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How to reduce returns with AI-powered incentive engine?

How to reduce returns with AI-powered incentive engine?

Modified on Tue, 11 Mar at 7:36 AM

Introduction

Returns directly impact a brand’s revenue by reducing sales retention, increasing logistics costs, and adding strain to inventory management. Every return not only leads to lost revenue but also incurs additional expenses for processing, restocking, and reverse shipping. Frequent returns can also impact profit margins and disrupt cash flow.

With EcoReturns you can reduce returns with an AI-powered incentive engine. Below are the types of incentives offered:

  1. Offer incentive to keep item: You can offer incentive to the shopper for keeping the item and not returning it. They won't be able to return or exchange it once they accept the incentive
  2. Incentive for exchanges: Offer incentive to the shopper to exchange instead of returning it. This can help you to retain the revenue or even an upsell.
  3. Incentive for store credit: Shoppers generally opt for original payment method unless they are sure that they will shop again from your brand. They need a strong motive to choose store credit refund over original payment mode refund. To ensure that there are repeat purchases from your shopper you can encourage them by offering them an additional incentive for choosing store credit

Steps to follow

  1. Login to your EcoReturns dashboard and access the AI tools page from the left side menu
  2. Click on Incentive Engine in the AI tools page
  3. You can configure the maximum incentive you want to offer to your shopper. Based on the shopper's past history, EcoReturns AI engine will decide the actual incentive to be given to the shopper.
  4. As you can see you can either offer a flat incentive irrespective of the product value or you can offer a percentage of product value as an incentive to the shopper. 
  5. As mentioned above there are 3 types of incentives you can offer to the customer. 
    • Incentive to Keep item
    • Incentive to exchange instead of return
    • Incentive to choose store credit refund

You can enable all of them to minimize returns to the maximum potential