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It’s always great to be able to point to numbers that contribute to both cutting down costs as well as increasing sales, which is very much the case when it comes to reverse logistics. There is a huge potential for increased reconversion within reverse logistics and, if properly managed, this can have positive effects on both the top and bottom line.

By digitalising your returns and exchange processes, you can take advantage of the subsequent increase in digital traffic — leading you to an approximate 25% bump in conversion, along with an 8-11% increase in upsales. Basically, this means that a large proportion of your returns flow has been transformed into new purchases. However, there is a lot of potential left here. We’ve only really talked about revenue, but is it profitable?

So, how do we ensure a profitable reconversion rate and not just one that increases revenue? In order to answer this question, we need to take a look at reconversion that is not profitable. This takes us right back to Easycom’s core — true profitability. Driving increased revenue can be beneficial but, if at the same time, costs are increasing, the return on your reconversion is minimal or perhaps non-existent. In some cases, it can even lead to negative profitability. This might rear its ugly head case when customers exhibit costly purchases and returns behaviour or when low-value products take costly reverse logistics routes.

So which steps can you take to allow for synergy in your after-sales process?

  1. Digitalise your returns process and help the customer post-purchase. → Increased revenue
  2. Ensure frictionless exchange management when it comes to size. → Further increase revenue
  3. Base your decisions on true profitability → Increased revenue to a lower cost
  4. Add a recommendation engine and space for upsales in your returns process → Further increased revenue to a lower cost

Basically, the business synergy is a result of increased revenue combined with lower costs in these transactions. Profitable reconversion → 1 + 1 = 3!

There are many different parameters that affect the scale of the synergy but one thing’s for sure — the entire customer journey needs to be carefully optimised when it comes to brand experience, touchpoints and formulations. This is just as important as optimising your sales funnel in your marketing and on your website. Our advice when it comes to handling your reconversion can be summed as:

Flip the script. Don’t think about returns in terms of their negative connotation. Instead, view all your sales orders as the start of an after-sales funnel. As part of this funnel, you need to maximise the profitability of transactions — while also maximising sustainability.

By looking at it this way, you increase the likelihood of a positive synergy effect in the after-sales process at your company!

Cheers, Markus