When Risk Reversal Builds Brand Loyalty

Discover how the approaches of two footwear companies impact long-term revenue through the way they handle friction and customer trust.

Warren Samu 6 min read

Great brands don't just lower friction. They absorb risk.

In December 2023, I desperately needed new footwear. I wear a size 13, need extra width, and deal with higher-than-average arches. Given my constraints, I'm always grateful to any retailer that can meet my needs without friction. Convenience for me, loyalty for them.

The best brands align what they make, how they deliver it, and how they respond when things go wrong.

Audience Fit

Many retailers fall short. They don't offer my size in the style I want, they don't carry a wider version, or they don't provide the right arch support.

That changed when I found ASICS.

They don't produce the most stylish two-tone running shoes, nor can their footwear be worn for every occasion. But when it came to my three priorities, they fit the bill.

“A company's vision must be driven by the aspirations of its customers.”

Konosuke MatsushitaFounder, Panasonic

When our two sons needed shoes, I looked into another brand. Nike advertised convenience, quality, and a few money-saving perks. After it delivered on those promises, our entire family became loyal customers.

Purchase Confidence

Nike goes out of its way to eliminate risk before a customer ever places an order:

How can Nike afford to be this generous?

Product Quality

Nike sells shoes for every activity: running, walking, training, skating, and casual wear. They offer comfortable, long-lasting kicks in a wide range of styles and colors. Some can even be custom designed. Their customers love what they create, and their rarest styles inspire a loyal community of collectors.

“I believe a manufacturer's most important responsibility to the customer is to make defect-free products.”

Konosuke MatsushitaFounder, Panasonic

Of course, even the best products don't satisfy every customer. When I went into a Nike store to buy my new pair of shoes, I asked my questions. The representative measured my feet, talked through my challenges, and explained that I should focus on shoes with mesh material so the shoe would not bend into the upper part of my foot when I walked. I tried on multiple pairs before leaving with the right one.

But throughout the day, and for a couple of days afterward, the shoes felt off. The mild pain in my right foot came back. I didn't feel the support my arches needed. Even after all that time and information, they still did not fit.

So what do you do when your product falls short of customer expectations?

Experience Recovery

I could return my Nike footwear for any reason within 60 days for a full refund. However, that would still leave me with no new shoes. So I gave them another chance.

Nike offers live customer service via chat on its website and app. They call the feature “Ask an Expert.” Within a minute, a representative introduced themselves, I explained my requirements for a new pair of shoes, and they recommended two styles they thought would fit my needs. Soon after, I placed an order.

The shoes arrived that Wednesday. I never left my home, got stuck on hold, or spent considerable time trying to solve the problem. One quick virtual chat and Nike made it right.

The shoes fit great. Expert indeed.

“After-sales service is more important than assistance before sales. It is through such service that one gets permanent customers.”

Konosuke MatsushitaFounder, Panasonic

The next time I visited the mall, I dropped off my original purchase at the Nike store for a refund. No questions asked. Simple.

The same day I visited Nike's website, I also bought the current version of my old ASICS, just in case.

This time, though, ASICS fell short.

Risk Built Into the System

Location

I live in sprawling San Diego, California. ASICS only offers limited stock through a handful of third-party retailers here. If I want to try a pair in person, I'm left searching the city. The nearest ASICS brand store? A 60-minute round trip across the border, traffic permitting.

Because ASICS lacks enough locations and transparency around partner inventory, I'm pushed to buy online.

Policy

ASICS' shipping and refund policies include several standard terms, but they also contain a number of friction points that make returns harder than they should be.

ASICS puts nearly all the responsibility and risk on the customer. When purchased online, the return rules create plenty of room for things to go wrong:

Quality

Despite the drawbacks and risks, I bought a new pair of shoes from ASICS' website. The package arrived in a shipping bag, with the shoe box crushed and damaged in transit.

When I wore the pair, the right shoe made a strange popping noise as the material on the sides bent and straightened with each step.

I hated the look, too.

Support

I reached out to ASICS about the popping noise. With no live chat option, I could only call or email customer support.

Wanting to avoid the time sink of navigating an automated phone system, I decided to send ASICS an email. I filled out the required fields, including my name, email address, order number, a brief description of the popping noise, and a request for a solution.

A few days later, ASICS sent me a generic email instead of starting a conversation. It listed 14 items of information they wanted me to provide, including information I had already sent. They did not acknowledge the popping noise I reported.

Rather than waste more time, I initiated a return and will not order from them again.

Loyalty lost.

Tailor the experience. Be the solution.

Given how Nike and ASICS handle the customer journey, it should be no surprise that Nike outshines the competition, generating far more revenue than ASICS while selling at similar price points.

Nike reduces risk at every step. It offers consistent products, helpful service, and policies that build trust instead of friction. That trust turns into loyalty, repeat purchases, and word-of-mouth referrals. Over time, Nike sees faster growth, stronger profits, and a bigger lead over the competition.

Reverse the risk.

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