Self-service returns are more common than you might think. Not only do they help you save time and money, but they can also help reduce churn. Learn what makes these returns a good choice for your business. This article will teach you how to improve your self-service return process. Also, discover why self-service returns are easier for your customers. And, as a bonus, you'll learn why they're more likely to happen if you've implemented these policies in your store.
Self-service returns are more frequent than you might think
Unless you're living under a rock, you've probably considered self-service returns before. The fact is, these purchases are far more common than you might think. According to the Self Service Institute, 88% of all consumers occasionally return an item. However, according to industry research, this number is expected to rise by seventy percent by 2020. Even more surprising is that 12% of shoppers never return a product. The largest share of these consumers, Millennials and Gen Zs, say they've never produced anything.
The self-service return concept has several positive benefits:
- It can save merchants time and money. The retail industry could save $125 billion each year by focusing on reducing returns. Not only does it save time, but it also impacts the customer, the environment, and the brand.
- It fosters customer engagement, even when they don't buy anything.
- Providing a convenient return process can increase your customers' chances of returning to you.
They are easier for customers
Customers are often more likely to return items when they can process them themselves instead of going through customer service hassle. Self Service Returns eliminate the need for employees to process the returns and reduce unnecessary waste. They also allow customers to return items when they have the time, without needing to wait for assistance from a salesperson.
Be clear about the process. If the customer is unsure about how to return an item, a FAQ page can help. Also, you can host a return form on your website, making it easier for customers to complete the process. Finally, a well-written returns policy is a great selling point for your customers. According to a survey by Loop, 49% of customers look at the merchant's returns policy before purchasing from them.
They are cheaper
Why is Self Service Returns cheaper? The answer to this question depends on your industry and the type of product you sell. According to a recent study, online stores that offer free returns experience a 357% increase in spending, which translates into up to $457 in sales! Depending on the type of product you sell, you can create different rules for different segments, markets, and product groups. Social commerce, for example, is a trend that sees companies selling products on popular social media platforms. Customers use social media platforms to find products, read more details and eventually check out without leaving the platform.
A recent study by ShipStation found that 72% of shoppers said that the process of returning a product influenced their decision to purchase. They want quick, convenient, and easy returns. In addition, 95% of consumers said they would not shop with a brand again if they had a bad return experience. Offering self-service returns improves customer retention and understanding.
They reduce customer churn
How can Self Service Returns reduce customer churner? By creating a better customer experience, businesses can provide the service they need to retain customers and prevent churn. One example is that a customer who had issues with a product was given a handwritten thank you note and a testimonial. This simple gesture can make a big difference. As a result, customers will likely recommend your business to their friends and family, and your new customers may become loyal.
In the digital age, the customer experience can be a significant factor in reducing churn. In a survey by Salesforce, 92% of customers said they would prefer a positive customer service experience over the worst. Companies can establish a personal connection between the product and the customer by asking customers for their feedback. This helps the product become top of mind and prevents competitors from poaching customers. Another example of customer service is co-browsing, where the agent and customer can browse the product together.
You can automate them
Introducing Self-Service Returns is the perfect solution for those customers who would like to process their returns and avoid long lines. Customers can access self-service return portals on a merchant's website or through a link in their confirmation email. Once they've selected what they'd like to return, self-service returns grant them an RMA number and generate a return shipping label. These processes save the business time, money, and resources.
Companies are empowering customers and extending customer relationships by automating the returns process. It's estimated that 72% of shoppers are influenced by the return policy of a retailer, which is one of the reasons they shop with them in the first place. Offering customers the ability to return the items themselves helps to improve the customer experience, ultimately leading to higher customer retention. Self Service Returns can also increase a brand's reputation and trust.