Smooth Returns Key to Customer Loyalty: Survey
A clearly articulated return policy can make the difference between whether a new customer uses a direct response channel, or an existing customer returns to one, according to a new survey from Newgistics, Inc.
Ninety percent of consumers surveyed indicated that a convenient return policy and process is important to their purchase decision with a given marketer, and 95% said they would likely shop with a direct marketing retailer again if the return process is convenient. Eighty one percent indicated that a return policy’s presence influences their decision to shop through a direct channel or not.
This mirrors research from earlier polls. According to Jonathan Dampier, vice president of marketing for Austin, TX-based Newgistics, an earlier study conducted by Channel Intelligence and Frank Lynn & Associates in May revealed that 78% of online customers ranked a marketer’s return policy as extremely or very important – a figure higher than ease of buying (76%), retailer reputation, (73%) or shipping rates and methods (65%), and second only to product price (89%).
Returns are no small matter. For some industries, such as apparel, consumers ship back between 20% to 30% of their purchases – and return rates for electronics can top out between 30% and 40%, according to Dampier.
So what can marketers do to make returns easier? According to the Newgistics survey, 76% want a pre-paid, pre-addressed label, which they can use at any postal service location, attached to the order.
The Newgistics poll was conducted by Harris Interactive between Nov. 28-30. The pollster contacted 1,020 adult Americans making up a representative sample of American consumers.
