Why are refunds the key solution to retain your customers?

Refunds are a reality for online businesses. It is a concept that, from an eCommerce point of view, is never attractive. However, depending on how you respond to your customers’ requests, this may turn out to be the conditioning factor which determines the growth of your company. Currently, the general management of returns is so poor that, when a customer is faced with an enriching experience such as offering refunds in a simple and fast way, they are surprised to the point of seeing the whole process as a pleasant experience. The product may not be the right one, however, the client will value the company very positively and will maintain a good image of it.Although it may seem counterproductive, returns and refunds can actually be beneficial for your business. Not having returns does not necessarily mean a direct positive relationship with product satisfaction by the customer. A large number of customers have kept a product they didn’t like. Even though this may seem positive in order to avoid returns management, it is, in fact, bad for your business. Your clients are keeping a product that, for some reason, does not convince them. The reason for this is due to the difficulty that they have experienced when trying to manage the return.Consequently, the chances that they’ll make a purchase again are drastically reduced.Diving into the refunds themselves, an e-commerce company can achieve up to 29% more sales by offering instant refunds to their customers. So, even though it may seem like you're losing money, this will be offset by new purchases in the long run.Here’s the thing: your client is not satisfied with the product obtained. However, the return/refund process has provided a wow experience which has managed to engage and retain him, leaving with a good taste in his mouth about your eCommerce and without finding any reason for not being able to buy again. According to a study done by McKinsey, the respondents mentioned that 70% of their returns were caused by poor fit or style. Meaning that the product is to their liking, however, the sizing is not correct. Let's reflect:

• They like the product, however, the size/color is not what they wanted.
• They want to make a return but the process is too long/complicated.
• They keep the product, but never get to wear it; In addition, they are left with a negative image of your brand.

Now let's put it another way:

• They like the product, however, the size/color is not what they wanted.
• They want to make a return and are given the option of receiving a refund (if instant, better).
• The process is clear and simple.
• Customers have had a wow experience since the money has been refunded and they have been able to return the product without any complications.
• Customers decide to place an order again due to their satisfaction with the experience received
• Engagement and retention is now created.

It’s easy to become defensive, annoyed, or hurt when someone asks for their money back. But keep in mind that none of these feelings will help you resolve the situation and satisfy the customer. Thanks to REVER, shoppers can request the return in only 2 clicks, choose the compensation method and return method, receive the money in 15 seconds, and then return the product through REVER’s logistics partners. A frictionless returns experience impacts both conversion and retention for retailers.[hubspot type="form" portal="25799159" id="cd1c9ec1-2b99-42c3-9c0b-306be6b94bfb"]