Customer returns are a fact of life. But just because they are inevitable doesn’t mean they can’t and shouldn’t be managed. In fact, for every $1,000,000 in customer returns, a retailer loses as much as $500,000 in EBITDA! But return rates can creep up without being noticed. Policies that once made sense can now add unnecessary—or invisible–expense burden. Process or technology changes can have unintended consequences.
A key part of the Returns Assessment Program begins with a full assessment and data gathering effort utilizing Newmine’s proprietary RAP Index. Depending on the organization a site visit may be required for best results. The Newmine team quickly evaluates all aspects of your current returns program from start to finish. The RAP Index then shows you where you stand in relation to our best practices and industry benchmarks.
The output of the Newmine RAP is an objective assessment of your current customer return process and concrete direction for improvement. Our team will determine if identified challenges are product or brand specific or if they’re an invisible part of the current state. We’ll help you distinguish between mistakes and ongoing problems.
The Newmine team will also show you how your current policies, infrastructure and processes stack up against industry benchmarks. You’ll get specific guidance on better tracking mechanisms, communication improvements, approvals and process oversight. Based on your preference, Newmine can reengage to prioritize and implement recommended changes, we can advise your team and oversee corrective actions, or you’re free to make your own way to improvement with our input firmly in hand.
The benefit is clear and measurable both in terms of bottom line contribution as well as customer loyalty and satisfaction. Data shows that for every 1% reduction in returns, 50% of that reduction drops directly to EBITDA. So how beneficial is that to the organization? So, if you reduce your customer returns by $1,000,000, half that amount, $500,000 will go right to your bottom line. We think that’s a compelling case to take a careful look at your returns!