How to improve customers’ post-purchase experience—and prevent chargebacks

Merchants often focus on making the customer experience leading up to a purchase as easy and seamless as possible. After all, even the slightest bump or inconvenience can derail a customer from completing the checkout process—with online shopping carts abandonment rates sitting at a hefty 70% globally, according to Statista.

While ensuring a smooth shopping experience is critical, so is what happens after customers buy something. The post-purchase experience is equally important, because it can affect whether a customer buys from you again and ultimately becomes loyal to your business.

Moreover, post-purchase is generally when situations arise that spark costly transaction disputes and chargebacks, which you can prevent by ensuring a positive experience.

Here are answers to three key questions to help merchants improve their post-purchase customer experience while reducing chargebacks:

1. What type of information should a merchant provide customers? 

As you think about your post-purchase experience, there are two important things that can enhance it:

Clear contact information 

In case purchase questions or issues come up, it’s important for customers to have an easy way to get in touch. Some of the top reasons customers have questions: the transaction final amount seems incorrect, they don’t recognize the purchase in their bank statement, or there was something about the purchase they are unsatisfied with.

In fact, service-related issues are a leading cause of disputes and chargebacks. A report by Ethoca and PYMNTS.com found that 71% of consumers surveyed who had disputed charges in the 12 months prior had done so because of a service error. 

Given that most consumers review purchases in their banking app, it makes sense to ensure that merchant contact information is readily available through that channel. Otherwise, customers may resort to disputing the charge through their issuer to resolve service-related issues—which is not only costly for your business but also creates a frustrating and negative customer experience. Providing customers with merchant contact information and digital receipts through their banking app allows them to easily get details about their purchases while following up directly with you, if needed. 

Clear and customer-friendly return and exchange policies 

Likewise, if customers can’t easily “fix” issues with their purchase—such as returning or exchanging products—they’re more likely to dispute it. So, making returns and exchange policies clear and simple improves the customer experience while reducing the odds of chargebacks.

2. How can merchants encourage repeat business and build customer loyalty?

Loyalty is earned by fulfilling customers’ needs and wishes across their buying journey—including after they’ve made a purchase. But it also requires staying top of mind, so they turn to your business the next time they need what you offer.

Here are ways to encourage repeat business and loyalty:

Drive brand awareness and recognition 

Make sure your company name and logo are placed at all key customer touchpoints—including in emails and the digital banking app they use to check their purchase history. Every touchpoint is an opportunity to increase brand awareness and recognition.

Provide offers and promotions 

Present your customers with special offers or discounts on their digital receipts or provide them with an easy way to reorder an item.

Give customers tools offering insight and control 

Customers today expect more control and visibility over their purchase experience. Tools for managing recurring payment transactions are just one example of how to provide that. Subscription controls let customers pause, cancel and renew their subscriptions—and they are more likely to subscribe based on this convenience and ease. In fact, 85% of consumers are interested in subscription management tools via their banking app, according to a 2023 survey by Datos Insights.[1] 

3. How can merchants prevent disputes and chargebacks while limiting their impact?

Purchase disputes have been rising significantly, which means merchants must look to design their post-purchase experience in a way that helps prevent them.

Collaborative tools like Ethoca Alerts can help merchants stop disputes from turning into costly chargebacks by providing real-time alerts when customers dispute charges. This allows you to take steps that reduce potential losses—such as stopping the shipment and delivery of disputed purchases—while also working with the customer to resolve their issue before that dispute becomes a chargeback.

Ethoca Consumer Clarity™ can prevent disputes before they happen by putting information like a clear merchant name and logo and detailed digital receipts in the digital banking app that customers use to check their purchase history—avoiding transaction confusion that often leads to disputes. It can also provide controls that let customers better manage their subscriptions and recurring payment transactions without using the dispute process to do so.

Reaping all the benefits

The post-purchase experience is a critical factor contributing to customer satisfaction and can ultimately drive repeat business and loyalty. It’s also an opportunity to prevent disputes and chargebacks that can hurt your bottom line.

Offering the right digital tools can be the difference between a lackluster experience and a great one.

Learn more about how Ethoca Alerts and Ethoca Consumer Clarity can enhance your customer experience.