Hello there, I’m Jim Glover, That Branding Guy for Once a Day Marketing™. Today is Digital Friday and I am going to share with you a story I saw on NBCNews.com that I think is quite fascinating for all you digital marketers.
Online companies spent $17 Billion last year picking up the cost of customer returns. That sounds like a tremendous expense, however, a new study indicates adopting Zappos’ model of free return shipping, no matter what the reason, can increase customer spending for an online business up to 357%.
A Washington and Lee University study looked at two online retail companies over a period of 49 months. Upon moving to the free return shipping model, one company experienced an average spend per customer increase of $620 over two years and the other $2,500.
In another study conducted by the Journal of Marketing, when a company required customers to pay the cost of shipping returns of merchandise, purchases could fall 74% to even 100%.
In this time of cost cutting that every company seems to be doing, it seems contrary to offer to your customer return of their merchandise at absolutely no cost to them. However, what the trends are revealing is that you may have the opportunity to increase purchases dramatically.
That concludes Digital Friday. Join us next week for Smart Monday. To discuss an online or face to face service engagement and enhance the marketing and branding for your organization, contact James Glover: (505) 501-1330 or firstname.lastname@example.org. I’m Jim Glover, That Branding Guy, for Once a Day Marketing™ and we’ll see you next time.
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