From conversion to connection: how post-purchase excellence drives higher customer spending

How can merchants transform the messy ‘second half’ of the payment journey into a loyalty engine?

Industry leaders from Riskified and Riverty revealed it all during a webinar hosted by The Paypers. For those who missed it, Mirela Ciobanu, Lead Editor, shares key takeaways from the webinar.

Introduction

In the world of ecommerce, most merchants obsess over checkout optimisation and conversion rates. But what if the real battleground for customer loyalty lies beyond the ‘buy’ button? In a recent webinar hosted by The Paypers, industry leaders Steven Piet from Riverty and Ephraim Rinsky from Riskified revealed a game-changing perspective: the post-purchase experience is where lasting customer relationships are truly forged.

With research showing that returning customers spend 67% more than first-time buyers and that acquiring new customers costs 5-25 times more than retaining existing ones, the message is clear: merchants who master the post-purchase journey unlock exponential growth potential.

The hidden economics of customer retention

Steven Piet, Product Lead – Checkout Payment Methods at Riverty, shared compelling data that should make every merchant rethink their priorities. While first-time visitors to a website convert at just 1-2%, returning customers have an astounding 60-70% conversion rate when they revisit. This dramatic difference underscores why building loyalty through exceptional post-purchase experiences it's essential for sustainable growth.

‘Checkout conversion is really important, but it's just the first stage in building loyalty and trust’, Piet explained. ‘Getting customers back for their second and third purchase is where the real value lies.’
The stakes are high when merchants get it wrong. According to the research presented, 84% of consumers doubt they would return for a second purchase after a negative return experience. Additionally, just three delivery delays can drive away 58% of a customer base, highlighting how fragile customer relationships can be.

The AI arms race in fraud prevention

Ephraim Rinsky, Director of Product Marketing at Riskified, highlighted one of the biggest challenges facing merchants today: the automation revolution in fraud. ‘All the fraud and abuse tactics we've seen over the last decade are now coming back tenfold, twenty-fold,’ Effie warned. Fraudsters are leveraging AI to execute sophisticated schemes that were previously too time-consuming to be profitable. However, merchants aren't defenceless. Riskified's advanced identity resolution technology has proven remarkably effective. In a case study with Ring, they discovered that 12% of all return claims came from just 0.2% of shoppers, clear pattern abusers. By automatically denying these high-risk claims, Ring saved nearly USD 4 million (USD 3.3M) annually while simultaneously speeding up refunds for legitimate customers.

The Buy Now, Pay Later revolution

One way to enable shopper loyalty is to provide the payment method of their choice. One such top payment option preferred is Buy Now Pay Later. Buy Now, Pay Later (BNPL) has evolved far beyond a simple payment option. Piet explained how BNPL serves multiple customer needs: it allows consumers to inspect products before paying, manage cash flow more effectively, and try new brands with reduced risk. Generation Z is particularly embracing this payment method, being three times more likely to use BNPL compared to baby boomers.

Interestingly, BNPL is expanding beyond traditional retail into unexpected sectors. Riverty offers ‘barrierless parking’ in Europe, where parking sessions accumulate on a monthly invoice, and the DIY (Do It Yourself) industry has embraced BNPL for expensive tools and building materials.

For orders above EUR 250-300, consumers increasingly prefer splitting payments into three instalments rather than paying in full within 14 days.

The merchant-first approach: protecting brand relationships

One of the most critical insights from the discussion was Riverty's merchant-first philosophy. Piet emphasised the importance of merchants maintaining control over customer relationships, warning against payment providers that might overstep boundaries and potentially redirect customers to competitors.

‘We promise that we will not push any marketing content which may harm your competitiveness’, Piet stated. ‘All our communication is co-branded, featuring your marketing materials in our emails and your templates. It gives consumers the feeling they're still interacting with your brand.’

This approach extends to returns processing, where Riverty encourages consumers to report returns directly through the merchant's website. This strategy not only keeps merchants informed about inventory but also creates opportunities for additional sales when customers browse for replacement items.

Speed: the new currency of customer satisfaction

Both speakers emphasised that customer expectations around returns and refunds are accelerating. One in three consumers have cut ties with certain retailers or ecommerce stores due to negative return experiences. Factors most often contributing to negative customer experience include poor customer service, long waits for refunds, shipping or restocking fees, etc. While traditional return processing can take 10 days or more, customers now expect resolution within 2-3 days. ‘Customers think we live in a world of AI’, Effie noted. ‘They wonder why they should wait 10 days to get their money back when AI can summarise a master's thesis in five seconds.’

The solution lies in intelligent automation. By leveraging identity resolution and pattern recognition, merchants can auto-approve refunds for trustworthy customers instantly while flagging suspicious claims for review. This dual approach protects against fraud while delighting legitimate customers with lightning-fast service.

Conclusion

The message from this discussion is clear: the checkout is just the beginning of the customer relationship, not the end. Merchants who invest in exceptional post-purchase experiences, from seamless returns to intelligent fraud prevention, build the loyalty that drives long-term success.

As Piet summarised, ‘Yes, checkout and conversion are important, but don’t overlook the negative flows, like returns. If you get those right, even when the first sale doesn’t go through, you increase the chances of closing it the second or third time, and those repeat sales tend to be far more profitable than the first.’

In an era where customer acquisition costs continue to rise, the merchants who master the post-purchase journey won't just survive, they'll thrive by turning one-time buyers into lifetime advocates.

About author

Mirela Ciobanu is Lead Editor at The Paypers, specialising in the Banking and Fintech domain. With a keen eye for industry trends, she is constantly on the lookout for the latest developments in digital assets, regtech, payment innovation, and fraud prevention. Mirela is particularly passionate about crypto, blockchain, DeFi, and fincrime investigations, and is a strong advocate for online data privacy and protection. As a skilled writer, Mirela strives to deliver accurate and informative insights to her readers, always in pursuit of the most compelling version of the truth. Connect with Mirela on LinkedIn or reach out via email at mirelac@thepaypers.com.