Startup profile: Clear Returns

Clear Returns is a software-as-a-service (SaaS) solution that provides online retailers with real-time information on their products and customers. It analyses data to pinpoint problems with the returns process to minimise spend and improve customer service.

CEO of the startup, Vicky Brock, discovered that it was normal for fashion retailers to have return rates as high as 40%. “It’s clearly a massive problem to business growth, and it is not sustainable long term,” she said.

Clear Returns' technology is split into two solutions: Eco, which looks at products; and Seer, which analyses customers.

Eco provides a view of the business profitability. Brock said that 50% of returns are driven by certain key items, so Eco shows the retailer patterns in the items and returns. The retailer can set alerts to know if a certain item is being returned more than another, which can help it spot problems and reduce costs.

If a customer adds a problem item to their online basket, the retailer can trigger helpful services, such as the virtual dressing room, allowing customers to make sure the product is right for them.

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“It helps buying decisions, quality control and stock ordering,” she said. “Our data is coming in near real time. Without [Clear Returns], retailers usually get that information eight to 10 weeks after. It would come from e-commerce and the warehouse, then to an excel spreadsheet, and then be worked through at the end of the month and reported into the organisation.”

Seer, on the other hand, analyses customer returns behaviour.

“Most customers are good customers who buy because they want the product. If they have a bad returns experience, you kill off that relationship,” said Brock

But Seer can also analyse the “bad customers” who return at a higher than normal rate. This includes customers who wear an item once before returning it to gain a refund. The analytics can pinpoint customers who regularly buy the same type of product but always return, and then it is up to the retailer to decide on a course of action, such as stopping the suggestion pop-up adverts going to that particular customer to reduce the chance of them buying something they’ve bought before.

Brock explained that in a low-stock environment, where there might be only a couple of pieces left, people who have no intention of keeping it can be identified by the retailer, which can then make sure that a loyal customer gets the first pick.

“That’s a negative scenario – the majority of scenarios are positive, because the majority of customers are good positive loyal customers, and returns is a negative customer experience,” said Brock. “In a low-stock environment, retailers have to buy 20% more stock to keep an item in stock because of the high number of returns.”

Clear Returns uses data mining and predictive technology to analyse stock and customers.

Brock chose IBM’s predictive analytics software SPSS, which runs on the Amazon cloud. It takes information from the e-commerce platform, warehouse stock numbers and operation systems, and then predicts which product will be returned based on sales and return patterns.

Brock said that if its SaaS product helps to reduce returns by two percentage points, that will equate to a 1% increase in profit.

“We’ve just done a trial with a relatively small but international fashion brand, and we found that £1m in transactions were coming from returners buying the same items every couple of weeks – wear and returners – and another £400,000 of returns was simply down to mismatch of description,” she said.

As well as cost savings, the platform can provide an insight into the returns process for customers and help retailers improve customer satisfaction.

“If you delight a few more customers and turn them into loyal shoppers by making the process right and giving a really high-value service, you’re actually going to have an impact on revenue as well as savings."

A retailer can choose either Eco, Seer or both solutions as a SaaS model.

Clear Returns initially takes a few months of extractive data from the retailer to gain an understanding of its taxonomies and various classifications. It then takes feeds from all the different systems to analyse and predict product returns.

The retailer can then access the analytics via a browser login.

While Brock has designed the platform with fashion retailers in mind, the algorithms also work for other retailers, such as those selling sporting goods, jewellery and DIY.

“I started with fashion first because the return rates are truly eye-watering,” she said.

Clear Returns has just secured the clothing and household store M&Co as a customer. M&Co has more than 300 stores in the UK and a growing e-commerce platform which also sells internationally.

Brock set up Clear Returns in May 2012, and the company was enrolled in Entrepreneurial Spark, a Glasgow-based incubator. Entirely self-funded, it was also supported by the Scottish government, which helped Brock attend the MIT Global Entrepreneur Development Program – a bootcamp for high-growth tech entrepreneurs.

She then took part in IBM’s SmartCamp in Dublin, which supports startups with ongoing strategic development and mentoring.

The next step for Clear Returns is to scale its business into other geographies, and it is currently raising £1m in investment.

Puerto Rico profile

20 February 2013 Last updated at 11:24 GMT Hispanic, Afro-Caribbean and North American influences meld in Puerto Rico, a self-governing commonwealth that belongs to the United States.

The subtropical Caribbean territory is urbanised, industrialised and relatively prosperous.

The US invaded and occupied Puerto Rico during the Spanish-American War of 1898, ending centuries of rule from Spain. The US saw the island as a strategic asset and ran it as a colonial protectorate.

Under American administration Puerto Rico saw growth and development. But nationalist sentiment sometimes spilled over into violence, notably in the 1930s and 1940s. Nationalists staged an armed attack in the US Congress in 1954.
Historic San Juan is made up of colonial homes and cobbled streets
A series of bombings and killings in the 1970s and 1980s were blamed on a pro-independence group, the Macheteros, or Cane Cutters. The group's fugitive leader was killed by federal agents in 2005.

Puerto Ricans voted in a November 2012 referendum for full membership of the United States as the 51st State. Any constitutional change requires approval by the US Congress and president. President Barack Obama has already indicated that he will respect the Puerto Rican decision, and has called on Congress to take steps in that direction.
Continue reading the main story Politics: Puerto Rico is a self-governing overseas territory of the United States at present, but has voted in favour of full US statehoodEconomy: Tourism is an important earner
Profiles compiled by BBC Monitoring
Puerto Rican voters, who elect a governor for the island, have tended to favour parties that support the union with the US. Puerto Ricans do not pay US income tax, and the island receives federal funds.

There is an established cycle of migration between Puerto Rico and the US; hundreds of thousands of Puerto Ricans have lived and worked in New York and other cities.

The once substantial US military presence has been scaled down with the closures of a major naval base and a bombing range. Rancour over the latter grew after a civilian employee was killed by a stray bomb.
Puerto Rico is vulnerable to hurricanes, like the one sweeping across the territory in this August 2011 satellite image
Explorer Christopher Columbus claimed Puerto Rico for Spain in 1493, heralding an influx of Spanish settlers. The newcomers, and the diseases they brought with them, decimated the territory's Taino indian population.

The main settlement, San Juan, became an important Spanish outpost. Slaves were brought to the island in the 16th and 17th centuries.

Puerto Rico's landscape is varied, and includes rainforests in the north-east. The territory is prone to hurricanes.

Tourism is an important money-earner; the island receives millions of visitors each year and is a port-of-call for cruise liners.
The San Felipe del Morro castle in San Juan is a UN World Heritage Site
 

United States country profile

19 June 2013 Last updated at 09:33 GMT The USA is the world's foremost economic and military power, with global interests and an unmatched global reach.

America's gross domestic product accounts for close to a quarter of the world total, and its military budget is reckoned to be almost as much as the rest of the world's defence spending put together.

The country is also a major source of entertainment: American TV, Hollywood films, jazz, blues, rock and rap music are primary ingredients in global popular culture.

The United States originated in a revolution which separated it from the British Crown. The constitution, drafted in 1787, established a federal system with a division of powers which has remained unchanged in form since its inception.
Early settlers arrived in ships such as this replica of the Dutch vessel Half Moon. People from all over the globe still try make the US their home
The US contains a highly diverse population, the product of numerous and sustained waves of immigration. Ethnic and racial diversity - the "melting pot" - is celebrated as a core element of the American ideology.

The 1964 Civil Rights Act outlawed racial and other discrimination, but race continues to be a live issue.

The election of Barack Obama as the country's first African-American president in November 2008 marked a defining moment in the country's chequered history of race relations.
Continue reading the main story Politics: Barack Obama, America's first black president, was re-elected in November 2012Economy: The US is the world's leading industrial power. Its recovery from the 2008 economic crisis has been sluggishInternational: The US has a leading role on the world stage, militarily and diplomatically. Its combat troops are set to leave Afghanistan by late 2014
Country profiles compiled by BBC Monitoring
Decline of the natives The original people of north America, who made up several distinct groups of native Americans, went into decline with the arrival of settlers and now constitute a minority of the population.

The early settlers came predominantly from the British Isles. Large numbers of black Africans were taken as slaves to work the plantations of the Americas, while millions of Europeans in search of political freedom and economic opportunity constituted a third stage of immigration.
The US flexes its military muscle throughout the world; unconventional forces are probably its most challenging adversaries
Today, Asians from the Pacific rim and Hispanics from the southern Americas are among those seeking what their predecessors wanted - the promise of prosperity and freedom which remains one of the defining hallmarks of "the American dream".

Despite relative prosperity in recent years, the gap between rich and poor remains a major challenge. More than 30 million Americans live below the official poverty line, with a disproportionate percentage of these being African-Americans and Hispanics.

Furthermore, the global financial crisis of 2008 has left the US facing its most challenging set of economic circumstances since the Great Depression of the 1930s.
9/11 aftermath Millions of Americans live in poverty
The terrorist attacks of September 11 2001 had a momentous impact as the country continued to re-define its role as the world's only superpower.

In October 2001 the US led a military campaign in Afghanistan that unseated the Taleban regime. However, the man who ordered the 9/11 attacks, Al-Qaeda leader Osama Bin Laden, survived until 2011, when killed in a US special forces operation in Pakistan.

In March 2003 Washington initiated military action in Iraq which led to the toppling of the Iraqi leader Saddam Hussein.

US foreign policy has often mixed the idealism of its "mission" to spread democracy with the pursuit of national self-interest.

Given America's leading role on the international stage, its foreign policy aims and actions are likely to remain the subject of heated debate and criticism, as well as praise.
New York's Manhattan is a global commercial and cultural centre
 

Canada country profile

23 April 2013 Last updated at 11:12 GMT  Canada is the second largest country in the world after Russia. However, its population is only about one-fifth of Russia's.

Nearly 90% of Canadians live within 200km of the border with the United States, which means that Canada contains vast expanses of wilderness to the north.

The relationship to its powerful neighbour is a defining factor for Canada. The US and Canada are both each other's largest trading partner.

The North American Free Trade Agreement, involving Canada, the US and Mexico, has brought a trade boom for Canada. But thorny issues abound. American moves which impact on Canadian exports, in the form of tariffs on Canadian timber and increased subsidies for US farmers, have created particular tension.
Vancouver rates as one of the world's most liveable cities
Canada is also worried about pollution from US factories near the border, and about the possible impact on the environment of the exploitation of oil deposits in Alaska.
Continue reading the main story Politics: Canada gradually emerged as a federation of former British colonies, and the provinces retain extensive powers. It follows the British pattern of parliamentary democracy, and the UK monarch is head of state, represented by a largely ceremonial governor-general. French-speaking Quebec has wide-ranging cultural and linguistic autonomy.Economics: Canada punches well above its population size in economic terms, and is one of the world's top trading nations. While the service sector dominates, Canada also has vast oil reserves and is a major exporter of energy, food and minerals. Close economic integration exists with the US, but Asian markets are growing in importance.International: Canada often cooperates closely with the US, but does go its own way sometimes. Strong historical ties to the UK remain, while Quebec looks towards France. Canada often plays a major role in UN peacekeeping missions.
Country profiles compiled by BBC Monitoring
Canada pursues a foreign policy that is distinct from that of the US. The country has committed troops to the American-led war on terror, but does not back the US trade embargo on Cuba. Canada did not send troops to join the US-led war in Iraq.

After the 11 September 2001 attacks in the US, the challenge of securing the 9,000-km Canada-US border from possible terrorist infiltration prompted both countries to look at ways of sharing information.
Immigration
Immigration has helped to make Canada one of the world's richest nations. Challenges related to discrimination and integration are gaining increasing attention. Many recent newcomers hail from Asia. Canada's indigenous peoples make up less than two per cent of the population. The way in which provincial governments share land and natural resources with native groups is an ongoing issue.

Separatist aspirations in the predominantly French-speaking province of Quebec have been a major domestic issue. A referendum in 1995 saw advocates of an independent Quebec only narrowly defeated.

Subsequent opinion polls indicated a fall in support for independence and the pro-independence Parti Quebecois was defeated in 2003's provincial election, but regained power in 2012. In a largely symbolic move, parliament in 2006 agreed that the Quebecois should be considered a "nation" within a united Canada.

Canada has been asserting its sovereignty in the Arctic with growing vigour and has become embroiled in territorial spats with the US and Denmark. At stake is the possible bounty from previously-untapped reserves of oil and gas.
The Rocky Mountains in Alberta: Canada offers spectacular wild landscapes
 

St Pierre and Miquelon profile

23 February 2012 Last updated at 17:03 GMT The sole remnant of France's once-extensive possessions in North America, the Atlantic islands of St Pierre and Miquelon lie off the Canadian island of Newfoundland.

With little agriculture and a troubled fishing industry, they depend on France for subsidies and on their near neighbour for goods and transport links.

Fish processing is the main economic activity, although tourism is increasingly important. The territory capitalises on its image as "France in North America".
A fisherman's cottage on the archipelago of St Pierre and Miquelon
The fishing industry was badly hit by disputes with Canada from the late 1970s over quotas and territorial waters, and by a later moratorium on cod fishing. In 1992 a tribunal awarded an economic zone to St Pierre and Miquelon that was less than 25% of the area claimed by France.

At its peak the fishery attracted hundreds of vessels from Europe every year, spawning a ship supply and repair industry.

After periods of French and British rule and frequent skirmishes between the two, the territory was restored to France in 1816. It became a French department in 1976. This was unpopular; many islanders said European integration did not take into account their remoteness.

The islands became a French "territorial collectivity" in 1985. The status - something between a department and an overseas territory - allowed French subsidies to continue and calmed Canadian fears about European exploitation of its fishing grounds.

The territory enjoyed a windfall in the prohibition era of the 1920s, when the US banned the production and sale of alcoholic drinks. It became a centre for shipping whisky, wine and rum to the US. But the end of prohibition in 1933 plunged the islands into economic depression.

Fish stocks in the seas around the islands attracted the first Europeans. A French fishing post was established in 1604. The descendants of the first settlers - including Bretons, Normans and Basques - make up much of the present population.

Rugged cliffs, hills, lakes and peat bogs characterise the mostly-barren landscape.