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Why a Rule-Based Return Policy Hurts Your Best Customers and Bottom Line

Rule-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.

Tagged with:

• artificial intelligence in retail
• retail fraud
• retail returns
• return authorization
• rule based return policies