E257: HOW FASHION BRANDS CAN TURN RETURNS INTO A STRATEGIC CUSTOMER LOYALTY ADVANTAGE - Sophie Aubard, yayloh

The Power of Returns Management in eCommerce: An Interview with Sophie Aubard from Yayloh

Managing returns can be a major headache for eCommerce businesses, especially in the fashion industry where sizing and fit vary widely. Yet, a well-handled return process can actually enhance customer loyalty and lead to higher retention rates. Sophie Aubard, the co-founder and CEO of Yayloh, a returns management platform, shares her insights on transforming the often-dreaded returns process into a positive experience for both customers and brands.

The Origin of Yayloh

Yayloh stands out not just for its focus on return management but also for its unique name. The company's name originates from the concept of loyalty and the desire to create a positive 'yay' experience when customers return products. The aim was to move away from the dull and tedious connotation associated with returns, making the process smooth and enjoyable instead.

Why Returns?

Sophie's journey into the world of eCommerce was not a straight path. With a background in physical retail and working with shopping malls, she witnessed the decline of physical retail spaces and the rise of eCommerce. The inefficiencies in the returns process, particularly within fashion, sparked her interest. Alongside her co-founder, who discovered a significant issue with pre-printed return labels, they saw an opportunity to improve the returns experience, reduce environmental impact, and build a technology-driven solution.

The Impact of Returns on Brand Loyalty

The approach to returns differs significantly across markets. For instance, in Germany, high return rates are the norm due to consumer expectations for free returns. This poses a significant challenge for brands entering such markets. However, Yayloh encourages brands to consider charging a nominal fee for returns to make consumers more aware of the associated costs and environmental impact.

Reducing Returns Through Customer Engagement

One of the keys to reducing returns is engaging customers in providing feedback on their purchases. By understanding the specific reasons behind returns, such as material discomfort or sizing issues, brands can make better-informed decisions on product descriptions, sizing guides, and overall product quality. Engaging with customers on sustainability goals can also help reduce the environmental impact of returns.

The Future of Returns Management

Yayloh's mission is not just to manage returns efficiently but to help brands use returns data to enhance the customer experience. By integrating with customer service platforms like Klaviyo, Yayloh enables brands to communicate effectively with customers throughout the returns process. The aim is to create a transparent and reassuring experience for customers, reducing the anxiety that often accompanies returns.

Embracing Returns as an Opportunity

Returns are inevitable, but they also present an opportunity for brands to create a positive impression. Offering options like refunds, store credit, or exchanges, and utilizing QR code technology to simplify the process, can make a significant difference. Additionally, providing timely updates to customers on the status of their return, from collection to refund, can turn a potentially negative experience into a positive one.

The Role of Analytics in Returns

Sophie emphasizes the importance of returns analytics in helping brands understand and improve their product offerings. By analyzing data at a granular level, brands can identify specific issues with products or customer segments, leading to more targeted actions to reduce returns. This data can inform everything from product development to marketing efforts, ultimately improving the bottom line.

Conclusion

The power of returns management should not be underestimated in the eCommerce space. A well-crafted returns experience can lead to greater brand loyalty and reduced environmental impact. With platforms like Yayloh, brands have the tools to not only manage returns efficiently but to use them as a lever for growth and customer engagement. As Sophie Aubard illustrates, the key to success is embracing returns as an opportunity to build stronger relationships with customers.

To learn more, check out the related THE ECOMMERCE EDGE Podcast episode below: