How does IVR decrease the RTO rate in e-commerce?

The world of eCommerce is very wide, and it mostly consists of transportation, returns management, and inventory management. A new seller might not be familiar with the several specific industry phrases that are involved in logistics, which is an essential component of an eCommerce firm. Let's start with RTO to better understand these concepts.

What is RTO in eCommerce?

Return to Origin, often known as RTO, is a term frequently used in the eCommerce sector to describe the non-delivery of an order and its return to the seller's address. Even though there may be many causes for a product to be undeliverable, returning it to the seller's warehouse just increases costs. Therefore, in order to scale their business, sellers must maintain a low RTO. 

RTO happens for the reasons listed below:

• The customer is unable to accept the kit at this time
• The customer declines the delivery of the package
• A buyer's address or other information is incorrect
• Door, building, or office is locked

The undeliverable packages are typically not sent back to the seller's address right away. The Non-Delivery Report (NDR) is put in place at this stage. An NDR is a receipt that lists orders that were unable to be delivered along with the explanation for why. The seller must reply to the raised NDR with "Reattempt" or "Return to Origin" when the seller's courier partner sends him/her the non-delivered status of orders. The following options are possible depending on the seller's reaction.

• The courier business makes at most three further tries to deliver the order.
• The merchant or the courier partner calls the consumer to request a convenient delivery time.
• Some courier partners will additionally SMS the consumer or place an IVR call to them to ask if they want to accept or reject the delivery.
• An RTO is produced if the customer is unreachable despite many attempts to communicate or rejects the order.
• The order is returned to the seller's address.

Now, let us understand how these RTO rates impact an e-commerce business financially.

RTO-related Expenses

• Shipping costs for forwarding and returning the goods.
• Repackaging costs.
• Item damage
• Costs associated with processing recalled stock.
• The item gets stuck in transportation, losing value and occasionally becoming unusable.
• Many returned products require additional disposal fees.
• Cost of losing clients.

Online retailers must bear the risk of returns on their orders because businesses today are engaged in cut-throat competition. Sellers use a range of strategies to lower RTO frequencies, one of which are IVR services.

First, let us understand, 

What is IVR in e-commerce?

IVR also known as interactive voice response (IVR) enables callers to be routed, and segmented to the most appropriate agent within a workforce.

IVR services such as Alohaa, is a practical choice that can aid in reducing operating expenses and boosting an organization's productivity with it's competitive features listed below:

Call

• Listen to customer conversations and make quality checks of your team conversations.
• Better communication with clients to maintain better relations that can help in business growth.
• Download call logs at a click of a button.

SMS

• Receive OTPs for work-related websites and create a login for WhatsApp and create WhatsApp accounts.
• Receive unlimited SMSs.

Agents

• Add unlimited agents to your dashboard whether you have 5 members or 1000 members.
• Make and receive calls from our easy-to-use Cloud call centre.
• Save contacts, and make/receive calls and SMSs from our android app.
• Add unlimited customer contacts in ranks or orders.

Callertunes

• Set up an organisation, department/group or agent-level caller tunes.

Call routing 

• Set up groups/departments based on priority routing or round-robin.
• Create and add unlimited agents in each group

Webhooks

• Use our webhooks to receive sms and call logs in your applications

Benefits of IVR systems in e-commerce

Following are the benefits that you can leverage using IVR:

Boost first point of contact

IVR systems offer callers a first-contact resolution. This is so that callers can obtain the appropriate information with just one call. The caller can need a manager, a salesperson, or a technician. IVR ensures that the caller is connected with the appropriate party to address any important complaints.

Efficient customer service

IVR can help users receive accurate information fast. It allows the user to connect with Live agents, resulting in more effective and better customer service.

Boost efficiency

Agents are more adept at resolving specific consumer issues. When these calls are connected, there are no/reduced call transfer or peer consultation. IVR streamlines processes and enables effective time management of the workforce.

Low cost of operations

IVR eliminates the need for a receptionist or other similar representative, saving time, effort, and finances while reducing human errors.

Increased professionalism and client satisfaction

Businesses can use the IVR system to personalise customers' experience. An IVR system also gives a company a big, established look and feel. Customers' trust in the company may increase as a result.

Scalable 

Interactive voice response systems can accommodate increasing client rate with its cloud-based solutions that offer a wide range of virtual communication features, including, automated call routing, unlimited SMSs, etc. The IVR system can be modified to accommodate your future needs as your organisation grows.

How does IVR help reduce RTO?

Verifying customer information

During verbal conversations, IVR systems can be utilised to validate consumer information. For instance, when a consumer phones the help line of an online retailer, the IVR system may ask them for specific information like their account number, order number, or other identifying data. The IVR system assists in ensuring that the caller is actually the customer they claim to be by verifying this information.

Order Confirmation: 

An IVR system can automatically route a call from an agent after customers order online. By confirming that the order was placed by the authorised account holder, IVR reduces the possibility of fraud.

Solving Complex Issues

IVR that is poorly built requires a lot of user-based information that your customers might not have. They may become frustrated and unsure on how to solve the problem after going through a number of IVR prompts. When a customer has direct contact with a representative, it is simpler for them to express their issue and get it fixed.

Update customer information

Agents can update contact information, preferences, residential addresses and other crucial order details in their Alohaa dashboard for reduced returns.

Regular updates and data cleaning 

These are options for e-commerce businesses to evaluate their consumer databases on a regular basis. Incorrect phone numbers, email addresses and shipping addresses can be found and removed. Businesses should also routinely remind customers to update their contact information, ensuring that the information is correct and current.

Improved customer experience

Direct communication among clients and agents enables smooth operations, resolving issues, and safe transactions. This boosts a company's customer experience and encourages client retention while also significantly reducing RTO rates. 

Adaptive optimisation is the ideal method for tackling a problem like this, especially if the problem's main cause has not been properly identified.

IVR systems such as Alohaa increase customer satisfaction rates, facilitate agent workflows, increase customer retention, and enable e-commerce businesses to respond to more consumer enquiries in less time. Choosing the right IVR service provider is a crucial part towards expanding your large or growing ecommerce business.

Get detailed information about the qualities and features you must look for before choosing your IVR service provider here.

IVR improves client interactions, reduces wait times, and provides assistance by live agents, all of which lead to quicker problem resolution and, ultimately, lower RTO in an e-commerce organisation.

See how Alohaa can help your e-commerce business grow, book a your demo now!