E-Receipts Can Take The "Happy" Out Of Holidays

Retailers Need to be Aware of Risks and Take Proactive Steps to Protect from Return Fraud and Organized Retail Crime

As more and more retailers implement or consider e-receipts, and holiday shoppers feel good and think "green" by accepting them, there can be serious fraud and loss prevention consequences if significant merchandise return process changes aren't addressed prior to implementation. Tom Rittman, vice president of marketing for The Retail Equation, advises retailers considering e-receipts to understand the risks and take proactive steps to protect their businesses.

E-receipts Are Here to Stay
The benefits that make digital technology so appealing to consumers pose challenges for retailers trying to balance modern customer service with fiduciary responsibility. E-receipts are easy to transmit, easy to alter, susceptible to cloning and forgery, and hard to delete all instances once saved to storage media making established LP practices focused on physical receipts obsolete.

It's time to think differently about receipts. Historically, the receipt was the primary credential that confirmed a return transaction's integrity. For years, paper receipts have been vulnerable to fraud, and e-receipts will only make the issue worse. The receipt is no longer the only indisputable evidence of a transaction.

Protect Holiday Profits
There are two practical solutions retailers can use to combat the threat of fraud in this rapidly changing electronic environment:

• Implement more frequent polling (However, it is still possible to fall victim to seemingly "valid" receipts.)
• Use a return authorization tool that is consumer-behavior based, so it doesn't just rely on a receipt (in paper or electronic form), but it measures the consumer's entire purchase and return history to ensure they are not perpetrating fraud.

Crucial Do's and Don'ts this Season
Additionally, Tom Rittman offer retailers the following DO's and DON'Ts for converting holiday returns into incremental sales:

• DON'T underestimate the importance of proper staffing
• DO supply return customers with a reason to keep shopping
• DON'T overreact or ignore the impact of return policies on consumers
• DO prevent customer return fraud as it occurs
• DON'T forget to study the latest trends

About The Retail Equation
The Retail Equation, headquartered in Irvine, Calif., optimizes retailers' revenue and margin by shaping behavior in every customer transaction. The company's solutions use predictive analytics to turn each individual shopper visit into a more profitable experience. This yields immediate financial payback, increasing store comps by as much as 2 percent, with significant return on investment. The Software-as-a-Service applications operate in more than 17,000 stores in North America, supporting a diverse retail base of specialty apparel, footwear, hard goods, department, big box, auto parts and more. For more information, visit www.theretailequation.com.

To schedule an interview with representatives at The Retail Equation, please contact Travis Culver at (714) 573-0899 ext. 237 or travis@echomediapr.com.

SOURCE: The Retail Equation