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Outerspace Report: Loyal Shoppers Want More Than Fast and Free Shipping

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

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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, which examines how casual e-commerce shoppers become loyal, long-term customers. As brand loyalty becomes essential for sustainable growth, the notion that fast and free shipping is a make-or-break factor is losing its standalone importance. While rapid delivery remains key for everyday essentials, consumers now expect a more personalized post-purchase experience from “Capital-B” Brands—high-growth omnichannel retailers that have built a dedicated customer base through a combination of digital storefronts, wholesale, brick-and-mortar stores, and third-party marketplaces.

The report highlights that beyond fast shipping, customers appreciate brands that provide easy returns, exclusive offers, product personalization, and a premium unboxing experience. Additionally, when purchasing premium items, shoppers are willing to wait five to seven business days for products like home decor (30%), jewelry (29.7%), and apparel (25%), in contrast to daily necessities like groceries or cleaning supplies.

“As acquiring new customers becomes more challenging, turning them into loyal fans is critical for survival,” said Kate Terry, Chief Commercial Officer at Outerspace. “The post-purchase experience is often underutilized in building loyalty, but this report shows that consumers are ready to form lasting connections beyond the cart—and beyond just free or fast shipping. Unboxing and returns are pivotal in strengthening a brand’s relationship with its customers, making it worthwhile for brands to invest in creating a premium experience that encourages repeat business.”

Key Findings Summary:

The Post-Purchase Experience and Brand Loyalty
The report emphasizes the importance of the post-purchase experience in building brand loyalty. In an era where customer acquisition costs have risen significantly, retaining customers through a seamless post-purchase journey has become a critical growth strategy for brands. Consumers prioritize aspects like premium unboxing, easy returns, and personalized experiences over just fast shipping.

Shifting Consumer Expectations
Consumers are increasingly willing to wait longer for deliveries, especially for non-essential items like home decor, jewelry, and apparel, provided they receive free shipping. However, for essential items, they still expect faster delivery times, with most unwilling to wait more than two days.

Premium Unboxing and Free Samples Drive Loyalty
Younger consumers, particularly Gen Z and Millennials, expect a premium unboxing experience, which includes personalized packaging and free samples. These touches play a significant role in encouraging repeat purchases, with 57% of consumers more likely to buy again from a brand that provides free gifts or samples.

Frictionless Returns as a Loyalty Driver
The ease of returns is another critical factor in cultivating loyalty. Consumers expect simple and free returns, with 93% saying that easy return processes are important when shopping directly with a brand. Moreover, 57% of shoppers consider frictionless returns essential for making repeat purchases.

The Role of Omnichannel and DTC Plus Models
Brands that embrace omnichannel retail strategies are able to reach a wider audience while maintaining control over the customer experience through direct channels. The report underscores that Capital-B Brands, which leverage a mix of direct and third-party sales channels, excel in the post-purchase experience, setting them apart from competitors.

10 Key Findings:

• Customer acquisition costs have increased by over 222% since 2013, making retention strategies crucial for brands.
• E-commerce growth has slowed to 6.4% in 2022 and 8.9% in 2023, down from the double-digit growth seen between 2010 and 2021.
• Consumers are willing to wait 5-7 business days for non-essential items like jewelry and home decor, as long as shipping is free.
• Only 26% of consumers prioritize next-day or two-day shipping when shopping directly with a brand.
• Premium unboxing experiences are expected by 57% of consumers, with Gen Z and Millennials being the most likely to demand this feature.
• Nearly 1 in 3 consumers (33%) say they are more likely to repurchase from brands that offer easily recyclable packaging.
• 93% of consumers consider easy returns important, and 57% say it influences their decision to make repeat purchases.
• Women are 10% more likely than men to value free shipping on returns, with 59% of consumers saying it affects their purchasing decisions.
• Frictionless returns remain a top reason for consumers to shop directly from a brand, and only 7% say it has no influence on their decision-making.
• Omnichannel brands that control the post-purchase experience through their own sales channels perform better in fostering long-term customer loyalty.

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

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