How a Liberal Policy Lowers Returns Rates
At ReverseLogix, we’re proud to be your top option when it comes to all returns management services. We can help cut overhead and streamline processes so that your company benefits from your returns policy rather than suffering from it.
It may surprise many to learn one trend we’ve discovered over the years: While it may seem contrary to logic, a more liberal returns policy may actually help prevent returns and boost your sales. While we’re always here to help in cases of returns, your ultimate goal should be limiting these as much as possible – how does a liberal policy help here? Let’s take a look.
Longer Time Frames
The primary area to consider when analyzing your return policy is the time frame that it offers customers. In a standard situation, most returns are required within 28 to 30 days of purchasing the product.
While this is good to protect the vendor from much longer returns, it can have another effect that overwhelms these benefits: It can create a sense of urgency that pressures customers who were on the fence about the product to test it earlier, and to return it earlier if they don’t love it.
Instead, consider lengthening your window to somewhere between 45 and 90 days. This will help trigger what’s called the endowment effect – the longer the customer has the product, the more attachment they form with it. They’ll feel less immediate urgency to test the product, feeling as though they have plenty of time to do so, and then this effect will have a higher chance of kicking in.
Sales Booster, Not a Barrier
Your returns policy can actually be a booster of sales rather than a barrier. A great policy has been shown to reduce cart abandonment for online sales, for instance. Always be sure that your liberal policy protects you from abuse and employs a logical time frame, but think of this in ways that can benefit you rather than considering how to simply avoid damage.
For more on this or any of our reverse logistics services, speak to the pros at ReverseLogix today.