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Returns are key for retaining UK customers, according to new research

More than 83 percent of consumers would stay loyal to a retailer with an easier returns delivery service, but majority expect a free service and more convenience and choice.

April 7, 2015

London-based MetaPack Group, a provider of e-commerce technology for delivery services, has highlighted new research into how a retailer's returns policy can be a positive tool for customer retention and brand loyalty.

MetaPack's research was undertaken to understand what people really think about the returns processes currently on offer from retailers across Europe. The findings reveal that 83 percent of consumers would stay loyal if a retailer could provide a reliable and effective returns service. With retention being a key factor in the success of a retailer, it is clear that an efficient returns policy could provide a compelling competitive advantage in the crowded market and act as a lever to drive additional sales, MetaPack said.

According to the company, the research shows that consumers are increasingly expecting the same price, flexibility and convenience when they return a product as when it is delivered. This view was echoed across a wide range of ages and shoppers, regardless if the consumer was a light, medium or heavy user of online shopping. It also found that more than a quarter of consumers find it difficult or frustrating to return items they have bought online — of these, 58 percent were unhappy because the service was not free; 51 percent complained that it was  too complicated; and 46 percent found that it was not convenient to drop off the parcel. Consumers, educated well about price, ease of use and convenience for the drop-off of their order, are now expecting exactly the same service for the return - and they'll take their business elsewhere if they don't get it, MetaPack said.

"Having lots of options is no longer a luxury — it has become a necessity," Kees de Vos, chief commercial officer at MetaPack, said in a statement. "Returns are well known to be a tricky area for online retailers. But returns should be seen as an opportunity to build brand loyalty and retention through offering convenience and choice and a positive experience to support future spending. It's important that retailers invest in reverse logistics capabilities to support multichannel so that increased volumes of returns can be managed independently without disrupting the rest of the system. One option may be to look at services like Uber that could offer a flexible pickup service as well as how expanding networks of click-and-collect sites can be utilized."