Implement behavior-based policies using Engage Dynamic Policies

Use AI-Driven alternatives to blanket policies and protect profitable customers

The downside to the growth of the ecommerce channel has been the growth of returns. Retailers have turned to stricter return timeframes or even charging for returns to recoup costs. However, with behavior-based policies, retailers can continue to exceed customer expectations while protecting their bottom line.

With Engage Dynamic Policies, omnichannel retailers and online merchants can use data-driven insights to recognize low risk behaviors and recommend more lenient enforcement of policies for valuable customers. Additionally, high risk behaviors, like return abuse or claims fraud, can be prevented by setting preemptive policies – marking an item as final sale, or giving the consumer a final warning – during the sales process.

woman opening shopping bag at home dynamic policies

Don’t charge everyone for returns

Rather than charge everyone for returns, use AI to identify outliers – typically a very small percentage of individuals with high-risk returns – and protect loyal customers and your profits.

Engage uses predictive analytics to make recommendations based on each shopper’s unique shopping behavior. Retailers can create and implement a dynamic return policy at the time of sale so consumers receive a policy that fits their behavior. Those with a return history that appears higher risk can be deterred from returns with a fee, while other consumers remain unaffected.

Protect revenue by reducing returns

Based on the success rates of our customers, retailers can protect profits more effectively by fighting fraud and abuse, vs. tighter restrictions or charging for returns. Even with a return rate improvement of only 2%, retailers can save 3x the amount they can recover by charging for returns. Additionally, by using dynamic policies, retailers and merchants can avoid reduced sales caused when strict return policies are implemented. One six month study of test groups showed that stores with stricter policies had 8.6% lower net sales compared to stores with a more friendly policy.

Stats you should know

15%

Although only 1-2% behave in ways that appear risky or abusive, up to 15% of consumers are negatively impacted by restrictive return policies.

1/2

About ½ of retail shoppers check the return policy before purchasing.

2-3x

Online purchases are 2-3x more likely to be returned.

8%

Managing risky return behaviors can reduce returns by as much as 8%, on average.

Deliver millions to your bottom line.

Reducing return fraud and retail return abuse presents a unique opportunity to increase profitability without adding stores or finding new customers. Use our Engage calculator to start building your business case.

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