As more brands focus on the returns experience in the battle for customer loyalty, a purely function reverse logistics process could put you at a competitive disadvantage. So, how can your brand optimise returns to facilitate deeper customer engagement? Read on to discover how a third-party logistics (3PL) partner can help your brand turn what has traditionally been seen as a cost centre into a valuable customer retention channel.
Optimising customer lifetime value
Many brands simply view a return as a lost sale. But this approach ignores the significant potential that the process has to drive customer loyalty. And with the cost of acquiring a new customer significantly higher than the cost of retaining an existing one, changing your mindset on returns can have huge benefits. Instead of losing business, it’s time to view each return as a new opportunity to engage with the customer. And there are many ways brands can do this.
The alternatives to traditional returns
Rather than simply offering customers an immediate refund, brands can offer them a number of alternatives. One popular option is to implement an exchange function in your online returns portal. This adds an extra step to the returns process, prompting customers to exchange their returned purchase for another product on your website. This helps to increase the time that the customer spends within your brand ecosystem, while demonstrating your commitment to providing a seamless customer experience.
Done right, this cross-selling strategy can encourage the customer to keep spending with your brand rather than looking elsewhere. In fact, research suggests that implementing such strategies can help brands retain over 28% of sales value.1 Using data analytics and advanced algorithms can also be a great help in recommending more relevant products, but don’t neglect the power of customer feedback! Adding a comments section to your returns portal can give you valuable insight into what customers would like to see improved – whether it’s the accuracy of sizing information or the range of styles available.
Another effective option is to offer store credit or loyalty points as an alternative to a traditional refund. This strategy again incentivises customers to remain engaged with your brand – helping to mitigate the financial impact of returns by extending the customer’s relationship with the brand and increasing the likelihood of future purchases.
In addition, if your brand is considering charging for returns, offering store credit can help you maintain a positive customer experience. For example, you can continue to offer free returns to customers who accept store credit instead of a cash refund. This allows you to retain most of the value of the sale while still incentivising customers with free returns. By offering this wider range of options to customers returning items, brands can transform the returns process from a potential loss of business to an opportunity to drive long-term brand loyalty.
Unlocking an end-to-end returns experience
As the returns experience becomes increasingly critical to brand reputation, the reverse logistics process presents a valuable opportunity to build meaningful, lasting relationships with your customers. And the more relevant and engaging the options available during the returns process, the greater the opportunity. So, how can you ensure that your returns process contributes to the overall customer journey? Choosing the right logistics partner is crucial.
Working closely with your 3PL partner to design an end-to-end returns process is a great way to ensure that your returns process meets your customers’ needs. This collaborative process should cover both the operational elements – allowing you to prioritise the speed of returns through carrier partnerships and intelligent warehouse management – and the overall user experience. For example, Bleckmann can help you develop a branded returns portal that integrates with your e-commerce site, offering customers a wide range of returns options – and helping you to ensure a consistently excellent and engaging customer experience.
Contact a Bleckmann expert today for a free consultation!
