Let’s be honest: Who really likes returns?
As a retailer you are in the business of selling merchandise not taking it back right? After all returns take time and generally mean the customer had a negative experience with the merchandise or simply had a change of heart – and now their problem is going to become your problem. Full disclosure here: That used to be my mindset. I dreaded seeing our bags coming back into the store. My hunch is that a lot of NSRA members may feel the same way.
Over the years returns of retail sales have steadily increased; according to the National Retail Federation nine percent of retail sales are now being returned. The latest figures available suggest that returns in 2014 hit $284 billion up 6.2 percent from the previous year. Some attribute this increase to online shopping since one-third of online purchases come back.
Retailer Poll Results
I decided to poll a cross-section of retailers that I consult with to find out what their return policies are. I wasn’t terribly surprised with what I learned. It appears that the smaller the volume a store does the stricter their return policy is. Among these store owners the general consensus is that they feel they simply can’t afford a more liberal policy and thus opt for store credits in lieu of cash refunds and a tighter window in which returns are accepted.
Larger-volume operations on the other hand approach this issue with a completely different philosophy – or so it would seem. Larger stores in general adopt the approach that “if a customer isn’t happy the customer probably isn’t coming back.” They also seem to allow the customer a longer period of time in which to make a decision on the merchandise. Thirty days appears to be the norm.
My unscientific poll included other discoveries. One was that “final sale” items were not returnable. That seems reasonable to me unless the product is defective in which case it should be returnable.
Become a Vendor Issue
Most retailers said that any returns had to have the sales receipt and could not show any signs of wear. Again larger volume retailers are a bit more lenient here. One store in particular actually advertises that customers can exchange footwear they have worn if the pair isn’t working for them within 30 days. A liberal policy like that takes away any fear a customer may have regarding the purchase.
Willing Versus Not?
Might a case be made that larger volume stores became that way over time because among other things they were willing to do what the customer wanted them to do? Next time you are confronted with a return you think is questionable try asking the customer what she would like you to do to make her happy. If a store credit is going to annoy a customer to the point of creating hard feelings is it really worth it? To the stores that feel they must keep the money “in the store” it might be time to rethink this approach. I contend you keep more money in the store in the long run by making the customer happy. That may mean giving more cash refunds.
A “Perspective” Change
Looking at returns from another perspective a return means the customer has made yet another visit to our store. How can we make this a positive experience for everyone? The customer had to spend time and money to come back into the store to return something that he felt justified in bringing back. I will offer an idea that is sure to garner an eye roll from some retailers: Consider offering customers a five-dollar credit “for their trouble” once you have completed the return/exchange to their satisfaction. That might get some very positive kudos on Yelp. Believe me though: That five dollars will come back to you in multiples. You have to give to get!
All Sales Are Final!
Wow that makes me want to buy… not! How about something more customer-centric such as “All Sales Are Final When You Are…
Completely Satisfied?
My belief is that smaller stores would grow their volume by actually promoting a more liberal return policy emphasizing complete customer satisfaction. Many smaller stores see themselves as at the mercy of larger retailers.
Is Your Return Policy Hurting Your Business?
Ritchie Sayner
All Sales Are Final! Wow that makes me want to buy… not! How about something more customer-centric such as “All Sales Are Final When You Are Completely Satisfied.”
Published in the May/June 2016 issue of Shoe Retailing Today Copyright © 2016 National Shoe Retailers Association Tucson AZ www.nsra.org. All rights reserved.
- Some customers expect or hope for assistance when they seek help for a medical condition or in being fit with shoes.
- Many customers look at the shoe as a treatment and at the process of being properly fit with a shoe as an exam.
- Some customers walking into a running or comfort shoe retailer often have the same concerns as those who walk into a medical clinic.
- They may have a current foot problem that they hope can be addressed.
- They may have lingering concerns about a previous injury and be in need of shoes to prevent recurrence.
- They may feel that their previous retailer hasn’t offered them the care they wanted and expected.
Of course it doesn’t take a Harvard study to point out that being nice to people has positive effects. But this study certainly suggests that the way we interact with our customers may be as important as our expertise in helping them select the proper footwear to meet their individual needs. Simply put understanding where people are coming from and trying to meet them there is key to helping them.
Paul Langer D.P.M. practices podiatry with Twin Cities Orthopedics in Minneapolis Minnesota and is a past president of the American Academy of Podiatric Sports Medicine.
Adjunct Clinical Faculty Member
University of Minnesota Medical School
He can be reached at paullanger@tcomn.com.
1Kaptchuk Ted J. John M. Kelley Lisa A. Conboy Roger B. Davis Catherine E. Kerr Eric E. Jacobson Irving Kirsch et al. “Components of placebo effect: randomised controlled trial in patients with irritable bowel syndrome.” Bmj 336 no. 7651 (2008): 999-1003.
To read go to: http://www.bmj.com/content/336/7651/999?goto=reply
Selling to Baby Boomers
They want and what you have to sell. For example if the product is electronics you want to keep connecting them to the item you have in stock selling it in a way that says “This is not just a device; it’s all the things this product can do for you.”
Boomers are members of a generation that doesn’t like to return things – they want to get it right the first time.
Personal Selling
Selling to Baby Boomers is not that hard but it has to be personal. If Millennials respect the fact that a Boomer took the afternoon away from something else to come in and is in your shop to buy Boomers will respond.
Employee Training
Employee trainers should also keep in mind that despite the job-hopping that’s occurring across the country Millennials’ commitment to their jobs is typically very high. They’re looking to acquire new skill sets and experiences. Make sure you are training them properly so they can deliver a world-class customer experience.
If not you risk not only losing a Millennial’s interest in working in your store but also a Boomer’s interest in shopping with you.
About Bob Phibbs
Bob Phibbs is CEO of The Retail Doctor a New York consultancy. As a speaker sales consultant and author of The Retail Doctor’s Guide to Growing Your Business he has more than 30 years’ experience in retail from beginning in the trenches of retail to senior management positions. For more information visit www.RetailDoc.com.
The internet due to its sheer magnitude as well as at the whims of larger retailers. Believe me tightening up the return
Policy does nothing to combat this.
Going Above and Beyond
I know of one merchant who took back a pair of shoes he never carried because the customer was adamant that the shoes were purchased at his store. His mindset was clear: “I can refuse this unjustified return and guarantee I will never see this person in my store again and risk additional negative social media backlash or I can graciously accept the return ask the customer what she would like us to do and hopefully turn a negative into a positive.” You might say he chose to lose the battle yet win the war.
When to Mark Down a Customer
There are times when a retailer should “mark down” a customer. If you have a customer who habitually takes advantage of your return policy or is abusive to your employees it may be time for them to take their business to a competitor. Obviously your store is not a good match for this customer – and in some cases it is best to part company.
But when a good customer feels justified in returning something and your policy says “no way” it’s time to revisit your return policy. Talk with your store managers sales associates and even a few of your better customers. Ask them if your return policy is hurting your business – and listen carefully to their comments. Remember the rule about rules: Never make a rule that affects the many based on the actions of a few.
■ Ritchie Sayner is vice president of business development at RMSA Retail Solutions and the author of Retail Revelations: Strategies for Improving Sales Margins and Turnover. He can be reached at rsayner@rmsa.com. To follow him on Facebook go to www.facebook.com/RitchieSayner.
Drive Boomer Sales
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Bench-side Manner
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Return Policy
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Summary
The article discusses the evolving perspectives on return policies in retail highlighting how larger retailers tend to adopt more lenient return policies to maintain customer satisfaction while smaller retailers often have stricter policies due to financial constraints. It suggests that a more customer-centric approach such as offering cash refunds and ensuring customer happiness could ultimately benefit retailers by fostering loyalty and repeat business. The article also emphasizes the importance of understanding customer needs and being flexible with return policies to enhance overall customer experience.
“If a customer isn’t happy the customer probably isn’t coming back.”
Real-World Examples of Return Policies
The article discusses various approaches to return policies in retail highlighting the differences between smaller and larger retailers. Here are some real-world examples that illustrate these concepts:
- A well-known electronics retailer offers a 30-day return policy with no questions asked allowing customers to return products for a full refund or exchange even if the product has been used. This policy encourages customers to make purchases with confidence knowing they can easily return items if they are not satisfied.
- A popular online clothing store provides free returns and exchanges within 60 days of purchase. They include a prepaid return label with every shipment making it convenient for customers to send back items that do not fit or meet their expectations.
- A small boutique adopts a stricter return policy offering only store credit for returns within 14 days of purchase. This approach is due to their limited inventory and the financial impact of processing cash refunds aiming to retain revenue within the store while still accommodating customer needs.
