Survey: Customer-friendly return processes boost loyalty

Providing free returns is an effective way for retails to gain loyal customers.

Three quarters of U.S. shoppers (72%) show greater loyalty to retailers that provide free returns, according to a new survey of 2,000 Americans from SAP Emarsys Customer Engagement. Nearly nine-in-10 (88%) of U.S. consumers have stopped shopping with a retailer because of a paid returns policy being introduced, while over half (54%) actively avoid retailers that charge to return items.

SAP Emarsys data found the rate of returns continues to climb, with 86% of shoppers returning items over the last 12 months. However, 23% of consumers surveyed admitted to ‘wardrobing’,  a phenomenon where consumers buy items with the sole intention of returning them. A common example of ‘wardrobing’ is shoppers buying the same product in multiple sizes in case one does not fit.

With many retailers adding return fees, consumers are shifting their loyalty, with 49% being less loyal to brands that charge for returns. More than half (54%) of respondents say they prefer not to return items, and 60% want retailers to “get it right the first time,” indicating over half of consumers do not want to deal with returns.

“With brands losing money from returns, it is understandable that retailers have added returns fees, but it is imperative retailers don’t damage their customer experience in the process,” said Sara Richter, CMO at SAP Emarsys. “We need to fight the root cause of the problem, not just manage the symptoms. For me, that’s where personalization comes in.”

Close to half of U.S. consumers (41%) would like to see more personalized recommendations and deals that make the online experience more like shopping in a store.

“When retailers offer more targeted products based on customer data, such as returns behavior and wish lists, the volume of returns drops,” Richter added. “Three-quarters (77%) of shoppers prefer brands that make personalized offers, and we saw an increase in retailers embracing this approach during last year’s Black Friday weekend.”