How's this "Returns Shouldn’t Be Tolerated — They Should Be a Strategic Differentiator"

It’s true, what we uncovered with our survey is that returns are no longer a seasonal anomaly, but a meaningful brand interaction, a routine part of commerce, and a stepping stone to building lasting relationships. When our survey was conducted in early January, 55% of respondents had already made or planned to make a post-holiday return, and 21% of shoppers said they return an item as frequently as once a month. This means returns are a recurring touchpoint that happens across the customer lifecycle, not just in peak holiday periods. Given the volume of returns, even small inefficiencies become points of real friction, and that’s tied directly to loyalty and CSAT. CX leaders in retail and ecommerce should recognize returns as a high-value touchpoint and focus on making the process an opportunity for brand affinity and trust, not frustration.

 

Returns matter because they’re consequential and emotional. While purchase experiences are driven by anticipation and reward, a return is triggered by disappointment. How a brand handles that disappointment fundamentally shapes trust. 57% of consumers say a bad return experience would influence whether they buy from that brand again, regardless of previous loyalty. It’s a high-stakes moment. If brands can’t resolve a problem quickly, transparently, and with a bit of empathy, they risk turning a one-time issue into long-term disengagement. 

 

Speed, clarity, and resolution are the top three things consumers expect from returns. While only a small percentage currently prefer chatbots (12%), 60% of respondents in our survey said they would use an AI-powered agent if it could instantly answer questions and process their return. This is customers signaling a desire for accurate, real-time assistance that gets the job done, with as little friction as possible. Only 36% of survey respondents say they are "very satisfied" with the returns process today, leaving significant room for improvement. AI, when done well, can eliminate many of the pain points consumers feel, including long wait times, confusing policies, and shipping hassles.

Trends in retail tech investment continue to focus on personalization and AI integrations to help the buyer build confidence. But what happens after the first purchase often determines whether the brand will get a second purchase, a third purchase, and so on. Returns are one of the few moments in the journey where customers are actively questioning their relationship with a brand, and that moment in time is where differentiation matters the most. AI investments in customer service are maturing quickly, proving that they can handle sensitive, complex situations with clarity and human-like empathy, all of which are critical to a successful returns process. But AI is not a “set and forget it” proposition. CX leaders must invest in training and empowering their teams to ensure their AI can grow, learn, and evolve alongside the needs of their customers. If a brand provides a strong purchase experience, but then loses the customer during a frustrating return experience, all those early investments in acquisition are at risk. 

 

Earning consumer trust will be an ongoing challenge for brands as they continue to integrate AI into their practices. Our recent survey took a deeper look into why consumers lack trust in AI currently. It found that consumers worry AI will be less efficient than a human, will have difficulty understanding their issue, or will provide inaccurate information. All of these concerns can be addressed by ensuring that the AI agent is given accurate customer data and policy information from the brand, and is overseen by well-trained ACX managers and teams.
 
 At Ada, we know this can be done well because our customers are seeing significant results from their AI investments today. One of our customers, IPSY, operates one of the largest beauty subscription networks in the world, serving more than 20 million community members across its brands. At that scale, customer experience isn’t just about support. It’s about relationship management, where every improvement compounds.

 

→ a 41% lift in CSAT,

→ a 943% ROI on their generative AI investment,

→ 64% increase in autonomous resolution, and

→ It remains one of the largest AI deployments inside the company to date.

 

The key to ensuring consumers are comfortable with AI isn’t removing humans, but creating a seamless integration with humans, including transparent escalation paths. 

 

Returns should no longer be an interaction that consumers tolerate, but a strategic differentiator for brands using AI to turn problems into opportunities.

In the next 12-24 months, AI will become increasingly agentic. This means it will do more than answer simple queries – it will automate increasingly complex tasks end-to-end with context, accuracy, and even empathy. This would include checking inventory at nearby stores for pickup, processing payments, and making repurchases of the same products easy. We will see AI become more deeply capable in policy, status updates, logic, and personal preferences, which can make returns virtually frictionless by default. Brands will also increasingly measure the success of their ACX investments not simply in resolution rates, but in revenue generation, both from cross-sell/upsell opportunities and in reduced customer churn. But this requires a thoughtful approach to AI management and adoption, as well as a team that’s empowered to grow and evolve their own agents. Brands that win will understand AI success isn’t just a technology deployment, it’s a management discipline. You cannot delegate your transformation to a vendor.