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Royal Design Group lowers customer service costs 30% by automating returns

Customer Story ERP Retail Sweden BI Returns Post purchase

RoyalDesign and Rum21 (Royal Design Group) always strive to provide the best service based on customer behaviors and needs. With nShift Return, they can provide a better customer experience at a reduced cost – and do it in a data-driven way.

Solution used

Returns

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The Challenge

After many years of impressive growth, Royal Design Group, which includes two of the leading e-commerce names in Scandinavian home design and furnishings, was struggling to deliver the customer experience they were famous for because their technical ecosystem could no longer cope with the volume of customer returns.

All parts of the returns process were built around manual tasks, from customer interaction via returns registration to item handling and customer service. As Sofie Franzén, Head of Customer Care at Royal Design Group, explains: “We realized that to improve the customer experience we needed to simplify and automate the returns process.” She adds: “We always want to act based on the customers’ behavior and, to do that, one of the key requirements is to become data-driven.”

We always want to act based on the customers’ behavior and, to do that, one of the key requirements is to become data-driven.

Sofie Franzén, Head of Customer Care at RoyalDesign Group

Optimizing returns at Royal Design Group

Reduced staffing costs for customer service

Re-conversion through exchanges

CO2

Reduced carbon footprint

The Solution

With nShift Return, Royal Design Group have been able to digitize and personalize the entire shipping and consumer returns flow. Smart return rules have enabled them to create an incentive for fewer unnecessary returns. They have also managed to speed up handling times, lower shipping costs and reduce environmental impact.

Customer service can follow all returns in real time and take direct action on any issues that arise. The warehouse team also benefits through an interface optimized for inventory management. And consumers get continuous feedback regarding the status of their returns.

Sofie says: “Our returns/claims handling is accessible 24/7, regardless of where you are in the world or the time zone. The returns can be followed in real time and the customers always get the right information at the right time.” And that’s not all. “With [nShift’s] help we can analyze the whole returns process and compile profitability-driving measures in the whole company. Now we can take control over the customer journey and can start working to be more proactive with returns and claims on another level than before.”

The Results

Since implementing nShift Return, Royal Design Group have significantly reduced the handling time for returns and achieved significant savings in the process. Sofie says: “Comparing Q3 2020 vs Q3 2019, we lowered staff costs at the customer service department by 30.96%, much as a result of implementing [nShift Return].”

The warehouse has seen huge savings and efficiencies as well. Site Manager, David Måsegård says: “We can follow the return process before the returns have arrived at the warehouse but also whilst the returns are being handled at the warehouse. This gives us the possibility to proactively work with resource management between the warehouse and returns department.”

Through nShift Return, Royal Design Group have also been able to use their returns data to continue improving the customer experience and reducing the returns rate. “The data is presented to the management team and we focus on what each part of the company do to advance the routines and processes further,” says Sophie. “It can be about anything from lowering the number of incorrect orders to improving product information on our web page, or documenting customer insights to pass on to the suppliers to improve the processes with them before the products even arrive at our warehouse.”

The service level provided by [nShift Return] is the same as their product – always available, responsive, flexible, solutions-oriented and up-to-date.

Sofie Franzén, Head of Customer Care at RoyalDesign Group