How to Build Customer Loyalty with Returns & Exchanges

When an order goes wrong, it’s your job to make it right

What you’ll read:

  • Easy returns make customers’ lives easy and help your bottom line. Here’s how to smoothen the return process.

In the world of online retail, returns are an inevitability. There are a myriad of reasons of why customers might want to return or exchange a product: the fit’s not right, the colors looked different on the website, it’s not working as intended, they just changed their minds.

Returns aren’t necessarily the retailer’s fault, but that doesn’t mean you shouldn’t make them as painless as possible. With 92% of shoppers saying they’ll buy something from a retailer again if returns are easy, following these steps can give you a competitive edge and foster customer loyalty.

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Step 1: Have a clear, easy-to-find policy

There’s often a little apprehension when shopping from a new brand or retailer for the first time, especially if it’s online. The best way to ease that apprehension is to have a clear return policy that’s easy to find on product pages. If potential customers have to go digging through your website to find out how you handle returns, they might just ditch their carts entirely. Likewise, if your exchange program is long-winded or confusing, customers could decide it’s not worth the effort to make the purchase.

Take ModCloth, for example: the online fashion shop provides a link to its return policy at the bottom of every page on its website. It makes its point in just a few sentences, clearing up any possible uncertainty and helps customers feel more confident about their purchases.

Step 2: Provide a generous return window

While ModCloth adheres to an industry-standard 30-day return policy, more and more retailers are lengthening that return window, which shows customers that they’re willing to be flexible. For example, Nordstrom’s handles returns and exchanges on a case-by-case basis but makes it clear that “there are no time limits for returns and exchanges.” Bath & Body Works makes it even simpler: “Return anything, anytime for any reason.”

It might feel risky to allow a lengthy return window or do away with return deadlines entirely, but that generosity will earn you plenty of goodwill with consumers. These types of policies make retailers appear more flexible and easier to deal with, and that’s important for building those long-term customer relationships.

Step 3: Make shipping as effortless as possible

Even if an online shop’s return policy is easy to understand, physically returning items can be a hassle. Printing out shipping labels, finding boxes, going to the post office — it’s all extra work for those   making returns at brick-and-mortar stores. It’s up to you to make this process as painless as possible if you want those repeat sales and enduring customer loyalty.

To see how it’s done, just take a look at Steve Madden’s return policy. Customers can either return ill-fitting shoes to a brick-and-mortar location or simply drop them off at the nearest Happy Returns center after initiating the process online. No boxes, no return labels, no nonsense; just drop the shoes and go. If you’re exchanging, Steve Madden will quickly process the return and ship out your replacement within a few days.

No retailer wants to think about customers returning their products, but it’s going to happen regardless. If you’re not prepared — or you make it harder than it needs to be — customers won’t hesitate to empty their carts and look elsewhere. Good return policies are key to letting new shoppers know how trustworthy you are, so it might be time to examine your own policies and see if you’d want to buy from you.