Podcast Summary: The Agile Brand™ with Greg Kihlström
Episode #604: Creating a Great Post-Purchase Customer Experience with Colleen Coulter, Route
Release Date: November 20, 2024

Introduction to the Episode

In Episode #604 of The Agile Brand™, host Greg Kihlström welcomes Colleen Coulter, SVP of Customer Success and Experience at Route, to discuss the intricacies of crafting an exceptional post-purchase customer experience. As the holiday season approaches—a critical period for retailers—colleen emphasizes the pivotal role post-purchase interactions play in fostering long-term customer loyalty.

Colleen Coulter’s Role and Route’s Mission

[01:36] Colleen Coulter:
"At Route, we help over 13,000 brands deliver an incredible experience for shoppers from the moment they make a purchase online with shipping protection and issue resolution, package tracking, returns features, and carbon-neutral shipping."

Colleen outlines her responsibilities at Route, highlighting the company’s commitment to enhancing the post-purchase journey through innovative solutions. With a decade of experience at Meta, she underscores the often-overlooked importance of post-purchase satisfaction, noting that "40% of shoppers won't give retailers a second chance after a single poor delivery experience."

Evolving Customer Expectations

[03:23] Colleen Coulter:
"Customers expect fast, reliable shipping. They want to know exactly where their package is and when it will arrive. If something goes wrong, they want it to be made right with a quick refund or replacement."

Colleen discusses how Amazon has set high standards for post-purchase experiences, pushing other brands to elevate their services. Route responds to these elevated expectations by offering comprehensive package tracking solutions that integrate seamlessly across email, web, and SMS. This not only informs customers but also significantly reduces customer service inquiries. For instance, partnering with a multibillion-dollar health and wellness company, Route helped reduce “Where's my order” tickets by over 50%, allowing the company to allocate resources more strategically.

Handling Negative Experiences and Returns

[06:16] Colleen Coulter:
"Research shows that there were 260 million packages stolen in the US last year. That's about $20 billion worth of products. And 94% of shoppers blame the retailer after a delivery goes poorly."

Addressing inevitable challenges like package theft and damage, Colleen emphasizes the importance of having robust strategies to convert negative experiences into opportunities for loyalty. Route’s shipping protection acts as insurance, enabling customers to receive quick refunds or replacements without cumbersome processes. This approach not only satisfies customers but also reduces CX costs for brands. For example, Route assisted Solo Stove in cutting their claims costs by millions and reducing customer service tasks related to claims by over 90%.

Adapting to the Returns Crisis

[13:47] Colleen Coulter:
"Last year, 15% of items were returned, costing retailers $743 billion, with over $100 billion related to return fraud losses."

Colleen addresses the shifting landscape of return policies, noting the surge in return fraud and its financial implications. She discusses Route’s innovative solution, returns coverage, which allows customers to pay a small fee upfront to avoid larger return fees later. This not only mitigates the financial burden on retailers but also maintains a positive customer experience. CLA Athletics, a Route partner, successfully implemented this model, expanding their apparel line and gaining customer loyalty while managing returns costs effectively.

Signals for Brands to Watch

[09:48] Colleen Coulter:
"Encourage brands to let the data guide them, test these offerings around a premium post-purchase experience, and then expand based on customer feedback and adoption."

Colleen advises brands to monitor customer willingness to invest in premium post-purchase services, leveraging data to inform strategic decisions. She highlights the importance of measuring customer satisfaction (CSAT) and resolution times, especially with the rise of AI-driven customer interactions. By focusing on data-driven insights, brands can better balance customer expectations with operational efficiencies.

The Role of AI in Enhancing Post-Purchase Experience

[20:35] Colleen Coulter:
"AI can play such a powerful role because you have a bunch of touchpoints post-purchase where you can be using AI-driven results of product recommendations to surface additional products that the customer may be interested in."

Colleen explores the integration of AI in post-purchase processes, from personalized product recommendations to AI-powered customer support. At Route, AI enhances conversational interactions, making them more personalized and less resource-intensive. This not only improves customer engagement but also streamlines support operations, ensuring that brands can maintain high satisfaction levels without escalating costs.

Staying Agile: Personal Insights from Colleen

[22:31] Colleen Coulter:
"I focus on those two-way door decisions as an opportunity to embrace testing, embrace taking risks, and making it okay to fail because it's simply an opportunity to learn and improve."

In concluding the discussion, Colleen shares her personal strategies for maintaining agility in her role. She emphasizes the importance of mental and physical well-being and adopts Amazon’s one-way and two-way door decision-making framework. By treating reversible decisions as opportunities for experimentation, she fosters a culture of continuous improvement and resilience within her team.

Conclusion

Greg Kihlström wraps up the episode by thanking Colleen Coulter for her insightful contributions. Listeners are encouraged to explore more about Colleen and Route through the show notes. The episode underscores the critical nature of the post-purchase experience in building brand loyalty and highlights innovative strategies and technologies that can help retailers navigate the complexities of modern e-commerce.

Notable Quotes:

• Colleen Coulter [01:10]: "A single bad experience with a purchase can cause the brand to lose that customer forever."

• Colleen Coulter [03:23]: "Customers expect fast, reliable shipping. They want to know exactly where their package is and when it will arrive."

• Colleen Coulter [06:16]: "94% of shoppers blame the retailer after a delivery goes poorly."

• Colleen Coulter [13:47]: "Last year, 15% of items were returned, costing retailers $743 billion."

• Colleen Coulter [20:35]: "AI can play such a powerful role... to surface additional products that the customer may be interested in."

• Colleen Coulter [22:31]: "Embrace testing, embrace taking risks, and making it okay to fail because it's simply an opportunity to learn and improve."

This episode provides a comprehensive look into the evolving landscape of post-purchase customer experiences, offering actionable insights for brands aiming to enhance customer loyalty and operational efficiency.