls it quits with seventh wife as his race with Rupert Murdoch to become the most-married man continues.
ACCC Eyes Search Competition, Citing ‘Decreasing’ Quality & Rise In Generative AI
The only decline in search quality we notice is when B&T doesn't appear at the top of Google.
“Imagine A Career Above The Clouds”: Royal Australian Air Force Launches New Campaign Via VML
Don't worry about the forthcoming war with China - at least you'll get a bird's-eye view of the apocalypse.