One third of shoppers who purchased items online, from a catalog or a TV shopping network within the past year have returned one or more items, and of that number nearly half of women ages 18-44-–47%--said they found the returns process frustrating, according to a new survey. The poll, conducted by the independent research firm Benchmark Co. and commissioned by retail returns processor Newgistics Inc., suggests that easier returns encourage more repurchases, according to C.J. "Gabe" Gabriel Jr., Newgistics CEO. "The correlation between customer-friendly returns and customer loyalty is profound," says Gabriel.
Newgistics’ SmartLabel program, used as a returns solution by merchants J. Crew and the Spiegel Group’s Eddie Bauer, Spiegel Catalog and Newport News, offers a prepaid pre-addressed shipping label on the customer’s original invoice with the merchandise. Customers returning merchandise apply the label to the package and drop it anywhere in the U.S. Postal System. The shipping charge is deducted from the refund, so no postage is required upfront. The label’s barcode ties the returned package to its original invoice and speeds up the customer exchange or credit process.
In the survey, 75% of those likely to use SmartLabel were also likely to buy more items from merchants offering easier returns methods. "If you take care of the consumer, especially when things aren’t right, they’ll be back to buy more," says Gabriel. "With the busiest shopping and product returns season ahead, retailers should look at enhancing their returns process and customer service to keep customers happy."
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