1 in 5 parents return gifts even before Christmas day because they have found them cheaper elsewhere
A recent survey of 2000 people from predictive analytics firm Blue Yonder has found that 1 in 5 parents return gifts even before Christmas day because they have found the presents cheaper elsewhere. This provides a stark warning to retailers to ensure they have a robust returns strategy in place in the Golden period for retail. More than that, at least some of these returns are avoidable if retailers ensure products are priced competitively ahead of Christmas. Using predictive analytics and automated decision–making, retailers can make sure they are fully up to speed on the price sensitivities around their products and minimize the chances of returns.
Markus Juhr-deBenedetti, chief revenue officer, Blue Yonder says: “In the digital age, pricing between brands and retailers is much more transparent, giving consumers the opportunity to shop around with greater ease and efficiency. For brands and retailers, pricing has become even more of a critical success factor. Using predictive analytics and automated decision-making, retailers can remain competitive by keeping the price at the right level in real-time, reducing the risk of losing customers to cheaper competitors.
“Equally the returns process has become a critical success factor for retailers. They can be a drain on resource and profit margins once you consider the time it takes for staff to process them and if products are unable to be resold. If you know the reasons for returns, then you can proactively take steps to reduce them. This is where data analysis is a game-changer for retailers and brands.”