A high rate of return to origin is like a leaky bucket. Even if you are able to get a very high influx of customers to your website and they complete purchases, if the RTO rate is high, your profitability will get affected.
This problem is pretty complex. With the festive season, the complexity increases more since the incoming traffic increases manifold. However, some measures can be taken in order to mitigate the losses associated with high RTO.
Filter out the traffic
- A lot of times, traffic coming from Facebook, Instagram or some other social media channels leads to impulse orders.
- By understanding where the traffic is coming from, your brand can filter the buyers into genuine and non-genuine categories.
- Think of it as a tea strainer. When you are making tea, you only want to keep the strained tea free of tea leaves, and other ingredients as the final product.
- Similarly, strain out the possible low intent customers depending on where they are coming from, and place interventions to minimise RTO losses
GoKwik analyses the source from where a customer enters your website.
We then filter out the shoppers, based on the likelihood of them cancelling the order before delivery.
Use high-quality images
- The customer’s trust factor is low on products with lower quality images.
- Adding high-quality images to product descriptions can calm customer anxiety about the genuineness of the product.
- This will lead to an increase in trust, and consequently, a reduction in RTO
GoKwik provides insights into lesser-known reasons for RTO, thus providing a 360-degree solution for RTO reduction.
Increase communication
- Provide assistance to customers while they place the order (language, address, others)
- Ensure extensive communication of the order status throughout the course of shipment
- Provide estimated delivery date to customers while they finalise the order
GoKwik has integrated with multiple leading communication enablers like Limechat, etc This will help your brand be in touch with your customers before, during and after the placement of the order.
Analyse past behaviour and place interventions
- Analyse customer behavioural patterns in the past, and flag customers who have a pattern of returning an order before it reaches them
- Blacklist regularly fraudulent customers from choosing cash on delivery (CoD) payment mode
- When a customer with a higher propensity to return an order chooses CoD as a preferred mode of payment, put interventions in place:
- Disable the CoD option for very high-risk customer
- Add extra shipping costs for CoD and/or,
- Add more confirmation steps for CoD – Such as entering OTP or confirming over a call etc.
- Ensure bulk orders are sent in small groups of products.
- Incentivise prepaid modes of payment by offering higher discounts to customers since returns are highest on CoD orders
GoKwik uses data science models to analyse historical customer behavioural patterns based on over 200+ parameters. Based on this analysis we assign an RTO to score to the customer & flag them into high-risk, medium risk and low-risk categories and proceed to place interventions as necessary for each bucket.
Review the address of the customer
- If the address is detected to be inappropriate, incomplete or inaccurate, use AI to correct those
- If the detention happens after order placement, then communicate the same with the customer.
GoKwik uses data science models to locate the exact address of the customers. It also helps in pointing out incorrect or inappropriate addresses in real time.