Dynamic Discounts: Empowering Customer Decision-Making
Chanel Medeiros
Dynamic Discounts
Promoting an alternative option to returns when facing buyer's remorse.
Overview
Wayfair's updated Returns experience offers customers a compelling alternative to returning items—keeping them at a discount.
By integrating a data science model that predicts optimal discounts, our team aimed to reduce return costs and encourage self-service.
My Role
My role was to design and validate a guided experience that helps customers make an informed decision between taking a discount or a paying to return an item.
I collaborated closely with another designer on my team who focused on agent experience and emails.
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 original Returns self-service flow
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.
How might we clearly convey the benefits of keeping an item at a discounted price instead of returning it?
Sketching and hi-fi concept explorations to solidify direction for concept validati
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.
Our goal was to bring more awareness that a discount is a plausible alternative to setting up a pricy 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.
Design specs for new dynamic UI component that was added to Storybook.
Approach
🛠️ Clarify for customers that you can either get a discount or pay to return the item
🌟 Highlight benefits of DTK to help customers' decision-making process
💰Clarify the financial impact of DTK vs. a paid return
The Results
📞 1.8% Deflection rate for inbound live contacts
Less follow-on contacts, reducing operational strain
📈 3.2 pts NPS boost
More customers opting for DTK as a resolution
🤑 $1M+ Net Returns Exposure
Significant projected cost savings
The new design achieved a 1% increase in DTK resolution mix compared to the control. This was driven by a 0.6% boost in initial DTK adoption and a 5% reduction in follow-on returns.
This redesign made it easier for customers to make informed decisions while helping Wayfair lower return-related costs and improve the self-service experience.
Updated experience rolled out to all customers and service agents in Q3 2023 🎉
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Posted May 11, 2025
Empowering customers facing buyer's remorse by offering an alternative resolution in Wayfair's return experience, resulting in a 3.2 pts NPS boost
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Timeline
Jan 16, 2023 - Feb 28, 2023
Clients
Wayfair
