Winning customer trust and building customer loyalty requires an ‘out of the ordinary’ approach. That’s precisely what Hong Kong’s sports goods retailer Decathlon is trying to achieve with its lifetime returns.
Many retailers cap returns at one year, but Decathlon decided to take a bold step and offer limitless returns as a “selling point.”
Speaking exclusively to Inside Retailer Decathlon’s Kent Lam, the strategy behind this decision was to build customer loyalty. “…to give customers confidence in our products.”
From a business perspective, there have always been concerns that customers could abuse this perk; however, this has not been the case with this retailer, which is only offering it to loyalty program subscribers.
Even if a product was bought a few years ago, it can still be returned.
Creating return policies
Shopify believes it’s important for each online retailer to have a clear return policy. It warns that without one, “requests can eat up a lot of time, energy, and money.”
During peak seasons, it’s essential to ensure customers know the return policy, as return logistics tend to spike when unwanted Christmas gifts are returned.
Finding the best return policy
A business, big or small, has to determine how strict it wants to be with returns.
Apple has a 14-day return policy, while others, like Ikea, have a generous one-year policy. The time window and valid reasons provided for returning items are important.
Shopify believes a fair return and exchange policy “builds trust” between the customer and the business. “In fact, offering a clear and consistent way for customers to return a purchased item can increase conversion and repeat rates.”
Minimizing returns
By improving delivery efficiency and accuracy, a business can potentially reduce returns. Receiving products timely and accurately can eliminate missed or late deliveries.
Many companies use route optimization to mitigate unforeseen circumstances, like traffic and weather, that can delay a delivery. With route optimization software, customers are given a live tracking link to where the parcel is heading.
Real-time tracking helps reduce the number of customer inquiries about the delivery status. This can often lead to returns due to customer frustration.
NOW READ: Understanding Product Returns to Minimize Impact on Delivery Services
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About the author
Mia is a multi-award-winning journalist. She has more than 14 years of experience in mainstream media. She's covered many historic moments that happened in Africa and internationally. She has a strong focus on human interest stories, to bring her readers and viewers closer to the topics at hand.
