How to Combat Churn Using Your Post-Purchase Experience
After nearly three years of out-of-stock notices, short staffing, and price-tag fluctuations, consumer willingness to try new #retailers is exploding. And if your brand delivers an underwhelming post-purchase experience, it's just one more reason for customers to experiment with your competitors the next time they need to make a purchase.
By the same token, an exceptional post-purchase experience can cement the happiness of shoppers new to your brand, transforming one-off transactions into lifelong relationships. That is why it’s so important for you to nail your post-purchase strategy and deliver the experience your shoppers want.
In this article, we'll introduce you to some basic principles you can focus on to improve your post-purchase experience in a way that mitigates customer #churn and boosts long-term loyalty.
Principle 1 — Education
For any first-time customer, there’s a learning curve to a new brand.
Therefore, education is a fundamental component of any #postpurchase journey—it keeps customers engaged and introduces them to new products, programs, or offers they might want to try. It can also be used to decrease the likelihood of returns and exchanges.
In particular, brands with an array of use case-specific products (e.g., YETI, Nuun, etc.) or luxury products (e.g., Dooney & Bourke, Russell & Bromley, etc.) must invest in education because it helps new-to-brand buyers understand how the product portfolio works.
Branded order tracking pages (versus a standard carrier tracking page) are a money-maker and a fantastic learning lab for consumers.
When you use a branded tracking page, first-time shoppers are more likely to come back and make another purchase which increases revenue. They’re also less likely to contact the customer support team about their order status which lowers expenses.
Long-term, customer retention rates are stronger when branded order tracking pages are used, which leads to higher lifetime value per shopper.
It's also critical to note that order tracking pages can be used to educate and improve product adoption.
As an example, consider the luxury audio brand Sonos.
Sonos featured content with helpful information for new customers about product setup, usage best practices, and more. In other words, they turned their order tracking pages into an onboarding engine for new customers, accelerating time-to-value, amplifying brand satisfaction, and powering higher retention rates.
Principle 2 — Clear expectations
In this environment of chronic supply chain disruption, retailers must double-down on transparency. Ideally, a customer should always know where their purchase is in the fulfillment journey. Doing so helps customers understand (and tolerate) longer-than-expected delivery timelines and increases their likelihood of becoming a repeat buyer.
This is especially true when it comes to returns. Unambiguous return and exchange policies eliminate shopper uncertainty pre-purchase and strengthen their loyalty to your brand post-purchase (more on that later).
When will my order arrive?
Post-purchase communications related to things such as missed delivery attempts and fulfillment delays are crucial to a good experience.
Yes, a customer might be upset to know their package is delayed, but they’ll be even more upset if they don’t receive a notification and they're left wondering where their order is. In fact, 98% of consumers say they feel better about a retailer who immediately notifies them if something goes wrong.
The more proactive you can be with your post-purchase communication (particularly when that communication is related to something negative, such as a delivery delay) the more trusting #shoppers will be of your brand. And the greater shoppers' trust in your brand is, the more likely they are to accept whatever resolution you propose for shipping delays and other fulfillment issues.
Good news or bad news, people appreciate not needing to hunt down information through clunky carrier tracking pages, chatbots, or calling a customer service rep on the phone. Failing to be proactive leads to WISMO/WISMR inquiries, annoyed customers, and tarnished relationships that drive future purchases into the waiting arms of competitors.
Principle 3 — A modern returns process
The majority of new shoppers evaluate your return policy before they ever purchase a product. That's why no post-purchase experience is complete without a conversation about #returnsmanagement.
In fact, more than 60% of online shoppers tie their buying decisions to a retailer's return policies, with simple, seamless policies winning the sale almost every time. (This is why you see “free shipping, free returns” on so many homepages.)
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People want returns rules and processes that are easy to understand and even easier to put into action. Therefore, retailers can’t afford to put their collective head in the sand when it comes to modernizing the returns experience.
While #returns modernization is costly, there are things you can do to mitigate its financial impact. You can...
Having said that, it's important to note none of these cost-saving measures should come at the expense of convenience—when it comes to returns, customers value convenience above all. Boxless returns, convenient return drop-off locations, home pickup—these former nice-to-haves are becoming must-haves in the eyes of today's shopper.
Is there a direct correlation between the returns experience and the delivery experience?
The likelihood of a return is always tied to delivery in some capacity. The more accurate and transparent the delivery information, the less likely the customer is to submit a return, especially in certain categories (e.g., apparel) and during certain holiday periods (e.g., Spring Break).
A shopper who purchases a new bikini for their trip to Fort Lauderdale is more likely to return that swimsuit if it doesn’t arrive in time for the vacation. In fact, “late shipping” is one of the most frequently cited reasons for product returns.
Brands can use that information to improve their product description pages and estimated delivery dates, avoiding purchases that will be returned altogether for the simple fact they won’t arrive in time. They can also use that data to look for ways to optimize either their shipping network or their communication structure.
A few more takeaways and tips before you go...
Not every shopper is going to engage with your post-purchase journey. However, the consumers who do interact (e.g., those who frequently track their order, those who want SMS notifications about their package, etc.) are a very active consumer group.
Connecting them with a thoughtful, informative, and personalized post-purchase experience will lead to the repeat purchases and surging lifetime value that all retailers crave. That is why it’s so important for you to nail your post-purchase strategy and ensure you're delivering the experience that shoppers want.
Don't link out
If you're still linking out to the carrier website when it comes to order tracking, you’re missing out on an incredible opportunity to engage with customers.
Do more than upsell
Your order tracking pages can be used for more than upselling customers—don't be afraid to use them for product registration, product education, and more.
People are more patient than you think
Customers aren't opposed to waiting for what they want. What they're opposed to is being kept in the dark. Lengthy fulfillment times are fine as long as you set clear expectations for the estimated delivery date pre-purchase.
Keeping customers informed puts you ahead of the pack
Only 1 out of 5 shoppers who experience a shipping delay feel the retailer keeps them informed about the disruption and the evolving delivery timeline. That means there's an incredible opportunity here for brand differentiation and increased share of wallet if you can do a better job of communicating than your competitors.
Putting customers in control cultivates trust, trust builds loyalty
Think long and hard about how you give customers flexibility and choice in your post-purchase experience—especially when it comes to returns. If you can let shoppers decide when, where, and how they can return or exchange their products, they're more likely to keep coming back to you the next time they need to make a purchase.
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?About Narvar
Narvar pioneered how brands engage with customers beyond the “buy” button through branded order tracking, delivery notifications, returns and exchanges. Today, Narvar’s comprehensive Post-Purchase Platform empowers 1200+ of the world’s most-admired brands including Sephora, Patagonia, Levi’s, Sonos, Warby Parker, Home Depot, LVMH, and L’Oreal to delivery transparency, build trust, and grow customer lifetime value. Recognized by Fast Company as one of the most innovative companies of 2021, Narvar simplifies the everyday lives of consumers.