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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

Removing return friction drives loyalty better than penalizing customers

Felan argues that retailers have inverted their returns strategy: instead of weaponizing return fees to protect margins, they should invest in seamless reverse logistics to maximize customer lifetime value. The counterintuitive insight is that easy returns function as a loyalty driver that outperforms penalty-based approaches in competitive retail markets.

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“Removing friction from returns drives loyalty far better than penalizing customers for sending items back.”

Easy Returns Help Retain Customers

Strategic levers in returns optimization

Reduce reverse logistics friction9
Optimize return process speed8
Focus on customer loyalty over fees9

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35%Reduce reverse
Reduce reverse logistics friction
Optimize return process speed
Focus on customer loyalty over fees

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Themes:Reverse logistics as competitive advantageFriction removal drives retention economicsCustomer lifetime value over transactional fees

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

Read article →
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?

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