Build Customer Loyalty Through Returns

Returns are expensive, disruptive, and time-consuming, but they’re an inevitable fact of life for retailers. According to Capital One Shopping research from 2024, online sales had a 39.2% return rate, totaling $362 billion in returned merchandise. Of those returns, $104 billion were fraudulent, which can have a significant impact on a store’s bottom line.

Those numbers are stark, but returns aren’t all bad. Sometimes, they can be good for a business when handled the right way. TotalRetail states that a bad experience with a retailer can sever the relationship. However, a positive experience with the return incentivizes the buyer to purchase again in the future. When handled correctly, companies can actually build customer loyalty through returns.

Key Strategies to Build Customer Loyalty Through Returns

Returns can be daunting in theory (for both the company and the consumer), but they are actually an incredible opportunity to prove yourself as a company. These are the key strategies to build customer loyalty through returns.

1. Be Upfront about the Return Policy

Being upfront and transparent about the return policy makes customers feel like they have a safety net, so they feel more secure and confident when making purchases.

About 80 percent of customers never make returns, but they still like to know that they have the option. This makes them feel more secure and confident about their purchase while simultaneously proving that your company is trustworthy and credible.

To create feelings of security and trust with your consumers, make sure your return policy is customer-friendly and easily accessible in-store, online, and on receipts.

When comparing two different companies, a clear return policy can be the differentiating factor for your future customers. If you have a great return policy, display it proudly.

2. Make the Return Process as Painless and Efficient as Possible

A frustrating return experience can destroy customer loyalty immediately. One of the best decisions you can make for your company is to make the return process as painless and efficient as possible for both the consumer and your employees. The easier a return is on both ends, the better experience a customer will have with the return process—and the more your company will benefit in the future.

No one likes making a return. It’s time-consuming, can be intricate, and it just doesn’t feel good. If you’ve ever experienced a return process that took far too long, was overcomplicated, or didn’t solve the initial problem with the order, it can severely damage that company’s reputation in your eyes.

One of the best ways to remedy this is to use your POS system and train employees properly, so that the return process is fast, easy, and as uncomplicated as possible. Fortunately, new point of sale systems and retail equipment offer advanced technology that speeds up these processes. The result is a significantly shorter wait time and an easier experience overall—for both employees and customers. With a well-handled return process, customers are more likely to trust and use your brand in the future.

Related Content: Enhanced Efficiency and Customer Experience with Next-Gen POS Systems

3. See Returns as an Opportunity to Make Things Right

Instead of immediately seeing a return as a problem with your company or product, try to shift your mindset and start seeing returns as an opportunity to make things right.

Instead of thinking of returns as lost revenue, consider them opportunities to build customer relationships. Of course, it’s essential to be kind to customers when they make returns. Beyond that, there’s also an opportunity to help customers find products that better meet their needs. Use a return as a learning experience to see why the product didn’t work in the first place, so you can remedy the situation in the future.

Coach employees to politely inquire into the reason for the return, offer alternative product recommendations, and provide assistance to find something different. Even if it doesn’t result in a sale, the customer will leave feeling cared for—and like they can continue to trust you in the future.

Use POS Technology to Your Advantage

Upgrading your point of sale technology can be a huge step in the right direction. While this seems like a minuscule step in the process with the grand scheme of things, it’s a surprisingly major part of customer satisfaction and service.

Having newer, more robust POS equipment is crucial for:

• Processing returns quickly
• Tracking and identifying products and returns
• Marking product defects and reasons for returns
• Detecting return fraud
• Improving customer satisfaction

With updated equipment, there are fewer hiccups with the return process, inventory is better tracked between locations, and the overall customer experience can improve as a result.

Related Content: Why Modernizing the Shopping Experience Matters

Upgrade Your Retail Technology to Better Handle Returns

With these key strategies and updated retail equipment, you can build customer loyalty through returns. A smooth return process requires reliable, high-quality technology to increase accuracy and efficiency. Point of sale systems are a useful tool in tracking return fraud, as well as identifying trends and opportunities to improve sales. Overall, making the switch to newer, faster equipment can help improve your customer experience in every category.

Here at Retail Tech, we use comprehensive solutions that help you find the POS system that’s right for your store. Retail Tech carries a wide variety of new and refurbished POS equipment. We offer installation and staging, POS printer repairs, and more. If you need help choosing a POS system, contact our POS systems specialists for help finding the perfect point of sale solution for your small business.

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