The impact of returns on customer service: what happens after Christmas?

The presents are unwrapped, the tinsel’s been packed away, and now it’s time for the big return rush.

It’s the season of giving… and returning. A Post Office poll projected that £232 million worth of Christmas gifts would be returned by recipients.

As retailers and customer service teams brace themselves for the annual post-holiday wave of returns, they face a unique challenge that tests their resilience, systems, and commitment to customer satisfaction.

The return rush: A seasonal tsunami

Picture this: Boxing Day arrives, and suddenly contact centre channels light up like Christmas trees.

It’s like the aftermath of a Christmas feast—everyone’s stuffed, but now comes the cleanup. According to retail industry statistics, returns typically spike by 30% during the post-holiday period, creating a surge that can overwhelm even the most prepared customer service teams.

The reasons for returns are as varied as the gifts themselves. Wrong sizes top the list, especially with online purchases for which customers can’t try before they buy.

Then there’s the ‘change of mind’ category—those impulse purchases that seemed perfect in the moment but lost their shine by December 26th. Add in damaged goods, duplicate gifts, and items that simply didn’t meet expectations, and you’ve got yourself a perfect storm of customer service inquiries.

Preparing for the surge: Not just more bodies, but smarter solutions

Think of it like having a kitchen assistant to wash the dishes, leaving you to focus on cooking up a feast.

Automation is the unsung hero of post-holiday chaos. Smart retailers are learning that throwing more agents at the problem isn’t the answer—it’s about implementing intelligent solutions that simplify the return process.

AI-powered chatbots can handle basic return queries, freeing up human agents for more complex cases. Automated return authorisation systems can process straightforward requests within minutes, while intelligent routing ensures that complicated cases reach the right specialist quickly.

These tools don’t just handle volume—they save time and protect resources.

The power of personalisation: Turning frustration into a positive

Customers are returning gifts, but that doesn’t mean they are unhappy.  The way your contact centre treats them throughout the return process can have an impact on their perception of your brand; and this matters for the future.

Consider how the little touches make a big difference – just like those small surprises under the tree. Personalising the return experience transforms what could be a negative interaction into an opportunity for building customer loyalty.

This might mean offering personalised return options based on purchase history, providing proactive updates on return status, or ensuring that customer service agents have access to complete customer profiles.

Make sure customers are recognised and valued, even during a return. They’ll be more likely to maintain a positive relationship with your brand.

Empowering agents to handle returns efficiently

Customer service agent Pete wants to process a return, but his system keeps glitching.

Pete needs the tools to help customers to the best of his abilities, but he just doesn’t have them. Agent empowerment isn’t just about training; it’s about providing the right technology and support systems.

Modern customer service platforms should offer agents a unified view of customer interactions, real-time inventory data, and clear return policies.

When agents feel confident and equipped, they can focus on what matters most: Helping customers. This includes giving them the authority to make reasonable decisions without escalating every special case to a supervisor.

The opportunity: Customer retention through returns

We’ve already touched on it; but it’s worth underlining – returns don’t have to be a bad thing.

This Christmas, make returns a chance to surprise and delight customers—turn their apathy or frustration into love for your brand. Smart retailers are transforming the return process into a retention tool by offering personalised recommendations based on return reasons, convenient store credits, or seamless exchanges.

Some approaches you might like to try include:

• Offering instant store credit with a bonus amount
• Suggesting alternative products based on return reasons
• Providing free return shipping for loyal customers
• Creating special ‘return period’ promotions

This approach recognises that a customer making a return is still a customer—one who’s actively engaging with your brand and providing valuable feedback about their preferences and experiences.

After the return frenzy: Lessons learned and future proofing

When the holiday madness calms down, it’s time to reflect. What worked? What didn’t? How can we make next year even better? This post-season analysis will help you to refine processes and prepare for future return cycles.

Key areas to evaluate include:

• Return rates by product category
• Common return reasons
• Customer satisfaction during the return process
• Agent feedback on tools and processes
• Effectiveness of automated solutions
• Impact on inventory management

This data is your food for thought – material to help you make informed decisions about everything from product selection to customer service staffing levels for the next holiday season.

Keep them coming back for more

Avoid being overwhelmed by the post-holiday return by choosing the right platform and delivering satisfactory support.

This is a time of year when more eyes are on your product or services, and that makes it a chance to keep customers coming back for more. The key lies in viewing returns not as a necessary evil, but as an opportunity to ace customer satisfaction and reap the benefits.

Invest in smart technology, empower agents, and maintain a customer-first mindset. That’s what will transform the return process from a potential pain point into a powerful tool for building customer loyalty. Each return is a process of handling a customer relationship – and that must be done with care and consideration.

Contact centre solutions from Cirrus help retailers stay ahead of customer demand. Learn more about how our agile, scalable platforms can allow you to handle the festive rush. Or call the team today on 0333 103 3333  for more information