2014 benchmarking trend report · the team behind worldwide business research’s (wbr) consumer...
TRANSCRIPT
Consumer Returns 2013 Benchmarking Results 2
Introduction .................... 2
Research Findings ............ 3
About Consumer Returns ......................... 12
Table of Contents
The team behind Worldwide Business Research’s (WBR) Consumer Returns conference – with help from an advisory board of senior-level executives from international companies – created a benchmarking questionairre that was distributed at the Consumer Returns conference to an audience of reverse logistics, supply chain and returns management professionals. Over 50 industry leaders from national and multinational corporations answered the survey, speaking to the state of their firms’ returns reduction strategy, optimization of their reverse supply chain, and outlook for 2014.
The goal of the survey was to understand where companies are in their reverse logistics transformation process, whether they’re on track to completing their transformation according to their plans and what new strategies they plan to implement in 2014. Results to this study allow companies to see where they stand in relation to their peers on transformation, staffing needs and organizational structure.
The roles of those answering the questionnaire ranged from Director of Returns to Senior Manager, Services & After Sales to Director of Asset Recovery, to name a few. Respondents represented companies like BJ’s Wholesale Club, Dell, The Home Depot, Verizon Wireless and more.
See how your firm compares to your peers and competitors by viewing the results and analysis throughout this report.
2014 Benchmarking Trend Report
Consumer Returns 2013 Benchmarking Results 3
On a scale of 1 to 10, rate your level of awareness about the importance of reverse logistics at your institutions. (1=unaware, 10=very aware)
How much attention is reverse logistics given on a scale of 1 to 10?
Research Findings1A
1B
unawaRe veRy awaRe
PooR exCellent
0%
0%
0%
12% 12%5%
5%8%
5%2%
2% 2%
14%
14%17%
14%17%
30%20%
21%
1
1
4 5 72
2 9
6 103
4
98
103 8765
45% of respondents reported to view reverse logistic at their companies' as important to very important.
21% of participants ranked their attention in reverse logistics at 10.
Consumer Returns 2013 Benchmarking Results 4
Do you feel that return rates have increased or decreased in the last 12 months?
Is there a particular product class with a change in return rates? What did you attribute this change in return rates to?
2A
2B
48% of respondents saw a decrease in return rates over the last 12 months.
53% of participants said cellphones had a change in return rates.
2a 10 20 30 40 50
3 10 20 30 40 50
5a 10 20 30 40 50 60 70 80
5c 10 20 30 40 50 60 70 80
2b
4
5b
Increased
No Change
Depends
DecreaseD
33%
17%
2%
48%
2a 10 20 30 40 50
3 10 20 30 40 50
5a 10 20 30 40 50 60 70 80
5c 10 20 30 40 50 60 70 80
2b
4
5b
Cell Phones
Television
Other Product Class
53%
29%
18%
Consumer Returns 2013 Benchmarking Results 5
2a 10 20 30 40 50
3 10 20 30 40 50
5a 10 20 30 40 50 60 70 80
5c 10 20 30 40 50 60 70 80
2b
4
5b
Increased
Same
Decreased
73%
18%
9%
2a 10 20 30 40 50
3 10 20 30 40 50
5a 10 20 30 40 50 60 70 80
5c 10 20 30 40 50 60 70 80
2b
4
5b
Increased
Decreased
Not Sure
No chaNge
28%
48%
3%
21%
Are you seeing an increase or decrease in NTF/NFF (no trouble found/no fault found) returns?
Does your company focus more or less on the consumer experience than it did 12 months ago?
3
4
48% of participants did not see a change in NTF/NFF returns.
73% of participants said company focus on consumer experience increased ove the last 12 months.
Consumer Returns 2013 Benchmarking Results 6
2a 10 20 30 40 50
3 10 20 30 40 50
5a 10 20 30 40 50 60 70 80
5c 10 20 30 40 50 60 70 80
2b
4
5b
Yes
In Process
Not Applicable
No
79%
14%
5%
2%
Does your company have a corporate strategy around returns?
Does your company have published policies around returns?
Do your practices align with your policies?
5a
5b
5c
2a 10 20 30 40 50
3 10 20 30 40 50
5a 10 20 30 40 50 60 70 80
5c 10 20 30 40 50 60 70 80
2b
4
5b
2a 10 20 30 40 50
3 10 20 30 40 50
5a 10 20 30 40 50 60 70 80
5c 10 20 30 40 50 60 70 80
2b
4
5b
In Process
Not Fully
No
No
Yes
Yes
70%
75%
13%
6%
17%
19%
70% of companies currently have a corporate strategy in place around returns.
79% of companies have published policies in place around returns.
75% said that current practicies fully align with company policies.
Consumer Returns 2013 Benchmarking Results 7
6%
Sales Finance Merchandise Customer warehousing transportation Quality operations Service assurance
6%8%8%
25%
17%13%
17%
Who in your company owns returns?
How closely do you work with the following functions?
6a
6b
Sales
Close
N/A
Reverse Logistics
Quality Assurance
C-Suite LevelServiceSupply
ChainDiffuse GroupsOperations
6b
20
40
60
80
100
120
7a 10 20 30 40 50 60 70 80
7c 10 20 30 40 50 60 70 80
0 10 20 30 40 50 60 70 80
7b
8c
9 10 20 30 40 50 60
10
10%
5%17% 10% 10%
5%
10%
17%
26%
7%
24%
38%
26%
48%
40% 43%
29%
31%
29%40%
33%
26%
10%
14%
12%
14%7%
10%
7%
17% 38% 24% 7%10%
25% of respondents said that the operations department owns returns.
48% of respondents reported to working very close with the customer service departments at their organizations.
Not Close
Somewhat Close
Very Close
Consumer Returns 2013 Benchmarking Results 8
Are you using social CRM (Customer relationship management) to engage with your customers?
If so, which social channels are most effective for you?
Does your customer service center integrate social CRM/social capabilities?
7a
7b
7c
6b
20
40
60
80
100
120
7a 10 20 30 40 50 60 70 80
7c 10 20 30 40 50 60 70 80
0 10 20 30 40 50 60 70 80
7b
8c
9 10 20 30 40 50 60
10
6b
20
40
60
80
100
120
7a 10 20 30 40 50 60 70 80
7c 10 20 30 40 50 60 70 80
0 10 20 30 40 50 60 70 80
7b
8c
9 10 20 30 40 50 60
10
No
Yes 80%
20%
6b
20
40
60
80
100
120
7a 10 20 30 40 50 60 70 80
7c 10 20 30 40 50 60 70 80
0 10 20 30 40 50 60 70 80
7b
8c
9 10 20 30 40 50 60
10
YouTube
Other
43%
35%
5%
5%
12%
Not Sure
No
Yes 66%
5%
29%
80% of respondents are currently using a scoial CRM system to engage with their customers.
43% of participants said Facebook is the most effective social channel for their company.
66% of participants said that their customer service center inegrates social CRM with social capabilities.
Consumer Returns 2013 Benchmarking Results 9
6b20406080100
120 7a
1020
3040
5060
7080
7c10
2030
4050
6070
80
010
2030
4050
6070
80
7b 8c 910
2030
4050
60
10
14%
7%
79%
When you go to secondary market, do you feel that you’re cannibalizing new sales?
When you go to the secondary market, do you feel that you’re cannibalizing new sales? If so, to what extent?
8a
8b
YesN/ANo
ESTIMATED @ 20%
CANNIBALIzATION
79% of participants do not feel that they are cannibalizing new sales in the secondary marketplace.
Of the 14% of respondents who feel they are cannibalizing new sales in the secondary marketplace, respondents estimated 20% cannibalization.
Consumer Returns 2013 Benchmarking Results 10
Via finance controllers to align costs
How do you determine appropriate pricing for the secondary market?
How are you working with new sales?
NEW SALES STRATEGIES
INCLuDE
8c
8d
6b
20
40
60
80
100
120
7a 10 20 30 40 50 60 70 80
7c 10 20 30 40 50 60 70 80
0 10 20 30 40 50 60 70 80
7b
8c
9 10 20 30 40 50 60
10
Market Research
Bid process based on lot product faculty
Market Demand
Other
Working closely with engineering, marketing, sales
during new product development
processClose interaction
to understand whole product as sold and moved
Look at new sales and factory
renewed sales together, creating
independent channels
Monitoring via customer service,
RA Dept. and reports from sales
team
Part of the planning
process and forecasting
40%
27%
21%
12%
We limit our sales to strengthen the brand
40% of participants said they determine appropriate pricing for the secondary market through Market Research.
Consumer Returns 2013 Benchmarking Results 11
6b
20
40
60
80
100
120
7a 10 20 30 40 50 60 70 80
7c 10 20 30 40 50 60 70 80
0 10 20 30 40 50 60 70 80
7b
8c
9 10 20 30 40 50 60
10 Rate of Return
Percentage of Sales
Repair Cost per unit Returned
NTF/ Average Cost for Replacement
Defect Verified Rates, NTF rates
Gross united Returned
Other
32%
20%
11%
7%
7%
7%
16%
What are key measures you use in monitoring the performance of reverse logistics?10
6b
20
40
60
80
100
120
7a 10 20 30 40 50 60 70 80
7c 10 20 30 40 50 60 70 80
0 10 20 30 40 50 60 70 80
7b
8c
9 10 20 30 40 50 60
10
16%
53%
29%
2%
Pre-Production
Customer Service Desk
Other
ProDuct DesigN
Where does returns management start for you?953% said returns management starts at Product Design.
32% of participants said Rate of Return is the key measure they use in monitoring the performance of reverse logistics.
Consumer Returns 2013 Benchmarking Results 12
Be a Part of Next Year’s Study
Consumer Returns is the premier event for reverse logistics and returns management professionals who are looking to trim costs through return reduction strategies and optimization of the reverse supply chain.
In 2014 Consumer Returns has placed an Increased emphasis on some of the hottest product categories in consumer electronics: automotive installed electronics, high end over-ear headphones, smart tvs, soundbars, tablets, video game consoles, wearables. There will also be an increased focused on regulatory matters: Impact of proposed “kill switch” legislation on secondary market, e-waste regulations, controls over the export of used electronics
About Consumer Returns
About WBR and WBR Digital
September 8 -10, 2014 Dallas, TX
RegiSTeR NOw
WBR is the world’s biggest large-scale conference company and part of the PLS group, one of the world’s leading providers of strategic business intelligence with 16 offices worldwide. Our
conference divisions consistently out-perform their industry sector competitors on the quality of the events we produce and the relationships we nurture with both attendees and sponsors.
Every year over 10,000 senior executives from Fortune 1,000 companies attend over 100 of our annual conferences – a true “Who’s Who” of today’s corporate world. From Automotive events in Bucharest to Logistics conferences in Arizona to Luxury conferences in New York and Finance summits in Hong Kong, WBR is dedicated to exceeding the needs of its customers around the world.
In addition to our industry leading conferences, our professional services marketing division, WBR Digital connects solution providers to their target audiences with year-round online branding and engagement lead generation campaigns. WBR’s marketers act as an extension of your team relieving strain on your internal resources while promoting your brand and solutions to your prospects. Solution providers can target identified accounts or relevant industry/function segments of WBR’s entire global database of over 500K senior-level decision makers.
what’s New in 2014· Increased emphasis on
some of the hottest product categories in consumer electronics: automotive installed electronics, high end over-ear headphones, smart tvs, soundbars, tablets, video game consoles, wearables
· Focus on regulatory matters: Impact of proposed “kill switch” legislation on secondary market, e-waste regulations, controls over the export of used electronics