If you run a store, you’re going to have people bringing product back at one point or another. I feel that this is the single most important interaction you can have with a customer. It’s what most people complain about online and to their friends (in my unscientific analysis) . This one interaction can sour a customer towards your store for life.
Think about it.
If I buy something from your store, 1 week later it breaks (through no fault of my own), and you give me a hard time about returning or exchanging it, I’m now worried about buying anything from you. What if something else I buy breaks? Will I just lose that money?
I’ve read a bunch of blogs that talk about refunds/exchanges yet stores still treat you like a con artist when you come to their store. Just recently at the company I work for a sales associate gave one of our customers a hard time. Why? Because we clearly laid out the rules for returns, but spent no time on how the sales associate should BEHAVE during that process.
How to Handle Returns (IMHO)
“I’m sorry” does not equal “my fault”
First, regardless of whether or not it’s your fault, apologize to the customer. You don’t admit wrongdoing, just simply apologize for their inconvenience.
customer: I bought this the other day and it doesn’t work anymore.
employee: I’m sorry to hear that. Let’s see what we can do.
“Let’s see what we can do” puts you on their side. You’re now making them feel like you’re helping them. The key is to now actually help them. Most companies have strict rules about how to handle refunds/exchanges. My feeling is that you should have a no fault exchange policy. If something is broken, given them the same item straight out. No muss, no fuss. They leave happy and you didn’t interrupt their (or your) day too much.
If you’re lucky, they don’t want the same thing, but possibly something better. You could even suggest this.
employee: We have more of that particular item in stock if you want to do an even exchange. Or, we have this model that has similar functions and a few extra features for just a few dollars more?
What’s great about this, is that you’ve now given them options. Some people don’t want to try again with the same item for fear the problem is endemic to that product. It is usually a baseless fear, but by giving them the option you’ve made it clear they’re not stuck with the product. You’ve given them a psychological safety net.
Another thing I dislike that many companies do: send the customer out to find the item themselves. If the customer wants the same item, go out on the floor and get it for them. It makes you seem like you really care about them. The number of times I’ve heard, “go grab you another one” (seriously that’s a quote from one big box store) is unacceptable. Don’t make the customer who already had to drive all the way back to your store go hunt for a replacement, as well. Even if you just walk with them, it makes the process so much better and gives you the opportunity to upsell.
Refund is not a four letter word
Now, what if they don’t want an exchange? What if they demand their money back? Radical idea, give it to them. I know this hurts, but it’s better to keep the customer happy than to risk alienating a potential return customer.
The problem is that some people will abuse this laid back return policy. I think a good system to have in place is a 3 strikes rule. If a customer keeps bringing back items for a full refund, give them 3 opportunities a year and the 4th time they come back suggest they shop elsewhere (Doug Fleener has great advice about how to fire a customer – and a much better blog than me). If you have a computer system enter them into it and keep track of how many returns they do.
Save your arguments for happy hour
The other big mistake companies and sales associates make is arguing or explaining why they can’t help you. Has anyone ever won one of these arguments? The saying “the customer is always right” doesn’t mean the customer is actually right, it means don’t argue with them.
The customer doesn’t care about how your vendor won’t take an open item back, or how you can’t re-sell it in the condition it’s in, or without the tags. What they care about is that they aren’t happy with their purchase, and now you’re making them unhappy with your store.
These were the mistakes our sales associate made (hassling, sending out on their own, explaining). Now we’re going to go back and train all our associates on the proper way to deal with returns from the standpoint of delivering excellent service.
So, two questions: 1) What’s your return policy? and, 2) How are your employees treating your customers during this process?