Employing reverse logistics is an effective means for reducing the cost impact of product returns and warranty issues. But did you know that improving the logistics of your reverse business help increase your sales on the front end?

By improving the customer experience in your reverse – specifically warranty issues and returns – you can improve your customer ratings and online reviews. And better ratings and reviews translate to more sales.

How Returns & Warranty Issues Affect Consumer Reviews

Unhappy customers are more prone to posting online business reviews and, as you might guess, they are not favorable in nature. These disgruntled customers are also more likely to tell friends and family members about their poor experience. Customers who have a positive experience with your business are, unfortunately, much less likely to post a review.

We also know that returns policies and warranty claim handling have a clear effect on customer satisfaction and, surprisingly, they also influence sales volume.

The bottom line here is that, the more efficiently you can handle returns and warranty issues, the happier you’ll make your customers. The happier your customers are, the less likely they are to post a negative review. You’re also more likely to get positive reviews because, although consumers may not be motivated to leave you an online review simply because they like your wares, they may be more motivated to leave you a positive review if you provide an exceptional returns experience.

How Consumer Reviews Affect Sales & Returns

Today, we know that the overwhelming majority of consumers consider online reviews before making a purchasing decision.

A 2018 consumer survey indicated that almost 90 percent of consumers consider a business’s online reviews before making a purchasing decision. The study also indicated that approximately 60 percent of consumers won’t purchase from a business that does not have an average review of four stars.

This isn’t surprising but did you know that your online reviews also influence the number of product returns you’re likely to have? A recent study established this correlation, to the surprise of many industry experts.

The researchers concluded that online business reviews help consumers make better purchasing decisions and better purchasing decisions mean fewer returns.

Improving the Returns Process with Reverse Logistics Management

To improve your returns process and, in turn, improve your customer reviews and ratings, it’s important to clearly communicate your return policy and the terms of your warranty. But that’s only the tip of the iceberg.

You also need to make the process as simple as possible and, ideally, provide multiple options for your customers to make a return. Automating the process helps protect the integrity of the process and requires less economic and human resources to accomplish.

Using a returns management system based on principles of reverse logistics is one of the most effective ways to accomplish these goals.

The ReverseLogix technology platform offers a highly effective – and cost-effective – means for improving your reverse logistics cycle. Our SaaS platform helps improve operational efficiency, reduces turnaround time and helps maximize asset recovery. You’ll improve the customer experience and minimize the effect of returns and warranty issues on your bottom line.

Contact ReverseLogix to learn more about our reverse management software and start improving your customer reviews and ratings today.