How the Pragma D2C Operating System Solved the RTO Challenge
Creating a 74.54% reduction in RTOs
Meet the Client
BornGood is a leading plant-based, USDA and cruelty-free certified home care products manufacturer - keeping families, pets and the environment safe. 🌿🏠🐶
Their goal is to reverse the damage caused by global effluent pollution without compromising on product efficacy. Powered by Plants. Made good with Science. Good for the planet.
Challenge: RTOs and related losses
The big picture always begins with limiting losses, and that was the first priority for xxx to keep moving forward quicker.
And losses due to fraudulent purchases, bots, scammers, impulsive buyers, COD returns etcetera made RTOs the number 1 threat.
Solution: RTO Suite, to offer protection at every stage of consumer journey
Pragma’s RTO Prevention & Elimination Suite declares its presence via a 300+ parameter algorithm to detect orders that could be in threat of becoming an RTO.
Stage 1 is pre-purchase
- Orders that are placed instantly without any research or little to no search period are placed under an ‘impulsive buy’ category and flagged. These orders are then verified by sending a notification confirming the purchase.
- Orders that are placed via multiple sites, across similar brands etc., for the same product are grouped for risk of RTO as well.
Stage 2 is purchase
- The consumer info is verified for errors in real-time. Such as pincode mistakes or invalid phone numbers.
- In case of multiple purchases if the same item within a short period of time, the consumer is asked for confirmation after the order is placed or before (based on preference)
- Dynamically disable the COD option for high RTO risk users. Based on prior user data across brands and platforms.
Stage 3 is post-purchase
- COD to prepaid conversion tactics are carried out to limit losses in case of returns
- The delivery partner and the customer are kept in contact in real-time to avoid NDRs
- The ideal shipping partner is suggested with respect to brand analytics compared with other 250+ brands and their logistics providers
- With the help of geoanalysis, the closest fulfilment centre is assigned to the delivery partner in order to achieve on time delivery.
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Result: 74.54% of RTOs eliminated
Introduced BornGood to an RTO Suite that covers their entire consumer journey.
- Cross channel integration - data across all marketing channels. Track all forms of commerce with built-in metrics
- Customer data & analytics - user data from previous purchase and other portfolio brands to flag high RTO risk users
- Compile internal & external info - measure errors from the side of 3PLs that lead to RTOs. such as SLA breaches.
- 87.2% of NDRs solved and fulfilled, avoiding RTOs
- 61.7% of COD related RTOs were eliminated through verification
- Automated 100% of RTO analysis, detection, and prevention protocol
“RTOs were one of our top concerns, and with the integration of the RTO Suite, we started seeing results from day 1. We also saw the team take our pain points and act on them, where they analysed the issue at the particular stage and added parameters to avoid those situations. Making the RTO Suite we got, something that was tailored for us. Resulting in over 70% reduction FY21”
- BornGood
The bottom line…
- End-to-end RTO limitation with a single algorithm
- Completely automated once initial parameters are set
- Eliminated 74.54% of RTOs, higher than market average
Designing the Future of Ecommerce Space
Pragma. D2C Operating System
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