IF YOUR CONCERNS FOCUS ON THE RETURN DEPARTMENT, THEN IT WAS THE TIME TO CREATE MORE EMPATHY TOOLS WITH THE CONSUMER.
'I have a business selling imported clothing for boys and men. The clothes are of very good quality and still quite attractive price. However, there are many occasions when customers who have already bought a garment, return several days later to return it (because it was not to their liking or because it was not the correct size).
However, they do not come to change the garment, but to request the return of their invested money. I have a no-cash-back policy, but it's very common for customers to get very upset about it. Why can't they understand that businesses can't survive on pure returns? Why, if, at the end of it all, we give them their money back, they leave angry? Isn't it because customers abuse us, the merchants? '.
ERÉNDIRA GÓMEZ, MÉXICO, DF
You are right when you say that business cannot survive if we receive more returns than sales, regardless of whether they are made in cash or in kind.
Perhaps the wrong approach is to think that the client does not understand him and that he tries to abuse his consumer status. It is valid that you request understanding from your clients, although I can assure you that you will not obtain it if you, first, do not show your understanding to the client.
Who benefits from the no cash back policy: the business or the customer?
If you, as a customer, do not feel understood, would you try to understand and justify the attitude of your provider? I assure you that most of us would not.
THE CLIENT WANTS EMPATHY
Most of us clients want to find empathy with the people we deal with in business. In other words, they understand our situations, circumstances and needs.
Surely you have ever bought an item as a gift. Then you will agree that if the reason for your purchase is a gift, the probability that a conflict may arise is great for an element as subjective as the taste of the person who will receive it. If you deny a customer the possibility of receiving their money back for the wrong choice, you are also denying yourself the possibility of a satisfied and loyal customer to your store.
ON THE DEFENSIVE
Almost all clients come with a bit of a rush and a predisposition to make a change or return, as this implies time invested and admit, in some way, that they made the wrong choice. With these elements you already have a client on the defensive.
And if you add to these factors your policy of no cash back, you can understand the result: a demanding, uncompromising, demanding, aggressive and even rude buyer, who will start yelling in your store - which will scare away other visitors - and will leave all parties unsatisfied.
SOLUTIONS
A predisposed customer wants to receive empathy from the business they go to, helping them solve their problem and giving them the opportunity to solve it in the shortest possible time. When you are making the sale and the client shows doubts about a possible return or when, later, the consumer requests the return, make the following proposals - which have worked very well for our clients -:
- RETURN THE MONEY YOU INVESTED.
In fact, in the Federal Consumer Protection Law, this right exists for everyone, regardless of your company's policies.
- EXCHANGE THE GARMENT (OR PRODUCT) FOR ONE OF THE SAME PRICE, WITHOUT ANY RESTRICTION. EXCHANGE THE GARMENT FOR ANOTHER OF A DIFFERENT PRICE, ALWAYS AND WHEN THE PRICE IS LOWER.
(in which case you will refund the difference). If the item is more expensive than the one being returned, the customer must cover the difference.
Of course you must set the conditions to process such a return: bring a copy of the ticket or note, do it within seven days after consumption, etc.
Analyze how many returns you have, on average, per month. If they are constant in your business, consider the causes of return. If it's for quality or taste, you may need to expand your range of providers.
If the majority are by size or inappropriate purchase choice, then present your customer with the option of valid merchandise coupons.
The moment you see an insecure customer, suggest this alternative. Thus both parties will benefit.
These actions will dampen the predisposition of its clientele.
Surely your buyers will feel that you are on their side, that they take their needs into account and do not consider them as a simple vehicle for profit.
A CASE OF SUCCESS
Recently, we served a chain of women's clothing stores, which were experiencing a problem like the one discussed in this article.
The owners asked us to participate to find the solution, as they were alarmed to find that they had returns of close to 30 percent of the total sale.
The worst thing was that of that total, just over 85 percent of the time, the returns had to be in cash, which produced a high cost for the organization.
By implementing the suggestion we make in this article, these were the changes you noticed six months later:
- Sales have increased more than 21 percent thanks to the new return policy. Return requests grew 9 percent. However, out of 100 percent of return requests, only 18 percent of applicants, a quarter of the previous average, had to be returned in cash. The rest have been carried out with a change in kind. In 42 percent of the return request cases it has been recorded that customers exchange the merchandise for a higher price (paying the difference) or buy another additional garment. In other words, sales increased. 26 percent of customers who asked for a return in the last six months have returned to buy at least one other time from the same business.
This company has benefited from showing empathy to the customer.
