Returns Reimagined: Protect Profit, Preserve Loyalty, and Scale Smarter with AI

Leading retailers don’t just view returns as a cost center—they’re a catalyst for competitive advantage. As return rates rise and customer expectations soar, retailers are looking to post-purchase innovation to defend margins and deepen customer relationships. Enter Narvar Shield, powered by IRIS™, Narvar’s proprietary AI engine that transforms 42B+ interactions into actionable intelligence.

Shield doesn’t just manage returns—it drives exchanges, personalizes policies, automates routing, prevents fraud, and restores customer trust at scale. For CFOs, CIOs, COOs, and CX leaders, smarter returns management is no longer optional—it’s a business imperative.

‍

Why Returns Management Matters to Your Bottom Line:

Returns are becoming more frequent, costly, and complex:

• Average return costs: $25–$30 per item
  
• 15% of returns in 2024 were fraudulent
  
• 84% of shoppers won’t shop again after a poor experience
  

But with IRIS™-powered Shield, these losses become opportunities—enabling predictive fraud prevention, dynamic policy enforcement, and personalized post-purchase journeys.

‍

Key Value Drivers for Building Your Business Case

Revenue Retention

• The Shield return experience prioritizes saving the sale with easy/streamlined exchanges. IRIS™ segments customers by trust score driven by past behavior, allowing trusted shoppers to receive instant store credit or refunds—retaining up to 60% of at-risk revenue.
  
• CFOs benefit from measurable refund reductions; CDOs and CX leaders see improved LTV and repurchase rates.
  

Customer Loyalty and Lifetime Value

• With IRIS™, you can personalize return options by trust tier, promoting loyalty without enabling abuse.
  
• 60% of customers repurchase after receiving store credit; Shield makes that seamless with automated credit flows and personalized messaging.
  

Operational Efficiency

• IRIS™ drives dynamic return routing, directing items to the optimal destination at the optimal speed (store, DC, or vendor) to maximize cost savings and resale value.
  
• CIOs/COOs and Logistics teams benefit from reduced manual work, boxless drop-offs, and API-driven automation that scales without IT overhead.
  
• Up to 80% reduction in WISMR inquiries when customers receive proactive, branded updates at every return stage—from initiation to refund—via Narvar’s Track & Notify and IRIS™-powered communications.
  

Fraud Prevention

• Shields AI capabilities identify high-risk behaviors in real time—from wardrobing to empty box scams—and block abuse without punishing loyal shoppers.
  

‍

Quantifying Your Returns Management ROI

Step 1: Audit Current Costs

• Refund losses, fraudulent returns, processing labor, and customer support costs
  

Step 2: Estimate Shield-Driven Savings

• 18% Revenue Protection due to return policy enforcement
• 60% Retained Revenue via outcomes like exchanges, gift cards, and instant credit
• 50% Reduction in WISMR with proactive returns messaging and updates
• 40%+ Logistics Savings with consolidated returns and intelligent routing

Step 3: Project Revenue Growth

• 15x ROI through embedded recommendations powered by IRIS™
• Net margin lift via upsell modules and shipping protection
  
  

‍

Addressing Internal Objections with IRIS™ -Powered Proof

‍

Conclusion

Returns are no longer a reactive problem—they’re your next strategic lever. With Narvar Shield, powered by IRIS™, you can proactively retain revenue, personalize experiences to drive loyalty, and optimize returns across the board. It’s time to shift from cost center to profit center—intelligently, and at scale.‍

‍
Discover how Shield + IRIS™ delivers smarter, AI-powered returns and exchanges that serve your customers and your bottom line. Request a demo here.