Brands risk losing customers after a bad returns experience

New research released by Klarna has revealed that over eight in ten (84%) online shoppers would turn their back on a retailer after a bad returns experience.

It’s no secret that in an attempt to avoid the Coronavirus people flocked online to do their shopping. Klarna’s data reveals that 39% of consumers have increased their online shopping habits since the pandemic which brings with it, increased reliance on returns and depending on how brands handle it, an increased risk of a bad returns experience.

With many big brands continuously expanding on their customer experience offerings and providing efficient and speedy services, the expectations of consumers begin to change. It’s clear that consumers expect brands to go above and beyond when they have a problem and when demand is high for the smoothest experience possible and some brands offering it without hesitation they begin to expect that across the board. Expectations can be the reason for patience depleting fast and frustrations rising quickly.

Consumers expect easy returns:

Consumers’ patience is waning when it comes to clunky or costly returns processes. 83% of online shoppers admit to getting frustrated by retailers which have an inefficient returns process, while 82% agree that retailers, in general, need to improve their returns capabilities.

Some of Brits’ biggest frustrations with returns stem from the inconvenience of slow, out of date or inflexible returns processes. Over a third (36%) cited slow refund processes as the most frustrating element of returning items bought online, highlighting the importance of flexible payment options. Other frustrations include having to print off return forms when they don’t have a printer (25%), the inconvenience of queuing to return at the post office (23%) and not being able to return items in store that they’ve bought online (21%). Some consumers will even keep an item they want to return because it is too much effort to return it, which also means they may avoid buying again from brands that don’t meet their needs.

Boost customer loyalty with easy returns

For those brands that get returns right, this can serve as a competitive advantage, helping to attract new customers, and boost customer loyalty. 84% of online shoppers agree they’re more likely to buy from and 86% are more likely to come back to online merchants who offer free returns. However, even a little added inconvenience can come at a cost: over two thirds (70%) of online shoppers state that if a preferred retailer stopped offering free returns, they might not shop with them.

“Nobody wants to be out of pocket as a result of items they don’t even choose to keep, so it’s no surprise that slow refund processes are the top frustration factor when it comes to returns. As reliance on returns grows, retailers need to ensure they’re offering a smooth, seamless process that meets the needs of today’s customers – considering everything from effortless logistics to flexible payment options. As our research suggests, those that fail to adapt will lose customers in the long term.”
– Alex Marsh, Head of Klarna UK

Source: https://tamebay.com/2021/05/brands-risk-losing-customers-after-a-bad-returns-experience.html