The surprising connection between product returns and customer loyalty

Introduction

Did you know that repeat customers bring 65% of a firm's revenue? Having loyal customers is one of the best benefits for any company. When we talk about the eCommerce industry, brands can take advantage of many potentials. 

One of the ways firms can achieve this is by facing one of eCommerce's worst enemies - product returns. You see, a part of customer loyalty is directly tied to how good your returns process is. 

Sounds a little unfamiliar? That's fine because today, we'll discuss how product returns and customer loyalty are connected. 

Why Does Customer Loyalty Matter to Any Brand?

Loyal customers substantially impact your brand's retention, referrals, and, most notably, its bottom line. 

Customers' emotional connection with your brand is the driving force behind increasing repeated purchases and being a constant advocate for your products. But it doesn't stop there. Here's why customer loyalty matters:

1) Loyal customers spend more

Customers' emotional bonding with brands has a far-reaching influence on their profitability and reduces the costs of new customer acquisition. 

A customer's emotional bonding with a brand fosters customer loyalty. They begin to perceive the brand as someone who knows their preferences, creating a sense of belonging. 

In fact, this is pointed out in a study by Capgemini, where they concluded that around half of the customers (48%) were emotionally connected to even online shopping - despite lacking the human touch. 

But coming to the central point, do loyal customers spend more? We've got research to back this up, as emotionally engaged customers (70% of them) are said to spend 2x or more on the brands to whom they are loyal. 

Other data also suggests that loyal customers are 50% more likely to try out your company's new products, suggesting that loyal customers keep returning to your brand. In all, the cultivation of loyal customers could enhance not only your customer retention but also the transaction size. 

2) You become the first brand that comes to mind

Call it brand recall or awareness; the emotional perspective draws customers' attention to the brands they are loyal to. Think about it. 

Don't we instantly recall the brand we're most loyal to when we need something? So, let's say you need new household supplies. Then the nearby supermarket you always go to will be the first to come to mind. 

When customers genuinely value the brand, it will be the first to cross their minds. 

3) Loyal customers promote their favourite brands

Who doesn't love a little promotion? Especially if it's free too. Ever seen someone sharing their new pair of Nike Jordan on social media? That is precisely what brands can use. 

When we say sharing on social media, we're not talking about the posts that simply brag about buying a new product of a particular brand. Instead, we mean the posts that prove that your products are better than most in the market. 

When customers feel satisfied with a product, they can post it online and even thank the brand if they feel like it. This, in turn, can give your brand more exposure to those who may not have heard of you before. 

3) The Connection Between Returns and Customer Loyalty

So, what do returns have to do anything with customer loyalty? A lot. In fact, if marketers become aware of what their customers expect in a return process, they can optimise their return process and earn customer satisfaction. 

But coming to the point, a returns process can directly impact whether a patron will visit your online store ever again. This is because of one simple reason - trust.

Ask yourself this: If you ever return a product and face the most atrocious method to get a replacement, would you buy from the same brand again? Two reasons are going to stop you from buying again :

• The fear of getting an unsuitable product again. 
• Experiencing the same hectic return process. 

Building trust with consumers is vital, and if you learn about the factors that drive customer loyalty, you can turn returns into one of the most profitable parts of your business. We'll also cover this in the next part of this article. 

How Does A Good Return Process Affect Customer Loyalty?

Now that you've gotten a basic idea of how returns affect customer loyalty, here are the different ways you can benefit by improving your return process. 

1) Creates confidence 

The first and most obvious benefit to a good returns process is that it creates confidence in your consumers'. Once they've seen that your brand can make returns more manageable than others, they'll want to come back again. 

Why? Because you've given them the confidence that even if the product they receive is incorrect or unsatisfactory for any reason, they do not have to fear thinking of how the returns process will be. In short, you've convinced your customers that you provide the type of service they want for any situation. 

2) Improves communication 

Another aspect you can enhance with a good returns process is improving the communication between you and your customers. You have to be different from several other eCommerce brands out there. 

When you process returns, throw in a discount code or two. This will help you communicate better and show your store's more 'human' side. You can also get insights on the type of discounts your customers like this way. 

Once you've understood how a specific group of customers behave, you can provide even more personalised experiences. 

3) It can help you connect emotionally with customers

One of the methods of building a unique customer relationship lies in a good return process. Exceptional experience in a return order can help you make your patron feel more valued and appreciated. 

You can also use this opportunity later to create an event where only handpicked customers are invited. This will help them be part of something exclusive, creating a more powerful emotional bond. 

How Can eCommerce Brands Reduce the Number of Product Returns And Improve Customer Loyalty?

One of the classic and most asked questions in any new eCommerce entrepreneur's mind. The first rule to reducing returns is knowing that you cannot ultimately end it. 

Additionally, it would be best if you ideally implemented a couple of more strategies such as : 

• Creating a comprehensive FAQ page. 
• Constantly checking and updating your return policy 
• Improving product images and descriptions of your store. 

How Does ClickPost Help B2B Brands Improve Customer Loyalty With Returns?

Clickpost is one of the best platforms where B2B brands can boost customer loyalty with returns. Right off the bat, we offer you a returns portal that saves time on the customer's end to initiate the order. 

In addition, we allocate your orders to the carrier that is best suited in reverse logistics. Further, with automation and customisations, we strive to ensure that your customers keep returning. 

Wrapping Things Up

This was all about the impact a returns process has on customer loyalty. It is dire to understand that creating an emotional attachment is extremely important. This helps you better serve your consumers and personalise each experience to their preferences. 

FAQs

1) How can I gain loyal customers?

Ans: The simplest way to get loyal customers is to serve better continuously. The more personalised and better your experiences, the more customers will trust your brand. 

2) Does improving the process of product returns increase customer loyalty?

Ans: Yes! A good return order can invoke confidence in your customers to buy again without fearing a bad experience.