Although returns may just seem like an inconvenience to your ecommerce business, they can actually be a gateway to building long-term customers.
With 71% of online shoppers in the UK returning items at least some of the time, the way you handle returns is a huge contributor to your customers’ user experience. If they find the process confusing or become frustrated at how their return is managed, it can leave them unwilling to return to your store in the future.
Since long-term loyalty is such a crucial part of a successful ecommerce business, let’s discuss some ways that you can optimise your return process to keep your customers coming back again and again.
The Importance of Long-Term Loyalty
With so many ecommerce businesses battling for the attention of shoppers, building long-term loyalty is essential. Having customers who return to your brand time after time means you have a more predictable income stream that is less impacted by other competitors in the industry.
Since a loyal customer already knows and trusts your brand, they may feel more comfortable spending money on your site than they would be willing to elsewhere. In fact, retaining existing customers is shown to be five times more cost-effective than acquiring new ones.
As well as generating more income from long-term customers, the likelihood of being recommended to others is increased. If a shopper regularly shops on your site and has positive experiences, they are more likely to talk to their friends and family about your business and increase your reach through word of mouth.
How Can a Return Process Build Customer Loyalty?
Many retailers make the mistake of seeing returns as a requirement rather than an opportunity. Although a return means that a customer does not want to keep their purchase and your business is losing money on the order, it does not mean the customer is unhappy with their experience – in fact, the returns process that the shopper receives can turn their experience around.
If a customer is able to return their purchase quickly and easily, they are much more likely to feel more confident returning to your business website in the near future. Once they have built up trust in your business and know that the shopping experience is a smooth one, there is an increased chance of them coming back, making building a reliable business website so important from the start.
By building up this trust among website users and showing your commitment to customers through a quick and transparent returns process, shoppers are more likely to feel comfortable making larger orders next time. Since they know that you are a reputable business and refunds can be carried out easily, they may be more likely to increase their spend and use you as a go-to store.
4 Ways to Optimise Your Return Process
In order to build up long-term loyalty among your audience, your return process should be a seamless one that sticks in their mind and doesn’t deter them from making another purchase.
Here are four ways that your return process can be optimised to encourage repeat custom…
1. Make the return policy easy to find
If a customer is ready to make a return, any barriers that get in their way will cause confusion and frustration. This can quickly lose their trust in your business and risk them not wanting to return in the future.
Instead of keeping your return policy hidden away in the footer or behind various levels of navigation, make sure there is a clear flow that guides users to the right place.
Consider where a customer looking to place a return would look first, and ensure that these places contain the information they need. Places such as their personal account and order confirmation email are typically where you would expect to be able to submit a return.
The example below from ASOS shows how easy it is to access the returns policy from the home page. If a user goes to the sign-in icon to access their profile, they’ll immediately be presented with different options related to the actions they’re likely to be looking to take.
(Image source: ASOS)
2. Offer free returns and exchanges
Many ecommerce businesses offer free returns as an incentive for shoppers to make a purchase. Since 65% of online shoppers in the UK expect returns to be free, if they are charged to make a return, it can put them off placing an order in the first place or leave them unsatisfied with the experience they had.
Offering free returns and exchanges shows customers that you are committed to helping them find the product(s) they are looking for and will happily let them make a return or exchange. It will feel like much less of a risk for a customer if they know they can return items for free if they do not wish to keep them.
By prioritising the long-term loyalty of a customer over short-term cost savings, your business can build up its customer base and increase customer satisfaction – preventing customers from looking elsewhere next time they want to make a purchase.
3. Keep clicks down to a minimum
The more complex you make your returns process, the less likely a customer is to return to your business next time. If they are having to navigate through the site to find information about how to submit a return, need to complete a lengthy returns process, and then need to print out a return label and drop off the parcel at a specific location, it can cause them to lose trust in your business and not want to order again.
The process should be as quick as possible, getting the user what they need in just a few clicks. Nowadays, many shoppers don’t have access to a printer and expect the label to be managed when they drop off their parcel at a designated location.
An example of a well-known ecommerce business offering simple returns is Lakeland. When you choose to make a refund, you are redirected to an Evri page which requests your order number and email address. From here, you can arrange for your parcel to be collected from your home on a specific day, free of charge. This offers maximum convenience for customers and is a great incentive for them to continue shopping with Lakeland.
(Image source: Lakeland)
4. Extend the return window in peak seasons
Peak retail seasons, such as Black Friday, Christmas, Mother’s Day, and Father’s Day, are all prime opportunities for ecommerce businesses. Due to the rise in demand, competition is heightened and retailers are all fighting for customers by offering enticing deals.
This competitiveness is the reason that 42% of retailers now extend their returns policy in peak seasons. This gives shoppers peace of mind that they can return gifts if the recipient wishes to return or exchange them after the event. If they face the typical 28 day return period, this can be a deterrent when they are placing the order and make them consider shopping elsewhere instead.
By extending the return window, this can also be used as a big selling point in marketing campaigns and on your website home page. By enticing shoppers to make a purchase with the knowledge that they can easily return any unwanted gifts, you are increasing the likelihood of sales without any real cost to your business.
