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How encourage exchanges over refunds. Transforming profitability and efficiency

  • Where: Spain
  • Startup
  • My role: I prepared workshops, benchmarking and interviews to recognise opportunities. Then I made the first wireframes and designs.
  • The returns portal is a platform for consumers of brands to process a return or exchange of products purchased in digital shops.

About my role and impact

My challenge was to get a brand shopper to change their behaviour and instead of selecting a cashback they would select an exchange. Returns were 80% of the transactions which meant that brands were not generating profit retention as they were generating with shop credits or exchanges. As a result of the implementation of the concepts, it has generated a 15% increase in exchanges and a 40% saving in transport costs by promoting the use of post office collection points. In terms of revenue in the first month, it increased the revenew retation to 80%.

Product Goal

Facilitate seamless product exchanges for users via an intuitive search interface, providing access to diverse brand offerings.

I had the objective of working on the roadmap with the product objective.

We have added functionality to provide intelligent solutions based on the reason for the user's return. For example, if the item is too small, the system automatically exchanges it for a larger size.

Methodological Approach and Techniques for the Product Discovery
  • Generative research: In-depth interviews (x8).
  • Survey
    • Ideation research: Co-creative Wokshops to gather information by deepening the interaction among participants, with the aim of reaching consensus and clarifying divergences.
    • Evaluative research: Usability testing (x8).
    • Metrics analysis
    • That was not done and I recommended to implement: Headmaps and recording sessions usind a tool such as Clarity
    Some product discovery findings

    We have added functionality to provide intelligent solutions based on the reason for the user's return. For example, if the item is too small, the system automatically exchanges it for a larger size.

    • "I found that many clientes feel frustrated when returning items due to sizing issues. They appreciate it when the system automatically offers them a larger size as an exchange, saving them time and effort
    • "Covering return shipping costs remains a constant challenge for our eCommerce brand, eating into our profit margins."
    • "The persistent high volume of returns directly affects our revenue. Some months, our net sales approach zero."
    • "We've had to hire an entire team to handle existing return requests."

    Concept 1

    During customer validation, one of the protopersonas that emerged was that many individuals merely browse offers, yet exhibit high motivation upon receiving additional credit.

    exchanges

    I spearheaded a project with the Product Manager, focusing on incentivising customers to upgrade to higher-priced items. This was achieved by offering additional credit, either in percentage or monetary value, upon exchange. As a result, customers who wanted to return their items ended up exchanging them, thereby boosting profit retention for the brand.

    preview exchanges

    This is the Transportation step. Specific communications are utilised to inform the user of the sustainability benefits of in-person delivery, thus reducing logistical costs

    transportation methods.image
    Concept 2

    Another solution explored was for furniture brands. Direct exchange of defective products and guidance to purchase higher-value items during returns was advocated. In this case, if the product arrives broken, the user must upload a photo to check the actual condition and then replace it directly at no cost. In addition, 20% or an extra amount in EUROS will be added for future purchases.

    reason upload image reason
    Concept 3

    The idea of concealing the refund was explored.

    reason upload image reason

Contact me and tell me what you need :)

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