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Wayfair
Dynamic Discounts
Promoting an alternative option to returns when facing buyer's remorse.
Overview
We redesigned the Returns experience to offer customers a compelling alternative to returning items—keeping them at a discount.
By integrating a data science model that predicts optimal discounts, we aimed to reduce return costs and encourage self-service.
My role was to design a guided experience that helps make an informed decision between a discounted keep or a paid return. I collaborated closely with my design partner who focused on agent experience and emails.
Timeline
Designed in Q1 2023
Launched Q3 2023
My Role
Design Lead, Customer Experience
Responsibilities
Problem alignment
Product design
Interactive prototyping
Evaluative research
Concept validation
Design roadmap
Team
2 Product Designers
1 Content Strategist
1 Product Manager
10 Engineers
Platform
Web
Discover
Background
Returns cost Wayfair hundreds of millions annually, making it a critical area for cost reduction. To help mitigate this, Wayfair launched Discount to Keep (DTK)—a self-service option allowing customers to keep items at a reduced price instead of going through the hassle of returning them.
The Problem
Adoption showed promise with a 20% take rate, but there was a problem: almost half of those customers misunderstood DTK, thinking the discount was an extra perk on top of their return rather than an alternative.
This confusion led to increased customer support contacts.
On top of that, DTK wasn’t available in service agent workflows, meaning it wasn’t being offered consistently in live support interactions.
Research
The original Returns flow
Reviewing call transcripts and holding focus groups with agents helped us understand what was driving high follow-on contacts and low discount take rate.
Learnings
🤔 Unclear Resolution Options
Customers didn't understand what Discount to Keep entailed or its advantages over a paid return.
😵💫 UI Causing Confusion
Customers interpreted the discount option as a 'no return shipping fee.' The visual representation and content added to this confusion (ex: truck icon).
Define
Opportunity
How might we clearly convey the benefits to customers of keeping an item at a discounted price instead of returning it?
Key Success Metrics
Discount Take Rate
Increase how often customers choose discount option instead of returning it.
Follow-on Contacts
Decrease the amount of live contacts we receive (email, chat, phone) after a customer attempted to self-serve.
NPS
Increase customer happiness by launching self-service tools.
Repeat Rate
Monitoring repeat rate for those who took the discount vs. those who didn't.
Develop
Concept Validation
Testing Logistics
We ran three rounds of usability tests with 26 participants to assess two self-service designs: a soft nudge and an educational step.
This helped us measure their confidence, sentiment, and likelihood of contacting support for each design.
Testing Observations
We tracked observations and synthesized insights in a spreadsheet for quick analysis between rounds.
Soft Nudge
Moving the DTK option to the bottom of the Return Method step, giving it visual distinction.
Educational Step
A new step that introduces DTK selling points, and removed DTK from the Return Method step.
Deliver
Solution
The updated Returns self-service experience introduces a new step to the flow that lets eligible customers know we offer partial refunds (DTK), and some of its benefits.
Approach
🛠️ Clarify for customers that you can either get a discount or pay to return the item
🌟 Highlight benefits of DTK for customers to help them weigh their options and aid in decision-making process
💰Clarify the financial impact of DTK vs. a paid return
Design Goal
Bring more awareness that a discount is a plausible alternative to setting up a pricy return.
Design Principles
🙅♀️ Avoid being too pushy—customers should feel Wayfair is solving the issue in their best interest.
🔄 Empower customers by providing multiple solutions. Having choices avoids the feeling of being restricted.
Impact
$
XX
M
Net Returns Exposure (NDA)
1.8%
Deflection rate for inbound live contacts
3.2 pts
NPS boost
Based on our A/B test results, the proposed solution is estimated to have significant savings due to higher discount adoption.
This redesign made it easier for customers to make informed decisions while helping Wayfair lower return-related costs and improve the self-service experience.
Improvements
📞 Less follow-on contacts, reducing operational strain
🤑 More customers opting for DTK as a resolution
📈 Significant projected cost savings
Want to learn more?
Curious about my research insights and iteration process? Let’s chat—I’d love to walk you through the full case study!