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Associate Professor

Joe Felan

Joe Felan is an Associate Professor of Management at the University of Arkansas at Little Rock. He earned his PhD in Production/Operations Management from the University of South Carolina, and holds an MBA and BBA from Baylor University. His research interests have included entrepreneurial activity, economic factors influencing startups, and angel investor behaviors, with publications in notable journals like the Journal of Research in Marketing and Entrepreneurship. In teaching, Joe offers courses such as "New Venture Launch," "Production/Operations Management," and "International Business Management." He has a rich history of contributing to the academic community with insights into business operations and entrepreneurship.

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Contributor Brief·Joe Felan · 1 articles
Updated Oct 6, 2023

Free Returns Drive Loyalty Better Than Penalizing Customer Returns

Felan argues that removing friction from the returns process—specifically by eliminating return fees—increases customer loyalty and lifetime value more effectively than traditional penalty-based models. He advocates for retailers to invest in optimizing reverse logistics infrastructure rather than treating returns as a cost center to be minimized through customer charges.

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“Removing friction from returns drives loyalty far better than penalizing customers.”

Easy Returns Help Retain Customers

Felan's core claims about returns strategy impact

Free returns increase customer loyalty9
Return fees damage retention more than they save8
Reverse logistics optimization is a competitive advantage7

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38%Free returns
Free returns increase customer loyalty
Return fees damage retention more than they save
Reverse logistics optimization is a competitive advantage

1

article analyzed; limited quantified benchmarks provided

No secondary article available for distinct tension.

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“Retailers should focus on optimizing reverse logistics, not charging return fees.”

Themes:Returns as loyalty driver, not cost burdenReverse logistics optimization as competitive moatFriction reduction in customer experience design

Latest article

Transportation · Oct 6

Easy Returns Help Retain Customers. Instead of Charging Return Fees, Retailers Should Focus on Optimizing Reverse Logistics.

Retailers are discovering that removing friction from returns drives loyalty far better than penalizing customers for sending items back

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Easy Returns Help Retain Customers. Instead of Charging Return Fees, Retailers Should Focus on Optimizing Reverse Logistics.

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  • AM
    Alex M.·2h agoquestion

    What sparked your research into disruptive innovation?

    Curious what the original insight was that led you to the Innovator's Dilemma framework.

  • SL
    Sophia L.·1d agoidea

    Would love a deep-dive into EdTech adoption barriers.

    Your framing of sustaining vs. disruptive innovation feels directly applicable to school systems.

  • DR
    David R.·3d agoquestion

    How do you see AI changing the personalized learning landscape?