Consumer Behavior

Free returns a loyalty driver for retailers

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February 2, 2024

Retailers offering free return programs are seeing solid customer loyalty as 72% of shoppers stay loyal to brands offering the perk.

That's a prime finding of research from SAP Emarsys Customer Engagement which polled over 2,000 U.S. shoppers.

The research revealed 88% of U.S. consumers have stopped shopping with a retailer due to a paid returns policy, and 54% actively avoid retailers that charge for item return, according to a press release on the findings.

"With brands losing money from returns, it is understandable that retailers have added returns fees, but it is imperative retailers don't damage their customer experience in the process," Sara Richter, CMO at SAP Emarsys, said in the release. "We need to fight the root cause of the problem, not just manage the symptoms. For me, that's where personalization comes in."