Why Rule-Based Returns Policy Hurts Your Best Customers and Your Bottom Line
Rules-Based Return Policy vs. AI Model-Driven Return Authorization
The retail industry is thriving due to ecommerce and omnichannel sales, yet returns and fraud present challenges. Returns surged by 57%, hitting $816 billion, with $84.8 billion attributed to fraud. Some retailers adopted rule-based return policies, causing unintended issues. These policies lack personalization, leading to false rejections and driving away high-spending customers.
The white paper explores this impact, delves into rule-based policy limitations, and underscores the crucial role of AI-driven return authorization in upholding customer loyalty.
Readers will learn:
- Challenges from rule-based return policies and their negative impact on customer behavior and profitability.
- Unintended consequences of blanket policies, reducing the likelihood and value of future sales.
- The significance of AI models in precisely addressing fraudulent behavior, maintaining customer satisfaction, and preventing brand loyalty erosion.
- How adopting AI-driven return authorization effectively tackles return-related challenges, enhances customer loyalty, and strengthens brand reputation.