Think ahead to January. While the holiday decorations are still decking your store aisles, the post-holiday return scene at retail stores of all sizes can be even busier than the pre-holiday weeks. And the atmosphere is different as consumers are hyper focused on making returns and finding deals. While shoppers have many valid reasons for returns such as wrong size, color or fit, preference for a different item, or product not working like it should, they are all seeking the same thing – a solution. While the holiday spirit is no longer quite as festive, the post-holiday return season can provide an opportunity to show your good consumers that you care about them, even when they make a return.
...for 2021, the National Retail Federation has estimated that holiday retail sales will grow by another 8.5% to 10.5%.
Note: returns are not necessarily a bad thing for your retail business.
According to the National Retail Federation (NRF), U.S. holiday sales in 2020 totaled $761 billion, with $101 billion in merchandise, or 13.3% of those sales, returned. And, for 2021, the National Retail Federation has estimated that holiday retail sales will grow by another 8.5% to 10.5%.
With some planning, creativity, and modern AI, your return process can help welcome new shoppers, enhance engagement with loyal shoppers and drive incremental sales in the short and long-term.
When the return line is out the door, employees often work long hours dealing with frustrated consumers, which reduces employee satisfaction. Not to mention, the piles of products cluttering the consumer service area and the hours needed to process and restock.
However, you can inspire additional spending when you reimagine the consumer return experience. By giving shoppers making a return an incentive to use their refund to explore other products and collections throughout the store. This approach can effectively convert returns into a positive experience for the consumer, and for the retailer.
The secret to capitalizing on returns is to proactively create a plan before holiday shopping gets under way.
Here are four ways to use returns to engage new (and existing) shoppers:
Many retailers prepare for holiday shopping during the early fall, but often put creating a holiday return strategy at the bottom of their to-do list. And once the holiday rush hits, they don’t consider returns until right before the holidays – or worse, when they see the line of post-holiday shoppers with their returns.
The secret to capitalizing on returns is to proactively create a plan before holiday shopping gets under way. And then, when you and your staff come to work on December 26, you simply put your plan into action.