Consumers aren’t always entitled to a return if they simply change their mind or find a product cheaper elsewhere, but many Australian retailers recognise that an accommodating returns policy helps build customer satisfaction and brand loyalty.
This can turn a small, potentially negative interaction into a longer, more satisfying and profitable customer relationship. Here’s how.
Highlight your returns policy
It’s vital your returns policies are clearly stated and posted visibly online, included in shipped packages and in-store. Offer a variety of options for customers to approach the returns process on their own with minimal effort and set out clearly defined policies that address several types of return situations.
In addition to having a sign at checkout detailing how you handle returns, you may also want to print your policy on your receipts. In some cases, employees should also be instructed to verbally communicate your return policies. For instance, if you don’t accept returns for sale items, have your staff remind shoppers of this when they see that a customer has purchased an item from the clearance rack. This will help prevent any potential frustration further down the line.
Provide a great customer experience across all platforms
The line between bricks-and-mortar stores and your online storefront should be unnoticeable to customers. Ensuring consistency across the customer journey is so important, whether customers are visiting your store, website or mobile app. It will build an experience of frictionless and easy interaction for your customers, which increases their loyalty to your brand.
For retailers that don’t have physical locations available in every area of the country it’s important to provide easy-to-find return labels and policies around postage. This way, customers who do not wish to visit a physical store are provided with a pain-free way to return their products.
Likewise, shipped products should include clear instructions about in-store return policies. If you have popular products that frequently sell out, offering ship-to-store options can keep customers coming back. The knowledge that any product is available, no matter its current location, will drive in-store visits and maintain customer satisfaction.
Grab the opportunity for conversion
Ask your staff to entice customers by reminding (in a non-pushy way) of the great products or gift cards they can get in exchange for the item that they’re returning. Hopefully, this will get them to at least explore your shop to see what they can get using their store credit. For example, if a customer has bought a shirt online that doesn’t fit properly and has come into the store to return it, use the opportunity to offer a different size or brand that might suit their requirements better.
When it comes to return policies, everyone should be on the same page. Discuss your policies with employees when you train them and make sure they understand how to process returns, avoiding the need for lengthy discussions or questioning with the customer present
Use returns to gather insights
Returns can give you insights about your products, your customers, and even your marketing strategy, so make it a point to gather feedback every time you process a return or exchange. Always ask why a customer is returning the product. Were they not satisfied? Did they find a better alternative somewhere else?
Technology is your friend when it comes to gathering data. Good retail software should tell you which products get returned, how quickly and via which routes. This can help you assess the returns that are costing your business in terms of time and profit and also how to correct trends in returns as they appear in the data. Or, maybe the issue isn’t with your product but with your marketing. What messages are you putting out there? Do you need to be clearer when communicating who the product is for (and who it’s not for)? Is your marketing attracting the wrong types of customers.
Make it painless
Don’t make people jump through hoops just to return a product. Offer a generous return time period and state clearly and visibly what this is. Also, paying the postage for your customer to return an item will go a long way, as will having a process where they can send goods via parcel pick up points and in-store.
By eliminating the risk and hassles of returns, you are building goodwill and loyalty with your shoppers. When your customers see how gracious you are, they’ll like and trust you more; it becomes a personal relationship rather than a business interaction. They will likely purchase from you in the future and will be more inclined to share their positive experience with their friends and family.
Graham Jackson is the CEO of Fluent Commerce.