Loyal Shoppers Want More Than Fast and Free Shipping, New Report from Outerspace Reveals

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Oct 09, 2024, 11:00 ET

A new report found consumers are more likely to make repeat purchases from brands who provide a premium post-purchase experience, from frictionless returns to elevated unboxing

NEW YORK, Oct. 9, 2024 /PRNewswire/ -- Outerspace, the leading high-touch operations partner for high-growth consumer brands, has released a new report titled The State of Brand Loyalty: How the Post-Purchase Experience Influences Online Shopping, exploring what converts casual e-commerce shoppers into loyal, long-term customers. As fostering brand loyalty emerges as the key to sustainable growth, the belief that fast and free shipping is a do-or-die necessity is becoming less impactful in isolation. While fast delivery remains crucial for everyday essentials, consumers now expect a high-touch post-purchase experience from 'Capital-B' Brands, defined as high-growth omnichannel retailers that have built a loyal customer base through their own mix of digital storefronts, as well as wholesale, brick and mortar, and third-party marketplaces.

The report finds that beyond quick shipping, customers value the brands that offer easy returns, exclusive offers, the personalization and customization of products, and a premium unboxing experience. What's more, when buying premium products, shoppers are more willing to wait five to seven business days for items like home decor (30%), jewelry (29.7%), and apparel (25%) compared to everyday essentials like groceries or cleaning supplies.

"As acquiring new customers gets tougher, creating brand fans is paramount for survival," said Kate Terry, Chief Commercial Officer at Outerspace. "The post-purchase experience is an often overlooked and underutilized channel for building loyalty, but as this report shows, consumers are ripe for forging loyalty beyond the cart — and beyond free or expedited shipping. Unboxing and returns play crucial roles in building a brand's relationship with its customers, so it's wise for brands to invest in curating a premium experience that keeps them coming back."

What do consumers expect from the post-purchase experience when buying directly from a brand? Key findings from the report reveal:

A premium unboxing experience: In an era of third-party marketplaces that ship every product the same way, over half of consumers (57%) expect a more memorable and personalized unboxing experience, such as a handwritten note or high-quality branded packaging. This is especially true for Gen Z and Millennials, who are 11% more likely to expect it, while their Baby Boomer counterparts are a quarter (25%) less likely to expect the same. Women are also 16% more likely than men to repurchase from brands that offer free gifts with their orders, whereas men are a third (29%) more likely to repurchase from brands that use premium packaging or wrapping.
Ease of returns: Consumers are loud and clear, with most (93%) saying that an easy returns process is a top factor when buying directly from brands. For more than half of shoppers (57%), easy returns influence the likelihood of repeat purchases, and having the option to choose free shipping on returns determines if they'll place an order with a premium brand (59%). As retailers look to trim return costs, it's undeniable that shoppers are loyal to the brands that offer frictionless returns.
Freebies: Generosity from brands in the form of small order add-ons, such as product samples and gifts, will pay off in the long term. More than half of shoppers are more likely to repurchase from a brand when they receive gifts and free samples (57%).
Environmentally friendly packaging: Nearly one in three consumers (31%) say easily recyclable and premium packaging motivate them to shop with a brand again.

While some brands have cut operational costs to make up for inflation and the rising price of new customer acquisition, many have discovered how to boost their exposure and reach a wider customer base in new ways — leading to the evolution of old DTC to 'DTC Plus.' Brands are selling directly to customers, plus selling wholesale and leveraging third-party marketplaces like Amazon or Walmart. Capital-B Brands are thriving in this era because they meet consumer expectations across the entire post-purchase experience.

"The post-purchase experience has become a supreme factor for e-commerce growth. By working with logistics partners to make the most of every influential touchpoint after consumers click the buy button, brands give their customers a powerful reason to shop with them again and again," said Ricky Choi, CEO and co-founder of Outerspace. "With frictionless returns management, onsite order customization and personalization, and warehouse teams dedicated to individual brands, Outerspace's retail partners see an average of 62% growth in order volume compared to 2023."

As consumer demand for more premium offerings post-purchase soar, Outerspace is growing rapidly. The company has landed five new major retail customers in addition to retaining its existing customer base and added two additional warehouse spaces to its existing three locations since the start of 2024, with plans to launch its proprietary tech suite and additional warehouse locations in the coming year.

For more information on Outerspace, visit Outerspace.com.

Methodology

In partnership with Pollfish, Outerspace surveyed 1,000 online shoppers in April 2024. Respondents were composed of a nationally representative sample of U.S. adults aged 18 to 64. Respondents were asked 11 multiple-choice questions about their shipping, unboxing, and returns preferences.

About Outerspace
Founded in 2019 by Ricky Choi, Phil Moldavski, and Alexander Pessala, Outerspace works with leading consumer brands to power the best post-purchase customer experiences in the world. Backed by investors including Prysm Capital and Tishman Capital Partners, Outerspace delivers a best-in-class operations solution through frictionless order fulfillment, skilled teams with an industry pedigree, and proprietary software designed to turn operations into a competitive advantage for the likes of Brunt, Thesis, Ogee, and Nice Laundry.

SOURCE Outerspace