Give the Gift of Product Information to Reduce Returns

Kristin Naragon, VP – Global Marketing and Strategy, Akeneo

It’s that time of year again—the holiday season when customers swarm stores and online retailers in droves to buy the latest in tech gadgets, children’s toys, kitchen gadgets, designer handbags, clothing and more.

And despite uncertain economic conditions, the annual winter spending spree is expected to be larger than ever; online spending alone is projected to hit $910 billion this holiday shopping season, according to the Adobe Digital Economy Index. While that may be music to your ear as a brand or retailer, there’s a dark cloud hanging over the merriment: returns.

In 2021, retail returns jumped to an average of 16.6% versus just over 10% the year before. This year, the National Retail Federation (NRF) warns retailers to expect roughly $158 billion, or 17.8%, in returns in 2022.

That’s a daunting number, and with a growing trend of consumers purchasing multiple items with the intent to return at least a few, it’s crucial that retailers set themselves up to minimize avoidable returns as much as possible.

Today’s consumers are empowered to research, learn about and purchase products whenever and wherever they want. You may provide an amazing product at a competitive price that entices a shopper to click ‘Buy,’ but if the product information provided at the time of the purchase doesn’t match the product that lands at their doorstep, you’ve got an unsatisfied customer and a promptly returned product.

What does this mean? Your organization needs accurate, up-to-date product information on each and every channel your customer may discover you on. On top of that, your product information needs to be personalized to fit the needs of each channel; the way you display your product on Instagram is very different from how you list it on Amazon.

Especially around this time of year, this product information is not just limited to specs about the product itself, like dimensions or weight, but includes items like stock levels and shipping times. Will the snow boots I ordered from your eCommerce site come in time for my Christmas ski trip? Quick shipping times can be a great selling point, and can often put you over your competition, but if you don’t have the stock in place to process and fulfill those orders in time, it can do more harm than good. Providing accurate information about stock levels and shipping estimations can mitigate customer expectations and provide a stronger overall customer experience for them.

Reliable product information creates an establishment of trust with your buyers. In a commissioned study conducted by Forrester Consulting on behalf of Akeneo, returns were reduced by over $1.1 million for organizations that improved product data quality because they were able to provide better decision accuracy for their customers. The key to creating exceptional customer experiences across every channel and keeping returns to a minimum this holiday season is providing customers with the information they’re looking for, and where they’re looking for it; an informed customer is a happy customer.

The drop in temperatures can only mean one thing; the holiday season is indeed upon us, and with it comes an avalanche of shoppers. According to an NPD survey of US consumers, more than a quarter expect to spend more than they did last year in holiday shopping. And whether they’re researching or discovering you on Google, Instagram, Amazon or even TikTok (research from McKinsey shows that 58% of consumers will be influenced by social media during the holiday season), they expect to find the information they need to make purchasing decisions.

In order to meet these expectations and create compelling, consistent omnichannel experiences, organizations need a single system for managing, organizing and optimizing product information for every channel, owned by you or not. Otherwise, the only things in store this holiday season for brands and retailers are the frigid bite of lost sales and a blizzard of returns from unsatisfied customers.

Kristin Naragon is VP of Global Marketing and Strategy at Akeneo, a global leader in Product Experience Management (PXM) and Product Information Management (PIM) solutions that help merchants and brands deliver compelling customer experience across all sales channels, improve product data quality, and simplify product catalog management. Retail customers include Forever 21, Fossil, Staples, and many more.