New research conducted by SAP Emarsys Customer Engagement sheds light on shifting consumer attitudes in the UK towards sustainability in the retail sector, particularly concerning returns. According to the findings, almost half of UK consumers, accounting for 48%, express a growing interest in making returns more environmentally friendly.
The study underscores a significant trend, with 20% of UK consumers now ranking sustainability as their primary consideration when making purchasing decisions. This highlights a notable shift in consumer behavior towards more eco-conscious shopping habits.
Furthermore, the research reveals that sustainability initiatives can significantly influence consumer loyalty, with 47% of UK shoppers indicating a stronger allegiance to brands that implement sustainable returns processes. These processes may involve reducing packaging or implementing recycling programs for returned items.
In response to consumer demands, the research suggests potential solutions to improve the sustainability of returns. Over half of respondents, at 53%, support the idea of retailers reselling returned items at discounted prices to reduce waste. Additionally, 52% of consumers express interest in retailers accepting returns at local depots, which could cut down on carbon emissions associated with transportation.
Despite the emphasis on sustainable practices, the research also highlights a reluctance among consumers towards the return process itself. A significant majority, comprising 66% of respondents, prefer to avoid returns altogether. Moreover, 56% of consumers express a desire for retailers to “get it right the first time,” indicating a preference for accurate purchases from the outset.
Thomas Harris, Chief Revenue Officer at SAP Emarsys, emphasizes the importance of sustainability in consumer decision-making. He suggests that retailers can address the root causes of returns by leveraging AI-powered personalization to offer tailored recommendations based on customer insights. This approach aims to empower shoppers to make informed purchasing decisions, thereby reducing the need for returns.
Harris advocates for retailers to prioritize personalization strategies, particularly those utilizing AI technology, to enhance customer experiences and foster loyalty.
Returns, while significant, represent just one aspect of the broader loyalty landscape. To explore the role of personalization in driving customer loyalty within an omnichannel framework, SAP Emarsys invites participation in ‘Shoptalk’ in Las Vegas from March 17-20, 2024. Partners such as Sinch, Criteo, and Annex Cloud will contribute valuable insights. For more information, interested parties can visit Emarsys.com.