When retailers offer and implement flexible, customer-friendly returns policies, their online sales grow! Research shows that returns policies play a key role in new customer acquisition and loyalty. But why is that??
Consumers are in a state of anxiety:
Each time a consumer considers purchasing a product online, they undergo a certain level of anxiety. They are about to give you (the retailer) money for something he/she has not seen, touched, or tried. No matter how big a retailer you are, this will always produce anxiety
There is a correlation between anxiety the perception of online experiences.
As the consumer's anxiety reduces, their perception of the online experiences dramatically rises. This is because the "emotional cost" of making a purchasing mistake is reduced.
Another way to look at this is, it's the retailer's job to construct online retail experiences to reduce this "emotional cost".
Forbes Research:
Forbes noted that strong return policies are a pivotal factor influencing both initial purchase decisions and long-term customer loyalty.
Over half of shoppers (often 60–80%) actively review a store’s return policy before making an online purchase.
Reverse Logistics = Loyalty:
Easy, seamless product return experiences are linked to increased loyalty. 75% of shoppers say they are more likely to shop again where returning products is hassle-free.
TOP TIP - Where to feature this content:
The best place to feature returns content is across the site (header, footer), but the two most impactful locations on a retail website are the Product Detail page and the Shopping Cart page.
These are the crucial steps in the journey where this content influences buying decisions (verified by behavioural data).
Evidence from Top Retailers:
Zappos and Amazon spearheaded this phenomenon and have reaped the rewards with market-leading consumer-centric return policies.
Customer Centric Returns Policies Drive Growth:
The "Returns Function" is strategic. Retailers need to make a cultural shift and stop treating this as a cost. When done right, it's both a customer-acquisition and loyalty tool.
The incremental sales and customer lifetime value outweigh the associated expenses.
The first step to getting this right is to map out the end-to-end returns journey to ensure it's customer-centric.
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This article was as tagged as Customer Service , Digital Strategy , eCommerce Conversion Rate Optimisation