Internet Retailer - Strategies For Multi-Channel Retailing

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News Stories Wednesday, March 15, 2006   
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For customers, GameFly thinks fast on return process

GameFly Inc.’s FastReturn process is speeding shipping and boosting customer satisfaction for the online game rental and seller. The process, implemented last year, was designed to improve return shipping time and consequently hasten delivery of new rental choices.

After looking back on the new strategy, the company clearly has improved delivery times and as a direct result customer satisfaction, says CEO Dave Hodess. “We’re now working with the United States Postal Service to ensure our mailers are scanned in every part of the country.” The USPS does not yet have scanning equipment in all of its locations.

FastReturn starts the processing of a customer’s next game selection as soon as the USPS sends GameFly scanned confirmation that a game is on its way back to the company. This greatly speeds the process, which used to ship customers’ next game selections only after a returned game reached the company warehouse.

GameFly, No. 227 in the Internet Retailer Top 400 Guide to Retail Web Sites, charges customers a flat monthly fee for renting electronic games by mail. This year the company will continue adding features to its web site, built in house, to enhance the customer experience and make the service easier to use, Hodess says.

According to Internet Retailer estimates, the pure-play company hit $21.8 million in revenue last year, up 25% from $17.4 million in 2004.

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