With January wrapping up, most of your holiday returns will have been sent in by now. That makes this a good time to dig into how your returns and exchanges went for the year.
Figuring out how many orders resulted in a return can be straight-forward. For this you'll want to use your Returns Rate.
Divide the number of returns by the total number of orders. It'll be a decimal number from 0 to 1.
1,000 returns
-----
10,000 orders
= 0.1 which is 10%
Did 1% of your orders return an order? 5%? 10%?
10% might sound high but you need more information: how has that changed from the year before?
Going from 1% to 10% in a year is a clear sign of a problem. Going from 20% to 10% is a clear improvement. Same measurement (10%) but it's the degree of change that matters.
Handle the returns right and you can still keep the customer.
Eric Davis
Learn what your customers are actually doing instead of just guessing
One of the best ways to build a sustainable business starts by getting your customers to come back. Mastering that simple process can be difficult, but builds a lifelong business.
Repeat Customer Insights can help you understand your customer's behavior. With its collection of behavior reports, you can see what they're actually doing instead of guessing and having your efforts fall flat.