Returns Management: How Reverse Logistics Boosts Customer Satisfaction

Have you witnessed your customers go through negative experiences as a result of your reverse logistics process? Perhaps these turn into negative reviews that can be detrimental to future sales. These can also equate to poor customer retention and a higher customer acquisition cost.

Ensuring your reverse supply chain supports your returns management effectively will boost customer experience.

Ingram Micro Lifecycle operates customer contact centers that liaise directly with our customer’s end users. We understand that customer satisfaction and reverse logistics are a symbiotic relationship. The success of one is dependent on the success of the other.

Below, we demonstrate how efficient reverse logistics improves customer satisfaction and innovative approaches that enhance customer experience.

The impact of reverse logistics on customer satisfaction

Reverse logistics in the high-tech electronics industry has established processes and ecosystems. As trade-in schemes and leasing programs increase in popularity, the reverse logistics processes that support them behind the scenes must adapt. With industry changes and how end users consume technology, reverse logistics approaches must remain agile to accommodate consumer needs.

The global leasing market is expected to reach $2.4 trillion by 2026.

Typically, when an end user triggers your returns management process, they’re dissatisfied in some way. This can be for several reasons, including:

faulty or damaged product
mismatch of needs
delivery issues
buyer’s remorse
no longer needed

You’re already on the back foot before your reverse logistics process has kicked in. This process can affect your customer’s satisfaction levels in the following ways. Errors or issues in each of these will impact their feelings about your brand.

Retrieval of product

This should be swift, without delays or complications. It should require as little effort as possible on the customer’s part for you to get the product back.

Logistics of exchange

If the customer requires a replacement product, this should also be rapid to minimize their downtime without the product they wanted.

Protecting personal data

The customer, whether personal or business, needs to know that if there are any of their details associated with the return of the product, it must be kept safe. This includes storage of their data in your systems or any data on the product they’re returning.

Notifications and updates

Consider the provision of tracking information and timely updates on the return and any relevant follow-up, including replacements. The more visible your process is to the customer, the more confident they can feel that they’ll receive the desired outcome.

Sustainability implications

We mentioned above the exchange of products. In some cases, this may be your only option. However, it drives up the overall cost. Factor in what self-diagnosis or repair the user can conduct first.

The same-unit repair can be a longer process. The availability of parts and the extra steps involved prolong the process, but it’s more cost-effective and sustainable than simply sending a replacement.

The refinishing of materials is also an important business factor to consider. This will ensure plastic waste and the overall cost of the reverse logistics transaction is reduced.

Customers are more aware of sustainability impacts so are more likely to be drawn toward brands that are taking steps to limit their environmental footprint. Online searches for sustainable goods have increased globally by 71%. Consumers are becoming less tolerant of brands that don’t strive to reduce their negative environmental impacts.

Advanced technology and innovative approaches boost satisfaction

Your typical customer doesn’t want to know specifics of what automation or processing technology you’re using. The process their unit follows doesn’t interest them as much as the desired outcome and the experience they have along the way.

The importance of technology and innovation is that these should all elevate the customer experience in some way. Work to minimize the effort the customer has to expend getting the product returned. This could be in the form of frontline services, call centers, self-diagnostic tools, or replacement parts/units.

Aim to offer high-level support remotely, and online, so the customer can get assistance wherever and whenever needed.

An exchange could be considered as the last resort, only if necessary and viable for the customer as a suitable outcome. It should be achieved as rapidly and seamlessly as possible. This means:

quick retrieval of the product with minimal packaging requirements that utilize whatever appropriate that the customer has to hand
smooth delivery of the replacement, with full tracking and updates provided to the customer
efficient and streamlined processing of the unit on receipt by the reverse logistics center. This is especially important if the outcome of the processing releases additional compensation to the customer

Operating with one end-to-end process partner enhances the efficiency of the overall process. The more links there are in the chain, the more disjointed it gets and the customer experience suffers as a result.

Improve your customer experience

We’ve demonstrated that there are many ways in which the efficiency of your reverse logistics program can impact customer satisfaction. There are factors to consider such as speed of processing, the level of input you’re asking from the customer, sustainability, and self-diagnosis and support.

Ingram Micro Lifecycle operates reverse logistics programs globally for a variety of technology customers, with the capability of offering customer contact centers. We are market leaders in the reverse logistics field, working to enhance processes and improve performance across a variety of customer solutions.

If you’d like to know more about how our solutions can be tailored to improve the satisfaction of your unique customers, reach out to us today.