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Home Opinion Why a seamless returns process is key to customer loyalty

Why a seamless returns process is key to customer loyalty

by Uma
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The cost of living crisis has thrown the retail sector into turmoil as retailers battle it out to win shoppers’ dwindling spend. Alongside price and product, delivering exceptional customer experience is a key battleground to win customer loyalty. When it comes to retail returns, customers expect a seamless experience, wanting fast refunds and likely begrudging pay-to-return options, both of which make the landscape increasingly competitive. Ahead of upcoming major peak shopping events Black Friday and the festive season, it’s more important than ever for retailers to get this right to maintain custom.

Brand new research from UserTesting has found that 80% of respondents think retailers have changed their returns policies to discourage customers from over-ordering or ordering multiple sizes. With this, over half (55%) of customers think it’s unfair for the customer to have to pay a returns fee and unsurprisingly, free returns came up as the most popular returns process for customers. 

Over-ordering is an issue that must be addressed for sustainability and eco-friendly purposes, however, the UserTesting research showed that 65% of retail customers have been discouraged from purchasing by a retailer’s returns policy or process.  With 80% of respondents saying that paying a fee for returns will make them less likely to buy from that retailer, what can brands do? 

Transparency is key 

Transparency is key. If a brand is going to charge for returns, this needs to be made clear at the very start of the customer experience. Before making a purchase, any return charges should be clearly flagged to the buyer, so that they can think carefully about what they’re buying. With all respondents (100%) saying that free returns would make them more likely to purchase from a retailer, this extra requirement must be flagged. Customers need to be given the information so that they can weigh up the risk of the return against the fee that would be charged and choose to place the order or not. 

Businesses also must explain to customers why they have a return fee in place. Six in ten respondents (60%) said that they think brands bring in a return fee to help reduce the carbon footprint of online purchases and returns. Genuine reasons should be clearly shared, as many shoppers simply think a return charge is added to stop customers over-ordering (80%) or to increase company profits by encouraging customers to keep items they are unsure of (55%). 

Ultimately, companies must communicate return policies to customers at multiple touchpoints during their purchasing journey, so that they cannot be missed. Surprises and complication can leave a bad taste in consumers’ mouths, so it’s in a brands best interest to make everything totally clear. Example touchpoints include on the website, on physical receipts, in store, on purchase confirmation emails, and verbally at checkout. On top of this, the policy copy needs to be easy to understand for all and must clearly state return requirements, such as the condition of the purchased items, methods of return, refund options and any time limits associated. The timeframe it takes for a return to appear on a customer’s payment method should also be obvious, to avoid questions ahead of the repayment going through. 

Offer personalisation and a human touch

Brands need to remember that they are dealing with real people with real preferences, troubles, standards and differing requirements. This is where personalised communication becomes so important. If a customer has sent back a return, reach out to them to ask how they found the process. This shows that a brand is empathetic and wants to know how its service is received. Brands must ask the reason for returns so that if it’s a sizing issue, for example, a clothing site could recommend a particular size that would fit before purchase, based on orders that have been kept or returned in the past from that individual buyer. This personalisation would help to limit the amount of returns and also act as a helpful guide for the shopper. 

In line with this, it’s vital to gather feedback before making any sort of policy changes, so that nothing is brought in that customers dislike or do not find useful. It’s all good and well to bring in policies that a company thinks will streamline the process, however checking with consumers beforehand can help steer retailers in the right direction, avoid costly mistakes, and will ensure that a policy or change is actually needed and will be appreciated, ahead of it being brought into play. 

When it comes to the purchase process and the returns, there must be helpful, clear and empathetic customer support on hand. This can be done via email, phone, live chat or in store. Brands must ensure that support staff are knowledgeable, helpful and can assist customers when they’re in tricky situations. It’s also a great idea to make sure that those team members have strong connections with the courier companies so that they’re able to communicate and resolve customer returns issues on their behalf, to alleviate the stress. 

Another aspect of this is constant communication. Yes, brands should have great customer service but they can limit the need for customer service if they provide ongoing updates during a return. ASOS is a great example of this, as customers are notified via email and app notifications when they drop off their return, when their return is collected by the courier, when it arrives back at the ASOS warehouse and when the refund is then processed. This keeps customers in the know whilst preventing overwhelm for customer support staff.

Swift and smooth

If somebody is returning something it likely means they haven’t had a satisfactory experience so far – the clothes haven’t fit, there’s a fault with a product or it’s not to their taste. Brands must make returns processes as seamless as possible, to redeem themselves and to maintain customer loyalty. 

A simplified returns process is essential to making an irritating situation that little bit better. Simplifications that your customers will appreciate include pre-printed returns labels, as half of respondents (50%) said they’d be put off by returns that require a printer. 

Easy to follow instructions for both online and in-person returns are valued too, with the option to return online orders in store prompting 65% of respondents to say that would encourage them to shop with a certain brand. 

Customers want businesses to minimise the steps required on their part, so factors such as returns being paperless go a long way – 70% of UserTesting’s respondents said this would encourage them to shop with a company. Utilising technology to make returns processes automated should be done where possible to streamline the process and decrease the time customers have to spend on sorting and dropping off the returns they need to send. 

Speed is also a big factor in customer satisfaction. If someone has returned an item, they’ll want their money back fast, therefore brands need to ensure refunds are processed quickly. A slow refund will only lead to an influx of customer service messages and customer frustration. This is especially important at this time where some customers may be more financially unstable than usual, due to the rising cost of living and inflation. Brands must empathise with their customers’ situations and not add more stress to already difficult circumstances. 

Be flexible

Along with a seamless process, flexibility must be prioritised so that each customer can choose the right method for them. Alternative returns methods help alleviate inconvenience during a returns process. Brands should explore partnering with specific local drop-offs, to make sure that they’re plotted in multiple spots across a specific area and that every customer has a drop-off close to them. 

These recommendations are particularly crucial as UserTesting’s respondents said that multiple drop-off locations (80%) and different courier options (60%) for returns would encourage them to shop with a brand again. In line with this, 55% would be discouraged from shopping with brands that only allow in-store returns at branches. 

Notably, 55% of respondents also said that a longer return period of 28 days or more would encourage them to shop on a certain website or in a certain store. During the cost of living crisis, an extended return window could go a long way with consumers who perhaps are looking to get the best product for their money, or may be inclined to buy more when items are on offer. By allowing them the flexibility and time to think over their purchases, you are alleviating yet another financial pressure. 

Prioritise prevention 

Brands should always collect customer feedback from the public, especially after a returns process has gone through. This feedback is key to identifying pain points and reasons for the return in the first place so that the required changes can be made. In the future, this will prevent returns which ultimately will lead to higher customer satisfaction.

Companies should make sure that product descriptions are incredibly clear and precise, with high quality images of every angle of an item. This will ensure consumers know exactly what they’re ordering which will prevent disappointment upon arrival, and thus, lessen the amount of returns that need to go through. 

Quality control is vital too. If every product is produced to a very high standard, customer dissatisfaction and subsequently returns will decrease, leading to higher customer loyalty. 

An extra consideration is the introduction of loyalty discounts and points. This could include discounts, perks and rewards for those who keep their full order. Of course, brands don’t want to encourage wasting money and keeping unwanted items, however, if the above steps have been taken, this should lead to fewer returns. 

Customer comes first 

Ultimately, in today’s climate, many know why returns fees may need to be introduced – whether that’s to reduce costs, for sustainability or because items are manufactured on an order-by-order basis. However, the customer needs to come first in the returns process if brands want to maintain customer loyalty. 

During a cost-of-living crisis, empathy and understanding are key. Retailers who demonstrate care for their customers’ situations while maintaining a commitment to providing a positive experience will likely build stronger relationships and loyalty in the long run. Thus, be transparent from the offset. If there’s a fee, let customers know in advance. If there are specific terms, conditions or requirements for returns, make them clear. When advertising a product, provide a super clear specification and selection of images, so that consumers know exactly what they’re getting. Flexibility, speed and personalisation will also go a long way towards helping your company retain its customer base. 

A positive customer experience during the return process will lead to increased trust. Today, customers value brands respecting them and their money and making their already stressful lives as easy as can be, when presented with an order or purchase they don’t want to keep. If a brand is struggling with lots of returns, gather feedback and iron out the issues to limit them. A customer who’s listened to is a customer who will return to your business again. 

 

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