Latest / The Retention Marketing Podcast with Fexingo: Email, SMS, and Loyalty for Repeat Customers / How a Mattress Brand Uses Returns Data to Boost Repeat Sales
Transcript
- Lucas: Returns are one of the most dreaded metrics in ecommerce. Most brands see a return as a failure — a lost sale, a logistical cost, a negative customer signal. But what if the return itself could become the starting point for a deeper relationship? Luna: That sounds almost counterintuitive. A customer sends back your product and you want to market to them more aggressively? Lucas: Not aggressively — intelligently. There's a DTC mattress company, I'll call them MattressCo for now, that started looking at their return data a couple of years ago. They sell mattresses in a box, so returns are expensive — they have to pick up the mattress, donate it or dispose of it, and issue a refund. The average return cost them around $150. Luna: Right, and a mattress isn't like a shirt you can just resell. So the incentive to prevent returns is huge. Lucas: Exactly. But instead of just trying to prevent returns, they asked a different question: out of the customers who initiate a return, how many could we convert into repeat buyers? Their hypothesis was that some people return for reasons that have nothing to do with disliking the brand — wrong size, delivery timing, partner preference, buyer's remorse. Luna: So they started categorizing return reasons beyond just 'defective' or 'not satisfied'. Lucas: They created a taxonomy: size mismatch, comfort preference, price sensitivity, delivery logistics, and a catch-all 'other'. They also tracked behavioral signals — did the customer engage with the brand after initiating the return? Did they open emails? Visit the site? That data gave them a segmentation. Luna: And then what? They reached out to these people? Lucas: They designed a winback flow specifically for returners. For someone who cited size — say they ordered a queen but needed a king — the email offered a free exchange with a discount on the upgrade. For comfort preference, they sent a guide to different firmness levels with a recommendation quiz. For price sensitivity, they offered a 15 percent discount on a future purchase, no return required. Luna: So they're not trying to prevent the return at that point — they're acknowledging it and offering a next step. Lucas: Exactly. And the results were pretty striking. Among customers who received a return reason specific follow-up within 48 hours of initiating the return, 22 percent made a repeat purchase within 90 days. Compare that to the control group — customers who initiated a return and got no follow-up — where the repeat purchase rate was just 6 percent. Luna: That's almost a four-times lift. But wait — 22 percent of returners bought again? That seems high for a mattress. Lucas: It does, but remember: these aren't all full returns. Some customers just started the process and never completed it. MattressCo found that about 30 percent of customers who initiated a return never actually sent the mattress back. They hit a friction point — scheduling the pickup, printing the label, coordinating with a charity — and gave up. Those customers were especially responsive to the winback email. Luna: Ah, so the return initiation is sometimes just a moment of frustration or doubt, not a hard decision. Lucas: Right. And MattressCo realized that if they could intervene in that moment — before the customer invests time in the return — they could rescue a sale. Their SMS flow for return initiators includes a message that says, 'We see you started a return. No pressure, but if you want to chat about a solution, reply YES and we'll call you.' The response rate was surprising. Luna: What percentage of people actually replied YES? Lucas: About 12 percent. And of those, roughly half ended up keeping the mattress after a phone conversation. The brand rep would troubleshoot — maybe recommend a mattress topper, offer a trial extension, or help with a room setup tip. It turned a return into a service moment. Luna: That's smart because it builds trust. The customer feels heard, not just processed. Lucas: Exactly. And the data from those conversations fed back into the product team. They discovered that a lot of returns were actually about the customer's bed frame, not the mattress itself. The mattress was too thick for a platform bed, or it didn't fit an adjustable base. So they started including a bed-frame compatibility guide in the post-purchase email sequence. Luna: Which probably reduced returns from that segment without any direct outreach. Lucas: It did. They saw a 15 percent drop in returns related to fit issues within three months of adding that guide. And the repeat purchase rate among customers who used the guide went up, too — they felt more confident in their purchase. Luna: So the return data became a product improvement tool, not just a retention tool. Lucas: That's the bigger lesson here. Most brands treat returns as an operational cost — something to minimize or hide. But returns carry rich signal. They tell you where your product is failing, where your messaging is unclear, and where your customer's expectations are misaligned. MattressCo turned that signal into a conversation. Luna: I can see this working for other categories too. Apparel — someone returns a shirt because it's too small. You could offer them the next size with a quick exchange. Electronics — maybe they returned a laptop because it was too heavy. You could suggest a lighter model. Lucas: Exactly. The key is the segmentation. You can't send a generic 'we're sorry you returned something' email. That feels hollow. You need to show you understand why they returned it and offer a path forward that addresses that specific reason. Luna: What about the ethical side? At what point does trying to win back a returner become pushy? Lucas: That's a great question. MattressCo was careful to only send one follow-up email and one SMS. If the customer didn't engage, they backed off. They also gave customers a clear option to opt out of all future communications at the start of the return process. The goal wasn't to harass — it was to offer help. They framed the outreach as customer service, not marketing. Luna: That distinction matters. If the message feels like 'we want your money again', it's off-putting. If it feels like 'we want to make sure you get what you need', it's welcome. Lucas: Right. And they backed it up with real service. The phone reps were trained to listen first, not to sell. They had the authority to issue partial refunds, free accessories, or trial extensions without escalation. That autonomy made the interactions feel genuine. Luna: So what's the one takeaway for a brand that wants to try this? Lucas: Start by classifying your return reasons into three to five clear categories. Then design a single follow-up touchpoint for each category — either email or SMS — that offers something relevant. Measure the repeat purchase rate among returners who get that touchpoint versus those who don't. You'll likely find at least one segment where the lift justifies the effort. Luna: And don't forget to capture the data that comes back from those conversations. It might improve your product, your packaging, or your post-purchase emails. Lucas: Exactly. MattressCo's story shows that returns aren't the end of the relationship — they're just a pivot point. How you handle that pivot determines whether the customer walks away or becomes a loyal advocate. Luna: Speaking of pivots — if these marketing conversations have sparked something you've actually used in your own work, that's exactly the kind of thing that keeps this show ad-free. We don't run sponsors, and listener support is what makes that possible. Lucas: Yeah, it's a simple model. If you find value here, you can toss a few dollars into the hat at buy me a coffee dot com slash fexingo. No pressure, no perks — just a way to keep the conversations going. Luna: And it really does make a difference. Every contribution helps us keep the production quality up and the topics deep. So thanks for considering. Lucas: Alright, back to returns. One more angle I want to touch on — the timing of that follow-up. MattressCo tested sending the winback email immediately versus waiting 24 hours, versus waiting 72 hours. What do you think performed best? Luna: I'd guess the immediate one. The customer is still in the problem-solving mindset. Lucas: That's what they assumed too. But the data showed that the 24-hour delay had the highest conversion rate: 25 percent repeat purchase versus 18 percent for immediate and 15 percent for 72 hours. They think the delay gave customers time to cool off and reconsider. Luna: Interesting. So there's a sweet spot — not too hot, not too cold. Lucas: Right. And that's something every brand should test. The optimal window might differ by category or customer segment. But the principle is: don't react reflexively. Use data to find the moment when the customer is most receptive. Luna: And that data is already sitting in your returns system. You just have to look at it differently. Lucas: Exactly. MattressCo's story is a reminder that retention isn't just about preventing problems — it's about turning problems into opportunities. And sometimes, the biggest opportunity is hiding in the part of your business you'd rather ignore.