Bands are increasingly focused on profitability. While customer acquisition often dominates marketing discussions, savvy businesses understand that sustainable growth hinges on customer retention.
Per our report, José Carlos Cortizo, CMO & Partner at Product Hackers, highlights that "improving retention rates by just 5% can increase profitability by up to 75%," underscoring the significant financial impact of customer loyalty on a brand's bottom line
The post-sale experience has emerged as the cornerstone of customer loyalty, particularly in the fashion industry, where return rates typically hover between 20-30%. According to Reveni’s 2024 State of Returns report, 90.62% of customers would not shop at an e-commerce store again after a bad return or exchange experience.
The post-sale experience
For too long, brands have focused on acquisition over retention, neglecting the post-sale journey. As Cortizo notes,
"The post-sale is a key moment where buyer's remorse bias occurs. Any issue during this process can change the customer's opinion, resulting in a returned sale and a lost customer."
The post-sale experience—covering order confirmation, shipping updates, delivery, product quality, returns, and customer support—offers multiple opportunities to build or break trust. This is especially vital in the fashion industry, where online shoppers rely solely on product descriptions and images.
Hassle-free returns and exchanges
Complicated return processes are a major reason customers abandon brands. Our study found that 89% of customers would not buy again from an e-commerce store if the return policy is unclear or difficult to find. Additionally, brands offering instant exchanges see a 38% increase in retained sales compared to those with standard return processes.
Key strategies for optimizing the returns experience:
1. Make your return policy clear and accessible
Our report shows that 79.62% of respondents read a store's return policy before purchasing, yet only 57.37% find this information easy to locate. Transparency is crucial. A well-structured return policy should include:
- Return costs
- Process and steps for returning an item
- Expected refund timelines
Ricardo Sánchez, Customer Services Manager at Silbon, emphasizes:
"For us, it is fundamental to offer instant refunds. We know how important it is for our customers because it not only satisfies their needs, but it is also a guarantee for them. Giving them their money back in seconds, before they have even sent the products they want to return, is a way of thanking them for the trust they have in us."
2. Offer flexible return options
In 2024, 85% of customers prefer returning products online, up from 75% in 2023. The most popular return method (53.35%) involves returning via the store’s website or app and dropping the item at a designated location. Additionally, 88.47% of customers prefer receiving cash refunds over store credit, making it crucial for brands to offer multiple refund options.
3. Implement instant exchanges and fast refunds
Speed matters. We found that 91.46% of respondents said receiving their money instantly exceeded their expectations. When the return reason is a sizing issue, 82.04% of customers would rather exchange than return the product. Instant exchanges keep customers engaged and reduce lost sales.
Aida Mas Candela, Marketing & E-commerce Manager at Masqmai, confirms:
"Instantaneous changes have always been welcomed as a great advantage by the client. The agility of the process and the ease with which it can be carried out are highly valued."
4. Automate and integrate your return process
Many brands hesitate to offer exchanges due to inventory synchronization challenges. However, modern return management solutions seamlessly integrate with inventory systems, streamlining operations. Efficient returns management also reduces the workload on customer service teams, which often handle "Where is my refund?" inquiries.
Loyalty programs and post-sale benefits
A strong loyalty program should extend into the post-sale experience. Our research found that 94.10% of respondents favor free returns and exchanges for repeat customers. Implementing tiered benefits—such as free return shipping, priority exchanges, or extended return windows—acknowledges loyal customers and incentivizes future purchases.
When implementing post-sale incentives, consider what matters most to customers:
- Instant refunds
- Easy return/exchange processes
- Home pick-up options
- Loyalty-related incentives like points and discounts
Post-purchase communication and personalization
The post-sale experience doesn’t end with a successful return or exchange. Proactive, personalized communication plays a critical role in turning one-time buyers into loyal customers. Reveni helps brands achieve this with automated updates, satisfaction surveys, and AI-powered recommendations.
Real-time insights allow brands to identify customer concerns, gather valuable feedback, and resolve issues swiftly. After a return, Reveni’s platform suggests relevant products based on purchase history, converting refunds into new sales opportunities. Maintaining this level of personalized engagement builds trust, enhances loyalty, and increases customer lifetime value.
Using data and technology to transform the return experience
Leading brands use return data to drive business improvements by identifying product description inaccuracies, sizing issues, or quality control gaps. Platforms like Reveni help brands pinpoint high-return products and make necessary adjustments. Predicting return patterns also allows businesses to optimize inventory, reducing excess stock and minimizing waste.
Smart return policies based on purchase history can further enhance the experience, offering flexible options for loyal customers while deterring fraudulent activity. Instant exchanges increase exchange rates by 38%, while instant refunds lead to a 35% higher repurchase rate and a 20% boost in average order value.
Building loyalty through returns
With rising acquisition costs, retaining customers is essential. The post-sale experience — particularly returns and exchanges — plays a crucial role in building loyalty. A seamless, flexible return process doesn’t just resolve issues; it strengthens trust and encourages repeat purchases.