How Steve Madden reduced its return rate by 12.7%

The legendary Steve Madden brand is expanding its presence in Europe by opening physical stores across the continent and tailoring its online channels to the needs of European shoppers. Since its founding in 1990, innovation and bold designs have been at the heart of Steve Madden. Remarkably, the company started with just $1,100 and has grown into a $3 billion global powerhouse in fashion and footwear.

As Steve Madden expands in Europe, it faces challenges including a higher-than-desired return rate, low conversion rates, and a high volume of return-related customer service tickets. Ralph Donhuijsen, Managing Director at Steve Madden, sought a suitable return management platform with a strong European presence and chose Returnista. In this article, we explore Steve Madden's return objectives and the significant impact achieved within the first 90 days of launching on the Returnista platform.

Most e-commerce professionals understand that getting a grip on returns can be a daunting task, especially when your business operates in the fashion industry. A return management platform can help. Steve Madden was dealing with several common issues and set clear goals to improve the company's overall financial performance and enhance the customer experience.

• Reducing the return rate — the goal to improve customer satisfaction and profitability through a lower return rate
• Reducing the number of return-related customer support tickets — by ensuring clear and proactive communication, both internally and externally
• Increasing retained revenue — offering alternatives to refunds, such as store credit and exchanges

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During the initial discussions, the onboarding process, and after going live, Returnista was involved in defining goals and addressing potential root causes that could help Steve Madden achieve its objectives. Hard work pays off, as can be seen in the results section below.

"The results from the first 90 days after going live were incredibly valuable," says Ralph Donhuijsen. "We reduced returns in many product categories by a staggering 12.7% simply by analyzing the data and optimizing our product listings to better meet customer expectations. We are now moving forward by incorporating this feedback into our purchasing journey and refining our product offering based on return data. In addition, we have reduced the number of customer support return tickets by 73%, largely thanks to clearer communication with our customers regarding shipping status and refunds."

"We have reduced the number of customer support return tickets by 73%"

Having seen what is possible, Steve Madden is now even more committed to further reducing return rates and increasing retained revenue by offering exchanges and store credit. As the company completes the implementation of its new ERP system, it plans to roll out these options across Europe. With high sales volumes—and consequently high return volumes—retaining revenue through store credit and exchanges can have a significant impact on both business performance and customer perception of the return process. It is worth noting that a return experience that exceeds customer expectations is a key driver of customer loyalty, something Steve Madden fully recognizes.

As an American company, Steve Madden sought a strong European partner to ensure their return experience meets the expectations of EU customers. Returnista is proud to be Steve Madden's partner in their rapid online and offline expansion across Europe.

If you would like to upgrade your returns solution or need advice on your data structure or returns strategy, please contact us. We will put you in touch with an expert.