Some of the UK’s leading fashion retailers joined industry association IMRG and their members for IMRG Connect this week - here Clear Returns deliver their round up of the event.
One key focus throughout the day emerged - the customer.
How should customers be measured - in terms of margin or overall value?
There was debate over how customers should be measured - should it be in terms of margin or overall value? While Qubit discussed customer lifetime value - however this was based only on customer’s purchase history. Astley Clarke then discussed the work they have undertaken to personalize the online experience for their customers, including personalised product recommendations based on purchase behaviour - which now account for 6% of their online sales.
The day closed with some retailer case studies from ASOS and Moss Bros, where again the customer was the key priority in terms of providing multiple options and tailoring communication. Moss Bros’ Ecommerce Director Neil Sansom told the audience how close they were to achieving a single customer view, thanks to joined up systems delivering real-time information to a their new CRM. Very soon, a customer will be able to walk into their store and the staff will be armed with their full profile and purchase history.
For a true picture of customer value retailers must take returns into account
Clear Returns propose that for a true picture of customer value retailers must take returns into account. A sale is not a sale until a customer decides they are going to keep an item. Therefore by basing recommendations and marketing on purchase history only, you could be missing the full picture.
Certain customer segments, while purchasing full price items regularly, actually return between 80-90% of what they buy. Therefore while they may appear to be your most important customers, in reality they are the least profitable - taking advantage of free shipping offers and promotional codes and costing you more money in the long run. By utilizing this kind of information within your CRM system, you can tailor your marketing much more effectively and profitably.
The new Quarterly Fashion Returns Review in partnership with IMRG was launched
Clear Returns also launched their new Quarterly Fashion Returns Review in partnership with IMRG at the event. This report is designed to give retailers the ability to regularly track a range of key benchmark metrics to help you monitor, assess and address the issues surrounding returns and their effect on profits and logistics. If you would like to receive an exclusive preview of the report then get in touch, and all IMRG members will receive full access.