How to Manage and Reduce Your BFCM Returns

Black Friday Cyber Monday (BFCM) during the holiday season is a time of immense opportunity for businesses but it can also present significant challenges. One of the most pressing concerns for retailers during BFCM is the surge in returns. Businesses can mitigate the negative impact of returns on profitability and customer satisfaction by implementing effective strategies to manage and reduce them.

Let’s explore various tactics businesses can employ to navigate these challenges during BFCM. From leveraging customer support to optimizing product descriptions and improving shipping processes, we will break down the strategies that can help you minimize returns and maximize profitability.

Why BFCM returns spike and how you can stay ahead

BFCM is a shopping event where retailers offer significant discounts and promotions worldwide. This annual event typically occurs the day after Thanksgiving and the following Monday, leading to a surge in consumer spending.

One of the common challenges businesses face is handling returns—which is made extra challenging during BFCM. We can attribute this to several factors, including:

• Impulse purchases: Shoppers often make impulsive purchases during BFCM, which can lead to buyer’s remorse and returns.
• Incorrect sizing or fit: Online shopping can make assessing product size or fit difficult, leading to accurate returns.
• Product quality issues: Some products purchased during BFCM may need to meet customer expectations, leading to returns.
• Gift returns: Customers would return many gifts purchased during BFCM after the holidays.

Returns can significantly impact profitability and customer satisfaction during the BFCM shopping season, especially for online shoppers who expect seamless and efficient service.

Here’s how returns impact eCommerce stores’ profitability:

• Reduced revenue: Returns directly reduce revenue by reversing sales and associated profits.
• Increased costs: Handling returns involves additional fees, such as shipping, restocking, and potentially refunds or exchanges.
• Inventory management challenges: Returns can disrupt inventory management, leading to stockouts or overstocking.
• Damaged goods: Returned items may be damaged or require additional processing, further impacting profitability.

Meanwhile, here’s how returns impact customer satisfaction:

• Negative customer experience: A lengthy or complicated return process can lead to a negative customer experience.
• Brand reputation damage: Poor return policies or handling can damage a brand’s reputation.
• Lost future sales: Dissatisfied customers may be less likely to make future purchases.

Customer support’s role in managing BFCM returns

Customer support is pivotal in managing returns during the BFCM shopping season, especially across various customer service channels. Adequate customer support can help mitigate the negative impact of returns on profitability and customer satisfaction.

Key responsibilities of customer support in managing BFCM returns:

• Clear and accessible return policies: Ensure that you communicate return policies clearly to your customers before and after purchase. This includes information on return windows, eligibility requirements, and the return process.
• Efficient return processing: Streamline the return process to minimize customer wait times and frustration. This involves providing easy-to-follow instructions, pre-paid return labels, and efficient processing of returns upon receipt.
• Proactive communication: Keep customers informed throughout the return process, providing updates on the status of their return and addressing any concerns or questions.
• Resolutions and alternatives: Offer alternative solutions, such as exchanges or store credit, to minimize returns and encourage repeat purchases.
• Data analysis and improvement: Track return rates and identify common reasons for returns. Use this data to improve product quality, marketing, and customer service processes.
• Customer satisfaction: Strive to provide a positive customer experience, even during the return process. This can help maintain customer loyalty and encourage repeat purchases.
• BFCM customer service: Gather feedback regarding the BFCM customer service experience from both customers and team members. Use these insights to continuously improve service quality and adapt strategies for future BFCM events.

9 tips for managing and reducing BFCM returns

We’ll be frank here, there’s absolutely no way to completely reduce returns down to a flat zero. There are simply too many factors in play that are beyond the control of your customer service teams like customer preferences, product materials, and many more.

Supporting customers throughout their customer journey is crucial. Providing easily accessible FAQs and help center resources enables customers to find information independently, reducing the need for direct assistance. This not only enhances the overall experience of tracking orders and resolving issues but also helps in managing and reducing returns.

But what we can do is minimize these returns to the point where your profits will more than make up for the losses—maybe even open up opportunities to strengthen your relationship with your customers. Here’s how:

1. Build transparent return and refund policies

To effectively manage returns during BFCM, businesses should establish clear and transparent customer service policies, including return and refund policies. These policies should be easily accessible to customers and outline the specific terms and conditions for returns.

Key elements of transparent return, refund, and customer service policies:

• Clear return window: Specify a clear return window, such as 30 or 60 days from the purchase date.
• Eligibility requirements: Clearly outline the eligibility requirements for returns, including conditions for damaged, used, or sale items.
• Return process: Provide step-by-step instructions on how to initiate and process a return, including any required documentation or labels.
• Refund methods: Specify the available refund methods, such as store credit, original payment method, or exchange.
• Shipping costs: Clearly state who is responsible for return shipping costs (the customer or the business)
• Restocking fees: If applicable, disclose any restocking fees that may be charged for returned items.
• Damaged or defective items: Outline the process for returning damaged or defective items and any additional considerations.

Important note: A clear and concise return and refund policy is essential for managing returns effectively during BFCM. By focusing on simplicity, businesses can reduce confusion and disputes, improve customer understanding, and streamline the return process. This can lead to a more positive customer experience and reduced burden on customer support.

2. Communicate policies across all channels

To ensure customers know return policies and can easily access them, businesses should communicate these policies across all relevant channels. Here are some key strategies:

• Website prominence: Clearly display the return policy on the website’s homepage, checkout page, and customer service section.
• Email confirmation: Include a link to the return policy in order confirmation emails.
• Packaging inserts: Include a physical copy of the return policy with the product.
• Social media: Share the return policy on social media platforms to reach a wider audience.
• Customer service interactions: Ensure that customer service representatives are familiar with the return policy and can answer any customer inquiries.
• Point-of-sale: If applicable, provide clear information about the return policy at the point of sale.

Quick tips for creating digestible policy content:

• Keep it concise: Use clear, concise language and avoid jargon.
• Break it down: Use bullet points or numbered lists to make the content easier to read.
• Use visuals: Incorporate images or infographics to illustrate key points.
• Highlight important information: Use bold or italics to emphasize key points.
• Provide examples: Use real-world examples to illustrate the policy.
• Test it out: Ask someone to read the content and provide feedback.
• Regularly review and update: Ensure the policy remains accurate and up-to-date.

3. Set up proactive customer support teams

To effectively manage returns during BFCM, businesses should proactively scale up their customer support teams to handle the anticipated influx of inquiries and returns. Here are some key strategies:

• Anticipate demand: Forecast the expected volume of customer inquiries and returns based on historical data and sales projections.
• Hire temporary staff: Recruit additional customer support agents to supplement your existing team and handle the increased workload.
• Train staff: Provide comprehensive training to new and existing staff on handling returns, addressing customer concerns, and following company policies.
• Optimize processes: Streamline customer support processes to improve efficiency and reduce wait times.
• Leverage technology: Utilize customer support software and tools to automate tasks, track inquiries, and provide real-time assistance.
• Shift scheduling: Adjust shift schedules to ensure adequate coverage during peak hours and weekends.
• Cross-training: Cross-train employees to handle various customer support tasks, increasing flexibility and capacity.
• Outsourcing: Consider outsourcing customer support to external providers to supplement your in-house team during peak times.

Additionally, Service Level Agreements (SLAs) play a crucial role in managing customer expectations and avoiding frustrations during BFCM. SLAs outline specific performance standards, such as response times, resolution times, and customer satisfaction metrics.

By clearly communicating these standards to customers, businesses can set realistic expectations and avoid misunderstandings. SLAs also help ensure that customer support teams are held accountable for meeting performance targets, leading to a more positive customer experience.

4. Minimize returns by focusing on shipping accuracy

Consider these tips for reducing shipping errors and returns:

• Double-check orders: Ensure that orders are processed correctly and accurately before shipping.
• Use order management software: Implement efficient order management systems to minimize errors.
• Train staff: Provide thorough training to staff handling order processing to reduce mistakes.
• Inspect products before shipping: Conduct quality checks to identify and rectify any defects or damage.
• Implement quality control standards: Establish clear quality control standards and procedures.
• Use packaging materials: Use appropriate packaging materials to protect products during shipping.
• Use sturdy packaging: Choose packaging that can withstand shipping conditions.
• Fill empty spaces: Use packing materials to prevent products from shifting during transit.
• Label clearly: Label packages accurately with the correct shipping address and product information.
• Choose reliable carriers: Select carriers with a good reputation for on-time delivery and damage prevention.
• Negotiate shipping rates: Negotiate competitive shipping rates to reduce costs.
• Provide tracking information: Send tracking numbers to customers so they can monitor the shipment.
• Communicate delays: Notify customers of any shipping delays or issues promptly.
• Offer alternative shipping options: Provide customers with options like expedited shipping or in-store pickup.

To further minimize returns during BFCM, businesses should prioritize proper packaging, thorough order verification, and effectively direct customers. By using high-quality packaging materials and conducting meticulous checks before shipping, businesses can reduce the likelihood of damage and errors, leading to a more positive customer experience and fewer returns. This not only protects products but also enhances unboxing experiences and prevents shipping claims, ultimately improving overall efficiency and reducing costs.

5. Work with reliable fulfillment partners

To ensure accurate and timely deliveries during the BFCM shopping season, businesses should partner with reliable shipping and fulfillment services for their online store. Here are some key considerations:

• Capacity and scalability: Choose a fulfillment partner with the capacity to handle increased order volumes during BFCM. Ensure they can scale their operations to meet the demand.
• Inventory management: Partner with a fulfillment service that offers efficient inventory management solutions to prevent stockouts or overstocking.
• Shipping options: Select a partner that offers a variety of shipping options, including standard, expedited, and international shipping, to meet customer preferences and deadlines.
• Technology integration: Ensure that the fulfillment partner’s systems can integrate seamlessly with your e-commerce platform to streamline order processing and tracking.
• Customer service: Choose a fulfillment partner with a strong customer service team that can handle customer inquiries and resolve issues promptly.
• Track record: Evaluate the fulfillment partner’s track record for on-time delivery, accuracy, and customer satisfaction.

Additionally, outsourcing fulfillment can reduce stress and improve return rates by alleviating workload, enhancing efficiency, improving accuracy, providing flexibility, and offering tracking and customer support. By partnering with a reliable fulfillment provider, businesses can benefit from increased efficiency, reduced stress, and improved customer satisfaction, ultimately leading to lower return rates.

6. Invest in accurate product descriptions and images

During the BFCM shopping frenzy, it’s crucial to provide customers with comprehensive information to minimize buyer’s remorse and reduce returns. Detailed descriptions, high-quality images, and even videos play a pivotal role in this regard.

• Detailed descriptions: Clear and informative product descriptions help customers understand the product’s features, benefits, and suitability. This reduces the likelihood of misunderstandings and returns due to products not meeting expectations.
• High-quality images: High-resolution, well-lit images from various angles give customers a realistic view of the product. This helps them visualize the product and make informed decisions, reducing the risk of returns due to unexpected appearances.
• Product videos: Videos can provide a more immersive experience, showcasing product features, functionality, and usage scenarios. This can help customers better understand the product and make more confident purchase decisions.
• Self-service resources: Leveraging customer interaction data to enhance customer support strategies and training programs is essential. Self-service resources play a key role in improving the overall customer experience through informed decision-making based on data insights.

7. Offer personalization to reduce returns

Personalizing product recommendations based on a customer’s browsing history, purchase history, and preferences is a powerful strategy to reduce impulsive returns and foster loyal customers. By tailoring suggestions to individual customers, businesses can:

• Increase relevance: Offer products that align with the customer’s interests and needs, reducing the likelihood of impulsive purchases.
• Enhance customer experience: Provide a more personalized and satisfying shopping experience, fostering customer loyalty.
• Reduce cognitive overload: Limit the number of products displayed to customers, making it easier for them to make informed decisions.
• Proactive recommendations: Suggest complementary or alternative products that may be of interest, encouraging customers to consider additional purchases.

8. Streamline the return process for better customer satisfaction

A hassle-free return process can significantly impact customer satisfaction and loyalty, ultimately leading to long-term retention by addressing unhappy customers. Here’s why:

• Positive customer experience: A smooth return process demonstrates a commitment to customer satisfaction, even when things don’t go as planned. This can leave a positive impression and encourage repeat business.
• Trust and loyalty: A company that makes returns easy and hassle-free builds trust with customers, fostering loyalty and encouraging them to return for future purchases.
• Reduced negative word-of-mouth: A negative return experience can lead to negative word-of-mouth, damaging a brand’s reputation. A smooth return process can help prevent this.
• Data-driven insights: Analyzing return data can provide valuable insights into product quality, marketing effectiveness, and customer preferences, helping businesses improve their offerings and reduce future returns.

To further streamline the return process and enhance customer satisfaction, businesses should:

• Provide pre-paid return labels: This eliminates the hassle for customers of finding and purchasing shipping labels.
• Include clear instructions: Provide easy-to-follow instructions on how to package and return items, including any necessary documentation.
• Offer online return portals: These portals allow customers to initiate returns and track their status online, reducing the need for phone calls or in-store visits.
• Minimize paperwork: Keep the return process as streamlined as possible, reducing the amount of paperwork customers are required to complete.

9. Provide alternatives to refunds: store credit or exchanges

To reduce the financial impact of returns, businesses can incentivize customers to choose store credit or exchanges over refunds, which can help in turning satisfied customers into repeat customers. Here are some effective strategies:

• Offer additional discounts: Provide a discount on future purchases when customers choose store credit or an exchange.
• Highlight product alternatives: Suggest similar products or upgrades that the customer might be interested in.
• Simplify the process: Make it easy for customers to exchange items or use store credit by streamlining the process and providing clear instructions.
• Promote loyalty programs: Encourage customers to use store credit to earn points or rewards in loyalty programs.
• Educate customers: Explain the benefits of store credit or exchanges, such as avoiding processing fees or maintaining a positive account balance.

By offering these incentives and making the process as convenient as possible, businesses can encourage customers to choose store credit or exchanges, reducing the financial impact of returns.

Bonus tips to keep in mind during BFCM season

While these two important tips do not necessarily eradicate BFCM returns, they are very crucial in providing a good customer experience for online shoppers. This means that even though there may be returns, the experience overall is pleasant. Remember, a return or refund does not automatically mean that the customer has churned.

Implement AI-powered chatbots

Implementing AI-powered chatbots can significantly enhance customer support efficiency during BFCM. Chatbots can provide instant responses to commonly asked questions, freeing up customer service agents to focus on more complex issues.

AI-powered chatbots can also help businesses to scale their customer support operations during BFCM. By automating routine tasks, chatbots can help businesses to handle a large volume of customer inquiries without increasing their customer service team.

Moreover, AI-powered chatbots can provide personalized customer experiences by analyzing customer preferences, purchase history, and browsing behavior. This can help businesses to tailor their customer service strategies to meet the individual needs of each customer, improving customer satisfaction and loyalty.

Provide excellent post-purchase communication

Providing excellent post-purchase communication is essential for cultivating trusting, loyal relationships with customers. After a customer makes a purchase, businesses should communicate with them to ensure that they are satisfied with their purchase and to address any concerns they may have.

Effective post-purchase communication can include sending order confirmations, shipping updates, and thank-you messages. Businesses can also use this opportunity to provide customers with additional information about their products, such as usage instructions or maintenance tips.

Moreover, businesses can use post-purchase communication to encourage customers to provide feedback about their shopping experience. This can help businesses to identify areas for improvement and to make changes to their customer service strategies to better meet customer needs.

By providing excellent post-purchase communication, businesses can build trust with their customers, increase customer satisfaction, and encourage repeat business.

Transparency and customer support are crucial for reducing your returns and increasing customer loyalty during BFCM

It all boils down to helping your customers be more aware of what they’re potentially buying and your business’s return policies. Making the return process as simple and streamlined as possible will also at least leave your customers with a good impression of your store.

Beefing up your customer service teams will also make a huge difference, as they’re responsible for being with your customers throughout a shopping season as hectic as BFCM. Gathering feedback regarding the BFCM customer service experience from both customers and team members can help continuously improve service quality and adapt strategies for future BFCM events.

If you’re looking to scale your customer support systems in time for BFCM, you can consider automating your customer support. If you want something more tailored to your business, you can schedule a free call with us and let’s talk about how we can help you reduce your returns with the right customer support strategies.