You stand a good chance of winning over more customers if you have a friendly product return policy for your business. It sends a powerful message to your customers that you care about their welfare.
As a retailer, you probably loathe the notion of a customer returning a product after making a purchase. While that’s a setback in your sales quota, it’s just part of the business process. Studies show that return rates in online stores can be as high as 30 percent, while rates dip to 8 percent in brick-and-mortar stores. With the help of an RMA app, you can keep the return rates in your store lower than these levels and keep your customers happy. Making it easy for your customers to ship back products is quite beneficial.
A Chance to Correct Mistakes
Not every customer who ships an item back does it out of malice. As such, you shouldn’t lump all customers into one problematic group. Sometimes, especially when selling over the Internet, mix-ups happen. You might ship an item in the wrong color, size, or any other reason. A seamless product return process lets you right this wrong quickly.
Offering free returns on such products will help the customer to overlook the small mishap as they can send it back to you. In return, you have an opportunity to send them the correct item. That means that you get to keep the sale and retain the customer as well.
On the flip side, if you make it impossible for people to return items to your business, they will demand a refund. You lose the sale and create a growing list of unhappy customers. A dwindling customer base is equal to declining sales for your business.
Reduce Customer Churn
Numerous studies indicate that you need to get to critical factors right to run a successful business. You need to continually recruit new customers into your brand and retain a significant number of these customers. Having a large following of loyal customers is a great way to grow your sales as these people already trust your brand and products.
A generous return policy goes a long way in increasing customer loyalty as they are sure you won’t give them hell should they need to send back a product. Building this trust is especially important in the online scene where the shopper isn’t in a position to try the product before they make a purchase. It’s a proven way to build trust and loyalty.
That means you won’t have trouble retaining most of your customers. Reducing customer churn lets you grow your market share without spending a fortune on advertising and marketing. You also get to beat the competition without being too aggressive with your marketing.
It would be a grave mistake to view product returns as an annoyance to your business. As such, you need to make it easy for your customers to return any purchases to your business. Doing so, you will be sending a powerful message that you have confidence in your products and that you care for your customers. Your customers will appreciate this gesture, and it will prompt them to keep coming back to your store.