Securing customer loyalty is essential for enduring business prosperity. Retailers are increasingly adopting strategies to nurture this loyalty, and one compelling approach is the provision of complimentary return policies. A recent study by SAP Emarsys Customer Engagement revealed that 72% of consumers stay devoted to brands that offer the convenience of free returns. This statistic highlights the critical role that a brand’s approach to returns plays in cementing a consumer-focused shopping experience.
The research conducted by SAP Emarsys Customer Engagement surveyed over 2,000 shoppers in the United States and revealed compelling insights regarding the impact of free returns on customer loyalty. The study found that 88% of US consumers have stopped shopping with a retailer due to the introduction of a paid returns policy. Furthermore, more than half (54%) of shoppers actively avoid retailers that charge for returns.
The rate of returns continues to rise, with 84% of shoppers having…
returned items over the past 12 months. However, it is essential to note that not all returns are genuine. The study discovered that nearly a quarter (23%) of consumers admit to “wardrobing,” a practice where shoppers purchase items to return them.
This highlights the need for retailers to address the underlying causes of returns and not just manage the symptoms. To combat the issue of excessive returns, many retailers have implemented returns fees. However, the research suggests that this approach can hurt customer loyalty.
The study found that 49% of customers are less loyal to brands that charge for returns. This finding indicates that retailers must strike a delicate balance between reducing returns and maintaining customer loyalty. Furthermore, many customers (54%) prefer not to return items.
They expect retailers to “get it right the first time,” emphasizing the importance of accuracy and personalization in the shopping experience. Personalization emerges as a powerful tool for minimizing returns and fostering customer loyalty…
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