Let's face it. If you want to keep customers happy and coming back, returns are a necessary part of doing business. While they will never go away, with the correct return policy strategies, returns can actually improve profits.
Before setting up a customer-focused return policy, remember that:
Customers, of course, make returns for a variety of reasons. Maybe their product arrived damaged, didn't work correctly, didn't fit, or didn't meet their expectations.
According to Statista, nearly 41% of shoppers purchase with the intent of returning for these reasons.
However, without a good return policy and system for handling returns, they can take a lot of time away from business operations.
Return policies create important customer guidelines to help retailers manage how customers complete returns and exchanges. However, getting a return can be disheartening and can result in short profit losses.
It can be easy to ignore a return policy altogether. Over time, however, return policy complaints will trickle in online as comments on social media ads, posts, or even Google searches. Customers are less likely to make additional purchases.
For this reason, ignoring customer-centric return policies actually results in more profit loss than implementing a customer-focused returns policy.
Customer-focused return policies often make the difference between solid repeat purchase rates and one-time purchases.
Exchanges and returns may not appear profitable at first glance. However, the positive customer experience is likely to lead to higher customer retention and revenue growth.
1. Create a time limit.
Determine the amount of time that purchasers have to return an item. Most retailers choose a 90-day return policy. Some stores, such as L.L.Bean, now allow customers to return items at any time. Brands that do not have time limits should market this policy to show customers how dedicated they are to their satisfaction.
2. Create exceptions.
Most return policies have exceptions. Here are some examples:
These exceptions should be displayed prominently to avoid any confusion and improve customer satisfaction.
Returns must be just as easy as the purchase experience; otherwise, customer loyalty and retention decrease.
Beyond lenient customer return policies, it's essential to look at the products returning and implement appropriate changes. For example:
E-commerce companies can set up ReturnLogic as an RMA solution for their online store.
With ReturnLogic, retailers can:
Setting up a powerful RMA solution isn't just good for business; it also creates an effortless customer experience to build loyalty and increase sales.
When handling returns, it's essential to create an exceptional customer experience.
Product returns are simply a part of being in business as a successful e-commerce store. Retailers should improve the customer returns experience and track customer lifetime value improvements, rather than eliminating returns and losing repeat business.