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Archive for the ‘Systems & Processes’ Category

Insurance Dis-trust makes customers feel like criminals

Everyone cheats a little bit, says behavioural economist Dan Ariely. Insurance companies know this too, so they have processes in place to assess the validity of claims. From a business perspective, I get this, it’s a very sensible move and one that hopefully weeds out fraudulent claims. My recent experience on the customer side of lodging an insurance claim has left me wanting to take a broom to insurance processes and really clean the place out! (Read more)

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Returns Pain Reduction 3 Retail Basics to apply

Two recent experiences have highlighted that there are retailers who are still struggling with the returns process. It’s worth revisiting this subject to consider how to get ahead of the returns pain. We can start by reducing the number of returns. As with many things in life, returns pain may need ongoing experimental treatment before it completely recedes. 1.     Give the most possible information that you can about your product 37% of returns pain comes from the product not fitting or the customer not liking it (ref, KPMG Omnichannel survey 2016).  We can try to close this gap by providing greater detail about the product. The more detailed your product information the more confident a customer can feel about the original purchase. So, details like dimensions, materials, weight, how to install it/ use it/ the obvious benefits/ the unexpected benefits of the product. Product images are incredibly important, most retailers understand that customers want to see the product from multiple angles, take it another step. Customers also want the capacity to get close-up and personal and look at the fine detail of stitching or get an idea of context so, for fashion and footwear on body or maybe a virtual dressing room, for appliances installed, for homewares in a room. Consider what additional information customers might want to know, how to care for the product, what it goes well with, what doesn't work with it. Consider too, what will it be like after 'x' period of time? A good time to highlight trade-in offers or after sales care and service too. Social proof also really helps support customers making good decisions online. Others that have bought the product describing their experience, seeing products used and in use in a variety of different ways gives greater confidence in the choice. Encouraging those who have already bought to leave ratings and reviews on products builds out the depth of information on your product, some retailers offer a $/% off for a referral or for customers to earn points by sharing their experiences. 2.     Fix returns pain by fixing returns reporting Whether there is an online store or not in your business there is no reason to be reporting returns against the returning store rather than the originating store. If store A has aggressive selling techniques and pushes customers to buy or over-buy then that store is likely to have a higher rate of return. It is also likely that customers will not want to go back to a store that has this kind of practice and so returns will go back to other stores in the network. If you are not reporting returns against the original sale store, it hides the problem.  What’s the point of reporting anything if you don’t get some useful insight or actionable correction from it? In the same way when we refund we go back to the original transaction and use that payment type, we must go back to the originating store and allocate the return against that stores sales. 3.     Encourage customers to go back to store If the customer bought online and can go into store then it’s a better potential outcome for both customer and retailer. For the retailer because it reduces the cost of return freight, although many retailers are reconsidering free returns policies after customer abuse. A face to face interaction has a greater chance of being able to solve the customer’s problem, if something is not working as expected or doesn’t quite look like it did online hopefully store teams can resolve and keep the sale.  If not, and the process in store is ‘easy’ then the customer will likely keep that retailer on their long-term shopping list. If the customer has deliberately over ordered or it is your policy to encourage customers to buy two and return one then make it easy for the customer by putting the returns label into the parcel with the delivery. 95% of customers do not purchase again after a BAD returns experience. If you are struggling to make the returns process work, get in touch, we would love to work with you to make this a key selling point in your business. Image Credit Mike Petrucci

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Rowing Retail: Planning helps keep captive customers

There we are, a group of loyal, crazy parents who stand on the riverbank cheering our girls (who claim to be unable to hear us from the boats). Rowing is a tough sport, it’s a team sport like no other and I’m not going to wax on about it because only rowers are interested, but the summary is, that it takes a certain kind of determination to stick at rowing and just get the boat over the line. (Read more)

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Why Simple Customer Service is Never Simple

Understanding the motivation for a customer is not simple. This was made personal for me, in a conversation with my son this week. We have started using an ‘order online, deliver planned meals to your doorstep’ type service, and he was asking me if he could have some control over selection of meals. Nope. That’s not how it goes, the whole point is that someone else makes that decision for you. “Why do you think I like that idea?” and he had a bunch of great answers about why I might like that idea, from time saving, money saving, faster cooking the whole gamut. But he missed the pain point for me.  It’s possibly too much, to expect that an organisation, and those who work there, are going to understand my reason for choosing their service, but what they can focus on is giving me the choice in that service. That’s the simple bit. (Read more)

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Why it’s so important to get Returns Right!

Last week at the Sydney Retail Tech meet up Max Ryerson (@MaxRyerson) shared with the group some of his research and insights on the future of retail. Some of the big trends that he has observed in his global consulting practice are indicating that more and more of the purchases we make in store are ‘digitally influenced’ (think browsing, research or purchase). His figures showed that in Australia we see about 50% of store purchases influenced by digital, in the USA this is now up to 80% with the forecast that this will get to 100% in the next year or two. In one of his points, he called out the importance of click, collect and returns. At 6R we’ve worked on a few click and collect projects and reviewed several returns processes, and we advocate that making the returns process easy for a customer is a win for any retailer. However, the small distinction of putting those three words running together in ONE thought /sentence was a shift. 30% of online purchases are returned. (Read more)

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12 point Christmas Holiday Checklist for Business

What do you think when someone mentions Christmas & summer holidays? I know my mind goes to lazy days spent at the beach, BBQs, warm balmy evenings that go on forever. An audible sigh of release. Relaxation, a chance to recharge and reconnect. Then you remember you are a business owner, you have the lead up to Christmas to get through first, and that ‘ can almost taste summer’ feeling quickly evaporates. But it needn’t be the case if you start preparing early enough. It is easy to get caught up in overwhelm but like all things; The way to get started is to quit talking and begin doing. – Walt Disney We have put together a quick Christmas Holiday checklist to help you prepare for the "silly season": (Read more)

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