Tackling operational refund delays with instant gift card options
When a customer shops online and needs to return an item, for example to exchange it for a different size, refunds to a bank card can typically take 3-5 working days to process. This delay can interrupt what is often a non-linear shopping journey, where customers want to re-purchase quickly.
To give customers more control, New Look introduced an optional refund to giftcard. Customers can actively choose this at the point of return with 12 months to spend the balance, or continue with a traditional refund to their original payment method.
For those who select the gift card option, funds are issued digitally as soon as the returned item reaches the distribution centre, allowing customers to re-shop sooner and manage their money more easily.
Beyond the immediate use case, the solution plays a strategic role in customer retention by keeping value within the New Look ecosystem. Rather than driving a single transaction, it encourages repeat engagement and supports an ongoing relationship between the customer and the brand.
Challenge
New Look identified an opportunity to improve the customer experience at a key moment in the shopping journey: returns and refunds. While online shopping volumes continued to grow, traditional refund processes were not always aligned with customer expectations for speed, flexibility, and digital-first experiences.
In particular, customers returning items in order to exchange for a different size or style were often required to wait several days for a refund to be processed to their original payment method before placing a new order. At the same time, New Look wanted to move away from paper-based credit notes and create a more consistent experience across in-store and online channels.
Alongside these customer experience goals, the business looked at how its existing gift card program could play a bigger role, making gift cards a core part of the business rather than a brand awareness tool.
Solution
Working with Edenred Payment Solutions, alongside existing partners ZigZag and Voucher Express, New Look launched a new refund to gift card proposition.
The solution is offered as an optional alternative during the returns process, allowing customers to actively select a gift card refund if they want faster access to their money, or to continue with a standard refund to their original payment method.
For customers who choose the gift card option, an eGift card is issued digitally as soon as the returned item arrives at New Look’s distribution centre.
Funds are available to spend immediately online or in-store, either on a replacement item or a future purchase.
Edenred Payment Solutions provides the underlying payments capabilities powering the programme, including closed-loop gift card issuance, processing, balance enquiries, top-ups, and redemption, across virtual gift cards.
The result is a more flexible, digitally enabled refund experience for customers, while supporting New Look’s wider goals around retention and brand engagement as a natural by-product of improved customer choice.
“Edenred Payment Solutions are more than a supplier. They are a partner that allows us to continually innovate and improve the customer experience. Their gift card expertise gives us the confidence to test new ideas and deliver more flexible journeys for our customers,” said Jessica Hartnett, B2C partnerships mMarketing manager, New Look.
Results
Since launching in October 2024:
- Over £2M retained within the business
- 4% uplift in customers choosing the refund to gift card option
- £270k retained within the business in one month, as refunds were re-spent rather than paid out
- 42% of customers redeemed their gift card on a subsequent purchase
- 48% uplift in basket value when customers redeemed a gift card compared to standard purchases
Conclusion
New Look’s refund to gift card programme demonstrates how optional, digitally enabled refunds can better support modern shopping behaviour, where returns and re-purchases often happen close together.
By giving customers faster access to their money and greater choice at the point of return, New Look has improved flexibility at a key moment in the customer journey.
At the same time, the programme has helped strengthen loyalty and repeat purchase, showing how customer-first design can also deliver meaningful commercial outcomes when supported by the right payments infrastructure.
