FedEx Return Saver Promotion Empowered Customers to Make More Frequent Purchases [Case Study]

FedEx is the world’s leading logistics provider with a diverse portfolio of transportation, e-commerce, and business solutions. Their network reaches more than 220 countries and territories helping businesses reach more than 6.5 billion potential customers around the world.

Challenge

FedEx wanted to be the first logistics provider to offer unlimited returns motivating customers to make purchases with confidence. Not only the first logistics provider, but FedEx would also be the first company to bring an unlimited returns promotion to market.

By empowering members to buy from stores that don’t offer free returns knowing they can still return for free with FedEx, this promotion would open the opportunity to increase awareness around return shipping and the FedEx brand. The team knew they needed to find the right partner to build and power their promotion and benefits while bringing it directly to consumers.

Solution

Return Saver powered by FedEx promotion gave members significant savings on returns, which has been a pain point in ecommerce for years. At any time members can print shipping labels for packages of up to 50 pounds, packed in a standard-size box, when they return purchases to online retailers in the contiguous United States. The promotion had an annual fee of $49 for unlimited returns

 

” Most online shoppers factor how easy or hard it is to make a return when they are deciding if they should buy a product, according to comScore, which found that four out of five shoppers take that into consideration. According to stats at the time Return Saver launched, 62% of retailers required customers to pay for returns.”   – 6ABC

 

FedEx looked to Clarus to build the promotion and bring it in front of consumers. With existing relationships and direct to consumer expertise, the promotion was introduced to high frequency shoppers that would immediately see value in the free returns benefit and be influenced by FedEx’s brand.

 

Results

Return Saver eliminated concerns of paying to make a return for members, while at the same time saving online retailers the cost of picking up return shipping charges for those customers.

Results showed members made an average of 14 returns in the first year of the promotion.

Return Saver members were able to shop with confidence knowing they can make free returns regardless of retailers’ return policy. Offering customers the never before seen benefit of unlimited return shipping brought FedEx closer to consumers and ultimately influenced their online purchase frequency.

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