What is a returns chatbot?

These chatbots improve the customer experience by providing quick and accurate information, reducing the time and effort required for returns, and operating 24/7.

They are also beneficial for companies as they can help reduce the workload on customer support teams, cut down on return-related costs, and ensure that returns are processed efficiently and following the company's policies.

How does a returns chatbot work?

A returns chatbot can work on a scripted chatbot basis, responding based on pre-defined answers, or AI chatbots, using Natural Language Processing (NLP) and Machine Learning (ML) to understand and respond to user inquiries. These advanced technologies enable the chatbot to interact with customers and guide them through returning products or items they have purchased from a company.

Returns chatbots can handle the entire process, including inventory management and order processing, to automate return approvals, restocking, and refunds by integrating with back-end systems. Here's how a returns chatbot typically works:

• Initiating the Return: When customers wish to return a product, they can engage with the returns chatbot through a website, app, or messaging platform. The chatbot will typically ask for order information or details about the product being returned.

• Providing Information: The chatbot can provide customers with information about the return policy, including eligibility, timeframes, and any associated fees. It can also answer Frequently Asked Questions (FAQs) related to returns.

• Generating Return Labels: In many cases, the chatbot can create return labels or authorisation codes that customers can use to return the item to the company, either automatically or by interacting with the customer to gather the necessary details.

• Tracking the Return: The chatbot may offer monitoring services to allow customers to check the status of their return, including when the company has received the product and when they can expect a refund or replacement.

• Resolving Issues: If a customer encounters any issues or complications during the return process, the chatbot can provide assistance, escalate the problem to a human agent if necessary, or guide the customer to the appropriate support channels.

While returns chatbots offer many solutions, it's important to note that they may not handle complex, emotionally charged or unique return situations as effectively as human agents. Therefore, a balanced approach that combines chatbot automation with human support for more complex cases may be the most effective strategy for some businesses.

What are the benefits of a returns chatbot?

A returns chatbot can offer several benefits to both businesses and customers. Here are some of the key advantages:

• Improved Customer Experience: Returns chatbots can assist customers at any time, providing quick responses to their return-related queries and reducing wait times and frustration for customers, which enhances convenience and customer satisfaction.

• Cost Savings: Chatbots can handle a significant portion of routine return inquiries, reducing the workload on human customer support agents and saving on costs. These chatbots also ensure consistent service during peak periods without hiring additional staff.

• Streamlined Returns Process: Chatbots can walk customers through the returns process step by step, ensuring they provide all necessary information and follow the correct procedures. Returns chatbots can also help reduce returns process errors, such as incorrect return labels or missing data.

• Data Collection and Analysis: Chatbots can collect data on customer return preferences and reasons for returns, which can be valuable for improving products and services. Businesses can analyse these interactions to identify trends, common issues, and areas for process improvement.

• Reduced Returns Fraud: Chatbots can help verify the authenticity of return requests by cross-referencing information with the original purchase and return policies, diminishing fraudulent returns.

Returns are about making the best of a bad situation. No one is making money from the returns process except your logistics service. Still, ensuring your customer comes away from the process with a good impression of your company is essential. After all, the ideal situation after any returns process is that the customer returns the following week.

To start with returns chatbots, you can build them with CM.com’s Conversational AI Cloud. Our team can provide the support to automate the returns process.