David Morin of Narvar: How To Build Brand Loyalty Post-Purchase

"How do you take care of your customer after you actually have shipped a purchase? Does a customer need to make an exchange or make a return? We really think that loyalty is the most critical part of long-term customer lifetime value and that having a positive experience at every step of the post-purchase journey is super critical to having those repeat purchases and loyalty within your customer base."

— David Morin, senior director of retail and client strategy at post-purchase platform Narvar

All too often, brands focus on customer acquisition, but the post-purchase customer experience also presents an opportunity to build customer loyalty and drive greater customer lifetime value.

David Morin, senior director of retail and client strategy at post-purchase platform provider Narvar, says it’s time for brands to be more innovative in how they think about loyalty over the long term and the role it plays in driving long-term growth.

Morin joined a recent episode of the Unpacking the Digital Shelf podcast, “Driving Loyalty and Growth through the Post-Purchase Consumer Journey,” to share how to build brand loyalty and how brands are shifting their focus to this part of the customer experience to drive trust, transparency, and advocacy.

Why the End of the Customer Journey Is Really Only the Beginning

Narvar, a post-purchase ecommerce platform, focuses on improving the customer experience, from shipping to tracking all the way through exchanges and returns.

Morin says recent innovations in delivery methods and technologies to better manage the returns experience have given retailers and brands more visibility into the post-purchase journey.

"Ten years ago, post-purchase was a relatively new word. People weren't really using it or even thinking about it," Morin says. "If we flash forward to where we are today, so many retailers we work with have entire teams and roles with post-purchase in their job title. This really speaks to how the importance of taking care of the customer — not only in the acquisition and purchase phases — but [during] what happens after purchase, has really grown in importance."

The Crucial Post-Purchase Metric: Customer Satisfaction

Customer satisfaction doesn’t begin and end when a customer makes a purchase.

Many retailers now have targeted teams focused on reverse logistics to ensure returned items make it back into inventory in the most cost-efficient way possible. These teams also measure how changes to the returns process affect customer satisfaction.

Morin says customer satisfaction is a valuable metric for gauging whether a brand is delivering a positive post-purchase experience.

"One thing that we focus on with our retailers is how do we help drive satisfaction in each stage of the post-purchase journey in order to drive repeat purchases and loyalty?" he says.

How Brands Can Improve the Post-Purchase Experience

There are several levers brands can pull to improve the post-purchase experience, including:

• Increase outbound communications to improve transparency with customers about when their delivery will arrive;
• Provide estimated delivery dates at the time of checkout;
• Offer different pickup options; and
• Use digital labels or QR codes to make the returns process more seamless.

Finding More Touchpoints to Connect with Consumers

Morin says brands can also use the post-purchase journey to deliver more relevant marketing messages.

While some of the brand manufacturers Narvar works with have re-engaged customers with critical information about their delivery, some have capitalized on this part of the journey to create another customer touchpoint.

"We've seen a lot of retailers choose to use those touchpoints as a way to surface ‘how to’ marketing content to really set their customers up for success [with the product]," Morin says. "In health and beauty, we've seen a lot of retailers use tutorials and things of that nature — all with the mindset of how do you make sure your customer, once they receive their goods, has a really positive experience."

Brands Innovating the Post-Purchase Experience

Narvar works with a range of brands across industries that are transforming their post-purchase experience, including direct-to-consumer (D2C) fashion brand Rothy’s, as well as GameStop, Dollar Shave Club, DSW, and Levi’s.

Morin points to Levi’s as one success story. Over the last two years, the brand has focused on optimizing its returns experience. It has implemented printerless returns, which allow customers to initiate a return on the brand’s website, and get a digital QR code along with information for nearby post office locations where they can make their returns.

"They also added proactive returns communication. Not only were they communicating with their consumers very practically about the status of their outbound shipments, they were also communicating to their consumers about the status of the return shipments," Morin says.

After implementing these services, Levi’s has seen a measurable improvement in customer satisfaction, Morin adds.

"It really speaks to [the fact that] if you keep your consumer at the forefront of your strategy as you're building these new post-purchase tools, you can really increase immediate satisfaction, which we know will eventually lead to increases in customer lifetime value and annual revenue." — David Morin, senior director of retail and client strategy at post-purchase platform Narvar

Driving Loyalty and Customer Lifetime Value

By truly focusing on the end-to-end customer journey, brands can cultivate better customer relationships and ensure their company is top of mind when a consumer wants to make their next purchase.

Delivering a better post-purchase experience also lowers the risk for consumers when it comes to engaging in another purchase, because they’ll have confidence and trust they’ll enjoy the product and the experience of interacting with the brand.

Recent Narvar research showed 76% of first-time customers who had what they would consider either an easy or very easy returns experience said that they would be more likely to shop with that specific retailer again. This just provides another proof point that investing in the post-purchase experience can drive greater customer loyalty and lifetime value.

In the next decade, brands that will win on the digital shelf will focus not just on customer acquisition, but on building loyalty — even after a shopper checks out.

"It's not just about acquisition. It's also about lifetime value and loyalty," Morin says. "We really think loyalty is the most critical part of long-term customer lifetime value and that having a positive experience at every step of the post-purchase journey is super critical to having those repeat purchases and loyalty within your customer base."

For more strategies and insight on how to build brand loyalty, check out the full podcast episode with David Morin.