Royal Design Group
RoyalDesign and Rum21 (Royal Design Group) always seek to provide the best service based on customers behaviours and needs, with Returnado they receive support in a data-driven way, providing a better customer experience, and minimising administration.
Reduced staffing costs for customer service
Re-conversions through exchanges
Reduced carbon footprint
Royal Design provides design for all the rooms in your home at great prices and is the clear choice for Scandinavian design on the international market, they have a range of over 50,000 products available.
Rum21 is the natural choice for furniture, lighting, and details within the premium sector, they offer a carefully selected assortment for those who love furnishing.
Consumers expect constant access to information, and in order to facilitate their growth whilst fulfilling this expectation, RoyalDesign and Rum21 (RoyalDesign Group) sought a simple and scalable system that could also aid the company in their growth strategy without needing to do further recruiting.
After the implementation, both the response time and administration of returns markedly decreased. Consumers receive faster answers and get a higher quality personalised and automated user experience on all markets.
Challenge: Prioritising growth AND customer experiencing
After many years of large growth, the technical ecosystem fell behind, leading to a customer experience and internal process which damaged both sales and customer trust.
“We realised that to improve the customer experience we needed to simplify and automate the returns process. We always want to act based on the customers behaviour and to do that one of the key requirements is to become data-driven.” Said Sofie Franzén, Head of Customer Care at RoyalDesign Group.
All parts of the returns process were built around manual tasks, from customer interaction via returns registration to item handling and customer service.
Expectations were high. Consumers needed a customer-centric returns experience and the returns shipping selector was expected to help customers over all of Europe find the right shipping choice regardless of what they were returning, be it a sofa or a pillow.
Solution: Returnado used in all departments for Returns Management
After a completed pilot study with the people responsible for all parts of the returns process, including warehouse, IT, customer service, CX, and logistics, the scope and project plan were made.
Returnado digitalised and personalised the entire consumer returns flow and the returns shipping flow, and through smart return rules an incentive for less unnecessary returns, lower shipping costs, faster handling and lower environmental impact was made.
Customer service can follow all returns in realtime, and via Returnado admin service, can take direct action with any issues that arise. Even the warehouse works with Returnado in an interface optimised for inventory management.
Data is instantly available via visualisations in Returnado Analytics and the raw data is sent via an API in an external BI system.
All key flows are automated and the consumer get continuous feedback regarding their return status. On the the question about if the returns process is easier for the customer today Sofie answered without hesitation:
“Yes! With Returnado’s help our returns/claims handling is accessible 24/7 regardless of where you are in the world or the timezone. The returns can be followed in realtime and the customers always get the right information at the right time.”
Sofie goes on to say: “With Returnado’s help we can analyse the whole returns process and with that 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.”
Result: Large growth and improved profitability
The handling time is significantly faster for returns/claims. When comparing May 2019 with May 2020, staff costs were reduced by 38% within the customer service department. Over a larger period of time the savings are just under 31%.
“Comparing Q3 2020 vs Q3 2019 we lowered the staff costs at the customer service department by 30.96% much as a result of Returnado.” Sofie continues.
You can also see savings and greater efficiencies at the warehouse. David Måsegård, Site Manager at RoyalDesign group explains how Returnado has helped saved time with returns handling at the warehouse as well as served as a tool that can visualise the return flow.
David continues: “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.”
RoyalDesign Group puts heavy emphasis on being data-driven and with Returnado Analytics are able to work smarter with their returns data.
“We export returns – and products and analyse them within the company. 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.
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.” Says Sofie
You also see how the data from the returns reduced the rate of returns and has improved customer satisfaction.
“With statistics aiding decision making we take action and push through changes to reduce our returns rate. We have some example driven projects where we change our packing process to counter act the fact that some items get damaged during transport.” David says.
The main benefits for Royal Design Group
Before the implementation of Returnado, Royal Design Group worked in multiple systems in each department. Most of the work was manual, was done locally and required a comprehensive understanding of the processes and system.
Now everyone works connected to returns in Returnado, from customer service and the warehouse to management. This leads to more scalable returns handling where everyone contributes, handling is faster, there are fewer issues and lower costs.
Through the returns shipping selector the costs for shippings are reduced, and with Renturando’s smart algorithms fewer items are returned and shipped reducing the effect on the environment.
With the greatly reduced administration and customer service tasks, resources in the company are used more effectively.
“Now they can instead focus on the more sales oriented advice that people are best at, which can’t be replaced by automation or AI.“