Maximising Retention, Loyalty, and Active Customer Numbers Through Returns

Maximising Retention, Loyalty, and Active Customer Numbers Through Returns

Learn how you can maximise retention, loyalty, and active customer numbers through your returns policy

Returns are painful, there is no doubt about it.

Businesses spend bank attracting customers and sending out orders only to have the goods returned and customers unhappy about long and confusing return processes. However, in the age of eCommerce and in a world where the customer is king, more than ever returns are an essential part of the shopping experience. So, how can your store utilise returns as a secret weapon to boost customer retention and loyalty, active customer numbers and revenue?
The stats are overwhelmingly clear, eCommerce retailers providing easy, efficient and fast return policies are the ones growing the fastest.
MIT Sloan conducted a 365-day study finding that that legitimate returner with an average 23% return rate generated 650% more profit then non returners. (Source via Sloan Review)

How is this possible? Customer retention.

The MIT study found that those legitimate returners generating enormous profits stayed loyal to their favourite brands 260% longer than non-returners. Presented with an item they didn’t want, these customers lodged a return and when greeted with any easy and efficient return processes the store was able to capitalise on an opportunity and win the customers loyalty. The customers next purchase was surely going to be at that store after such a fast and seamless experience.
Zappos is an astounding example of the paradigm that offering easy returns leads to increased customer retention and revenue. Zappos 365-day free returns policy with no catches or exceptions is arguably the best on the planet.
At first glance Zappos relatively high 35% return rate — where 50% involve entire carts being returned — screams lost profit and unhappy customers. Delving deeper, however, reveals the extraordinary success of their consumer centric return policy. The company is an incredible success generating over $2bn revenue, boasting an obscene 57 net promoter score and with active customer numbers through the roof. It is thanks to their incredibly customer centric return policy and rapid refunding processes that rather then pushing them away, Zappos post-purchase experience draws customer back for more.
With the overwhelming evidence suggesting customer centric return policies will improve your customer retention and grow your business, it is worth understanding why this is the case.
The answer is that customers avoid and abandon stores who make returns a difficult or painful process. Over 70% of customers check a store’s returns policy before making a purchase and of that, 51% will avoid shopping at stores with strict or unfriendly return policies.
It is critical for stores to have a returns-policy that is, easy to understand, lenient and most importantly FAST. Such a policy will act as a ‘badge of security’, improving customer confidence and alongside the improvement in loyalty will increase basket sizes and conversions. As the eCommerce landscape becomes increasingly competitive, your return policy could become the key to your success. The evidence is clear, a consumer centric return policy can be used as a secret weapon to increase customer retention and loyalty, your net promoter score and active customer numbers.
Before you spend weeks chopping and changing your policy, check out www.refundid.com who has done the hard work for you. Refundid’s logo is the only symbol in eCommerce that screams consumer centric return policy and is guaranteed to make customers obsessed with your brand.
Interested in providing a customer centric return policy and improving your customer retention? Head to www.refundid.com/im-a-business to learn more.

Insights

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Maximising Retention, Loyalty, and Active Customer Numbers Through Returns

Learn how you can maximise retention, loyalty, and active customer numbers through your returns policy

Maximising Retention, Loyalty, and Active Customer Numbers Through Returns

Maximising Retention, Loyalty, and Active Customer Numbers Through Returns

Learn how you can maximise retention, loyalty, and active customer numbers through your returns policy

Returns are painful, there is no doubt about it.

Businesses spend bank attracting customers and sending out orders only to have the goods returned and customers unhappy about long and confusing return processes. However, in the age of eCommerce and in a world where the customer is king, more than ever returns are an essential part of the shopping experience. So, how can your store utilise returns as a secret weapon to boost customer retention and loyalty, active customer numbers and revenue?
The stats are overwhelmingly clear, eCommerce retailers providing easy, efficient and fast return policies are the ones growing the fastest.
MIT Sloan conducted a 365-day study finding that that legitimate returner with an average 23% return rate generated 650% more profit then non returners. (Source via Sloan Review)

How is this possible? Customer retention.

The MIT study found that those legitimate returners generating enormous profits stayed loyal to their favourite brands 260% longer than non-returners. Presented with an item they didn’t want, these customers lodged a return and when greeted with any easy and efficient return processes the store was able to capitalise on an opportunity and win the customers loyalty. The customers next purchase was surely going to be at that store after such a fast and seamless experience.
Zappos is an astounding example of the paradigm that offering easy returns leads to increased customer retention and revenue. Zappos 365-day free returns policy with no catches or exceptions is arguably the best on the planet.
At first glance Zappos relatively high 35% return rate — where 50% involve entire carts being returned — screams lost profit and unhappy customers. Delving deeper, however, reveals the extraordinary success of their consumer centric return policy. The company is an incredible success generating over $2bn revenue, boasting an obscene 57 net promoter score and with active customer numbers through the roof. It is thanks to their incredibly customer centric return policy and rapid refunding processes that rather then pushing them away, Zappos post-purchase experience draws customer back for more.
With the overwhelming evidence suggesting customer centric return policies will improve your customer retention and grow your business, it is worth understanding why this is the case.
The answer is that customers avoid and abandon stores who make returns a difficult or painful process. Over 70% of customers check a store’s returns policy before making a purchase and of that, 51% will avoid shopping at stores with strict or unfriendly return policies.
It is critical for stores to have a returns-policy that is, easy to understand, lenient and most importantly FAST. Such a policy will act as a ‘badge of security’, improving customer confidence and alongside the improvement in loyalty will increase basket sizes and conversions. As the eCommerce landscape becomes increasingly competitive, your return policy could become the key to your success. The evidence is clear, a consumer centric return policy can be used as a secret weapon to increase customer retention and loyalty, your net promoter score and active customer numbers.
Before you spend weeks chopping and changing your policy, check out www.refundid.com who has done the hard work for you. Refundid’s logo is the only symbol in eCommerce that screams consumer centric return policy and is guaranteed to make customers obsessed with your brand.
Interested in providing a customer centric return policy and improving your customer retention? Head to www.refundid.com/im-a-business to learn more.

Insights

You might also like

Meet our Team at Refundid: Edward Liston

A true salesman at heat, Ed lives by the motto ABC (always, be, closing).

VRG GRL: Returns, Refunds and Refundid

Welcome to our second Refundid partnered Q&A series with VRG GRL's Co-CEO Cale Suesskow.

Refunds & Returns Insights: Every eCommerce Business Should See

Take a look at these customer insights we’ve pulled from multiple sources that showcase just how important quick and easy returns can be for your business.

Meet Refundid's CEO & Co-founder, Brad Karney

Brad is an avid Liverpool F.C. supporter and ecommerce enthusiast, before co-founding Refundid he was… can you guess?

5 Brands with Superior Customer-Centric Returns Policies

Customer service is king! Customers expect world-class customer service throughout the entire order life cycle when shopping online.

Maximising Retention, Loyalty, and Active Customer Numbers Through Returns

Learn how you can maximise retention, loyalty, and active customer numbers through your returns policy