Consumer touch points can be risky for retailers. Customers are gained and lost when high-risk touch points are not taken advantage of and can result in negative consumer experiences. LoyaltyOne’s new study shows that high risk touch points get even riskier with certain demographic segments. One such example are return policies, they can be some of the most sensitive interactions brands face with consumers.
While a smooth return policy, especially for gifts, may seem like smooth sailing internally, it can make or break customer relationships. For consumers coming in to return a gift, retailers have the opportunity to acquire a new customer that may have never known about the brand. The opportunity here allows brands to build a relationship with a new consumer and create a lifelong revenue stream.
At the same time brands have the opportunity to turn someone away who wasn’t a customer and now will never be. Closing a consumer off to your brand forever because they had no loyalty to begin with and were met with a bad first experience. This high-risk high-reward interaction should be strongly considered for your business before being implemented, given the high stakes.
Many retailers focus on female demographics as they tend to be the heaviest shoppers. However, in this case it’s really the men retailers need to worry about.
According to the LoyaltyOne survey:
- 45.1% of men find it difficult to make gift returns, 13.4% more than women making the same returns.
- On the flip side, 11% more men were more likely to return to a store after a positive gift return experience.
Most retail activity focuses on women, but maybe this is the touch point where focusing on men can really pay off.