Surprise! Customers Who Return Your Products Are Likely to Return to Your Brand
Peak season has begun, and with it comes good and bad. Find out how you can leverage the bad (which might not actually be that bad!) to make the most of this shopping season
Retailers love peak season!
Every November and December, it’s known far and wide that the retail industry experiences a spike in sales. So, get your creative sets ready to rock your customers in the coming months.
Peak season also brings with it a wave of new and existing customers. So, spice up your emails and ads with relevant content and promotions and ensure your website delivers customers an optimum experience!
General Customer Product Return Trends
Between 12% to 25% of purchasing customers have returned a product during their customer lifetime. The amount varies depending on the industry, the brand’s return policies, the price range, and more.
Peak Season Customer Product Return Trends
Optimove research analysts looked at various brand behavior in previous peak seasons. Findings show that while November and December are jam-packed with sales, the percentage of returns also increases.
The trend will likely begin right after your first big sale through to January. During this time, you may see as much as 3 x more returns than the monthly average.
Optimove data shows that in January 2022, for example, on average, the number of purchases was 2.2 x higher, while the number of returns was 2.5 x higher than in a regular month.
Turn Your Product Returns to a KPI
During the last peak season, the Total Order Amount of customers who made a return was 27% higher on average compared to customers who did not return a product. And the future value of customers who made at least one return is 94% higher on average.
Furthermore, customers who return items have a much higher retention rate than those who don’t, as shown in the graph below:
New VS Existing Customer Product Return Trends
When looking at new versus existing customers during peak season, the same trend occurs, and the latter have a higher retention rate.
The retention rate of new customers who have made a return is almost the same as retention rates of existing customers who have not made a return – taking them one step closer to being an existing customer in your database.
This segment of existing customers who made a return is the most loyal and has the highest retention rates, as shown in the graph below:
Bring It Back
Though the peak season brings many new customers to your business, they tend to have lower retention rates.
Marketers should expect a spike in product returns in the upcoming months. But that’s not necessarily a bad thing, and there’s a lot of product return management you can do for your customers to improve their overall experience with your brand.
A simple and convenient return policy that’s quick and easy may be all customers need to continue shopping with your brand long after peak season.
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