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5 Ways to Turn Returns into Repeat Business: Proven Strategies for Customer Retention
- Rebecca Lazar
Did you know that acquiring a new customer can cost five times more than retaining an existing one? In the hyper-competitive world of eCommerce, where customer acquisition costs are constantly on the rise, focusing on customer retention is no longer optional – it’s essential.
But what do product returns have to do with it? Aren’t returns generally a negative experience?
While returns can be frustrating for customers, they also present a unique opportunity. By transforming your returns process into a positive experience, you can actually boost customer loyalty and encourage repeat business.
The Double-Edged Sword of Returns
Let’s be real: a difficult or confusing returns process can be frustrating for customers. Long wait times, hidden fees, and a lack of communication can quickly ruin trust and damage your brand’s reputation. Most customers won’t buy again from a brand if they have a bad return experience with it.
On the other hand, a smooth, hassle-free return process can increase customer retention and loyalty. When you make returns easy and convenient, you show respect for your customers’ time and business, which builds trust and confidence in your brand, making them more likely to come back and buy again.
The longer the relationship with an online store, the more customers spend. Loyal customers spend an average of 67% more per purchase than new customers.
Think of it this way: a positive return experience can transform a potentially negative situation into an opportunity to show your customers you care.
5 Proven Strategies for Turning Returns into Repeat Business
Ready to turn your returns process into a customer loyalty engine? Here’s how:
1. Make Returns Frictionless
The easier you make it for customers to return items, the more likely they are to return to you for future purchases. It’s really that simple.
Simplify Your Process: Ditch the complicated forms and confusing instructions. Provide customers with multiple return options like pre-paid shipping labels, a user-friendly online return portal, and convenient in-store drop-offs.
Speed Up Your Refunds: Process refunds quickly and efficiently, and keep customers updated about the status of their return request every step of the way.
Remove the friction from your returns process to create a positive experience that fosters trust and confidence in your brand.
2. Go Beyond the Basics
Don’t just meet your customers’ expectations – exceed them. Give your customers a convenient and flexible returns experience and they’ll be happy to buy again and again, knowing they can easily return items if need be. This is one of the best ways to improve your customer retention rates.
Using these strategies, you can provide a good experience and retain customers:
Extend Your Return Window: A standard 30-day return window is great, but offering an extended window (60 or even 90 days) can be an excellent way to show customers that you stand behind your products and value their satisfaction.
Offer Free Exchanges: Make it easy for customers to find the right product by offering free and easy exchanges; this encourages them to stay engaged with your brand. With ReturnGO, you can offer the most flexible exchange options, including any-to-any exchanges, a Shop Now experience, and in-portal exchanges. ReturnGO’s flexible exchange options work together with bonus credit and advanced automations to create an exchange experience that feels just like shopping.
Support In-Store Returns: For customers who prefer a more hands-on approach, allow online purchases to be returned to a physical store. This omnichannel approach adds convenience and provides a more personal touch.
Offer Store Credit Refunds: Offering store credit instead of a standard refund is a simple yet powerful strategy, since according to ReturnGO data, 68% of customers buy again after receiving store credit, leading to much higher repurchase rates and average order values than regular refunds.
3. Turn Returns into Relationship-Building Moments
Every return is an opportunity to connect with your customers on a deeper level and strengthen your relationship.
A customer who is returning a product is likely feeling some level of disappointment or frustration. Acknowledge their feelings, listen to their concerns, and let them know you’re there to help. 72% of customers expect the businesses they buy from to recognize them as individuals and know their interests.
Instead of just processing returns at face value, dig deeper. Is there a recurring reason why a particular product is being returned? Use returns data to identify potential issues and proactively address them. For example, if customers consistently return a product because it’s difficult to assemble, offer more detailed instructions, or create a video tutorial.
4. Reward Loyalty, Encourage Returns
Customer loyalty is a two-way street. When you show your customers they’re valued, they’ll be more likely to come back and buy again.
Implement a well-structured loyalty program that rewards customers for repeat business, such as free shipping on their returns or a discount on their next purchase. This encourages customers to come back, and really shows your appreciation.
Keep in mind that the longer the relationship with an online store, the more customers spend in a given period of time. In apparel, the average repeat customer spent 67% more than when they were new customers.
Use ReturnGO’s customer scoring capabilities to identify high-value customers and tailor your post-purchase experience to build even stronger loyalty and encourage repeat purchases.
5. Turn Feedback into Actionable Insights
Don’t let valuable customer feedback go to waste. Every return is an opportunity to learn and improve.
Implement a system for gathering customer feedback during the return process. ReturnGO enables you to track and analyze returns data including the return reasons and requested resolutions.
The insights from your returns data can help you find trends or recurring issues. Is there a high rate of returns due to sizing issues? Do customers prefer to ship back their items with a pre-paid return label or by taking their items to a drop-off location?
Identifying these pain points enables you to implement targeted solutions to address these issues. This enables you to optimize your post-purchase process and demonstrates to your customers that you value their experience and are committed to continuous improvement.
Give Customers a Returns Experience They'll Love
To transform the returns process into a powerful engine for growth, you must shift your perspective and embrace a customer-centric approach to returns. Remember, a positive return experience can be the key to unlocking repeat business and fostering lasting customer loyalty.
Start implementing these strategies today and watch as happy, satisfied customers become your most valuable asset.
About the Author
Rebecca Lazar
Product Marketing Manager, ReturnGO
Rebecca Lazar is ReturnGO’s Product Marketing Manager. She is passionate about educating eCommerce business owners on how they can streamline their post-purchase process. Using her experience and industry expertise, Rebecca is committed to helping businesses thrive in the ever-changing world of eCommerce.
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