The business benefits of a customer-friendly returns policy

Looking to improve customer loyalty and boost sales? Explore the pivotal role that a customer-friendly returns policy can play.



In the business world, returns are a bit like negative online reviews. Both are important and need to be given due care and consideration. But at the same time, it's hard not to take both personally – especially if your operation is on the small side.

A return is a rejection. Whether the product is returned because it's faulty or unwanted, something has gone wrong and the customer isn't happy.

Perhaps it's this feeling of rejection that subconsciously stops so many brands from taking their returns policies seriously. No one wants to look their mistakes squarely in the eye. But did you know that a customer-friendly returns policy can confer multiple benefits on your business?

In this article, we take a close look at how a customer-friendly returns policy can work in your favour.

How a customer-friendly returns policy can boost business

It encourages customers to buy

These days, customers are savvy. They have ample experience in weighing up their options.

All this means that if your site doesn't have a clear, transparent returns policy, you may be driving potential customers away.

Not only that, but a clear policy can also reduce your cart abandonment rate and encourage customers to buy. So, even if an item gets returned, your overall sales will have gone up.

It boosts customer loyalty and retention

Hard truth: unless your brand is highly specialised, you're in direct competition with hundreds or even thousands of other companies.

This means that if anything – and we mean anything – goes wrong for the customer, they won't come back for more.

It's a tough world out there. Having a solid, customer-friendly returns policy in place means people are more likely to shop from you again. Make it hard for them and they'll simply take their business elsewhere.

It reduces customer support costs

Good customer support is an asset to every business. However, the more your customers have to use it, the more you have to pay.

A good returns policy means fewer customer support calls. This takes some of the pressure off your team, freeing up resources and allowing staff to be allocated to more important tasks.

You can never do without customer support. But if you enact policies that support your customers, customer support will be needed less and less.

It gives you valuable business intelligence

Data, they say, drives good decisions. However, it's one thing to say it and another thing to do it. And the thing holding most businesses back from these fabled data-driven decisions is, well, good data.

Not all data is created equal. These days, every business is sitting on heaps of customer and sales data. But for every brand that sifts and studies, there's another that scatters its data across multiple spreadsheets, storage systems and servers.

A customer-friendly returns policy gives you actionable data on areas for improvement. Does a particular product keep getting returned? Does a product need to be packaged differently to avoid damage in transit? Are people buying multiple items with the intention of returning some?

Get the answers to these questions and you can take concrete steps to improve your processes and customer relations.

It gives you the edge over your competitors

Pretty much any field you work in will be crowded with competitors. You need to give customers a reason to choose you, and a superior, hassle-free returns experience can work wonders.

It can even help you reach a point where your customers are doing your job for you: that most precious and sought-after asset, word of mouth. But even if your returns policy keeps just one customer happy, it was all worth it. 

What makes a customer-friendly returns policy?

That's how a customer-friendly returns policy can help your business improve customer loyalty, boost sales and maximise profits. But what makes a returns policy customer-friendly in the first place?

First, you should make sure your policy is written in easy-to-understand English. No one wants to be faced with a wall of legalese when trying to return a toastie maker. Make life easy for your customers and they'll make life easy for you.

Next, your returns policy should be affordable. If your budget can stretch to it, free returns will give your customers' hearts a rosy glow.

A customer-friendly returns policy should be quick. You should process refunds within days, not weeks, and you should keep your customers in the loop from start to finish. Conversely, giving customers longer periods to return can increase confidence in your brand.

And finally, you should give your customers options. Make the most of in-store returns, locker drop-offs and good old-fashioned post.

More choice makes it more likely your customer will leave you that desirable five-star review.

How a good warehouse management system can help

A good, cloud-based warehouse management system (WMS) can make a huge difference to the success of your returns policy.

Here at Minster WMS, we provide two WMS solutions: CORE, our entry-level product and EDGE, our enterprise offering. Both offer end-to-end visibility into all stages of your day-to-day ops, including returns.

And because CORE and EDGE can be integrated with voice picking systems, RFID tags, barcode scanners and more, the returns process becomes quicker and easier.

Upgrading your WMS to a cloud-based offering may feel like a hassle. But if you work with us, your WMS could be up and running in as little as a day. And because the learning curve is far from steep, you don't have to spend much time or money upskilling staff.

So, if you're looking for a WMS with top-class logistics optimisation software built in, don't hesitate to book a demo with our UK experts. We'll show you how our solutions can help you unlock efficiencies throughout the fulfilment cycle, from picking to shipping to returns.