29 November 2011 – Paul Galpin – MD of P2P Mailing

The e-commerce market is becoming increasingly competitive. Consumers have more choice than ever before, so one slip by retailers can result in customers defecting to a rival. Many factors influence a customer’s loyalty, but the returns process is particularly important. It has been proven that implementing a good returns process drives repeat orders and improves customer satisfaction. Research by Harris Interactive shows that 85% of customers say they will stop buying from a retailer if the returns process is a hassle and, conversely, 95% will return to the same catalogue or internet retailer if the process is convenient.

Despite this, some e-commerce businesses fail to even consider the returns process, with many leaving it to the customer to make their own arrangements to send items back. Some e-tailers (especially new ones) feel that because their business is small a returns process is unnecessary. Other companies put a solution in place but fail to give it the attention it deserves, meaning that customers are put off by inefficient and inconvenient processes. In fact, in order to encourage customers to make repeat purchases and promote growth, the principle of offering a returns service is important to e-commerce businesses of all sizes.

Getting it right

Undoubtedly, the returns process needs to be carefully thought out. So how do companies ensure that their function will meet customer expectations at the same time as being workable for the business?

There are three key considerations here. First, the system needs to be easy to implement. This involves being scaleable so that as the business grows the system can keep pace with increased traffic. Ideally, if the business is operating in different countries, the system will be rolled out under a single platform. This will not only create consistency for customers but will also reduce implementation costs.

Secondly, whether dealing with international or domestic mailing, it is important that the process is cost effective – whether the service is offered free of charge or at a cost. There can be import and duty considerations for customers located outside the EU, so it’s important that the system is set up correctly in the first place to ensure that the company is complying with regulations and that these costs are considered from the outset.

Lastly, it’s important to step back and view the process from a customer perspective, to ensure that it’s easy to use and reliable. Systems should be tested and tested again before being rolled out to the market.

Cross-border returns

As many companies seek to expand outside the UK, the subject of how to manage returns across borders is becoming more prevalent. Considerations that companies already make for their UK customers are more complicated when applied to customers abroad. Here are some key areas to look at when implementing a cross border returns process:

How easy it is for the customer to return items, for example, where will the drop points be?
How will the costs involved in returning the parcels to the UK be managed?
How long will the process take – how long will the customer have to wait for a refund or replacement item?
How can items in the system be tracked?
How can the rate of returns by market be monitored?
How can stock re-integration be managed?
How easy it is to implement the system?
Is the system scalable and can it grow with your business?
Are there considerations surrounding re-importing items back to the UK from non-EU destinations?

Using a third party

There are lot of considerations here which is why many forward-thinking businesses are partnering with an expert third party to plan and/or administrate the returns solution.

For example, the third-party provider should have a good handle on any tax and duty considerations for customers outside of the EU, and can advise on meeting these specific requirements.

The best providers will tailor the solution to the business, customising it to deal with national and regional differences where necessary. It should also be possible to integrate with existing IT systems and logistics providers to ensure minimal disruption and cost. Ideally, the returns process should be integrated into the website on a white label basis, so that as far as the customer is concerned, everything looks and feels the same.

By outsourcing the returns solution (and potentially the main distribution as well), companies can concentrate on simply producing a good website and online shopping experience for their customers. For small retailers especially, this may be an attractive option.

E-tailers that ignore the returns process do so at their peril. As competition hots up, the returns process is likely to become increasingly important as customers seek the best supplier. There are many considerations to take into account when developing a returns strategy. These not only include current requirements, but also how the business might grow, and whether the returns process can sustain that growth. This may include consideration of overseas expansion and how the company will manage cross-border returns and the ensuing complications.

Ultimately, the returns process needs to be tailor-made and carefully planned from the outset, to ensure that it works for the business and for the customer. Expert providers can help to ensure a smooth and efficient operation.

Source Hellmail

http://www.hellmail.co.uk/postalnews/templates/postal_industry_news.asp?articleid=3215&zoneid=3

There is a more effective way of dealing with these items, put them back in the letter box marked RETURN TO SENDER. For 16 years we, (www.veri-data.co.uk ) have been processing returned and undelivered mail for financial services and others. For each company we open and scan the relevant information required and return it to them on a weekly basis so that they can supress their databases, so they do not mail that person/address again.

We then recycle all the waste paper, for 80% of the carbon footprint of a direct mail piece is in the end of life solution. Our service also helps to reduce the opportunity for identity fraud and protects the brand image by not ‘irritating’ people by sending them material they do not want. Sadly not all mailers use a service like ours and in many large companies and charities there is a reluctance to engage with this matter. Nobody wants responsibility for what is perceived as irksome problem, notwithstanding it can save them money and cut their carbon footprint. (20gms of CO2 are generated by a piece of direct mail)

Like it or not Direct Mail works and a great many people are stimulated to buy, even if it only drives them to a web site. I also wonder how many people who complain about this issue would actually miss it.  For as Auden noted, ‘And none will hear the postman’s knock Without a quickening of the heart. For who can bear to feel himself forgot.’ or am I the only one who feels slightly miffed when the postman passes by and there is no mail?

NB Companies that dropped direct mail in 2009 are going back because they saw a drop in orders of up to 25% Wall Street Journal article 2011

CodEffect was originally designed to perfectly capture name and address information and to reduce the capture cost. However, when customers began adding their own data into the encoded barcode, this additional information became a great way to streamline many back office functions. For example, some applications our customers use CodEffect on include updating customer databases, validating the postal addresses, segmenting documents based on their commercial value and speeding up the process of collecting survey information.

Veridata is a division of Totalpostplc                   www.totalpost.com

Tesco Clubcard was the first customer. The CodEffect process reduced Tesco’s cost of capturing returned letter data by 50% – read the Case study. Look in the window of your next Clubcard envelop and you will see two little square boxes, they are the CodEffect barcodes. Since its beginning, CodEffect has continued to grow and develop. The software now has features for letters, packets and parcels, encryption, automated data feeds into accounting, database and document management systems.

In 2008, CodEffect was shortlisted at the World Mail Awards – the Oscars of the postal industry – in the Technology category.

Veridata gone away and returned mail handling are licensed by Arbutus Ridge  as users of CodEffect. We thoroughly recommend this bar code it can save considerable amount of money and provide valuable marketing information.

We recycle all waste paper that results from processing, which helps to lower your carbon footprint. 80% of the carbon footprint of a returned mail piece is in the end of life solution

We include catalogues in this context.

Most direct marketers would agree that embracing best environmental practice is a sensible idea. There are rewards for doing so but whether you agree that PAS2020 an onerous standard or a good discipline, the potential for reduced costs, reduced waste and increased campaign performance makes good business sense.

There also the benefit of Royal Mail’s ‘Sustainable Mail’, which offers postal services at a discounted rate if a company is proved to be compliant with PAS 2020. This can save mailers up to 4.7 percent off the standard mail tariff.

As a company dedicated to processing returned and gone way mail since 1996 we have to declare an interest in hoping that volumes of direct mail do not decline too quickly. In our part we have reduced the returns/’gone aways’ of one our larger customers (at their peak mailing 140 million pieces a year) from over 6% to under 2% saving them thousands of pounds.

Our aim is to minimise waste and thereby cut cost, by removing unnecessary volume, and by ensuring the ‘end of life’ solution where 80% of the carbon footprint occurs is addressed responsibly. We recycle all waste paper. It can also provide brand protection and reduce the opportunity for fraud – overlaying information from returns can identify hot spots/addresses and help to mitigate identity theft.

Taking care of your returns also offers a safety net from consumer backlash, because despite the economic times, consumers and the media are still being tough on brands that do business while ignoring the environmental impact.

It was originally designed to capture name and address information and to reduce the capture cost.  It includes full name and address information but its range has been expanded to include streamlining back office functions.

For example, including updating customer databases, validating the postal addresses, segmenting documents based on their commercial value and speeding up the process of collecting survey information.

Benefits

•          Reduced CRM mailing costs by 5%

•          Response rates increased by 8%

•          Data integrity enhanced

•          Helps to mitigate identity fraud

•          Achieved immediate and tangible cash savings with CodEffect

•          Reduces data collection cost

•          Enhances data base  management

•          Automates suppression process

•          Integrates mailing process with business process to improve cycle times and reduce cost

•          Minimises barcode size

For more information and power pint presentation please contact Tim Craig tim.craig@veri-data.co.uk

PS included in our service is the safe destruction and recycling of all waste paper helping to cut your carbon footprint

SAVE MONEY PROTECT BRAND IMAGE CUT THE RISK OF IDENTITY FRAUD

Returned  gone way  mail (catalogues) represent a waste of money.  If you have 100,000 Return mail items per annum and your average mail pack is 50p, you have wasted £50,000 which could have been put to better use in reaching customers and prospects. Conversely, if you are over-suppressing your mailings due to inaccurate Returns information, you could be losing out on revenue opportunities.

Veridata are licensed by Arbutus Ridgeto use a proprietary 2d bar-coding system CodEffect. As a company we provide a specialist, automated and quick turn around service for processing returned and undelivered mail.  As such, Royal Mail supports Veridata in the delivery of Returned and gone away mail Management solutions.

What is CodEffect?

CodEffect identifies the recipient of undelivered mail. It encapsulates a mailer ID, campaign code, customer URN or other customer related data along with the complete customer name and address information into a two dimensional (2D) barcode. All data is encoded in order to minimise the barcode’s size.

This means that large amounts of data can be securely encrypted, including data that doesn’t appear in the text of the mailing item and enables large amounts of data to be captured cheaply and accurately.

The 2D barcodes are small and discreet and printed to be visible through the window of each envelope. After a letter is returned, Veridata scans the unopened envelope and decodes the barcode to obtain the required information/name and address of the intended recipient and to identify the mailer who originated the piece. This allows Veridata to create a list of undeliverable names and addresses for the mailer.

The barcodes are printed using industry-accepted DataMatrix standards.

The principal users of CodEffect are printers of bulk mailings who are looking for a cost-effective returns handling solution and a straightforward way of integrating returns handling into their systems.

CodEffect has 2 distinct elements – simple data capture from returns and data verification/enhancement. These are 2 distinct and separate services, designed so that users can ‘buy-in’ to both services, however this is not mandatory.

As far as the “core” data capture service is concerned, the pricing model is simply based on the number of scans performed – the amount of data captured is irrelevant as the amount of work is the same. One of the key selling points of a CodEffect capture solution is a fixed charge, regardless of the amount of data captured.

It can carry a considerable amount and variety of alphanumeric data such as – amount, payee, account information, personal identification information, or customer references; however valuable marketing data could also be added giving detailed information on geographic/demographic success rates of campaigns.

For more information Call Tim Craig 0n 01925 242360

PS We recycle all waste paper/catalogues  helping the environment and you to lower your carbon footprint.

PPS Catalogues can be saved for reuse if required

Save up to 50% on your returned and ‘gone way’ mail/catalogues

In partnership with Arbutus Ridge we process their CodEffect 2d barcode, a powerful method of encoding large amounts of data. Successfully used by many organisations including HMRC and Tesco, the latter in the first six months that they have been using it have seen a 50% reduction in its operational costs for returned mail.

It attracts a lower charge rate to capture than standard alpha/numeric data and we can return the data files on a daily basis if required.

Veridata now offers this encrypted 2d bar-coding system which means that capture of name & address, campaign codes etc. is considerably cheaper and enables us to offer our customers great savings for processing their returned mail.

CodEffect capture solution offer a fixed charge, regardless of the amount of data captured. There is no charge for the software or the creation of the barcode.

The CodEffect service has two distinct elements – simple data capture from returns and

data verification & enhancement. If required it can explain the reason for returns by

running them against a number of industry wide data sets.

The discreet two-dimensional barcode can be set in various places in or outside the envelope

Also included in the cost is the destruction and responsible disposal of all waste paper, which is recycled locally; this helps reduce your carbon footprint. Our service also helps you to comply with EU Directives on Landfill PAS2020 and Royal Mail’s Sustainable Mail.

Technical Requirements

Veridata in partnership with Arbutus Ridge will provide all software required to manage the printing of the CodEffect 2d barcodes free of charge and will work alongside the Client and chosen print company to install and test the process. Full technical requirements will be produced on agreement of contract.

Supplied as Windows DLL’s, which you can integrate using Visual Basic

For further information please contact

Tim Craig Business Development Director

Tel:01925 242360 email: tim.craig@veri-data.co.uk

PS As part o our service we destroy and recycle all paper helping to lower your carbon footprint

Congratulations from Tim & Kirsty Craig at Veridata

David Hymers has been awarded an MBE for “services to Industry and International Trade” in the 2010 Queen’s Birthday Honours List.  David is Chairman & Managing Director of Totalpost Services Plc, a well respected privately owned independent market leader specialising in mailroom solutions to Companies in over 18 countries around the world.  The award recognises David’s hard work and commitment in the field of business, & for working with Business Link in the North and also with the management & Vice Chairmanship of an Export Club for Cumbria via UK Trade & Investment.

A surprised, delighted and humbled David said “Whilst I have received the award, I feel it is a testimony to all the employees at Totalpost as I know that without such a great team, we would not be doing so well, so each and every one of the team – in UK/Europe and USA – deserves a share in this recognition and I said so in my acceptance call to Her Majesties representative.”

A spokesperson for Totalpost said “We are delighted for David; the award of MBE is extremely well deserved. David has made a significant contribution to Business and to International Trade and the wider community and he has developed Totalpost Services Plc to ensure it is a substantial force in the mailroom market.”

People whose names are published in The Queen’s Birthday Honours and New Year Honours lists usually receive their award from The Queen at an Investiture in Buckingham Palace. There are usually 20 Investitures held in the Ballroom at the Palace each year. Up to 150 recipients attend each ceremony, and each recipient can nominate three friends or relations to sit in the audience to witness the occasion. The Queen enters the room attended by two Gurkha Orderly Officers, a tradition begun by Queen Victoria in 1876. Also on duty are members of The Queen’s Body Guard of the Yeomen of the Guard, which was created by Henry VII in 1485.

Veridata returned & ‘gone away’ mail handling … a Totalpost Services plc company

Direct marketing has had a good year as companies have turned to its “age old attributes of targeting, respond rates and accountability” to bolster their economic recovery, a commentator has said.

Mail Marketing Week news editor Russell Parsons noted that 2010 has been a year in which the UK economy “crept diffidently but definitely out of recession”, as well as a period when many businesses utilised traditional forms of marketing in order to boost their brand exposure.

“And let us not forget that fantastic tool of engagement, the direct mail pack and how the tactile nature of that medium can help develop lasting relationships in a way that other avenues are not yet quite able,” he added.

Mr Parsons therefore suggested that 2010 could be seen as a year when traditional and new forms of media worked together as complementary, rather than competitive forces within businesses. He was speaking ahead of Marketing Week’s Engage Awards, which take place on May 24th, 2011.

Source: http://directmarketing.thomsonlocal.com/Win/News-Archive/Marketing-News/?storyId=83945

Direct marketing material estimated to account for approximately 550,000 tonnes of the household waste. Of this, 181,500 tonnes is estimated to be addressed direct mail with the remaining 368,500 tonnes being unaddressed direct marketing material.

At Veridata we process returned and undelivered mail, – i.e. mail sent back with ‘RETURN TO SENDER’ often embellished with more spicy comments! Also mail that is  inaccurately addressed, mail refused and mail for which the postman deems no such address exists. All this mail, if it is one our customers, is returned to the PO Box number on the reverse of the envelope and directed by Royal mail to our premises. We open, sort, scan, and return the information to our customers. This saves them mailing to the same people again. It also provides valuable marketing information, which helps to achieve greater focus on campaign performance.

AND it saves considerable amounts of money.

Just as importantly it helps to lower their carbon footprint and meet their corporate social and environmental responsibility, for included in the cost of or service is the safe destruction and recycling of all the waste paper we process. 80% of the carbon footprint of a piece of mail is in the ‘end of life’ i.e. when it’s dumped. So if you are sending out large amounts of mail or catalogues, you should be talking to us because you too could help the planet and save money. Paper has been identified as a material where reduced waste and greater recycling can yield significant environmental benefits.

When it comes to the subject of Climate Change: If you think you are too small to make a difference try sleeping in a room with a mosquito.

Veridata returned mail handling …a Totalpost Services plc company