In retail payments, a lot of attention goes toward the buying journey: how consumers discover, research, and pay for goods and services. Another part of that journey represents a considerable chunk of a business’s resources, and therefore deserves equal attention: refunds.
Consumers return $642.6 billion in goods each year – and businesses feel the weight in the areas of administration, customer service, and marketing. So we decided to take a look at what we learned from our most recent Consumer Insights Survey and see how it lines up with our expertise in refunds. Here are the three big takeaways that could transform the way refunds happen.
A refund is an opportunity to add value
In our recent survey of more than 500 US consumers, 65 percent of respondents said they appreciate receiving notifications about discounts and coupons on their mobile device. This aligns with what we know about refunds. For instance, a simple discount offered along with a refund can yield a 45 percent win-back rate. Coupling refunds with opportunities to re-engage with your brand, as well as offering 24/7 support, may also reflect well on your customer service, which 97 percent of consumers say is very important or somewhat important in their choice of and loyalty to a brand.
Digital refunds create opportunities across your business
A refund system that puts customers at the center will address the three things they want most: speed, choice, and ease. Survey respondents said the big motivators for shopping – online or in-store – were product selection, free and fast shipping, easy checkout, and speed of transaction. When applied to refunds, providing the same level of convenience has the added benefits of reduced administrative burden, accelerated and more flexible payments, and more.
Use refunds to win back customers and build loyalty
It will come as no surprise that our survey respondents use mobile devices to shop – frequently. And they’re even more likely to shop online when it comes with perks such as free returns. Delivering refunds in a branded UX, inside your digital ecosystem, is a great strategy for inviting customers back: Research indicates that consumers are more profitable during their second lifetime than during their first one - $1,252 compared with $1,410. The takeaway: As a majority of consumers use online and mobile payment options such as PayPal, refunds will have to live there, too.
Learn more about our latest Consumer Insights Survey here. You can also dive deeper into the topic by downloading our playbook. Ready to learn more about how to maximize the opportunities in digital refunds? Contact us.
