Finding the Root Cause of a Rise in Refunds

  • £1.5m in savings

Davies’ interaction analytics services helps businesses gain a far deeper understanding of the customer experience provided across every channel.

An investigation that helped one retailer save £1.5m

Overview

Davies’ interaction analytics services helps businesses gain a far deeper understanding of the customer experience provided across every channel. Instead of just measuring customer experience, Davies listens to the voice of your customers and provides deep insights.

The Situation

An online retailer had an issue with escalating costs due to increasing volumes of refunds and exchanges being processed by their customer service function. Existing internal reporting did not offer any insight as to the cause and the organisation did not have the capacity or expertise to investigate further.

Our Approach

Davies helped the retailer to investigate the cause of the increasing costs. Our team merged the refund and exchange data with other datasets to provide a holistic view of the issue and performed in depth data analysis to determine the root cause. Davies’ experts modelled the cost of refund and exchanges, how they impacted contact volume and FCR and how the issue would be impacted by increasing sales in line with the business model.

Return on Investment

The result of the root cause analysis was that the primary driver of the increasing refund and exchange volume was orders lost in transit by the delivery partner.

The potential saving to the online retailer was £1.5 million through being able to evidence that orders were not delivered to their delivery partner. Recommendations were also for amendments to the lost in transit process that could increase FCR for the organisation by 2%.

For more details of our analytics services or to discuss how we can help you generate richer insight from your customer interactions, contact:

Lee Mostari

Director of Insights & Analytics

lee.mostari@davies-group.com

Michael Anderson

Vice President – US/Canada

michael.anderson@davies-group.com

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