Is dangling deals amidst COVID-19 sufficient?
First published by Mandy, on 04 May 2020Returns management
COVID-19 has resulted in a drastic downturn in footfall and sales figures for brick-and-mortar retailers, no doubt due to the worldwide call for people to stay at home and practise safe social distancing. To boost sales during the pandemic, many merchants have thus shifted their business strategies to focus on eCommerce. Consumers are spoilt for choice with the variety of deals they receive in their email inboxes – from tiered discounts to free shipping, merchants are reaching out to their customers through various digital means.
However, the economic uncertainty surrounding COVID-19 has prompted many to tighten their purse strings. In terms of consumption patterns, many are choosing to spend mainly on groceries and other daily necessities1.
What makes consumers tick
While giving discounts may drive sales in the short term, promotions weigh on business profits. In light of Singapore’s circuit breaker measures, merchants may strategically decide to sacrifice profit margins in order to move unsold inventory. Nevertheless, in the highly competitive eCommerce landscape, businesses need to actively explore new ways of standing out amidst the deluge of available offerings, to sweeten the deal for both potential and repeat customers.
With a recession looming, encouraging new and repeat sales may be as simple as resolving common online shopping anxieties. Having a clearly communicated returns policy, for example, gives consumers the peace of mind that their money will not be wasted if they purchase something that proves unsuitable.
Businesses that have successfully implemented returns policies might thus find themselves in a better position to compete with other brands, due to the improved customer experience. Allowing returns also opens up another customer touchpoint through which merchants can utilise to build customer loyalty and rapport
Simple, consumer-friendly next steps with blu
What good is a returns policy if customers do not take advantage of it? To encourage take up, reverse logistics has to be seamlessly blended into existing retail operations. Moreover, the process of returning goods should be convenient, easily accessible to consumers, and hassle-free.
Furthermore, contactless deliveries have become the new norm. Our fully-automated bluPort parcel lockers can offer a cost-efficient option for collecting returns parcels, especially pertinent now when circuit breaker measures have kept many storefronts shuttered.
Leverage our extensive network of bluPort parcel lockers to provide flexible options to your valued customers – with more than 100 locations islandwide, customers can drop off their returns parcels whenever and wherever it best suits their daily routine.
1 CNBC, “Spending has rapidly shifted to staple items such as groceries and household cleaning supplies”.