Returns and customer satisfaction

Have you ever bought something online and regretted it later? Or have you received a damaged or defective product and have had to return it? I sure do, and you know how annoying that can be. But you also know how good it feels when the store makes the return process easy for you and offers you a quick and appropriate solution.

That is what makes you want to buy from that store again and recommend it to your friends.

Well, that is what we are going to see in this article: how returns and customer satisfaction are closely related and how you can improve your returns management to have happier and more loyal customers.

Also check: E-mail marketing: 6 tips to optimize your results

The close relationship between returns and customer satisfaction

Returns is the process of receiving, evaluating, and processing products that customers return for various reasons, such as damage, defect, dissatisfaction, or change of mind.

Customer satisfaction is the degree of happiness and fulfillment a customer perceives with a company's products and services, as well as the overall experience it provides.

What does one thing has to do with the other? Well, a lot, because good returns management is part of that experience and can increase or decrease the level of customer satisfaction. Let's see why.

Why is returns management important for customer satisfaction?

Having a good return management is essential for any business, since it influences the loyalty, reputation and competitive advantage of the brand. Let's see some benefits of good returns management:

• Increase customer trust, loyalty and recommendation . When customers see that they can return a product without problems and that they receive a satisfactory solution, they feel more secure and happy with the brand. This makes them want to repeat the purchase and tell their acquaintances.
• Improves the image and reputation of the brand. Good return management also reflects good customer service and a commitment to quality. This improves the perception that customers have of the brand and generates a good reputation in the market.
• Optimize resources and reduce costs . Good returns management also implies having an efficient, automated and transparent process that avoids errors, delays and conflicts. This optimizes human and material resources and reduces the costs associated with returns.

On the contrary, poor returns management can cause dissatisfaction, frustration and loss of customers, as well as damage the image and reputation of the brand.

Some damages of poor returns management are:

• Decreases customer trust, loyalty and recommendation . When customers have difficulty returning a product or do not receive a suitable solution, they feel cheated and dissatisfied with the brand. This makes them not want to buy again and leave negative comments.
• It worsens the image and reputation of the brand . Poor returns management also reflects poor customer service and a lack of commitment to quality. This worsens the perception that customers have of the brand and generates a bad reputation in the market.
• It wastes resources and increases costs . Poor returns management also means having an inefficient, manual, and opaque process that leads to errors, delays, and conflicts. This wastes human and material resources and increases the costs associated with returns.

As you can see, there is a big difference between doing things well or badly in this regard. For this reason, we are going to give you some tips and tools to optimize your returns process and offer quality customer service.

Also check: How to improve the conversion rate (CRO)

How to optimize the returns process?

Optimizing the returns process is not as difficult as it seems. Just follow these tips and use these tools:

Collect data automatically through a digital infrastructure.

The first thing you have to do is find out why customers return your products. To do this, you can use a digital platform that allows you to collect and analyze returns data automatically.

So you can identify the most frequent causes, the most problematic products and customer preferences. This will help you improve your offer and prevent future returns.

Remember that if your company needs help to start this process, you can always request help from a digital marketing consultant .

Know your customers and their needs

The second thing you have to do is know your customers and their needs. To do this, you can use a customer relationship management (CRM) tool that allows you to store and manage your customers' information, such as their personal data, their purchase histories and their opinions.

This way you will be able to segment them, personalize your communication and offer them solutions adapted to their expectations.

Develop a returns strategy with preventative measures

The third thing you have to do is develop a return strategy with preventive measures. To do this, you can use a project management tool that allows you to plan, execute and control the activities related to returns.

So you can define your goals, assign responsibilities, set deadlines and monitor performance.

Some preventative measures you can take include: improving the quality of your products, providing clear and accurate descriptions and images, providing flexible and secure shipping and delivery options, and providing fast and efficient customer service.

Ensuring automation and transparency: internally and externally

The fourth thing you have to do is ensure automation and transparency: internally and externally.

To do this, you can use a returns management tool that allows you to automate and simplify the returns process for both you and your customers.

This way you can reduce human errors, streamline procedures, save time and money, and improve the customer experience.

With these tips and tools you can optimize your returns process and offer quality customer service. But don't stop there, keep looking for ways to improve your returns management and surprise your customers.

Written by Moises Hamui Abadi : I am an entrepreneur, founding partner of Viceversa and SoyMacho. After being in charge of several digital businesses and advising several other businesses; I decided to form MHA Consulting, a digital marketing consultancy dedicated to growing and empowering digital businesses in more than 7 countries and generating more than 1,500 million pesos.

If you want more information on this topic or you are looking for other options to profile your ideal client, at MHA you will find the solution you need. Schedule a call.