Return Policies Set the Tone for Online Retail Experiences
The companies that are holding onto their customers are the ones that are centering the consumer’s experience rather than only prioritizing cost-cutting.
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Revolve, a mid-to-high end luxury retail brand, is proving their prioritization of their customers through policies that show empathy and understanding. Despite a return rate of nearly 60%, the California retail company refuses to back down on free returns if a product doesn't work out. With a 30-day online return window, prepaid labels are provided by Revolve. Not to mention shipping speed– most products arrive in two days, for free. While cutting unnecessary costs is an important consideration, the brands that are pulling ahead are thinking about the customer rather than the costs incurred to keep them. Companies like Revolve are paying for consumers' loyalty through policies that might involve higher costs, but these terms show the customer that they come first. Time and time again, customers are coming back to the businesses that are proving true consumer prioritization.
Revolve's customer centricity isn't limited to their return policy, however. Their commitment to fast and free shipping and returns necessitates that they implement technology to cut down on unnecessary shipping costs. The company is using technology and customer feedback to identify why items are being returned and adjust the experience accordingly. AI is also being used to better predict sizing, as incorrect fit is a top reason customers send an item back. Revolve partnered with Zelig, an AI-powered fashion platform, to provide virtual styling and allow customers to see how clothing looks on different body types. Financial conscientiousness can coexist with empathetic and customer-centric CX.
The refusal to change shipping policy stands out to Revolve's customers because it comes at a time when shipping costs are swiftly rising. Retailers have adjusted to this extra expense differently, some increasing the minimum for free shipping or discontinuing it altogether. Amazon, a brand that has changed how consumers view online shopping (and shipping) entirely, has adjusted so that members on an Amazon Household plan must live at the same primary address. Amazon Prime members can also opt for "no-rush" shipping, which is a policy Gap adapted as well. Even TikTok Shop, a growing retail platform, has changed its rules, ending seller-controlled shipping. Vendors must now purchase postage labels through TikTok Shipping, risking being labeled as non-compliant by TikTok if using Shopify or a direct USPS account.
The fact that Revolve has doubled down on free shipping and returns stands out to consumers, however, some feel as though the high price of their products warrant excellent customer service if a return is needed. Customers may feel as though the cost comes with excellent luxury customer service, whereas budget brands intentionally offer less involved service for customers looking for the lowest possible price.
So how can brands better put their customers first? Sometimes playing the long game best represents a true customer-centric business model. Shipping might be a considerable expense for Revolve, but customers are happy to come back because their buying fears are better alleviated. The injection of empathy and humanity in policies and interactions and a refusal to back down on those values is a great place to start when seeking a loyal customer. When brands go to bat for their consumers, their consumers will go to bat for them.
Photo credit to Mikhail Nilov via Pexels.