In today’s competitive retail environment, a successful business is no longer solely defined by the quality of its products or the affordability of its prices. With the increasing importance of customer experience, retailers are focusing on building long-lasting relationships with consumers. One of the most pivotal yet often overlooked aspects of the customer journey is the post-purchase experience. What happens after a customer clicks the “buy” button on an ecommerce website? The process of delivery, retention, and, if needed, returns, all play crucial roles in shaping customer loyalty and the retailer’s bottom line.
This is where companies like Narvar have emerged as leaders in transforming post-purchase operations. Narvar, a company that boasts over 1,500 global retailers, including top names like Gap, Levis, and Sonos, has been a pioneer in utilizing data and AI to optimize the post-purchase experience. The company processes over 42 billion consumer interactions every year, making it a valuable partner for retailers aiming to enhance customer retention and streamline operations.
Narvar’s AI-Powered Platform: IRIS
Narvar has recently taken a significant step forward in its mission to optimize post-purchase operations by launching IRIS (Intelligent Retail Insights Service), an AI-powered platform designed to leverage data and machine learning to create more personalized, efficient, and profitable experiences for retailers and their customers. IRIS uses AI to combat fraud, streamline returns, optimize delivery promises, and enhance customer engagement.
The key to the success of IRIS lies in its ability to use the vast amount of data Narvar collects from its consumer touchpoints to provide actionable insights. By analyzing billions of consumer interactions, the platform can predict customer behavior, identify potential issues in the customer journey, and proactively address them before they escalate. This makes it an invaluable tool for retailers looking to reduce operational costs, increase customer satisfaction, and improve loyalty.
One of the first features offered by IRIS is Narvar Assist, an AI-powered tool designed to automate claims management and reduce delivery-related fraud. Early results from 20 pilot retailers have shown promising outcomes, with an 80% reduction in fraud-related inquiries and a 25% decrease in appeasements, or compensation given to customers for delivery-related issues.
Anisa Kumar, Narvar’s CEO, believes that the introduction of IRIS is a game-changer for the industry. “We’re not just solving problems; we’re transforming what has traditionally been a cost center into a strategic advantage for retailers,” Kumar told VentureBeat. Her background in customer operations at Levis, Walmart, and Target has given her firsthand insight into the challenges retailers face in building customer loyalty, and she is confident that AI is the key to solving these issues.
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Why Post-Purchase Matters for Retailers
For many retailers, the primary focus is on customer acquisition. Companies invest significant resources into attracting new customers, but often fail to place the same emphasis on retaining them once they’ve made a purchase. This is where post-purchase operations become crucial.
“Post-purchase is really thinking through what’s that next frontier to keep your consumers coming back,” Kumar explains. “It’s about treating customers the way they need to be treated and giving them personalized experiences.”
Narvar’s IRIS platform helps retailers enhance post-purchase interactions by using AI to generate hyper-personalized experiences. This is especially important because customers today expect tailored services and seamless experiences across all stages of their journey. Using AI, Narvar can help businesses anticipate their customers’ needs and provide relevant solutions to keep them engaged long after their initial purchase.
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The Role of AI in Retail Operations
The use of AI in retail operations has been an area of much interest and potential, but it has also faced challenges. Despite the high demand for AI in retail, the adoption rate has been relatively low. A 2024 Forrester report found that while many retailers are interested in AI, few have successfully integrated it into their day-to-day operations.
Narvar’s AI platform is changing this narrative by providing a simple SaaS (Software-as-a-Service) solution that makes AI accessible to retailers. By harnessing the power of AI and data services from Google Cloud, along with proprietary machine learning (ML) models and predictive algorithms, Narvar enables retailers to drive efficiency, reduce costs, and improve customer retention.
Ram Ravicharan, Narvar’s CTO, highlighted the importance of data in powering AI. “Narvar processes billions of consumer touchpoints, giving us unique insights into customer behavior and intent,” he said. These insights help retailers understand their customers’ purchasing patterns and preferences, which can be leveraged to optimize post-purchase interactions.
While IRIS does not utilize generative AI, it employs techniques commonly used in large language models (LLMs), such as transformers, to analyze consumer transactions and predict future behaviors. “We now almost have a language of what the next sentence is going to be,” Ravicharan said, emphasizing the predictive power of the system.
In addition to fraud mitigation, IRIS is also designed to help retailers improve delivery accuracy. The platform can now account for factors such as weather and carrier delays, providing more accurate delivery estimates and reducing the risk of missed deadlines.
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Enhancing Customer Loyalty
One of the main advantages of using AI in post-purchase operations is the potential to enhance customer loyalty. As Kumar points out, many retailers focus on customer acquisition but neglect retention, which leads to a cycle of spending money to acquire customers who are easily lost. AI can help break this cycle by providing the tools needed to create personalized, positive experiences that keep customers coming back.
“IRIS helps retailers create lasting relationships by delivering personalized experiences when they matter most — after the sale,” Kumar said.
By offering hyper-personalized communication, proactive delivery updates, and streamlined returns, Narvar helps retailers foster long-term loyalty. As more retailers adopt the platform, the benefits of AI-driven post-purchase operations will become even more apparent.
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Early Successes with Narvar Assist
Although Narvar Assist is still being piloted, the early results are encouraging. One of the first companies to implement Narvar Assist is Boston Proper, a clothing retailer that has been a Narvar customer for six years. Boston Proper has already seen significant improvements in customer service and cost reduction thanks to the new platform.
DeAnne Judd, CIO of Boston Proper, shared that the integration of Narvar Assist has led to a decrease in customer contacts and costs due to its enhanced user interface and more efficient processes. With the new AI tools, Boston Proper can proactively manage delivery-related issues and improve the overall customer experience.
Looking Ahead: Bridging the Gap Between Online and In-Store
Narvar’s vision for the future extends beyond online interactions. The company plans to integrate its IRIS platform into in-store operations as well. By leveraging its existing data and customer insights, Narvar aims to bridge the gap between online and in-store experiences, offering a seamless, omnichannel customer journey.
“Our vision is to bridge online and in-store environments,” Kumar said. “We want to help retailers understand transactional intent across channels and create a more cohesive experience for their customers.”
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Conclusion
The post-purchase experience is increasingly becoming a critical differentiator for retailers. With AI-powered tools like Narvar’s IRIS platform, businesses can transform what has traditionally been a cost center into a valuable strategic advantage. By leveraging data and AI to streamline operations, mitigate fraud, optimize delivery, and enhance customer engagement, Narvar is leading the way in revolutionizing the post-purchase landscape.
FAQs
- What is Narvar and what services does it provide?
- Narvar is a company that helps retailers optimize their post-purchase operations, including delivery, returns, and customer engagement, using AI and data analytics.
- How does Narvar use AI to improve customer experience?
- Narvar uses AI through its IRIS platform to provide personalized experiences, improve delivery accuracy, prevent fraud, and streamline returns.
- What is IRIS?
- IRIS (Intelligent Retail Insights Service) is Narvar’s AI-powered platform that combines data, AI, and analytics to enhance post-purchase customer experiences for retailers.
- How does Narvar help retailers reduce fraud?
- Narvar’s AI-powered Narvar Assist helps automate claims management and reduce fraud-related inquiries by improving delivery accuracy and customer interactions.
- What is Narvar Assist?
- Narvar Assist is an AI tool that helps retailers reduce fraud, automate claims management, and enhance customer service by using data-driven insights.
- How does AI contribute to customer retention?
- AI allows retailers to create personalized post-purchase experiences that improve customer satisfaction, leading to higher retention rates.
- Can Narvar’s platform be used for both online and in-store operations?
- Yes, Narvar is working on extending its IRIS platform to integrate both online and in-store data, providing an omnichannel solution for retailers.
- How does Narvar help with delivery accuracy?
- Narvar uses predictive AI models that take factors like weather and carrier delays into account to provide more accurate delivery promises.
- What are the early results of Narvar’s AI platform?
- Early users have reported an 80% reduction in fraud-related inquiries and a 25% decrease in compensation claims.
- Is Narvar’s AI platform available to all retailers?
- Narvar’s IRIS platform is currently being piloted with select retailers, but it will be available to more retailers as the platform expands.