A Brief Overview:

Our customer is a household brand with a successful existence in the electrical appliance retail space for over half a century. They sell over 3000+ products to a loyal customer base through a robust e-commerce site and from over 130 stores distributed over 18 major cities across the country.

Though they are one of the oldest and most experienced players in their segment, they were facing the challenges that every hybrid store faces: seamless management of returns and exchange of products.

The damaged product return and exchange process is seen as a pivotal touch point between the brand and the consumer. It should be viewed by stores as an opportunity to correct the problems with the supply chain while winning back consumers’ trust by enhancing the User Experience.

A good user experience design has the potential to transform an undesirable event into a golden opportunity for customer loyalty and advocacy. If the process is seamless, it solidifies the organization’s brand image as a reliable and customer-centric one.

Our client recognized that they needed to address these challenges and sought the expertise of Agile Soft Systems to elevate the customer experience in this critical area.

Renowned for their expertise in UX optimization and application modernization, Agile Soft Systems emerged as an ideal partner to solve our customer’s complex problem.

Challenges related to returns and exchange processes

In a hybrid model that combines in-store and online shopping, solving User Experience (UX) issues relating to the exchange and return of electronic equipment poses a special set of difficulties.

Here are some deep insights into the challenges the client struggled to address before they partnered with Agile Soft Systems.

1. Complex Return Policies and Inconsistent Policies Across Channels

Different products had different return windows and terms and conditions that were difficult to navigate. Further, customers encountered distinct return and exchange policies for in-store and online purchases, causing confusion and frustration.

At times, customers were unsure whether the return should be initiated online or whether they should visit a store in person.

2. Lack of integration of online and in-store systems

There were discrepancies in returns and exchange processes between in-store and online operations due to data and system disconnects. This divide led to several other problems.

For instance, sometimes there was limited in-store stock for online purchases.

3. Unclear Return Merchandise Authorization Process

Return authorization was difficult to obtain as users found the process lengthy and confusing with forms that were not user-friendly.

Additionally, the in-store staff found it difficult to verify the purchases made online, causing unnecessary delay and frustration.

4. Communication Gaps Across Channels

Customers were not being updated or notified about the return or exchange status, especially if they transitioned between channels. Additionally, the current process lacked an omnichannel customer support system. Agile Soft Systems conducted a customer survey, which showed that despite being offered free shipping, 44% of consumers still preferred to return the product in-store.

5. Hybrid Experience Personalization

A system that could provide hybrid experience personalization spanning online and offline channels was not in place.

6. Continuous Improvement and Feedback

The client company had overlooked the importance of a customer feedback system to drive improvement and innovation. Failing to do this had hindered their learning to understand customer expectations and had cost them time and a significant loss.

7. Technological challenges related to return and exchange processes

Though Agile Soft System was brought us in to improve their User Experience, the problem lay within the current software architecture, which was for the most part monolithic. So implementing a better user flow was impossible without application modernization.

Our client’s development team was consistently making improvements to the system, but the features were not being released frequently.

Solutions to build a seamless UX

1. Design Thinking, Lean UX, and Double Diamond Design Frameworks

Agile Soft Systems first thoroughly audited the existing return and exchange processes. Then, a four-day Design Thinking workshop was conducted where the existing system was reviewed and an ideal plan and approach to building a new system were designed. We were determined to take an agile approach to design and develop the system and chose Lean UX and the Double Diamond as the methodology and framework to guide our project.

2. Adoption of Microservices, Microfrontend and ML

There were three factors that led us to adopt Microservices. The hybrid nature of the system demanded that we take this approach. Time was another factor that required us to work parallelly with small teams on distinct parts, with small sprints, and beta-test them separately. The third reason was to build an efficient DevOps process to enhance delivery, which wouldn’t work unless we had a Microservices architecture in this case.

Agile Soft Systems also chose Microfrontend to speed up to support the Lean UX and Double Diamond frameworks we selected for our Design iterations. This meant faster deliveries in smaller increments, providing a faster user feedback loop.

Machine Learning was also included for data analysis to enhance the speed of operations and user experience.

3. Adequate product information

Agile Soft Systems first conducted a customer survey and gathered data related to online and in-store returns and exchange cases. The survey revealed that around 22% of the returns were from customers who did not have a clear understanding of what they were purchasing, leading to dissatisfaction upon receipt.

To address this issue, the online product page UI was improved to provide detailed product descriptions, high-quality images, and user-friendly comparison tools.

Product warranty periods were clearly defined and prominently placed in the product information section. And user reviews and ratings were encouraged to build trust among potential buyers.

4. Consistent return and exchange policies and RMA

Return policies were standardized by simplifying the return and exchange policies. This return window for undamaged goods was limited to just two possibilities: 14 days and 30 days. The policy information is communicated in concise and clear language. It’s made easily accessible on the website, across all devices, in the mobile app via a user-friendly interface, and in the form of in-store signage across all stores.

The return merchandise authorization process is enhanced by offering self-service options on the website and the mobile app. Additionally, an AI Chatbot is integrated into the system to assist the users. Also, a customer service number is easily accessible for those who require assistance.

5. Integration of Online and In-Store Systems

Agile Soft Systems integrated online and in-store systems—shared databases, inventory management systems, and customer profiles accessible at all touchpoints. This solved most of our problems, providing a seamless experience for the customers as well as the returns and exchange customer service staff.

Better communication between customer support staff. The communication gap between the online and in-store customer support staff was eliminated. The integration of data helped everyone stay on the same page in regards to the application and the status of the return and exchange process. Better communication between support staff and customers. Clear information helped the customer support team serve the customers better across all touchpoints. Filters were introduced into the product.

6. Automated warranty

The manufacturer’s warranty is registered at the retailer’s portal on purchase confirmation. This information is later shared with the manufacturer through our application or is updated through the manufacturing company’s API if it’s provided.

This reduced the time to process the return or exchange, as the retailer now verifies the warranty period instantly.

This feature also eliminated the need for the consumer to register the product with the manufacturer by themselves, leading to a better customer experience.

7. Improved personalization

Implement personalized return experiences by collecting feedback on the reasons for returns. Tailor return solutions accordingly, such as offering exchanges for defective items or refunds for dissatisfaction.

Agile Soft Systems created different user flows for different RMAs, such as repair, refund, or replacement. The improved user satisfaction rating greatly.

8. Safeguard against fraud.

With the help of AI, we also segmented the type of customer based on their purchase history. This helped our client’s team to identify genuine customers from insincere ones and further safeguard the business from fraudulent customers who engage in return and exchange fraud.

9. Continuous Improvement and Feedback

The system encourages customers to provide feedback on their return and exchange experiences. We use this feedback to make iterative improvements in both online and in-store processes.

Conclusion

Agile Soft Systems successfully addressed the businesses’ complex challenges in returns and exchanges, transforming a previously inconvenient process into a streamlined, customer-centric experience.

User-centered design frameworks—Design Thinking, Lean UX, and Double Diamond frameworks—helped us create an efficient user journey. Adoption of Microservices, Microfrontend, and Machine Learning helped us surpass the technological limitations of the legacy system.

The emphasis on continuous improvement through customer feedback loops ensures that our customer remains adaptive to evolving customer expectations, positioning itself as a leader in the competitive retail landscape.