Seamless Returns Turn Customers into Fans

Customer loyalty is becoming increasingly important in the cutthroat e-commerce landscape. New customers are harder to acquire, and they tend to spend less than loyal ones. It is essential to focus on this target group. But how do you turn new customers into returning fans?

A major part of this depends on optimizing the entire customer journey. After all, research shows that when it comes to making a purchase, 64% of customers value the customer experience more than the price. 

Because we are talking about the entire customer journey, this means that—in addition to a smooth purchasing process—you must also offer a smooth returns process. In this article, we will guide you through setting up an optimal returns process that will turn your customers into fans.

Improve the e-commerce customer journey to boost customer loyalty

There is a persistent misconception in e-commerce, particularly in D2C. Companies still often prioritize acquiring new customers over retaining existing ones, even though retaining existing customers is far more profitable.

For instance, returning customers have a higher average order value (AOV), a higher customer lifetime value (CLV), and the likelihood of a repeat purchase increases significantly. 

Winning e-commerce companies encourage new customers to become repeat customers. As mentioned, they do this by optimizing the entire customer journey. We distinguish 5 phases in this customer journey:

• Orientation
• Alternatives
• Purchase
• Retention
• Customer loyalty

Of the phases mentioned above, the orientation phase and the consideration of alternatives take place pre-purchase. The retention and loyalty phases occur post-purchase.

Companies focused on attracting new customers often concentrate only on the pre-purchase phase of the customer journey. As a result, the post-purchase phase fades into the background. 

After all, the sale is already made, so why bother with the customer experience? It is precisely in this post-purchase phase that retention and loyalty can be stimulated.

Stimulating retention and loyalty

One of the most important aspects of the post-purchase phase is the returns experience of webshop customers. For instance, more than 90% of consumers indicate they would make another purchase if the return process goes smoothly. 

If you improve this aspect of the post-purchase customer journey and offer flawless return handling, you will increase your customer retention and loyalty.

How to offer a smooth returns process

You must treat customers who want to submit a return with care. After all, they do not have a positive association with your brand at that moment. Therefore, ensure that:

1. Customers no longer have to print return labels. Instead, opt for an automated process where consumers can register their returns online;
2. Customers have the immediate option to exchange items, for example, if the size is not right;
3. Customers can choose their own carrier (and therefore drop-off point);
4. Customers can always get help with their return questions;
5. Customers are kept informed about their return, so they know when to expect their refund.

With a returns process like this, where the customer is central, you can assume that a repeat purchase is still possible even after a return. This way, you not only retain customers but also get the chance to turn them into fans of your brand. 

Do you also want to offer a smooth returns process?

Returnista's software automates the returns process while proactively encouraging exchanges. You can also (optionally) route all return inquiries through Returnista's customer service team to ensure an excellent returns experience for all your customers.

Want to learn more? Request a demo on our website today.