Study Shows Returnless Returns Increase Customer Loyalty to Brands

A study from the University of Notre Dame reveals that “returnless returns” can enhance customer loyalty, positive word-of-mouth, and future purchases. This policy allows customers to keep products they wish to return while still receiving a refund. The research, published in the Journal of Marketing Research, found that companies implementing returnless returns experienced a boost in customer perception of brand warmth. By framing decisions as case-by-case, citing customer-centric or environmental motives, and suggesting donating kept items, companies can further increase customer loyalty. The study, conducted through various experiments, showed that customers preferred brands utilizing returnless returns compared to standard return policies. (Studyfinds)