Sharpen Time Sensitivity to Reduce Returns

When deciding whether to return a purchased item, consumers might ask themselves, “Is it worth my time to do this?” Knowing that happens, a pair of researchers at Sookmyung Women's University and Seoul National University asked themselves, “Would increasing the purchasers’ sensitivity to the value of time make it less likely they’ll return the items?”
     They found how, indeed, it does. In one study, the researchers collaborated with an online retailer of handmade baby items and lifestyle accessories. One group of the ecommerce shoppers were shown cues about time when checking the return policy. These cues included a clock icon, a statement that the retailer valued the shopper’s time, and the sentence, “We promise to do our best not to cause any inconvenience due to returns for our customers who have purchased and waited for our products.” For another group of shoppers, the return policy did not include these time cues.
     Analysis of the ratio of product returns to product sales showed that shoppers receiving the time cues were less likely to return purchased products. Other studies by the researchers supported this conclusion. The advice for retailers who want to reduce returns is to include in sales transactions a few cues which stimulate shoppers to think about the value of time.
     This intervention requires little or no cost to the retailer. An earlier study by the same pair of researchers identified another method to reduce returns which does have a financial expense, but could be more effective: Offer a free gift along with the item purchased.
     You probably wouldn’t use this for every purchase. But it can work well with sales of items where processing returns is especially costly or bothersome. The researchers found it’s even more effective when you allow the purchaser to choose the free gift from a few alternatives.
     The method works for two main reasons. First, the shopper believes that if they return the item, they’ll need to return the free gift, and this makes the psychological cost of the return higher. Second, the acceptance of the gift, and especially of a gift the customer selected themselves, results in a more solid feeling of ownership, and so a hesitancy to surrender the merchandise-gift pair.
     Knowing you accept returns reduces shopper indecision at purchase time, so you want to make item returns as easy as possible while still protecting yourself from financial damage. Techniques like these will help.

Successfully influence the most prosperous & most loyal consumer age group. For the specific strategies & tactics you need, click here.

Click for more…

Gift with Purchase to Cut Item Returns 

Close Out the Purchase 

Return to Reconsider Your Return Policy 

Risk Stringent Return Policies