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
Sydney Comedy Festival: Taking The City & Social Media By Storm
Sydney Comedy Festival 2024 is live and ready to rumble, showing the best of international and homegrown talent at a host of venues around town. As usual, it’s hot on the heels of its big sister, the giant that is the Melbourne International Comedy Festival, picking up some acts as they continue on their own […]
Global Marketers Descend For AANA’s RESET For Growth
The Australian Association of National Advertisers (AANA) has announced the final epic lineup of local and global marketing powerhouses for RESET for Growth 2024. Lead image: Josh Faulks, chief executive officer, AANA Back in 2000, a woman with no business experience opened her first juice bar in Adelaide. The idea was brilliantly simple: make healthy […]
Is Meta’s New AI Chatbot Too Left-Wing?
Meta's chatbot accused of being left-wing after being caught wearing a Che Guevara T-shirt & listening to Billy Bragg.
TV Ratings (23/04/2024): Why Did No One Tell Angela That Farmer Wants A Wife Is Set On A Farm?
As wonderful as this headline is, let's face it, we all know an 'Angela', don't we?
PubMatic Unveils New AI Partnership To Turn Social Posts Into Ads For Any Digital Channel
Here's some nifty tech for turning social posts into ads. Assuming said posts aren't one-star character assassinations.
Intuit Mailchimp Makes A Splash With Its First Australian Brand Campaign
Ever laugh along at a gag you didn't get so as not to appear dumb? Get ready for more feigning with this new work.
GumGum’s Rob Hall: Advertisers Can No Longer “Rely On Binary Descriptions” Of Consumers
If anyone's got their finger on adtech's pulse, it's Rob Hall. He also avoids using the good paper in the office printer
Mastercard Nabs Florencia Aimo From Marriott International
Marriott International's Florencia Aimo jumps from the hotel business to the exploitative credit card one.
Bastion Agency Appoints Cheuk Chiang As New ANZ CEO
Cheuk Chiang takes the reins over at Bastion Agency. But not the rains down in Africa.
Spotlight On Sponsors: Major Sponsorship Wins After A Disappointing Week In Sport
B&T continuing our deep dive into local sport sponsorships & that's despite not a single offer of a free ticket as yet.
Macca’s Marketing Director, Samantha McLeod On Big Mac Chant: “What Was Once Old Is Now Cool Again”
Macca's using the power of nostalgia in latest Big Mac campaign. Well, only for those who've ever eaten one sober.
World Premiere Of Midnight Oil: The Hardest Line To Open Sydney Film Festival 2024
Oil's biopic to open Sydney Film Festival. Here's hoping Molly Meldrum will take his pants down at the premiere.
Entries Are Now Open For The 2024 Brandies, IntelligenceBank’s Annual Brand Marketing Awards
The Brandies are, of course, a prestigious marketing gong and not the mystery tipple favoured by nannas everywhere.
The Fred Hollows Foundation Appoints Ardent For PR
Yes, we all like to have a joke at PR's expense. But sometimes it does important work, like this.
AI, eCommerce & Marketing Specialists Are In Increased Demand By Businesses, New Data From Fiverr Shows
Has your philosophy & anthropology degree left you with nothing but a huge HECS debt? Here's what you should've studied.
Perth’s First 3D Anamorphic Billboard Arrives Courtesy Of oOh!media
Do you love a buzzword? Now you can add anamorphic to the list as it relates to billboards, not a colleague's ears.
MasterChef Australia & Crown Resorts Launch Unique Dining Experience With ALUMNI
A pop-up restaurant staffed by MasterChef contestants! That's fine dining prices for first-year apprentice chef cuisine!
Amanda Laing Announces Resignation From Foxtel Group
Foxtel's chief commercial & content officer heads for the exits. Read nice things the bosses said about her right here.
The Lost Letters From Our Diggers: News Corp Unveils ANZAC Day Special
It's nice when brands respectfully acknowledge ANZAC Day.
Howatson+Company Acquires Akkomplice
Large indie acquires a slightly smaller indie. Much like a shark eating a tuna, just with less thrashing and blood.
Google Delays Third-Party Cookie Deprecation Again
In good news for the sale of picture library biscuit photos, Google continues to tease over the end of cookies.
Education A Low Priority For Aussies More Concerned With Cost Of Living Forethought Study Reveals
Study finds Aussies cutting back on education due to cost of living. Booze & Uber Eats sales remain largely unaffected.
“I’m Still The Same Person That I Was”: Rikki Stern Says “Fucc It” To Cancer Stereotypes
B&T always happy to promote the anti-cancer cause. Even brands that massively overdo it with the hot pink.
The Unapproved Climate Certification Allegedly Causing Mass Greenwashing
Are you left flummoxed in the canned tuna & free range eggs aisle? Just wait till this green certification gets up.
TV Ratings (22/04/2024): Fans Mock “Over The Top” Reaction To New MasterChef Judges
MasterChef returns for its 2024 season. B&T stands by putting peppercorns in Gravox & no one will be any the wiser.
Dentsu Restructure: Muddle, Harvey & Johnston Take Leadership Baton As Bass & Yurisich Exit
A large broom has swept through Dentsu's local ops this morning, taking with it some big names & the air con's cobwebs.
Industry Shares Trends Shaping The Industry This International Creators Day
B&T's asking adland creators to reveal their top trends. And it's not good news for your Jenny Kee cardigan collection.
Mable Extends HOYTS Sensory Screenings Partnership
Mable has extended its HOYTS sensory screening partnership. Vigorously defends its two-star Oppenheimer review.
Orphan Launches ‘They Need Our Help. We Need Yours’ For Children’s Cancer Institute
Anything to do with childhood cancers has B&T's 110% support. That said, we do ignore the red meat & alcohol warnings.
Smile Team Orthodontics & Keep Left Collaborate On Smile-Inducing Campaign
As parents would attest, given the cost of orthodontics you'd expect this campaign to be a lavish production indeed.
Opinion: How Video Calls Neglect Learning Diversity
Need an excuse to duck out of a video call this arvo? Show this to your boss.
DoubleVerify Achieves First-Of-Its-Kind Responsible AI Certification From TrustArc
DoubleVerify receives responsible AI certification. However, not its robotic vacuum that's been seen menacing the cat.
Smile For A Good Cause: The Social Media Campaign Giving Back To The Community
Are you known as the office Austin Powers? More for you teeth than shagability? Get snappy new fangs with this news.
Elon Musk Mocks Albo After ESafety Wins Court Injunction Against X
Albo's 2024 from hell continues - Rabbitohs in crisis, down in the polls and now feuding with world's richest man.
Real Estate Developer In Hot Water Over “Sexually Exploitative” OOH Campaign
Real estate agents again tops in the 'least trusted profession' polls, nudging used car salesmen & ad creatives.
Epsilon’s Shane Hanby: Post-Cookie Era Relies On “Teamwork” Between Brands, Marketers & Tech
This pro predicts more "teamwork" in a post-cookie era. Which spells bad news for the uncooperative or plain stubborn.