Question: When a customer returned three undamaged cellphone cases (with the sales receipt and within the 15- day policy) at a major retailer the salesperson told

When a customer returned three undamaged
When a customer returned three undamaged cellphone cases (with the sales receipt and within the 15- day policy) at a major retailer the salesperson told him he would be banned from making returns and exchanges for a year'. The returns ban was imposed based on a returns score developed by Retail Equation (RE). The score is based on factors such as returning a high percentage of total purchases, returning a high dollar amount, returning without a receipt, returning after a certain period, returning items that tend to get stolen from the retailer, returning too many items within a short period, and returning just before a store closes. After the customer complained, he was directed to Retail Equation (RE) which tracks return activity for 34000 stores. It combines data from all these sources and flags approximately 1% of the customers whose behaviors are similar to return fraud and abuse of the return privilege extended by retailers to customers. The National Retail Federation estimated losses from returns abuse at over 20 billion in 20172. Macy's had a large number of luggage items returned after use when it provided relaxed return policies. Employees started seeing luggage returned a month after purchase when the customer returned from a trip. This affected sales employees whose commission is lost when the item is returned in less than six months In the case of the Best Buy Customer, RE Return Artvily ports et provided the customer with this return activity report. The customer complained that the report focused on only the three items returned on one day and completely missed the thousands of dollars of purchases made at BestBuy over the years. Similar problems occurred when credit scores and CRM systems were first introduced and the models of customer behavior were poorly designed. As in the case of Credit Scores and CRM Profiles, Returns Score models will improve and better capture the behavior of the customer Discuss the development and use of customer value scores in business. (0) Suggest one other feature that could be used in the Returns Score.(it) Which feature in the case is most liable to errors in interpretation and use

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