In 2019 and beyond, CFOs will be looking to further improve and reduce their returns to gain a competitive advantage in the global marketplace. From a financial perspective, the key benefits to reviewing, analyzing, and interpreting returns data include the following:
- Net Margins – Identifying the root causes of returns which impact sales and profitability
- Improved EBITDA – A $1 M returns reduction delivers $0.5 M to the bottom line
- Reduced OPEX – Returns impact labor, transportation, and DC square footage
- Enhanced Customer Experience – Identifying and addressing negative customer feedback
In-depth analysis of your existing annual return data from multiple internal sources is the key to identifying Returns Reduction Opportunities. Our platform, Chief Returns Officer™, integrates sales and returns data from multiple sources and systems into one centralized repository, allowing internal brand stakeholders across merchandising, marketing, and your supply chain to interpret the data and take action to recover the lost sales revenue attributed to returns. Management will endorse Chief Return Officer’s non-invasive cloud-based, AI-driven analytics tools that support collaboration across the business to reduce returns, improve the customer experience, and understand the voice of the customer.
ENGAGING A RETURNS DATA HISTORICAL ANALYSIS EXERCISE WILL HELP SUPPLY CHAIN EXECS UNDERSTAND WHY RETURNS ARE HAPPENING, AND WHAT THE IMPACT IS ON THE BOTTOM LINE. RETAILERS NEED CHIEF RETURNS OFFICER TO IDENTIFY THE ROOT CAUSE WHY CUSTOMER WERE NOT SATISFIED WITH THE MERCHANDISE THEY PURCHASED.
ONCE YOU KNOW WHY CUSTOMERS WERE NOT SATISFIED WITH YOUR MERCHANDISE, YOU CAN THEN DEVELOP A PLAN FOR IMPROVEMENT, AND COMMUNICATE TO YOUR CUSTOMER THE SPECIFIC ACTIONS YOU HAVE TAKEN TO RE-ESTABLISH THEIR LOYALTY WITH YOUR BRAND.
As CFO, you know ascertaining insights from vast data sources is what business leaders need to run their business effectively. By providing your organization with timely visibility to returns reduction opportunities and actionable information, you will empower business leaders to make informed decisions that will affect long-term corporate goals. Decisions can be made in-season to prevent on-going returns and customer disappointment. Chief Returns Officer is a game-changing analytic tool and workflow developer that provides consistent monitoring of the business, an elevated call to action, and collaboration and remediation across teams, business units, and partners.
Key Takeaways from our Deployments of Chief Returns Officer
- Retailers are managing the returns process using manual methods, which is inefficient and costly.
- A “Returns Reduction” platform is essential to identifying the root cause of product issues, so they can be resolved.
- Adopting Chief Returns Officer’s cloud-based software is frictionless and fast.
Engage our team to analyze and reduce your returns in 2019. A $1 M reduction in returns contributes $0.5 M to EBITDA. And that is the bottom line.