Poor Returns Service May Affect Future Shopping: Study

What’s worse than a consumer who has something to return? Hurdles in the return process. And according to a new study, those hurdles are getting higher – meaning consumers are being turned off to retailers.

Twenty percent of respondents to an Opinion Research Corp. survey said their holiday gift returns experience exceeded expectations in an early 2008 study. But this year that figure dropped to 9%. The percentage of people returning gifts this year increased slightly from 2008, with 22% returning a gift in the first shopping week after Christmas, compared with 17% in 2008.

Opinion Research Corp. speculates that the increase in negative perception is due to excessive time spent waiting in line and the lack of available staff on hand to assist customers. Both aspects underscore the consequences of having an insufficient number of associates on the floor.

“Our findings strongly suggest that the more positive the returns experience, the more likely customers will be to both shop again and recommend the retailer, which impacts future revenue,” said Linda G. Shea, senior VP and global managing director of the Customer Strategies Practice at Opinion Research Corp., in a statement

Among customers whose expectations were exceeded, 83% are extremely likely to shop that store again, and 50% are extremely likely to recommend that retailer to family and friends.

However, future intentions are cut by one-half or more when customer expectations are not met, challenging revenue growth and customer advocacy.

While consumers have expressed a preference for online shopping, more than 93% used brick-and-mortar environments to make their returns. “As such, customers will expect a seamless returns experience regardless of whether a purchase was made through one channel and returned through another,” Shea said.