Challenge
Lands’ End needed to optimize its returns and sought to implement an efficient, streamlined reverse logistics process.
Solution
The retailer chose Happy Returns for a comprehensive solution including returns software, sophisticated reverse logistics, and access to nearly 8,000 box-free, label-free Return Bar® locations.
Benefits
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84% of Lands’ End shoppers choose Return Bar ® locations to return items¹
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Substantial operational savings¹
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Increase in returns for merchandise credit to retain revenue¹
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Significant decrease in reverse logistics labor costs by removing manual item verification at their warehouse¹
The Challenge
Lands’ End offers its products online, through third-party distribution channels, and in company-owned stores. In the face of a competitive ecommerce landscape and legacy systems, the company sought to modernize its returns process.
Lands’ End faced several challenges:
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Paper slips: The manual returns process relied on a paper slip in each mailed ecommerce order. Customers who needed to return a product had to fill out the slip, repackage the item, and mail it back.
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Slow return processing: The previous process for initiating exchanges and returns could take up to 10 days, leading to customer calls asking, “where’s my refund?”
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Shopper habits: The typical Lands’ End customer has nearly two decades of brand loyalty. While this is a huge benefit to the retailer, it also made it challenging to encourage customers to embrace change.
“Our return system was not as efficient as it could have been,” says Anders Ahlberg, product manager of ecommerce and returns at Lands’ End. “We wanted to provide customers with a better experience while also enforcing our return rules.”
The Solution
Lands’ End partnered with Happy Returns, a UPS company, to enhance its returns process and tackle those key challenges:
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Convenient in-person returns: With the Return Bar® network, Lands’ End shoppers now enjoy a hassle-free, package-free return experience. They can easily drop off items at nearly 8,000 Return Bar® locations, including The UPS Store® retail locations, Ulta Beauty, Staples, and Giant Eagle. This streamlined process eliminates the need for paper slips and traditional mail returns, saving time and money through Happy Returns consolidated reverse logistics.
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Improved shopper transparency: Happy Returns rolled out an end-to-end shopper communications strategy for Lands’ End, ensuring that customers receive immediate email confirmations when they make returns at a Return Bar® location. Refunds are then typically processed within 24 hours, reducing friction, and boosting shopper satisfaction. To help Lands’ End’s loyal customers transition smoothly, Happy Returns also developed box inserts explaining the new process.
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Increased revenue retention: When returning items, Lands’ End customers now have the ability to choose between merchandise credit (with waived fees) or a refund to original payment method (with a $6.95 processing fee). Store credit gives shoppers the option to engage with the brand and shop for something new, while Lands’ End retains the revenue.
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Enhanced efficiency: Happy Returns is driving significant operational improvements for Lands’ End. Its robust fraud prevention system streamlines the returns process by quickly validating and verifying items. Consolidating returns and providing advanced shipping notices enables faster restocking and better labor planning. And, as a leader in reverse logistics automation, Happy Returns brings the power of sortation robots and advanced analytics to Lands’ End, delivering greater speed and accuracy across their operations.
“A key differentiator was Happy Returns’ network of Return Bar® locations. Most of our customers are within 10 miles of one of the drop-off points. We have a lot of rural customers as well, so this was critical for us.”
—Anders Ahlberg, Product Manager of Ecommerce and Returns, Lands’ End
Results
By partnering with Happy Returns, Lands’ End has transformed its returns process into a smoother, more seamless experience that benefits both customers and employees. “It’s faster, and the returns process flows much more efficiently,” says Ahlberg.
Recent Lands’ End surveys reveal that a customer-friendly returns policy, offering peace of mind and simplicity, is a top priority for shoppers. This enhanced process has driven their Net Promoter Score (NPS) to 83²—over 77% higher than the industry average.³
Lands’ End sees Happy Returns as a strategic logistics partner and is eager to continue working together. With more data, they aim to further refine their returns process, retain even more revenue, improve visibility, and achieve greater warehouse efficiencies.
“Our average customer tenure is almost 20 years. We’ve achieved that by being laser-focused on taking care of our customers. Delivering a better return experience is an integral part of that.”
— Anders Ahlberg, Product Manager of Ecommerce and Returns, Lands’ End
The Benefits
Higher Customer Satisfaction
84% of Lands’ End shoppers now choose the Return Bar® experience for its ease and convenience.² Even long-time customers are excited about the new process. The Happy Returns box insert that explains the updated process has become the most scanned QR code in Lands’ End history, reflecting their enthusiasm to use the Return Bar® option.
Reduced Operational Costs
Happy Returns’ consolidated shipping with advanced shipping notices have already resulted in substantial savings for Lands’ End.
More Retained Revenue
In the first year, Lands’ End shoppers have significantly increased the rate at which they choose to receive a merchandise credit during a return. This shift has helped Lands’ End retain substantial revenue through store credit promotions via the Happy Returns portal. “This has been a real bright spot for us,” says Ahlberg.
Superior Fraud Protection
Happy Returns’ patent-pending item scanning and verification has helped mitigate fraud and reduce reverse logistics costs by eliminating manual processes of verifying returns. This efficiency has also improved turnaround times at Lands’ End’s three Wisconsin-based warehouses.
For more
If you’d like to know more about Lands’ End’s success with Happy Returns and how the process can deliver similar results for your brand, please reach out for a free demo.
At a glance
Customer: Lands’ End
Category: Casual apparel, footwear, accessories, and home products
Employees: 5,000
Sources:
²Delighted, November 2024. The Net Promoter Score (NPS) is calculated by asking customers a single question: “How likely is it that you would recommend [Company/Product/Service] to a friend or colleague?” Respondents provide a rating on a scale of 0 to 10. Based on their responses, customers are categorized into three groups:
• Promoters (9-10): Loyal enthusiasts who will keep buying and refer others, fueling growth.
• Passives (7-8): Satisfied but unenthusiastic customers who are vulnerable to competitive offerings.
• Detractors (0-6): Unhappy customers who can damage your brand through negative word-of-mouth.
The NPS is then calculated using the formula: NPS = % of Promoters −% of Detractors. The score ranges from -100 to +100. A positive score generally indicates a good level of customer satisfaction, with higher scores being better.
³Lands’ End Data, November 2024.
