Part four · The floor and the routine · Chapter 14

THE RETURNS SCORECARD

Ten numbers, reviewed monthly, that tell you whether returns are keeping customers or quietly losing them.

Most returns reports show the return rate and a cost. The scorecard below follows the trip from the promise to the next order, so a problem shows up where it starts.

NumberHow to count itGood directionWarning sign
1. Return rate, by valueRefunded and exchanged value ÷ gross sales, by categoryStable or falling, for the right reasonsFalling after a fee, with repeat falling too
2. Top-20 product return ratesEach product against its own last quarterFalling after fixesThe same product on the list three months running
3. “Other” as a reasonShare of returns with a vague or blank reasonUnder 10%Rising: the list is missing something
4. Outcome mixExchange, credit and refund shares of returnsExchange share risingRefund share rising after a portal change
5. Second-return rate on exchangesExchanges returned again ÷ exchangesLow and fallingRising: size guidance is off
6. Days, request to first scanMedianShortRising: sending back has become harder
7. Days, first scan to refundMedian, and share refunded at scanSame day for mostAny rise without a decision behind it
8. Cost per returnLabel, handling and write-off ÷ returnsFallingFalling while metric 10 falls
9. Return tickets per 100 returnsSupport contacts about returnsFallingRising after any change to the portal or policy
10. Repeat rate by outcome90-day and twelve-month repeat, split by how the first return endedReturners close to non-returnersA widening gap between refund and exchange

Quarterly, add the count of customers above your serial-returner line and any holdout results.

Reading the outcome mix

The fourth number is the one that moves fastest when you change the portal, so chart it. Picture a brand that reorders its outcome screen and adds a small bonus for exchanges:

In the chapter 4 example, that shift was worth about $3,500 a month after paying the bonus. The chart shows the change happened; only the holdout shows it paid.

Report the outcome mix next to the return rate, every month. One tells you the cost; the other tells you what you kept.

Do this

This is one chapter of The Return Trip, which is free and readable in full on a single page with no form in front of it.