RETURNS HAPPEN

In a perfect world, retailers would never have products returned, all online feedback would be glowingly positive, and we’d be awakened each day by blue skies, sunshine and singing unicorns. Maybe scratch that unicorn bit, but the rest of it is pretty accurate. As we all know, though, we don’t live in a perfect world. We wake up some days to gray skies and stormy weather, and we have to deal with returns.

Returns have always been a part of retail. Brick-and-mortar stores have tried to reduce returns in the past by placing restrictions on returns, such as “No returns after three days,” or “Returns subject to a restock fee,” or “No cash refunds, store credit only.” Mail order purchases (for the younger crowd, these were long-distance sales made prior to the internet) were expensive to return, since the buyer paid the return shipping. A month after the return, a corporate check for the purchase price, less the restock fee, would arrive in the mail. It was a cumbersome and fear-filled process for many shoppers.

Land’s End got my attention years ago when it offered easy returns with no hassle. It also had a lifetime warranty on everything it sold. Sure, its stuff cost a little more, but it was excellent stuff, and if it didn’t fit or we just didn’t like it, no big deal. Land’s End would exchange or refund it — whatever we wanted. About three years ago, my wife wanted to replace a Land’s End canvas briefcase she had dragged all over the world for about 20 years. The handles had finally given out, so she called to ask about having it repaired, and the lady on the other end said she’d send her a refund, because they no longer made that item. No need to return it, her word was good enough. Can you say “wow”?

Amazon has raised a whole new generation of customers who have been trained by the online behemoth to expect free, no-questions-asked returns, no matter the item’s condition, for up to a month after delivery. The Amazon return policy is forced upon its sellers, further cementing this as the new way to handle returns.

MI retailers are now faced with deciding how to handle returns. We’re getting instruments and accessories returned, often without explanation, and sometimes without notice. The old days of “no returns after three days” are gone, so what should we do now when we get returns? What should we do when we get unreasonable or unexpected returns? Assuming the item has come back to us in the same condition it was in when it left, can we refuse a return without raising the specter of online reprisal? Probably not.

Having a no-questions-asked return policy can be expensive, and it may stick in the craw of some retailers, especially old-school retailers (like me). So, what do we do? What, oh what should we do?

Since the plain fact of the matter is that returns will happen (old adage: “returns happen”), we can either grouse about returns and let them get under our skin, or we can change our view of returns and see accepting them graciously as a marketing win. Remember the Land’s End briefcase, covered by warranty after 20 years of regular use? That one transaction reflected the whole Land’s End attitude toward customers, and partially as a result of that, I’m wearing Land’s End jeans right now. My bride was seeking a repair, and she got a voluntary refund when Land’s End couldn’t come through on the repair. That refund guaranteed we would see that company as righteous folks who are on our side.

When a customer needs to make a return, online or in person, emulating Land’s End is a great way to handle that request. Smile, be friendly, be glad you can accommodate the customer, thank them (no matter how you feel inside, thank them), and ask them to try you again. If you get a good vibe that the customer is happy with the way you handled the return, maybe hand them a small slip with your Facebook page or Twitter account name and ask if they would give you a little online love. Most customers will sense that they are important to you. You’ve just given them money back, or swapped out a set of strings, and you are opening yourself up to their public opinion.

Of course, you want to do the same with your customer at the time of the sale. If they are really happy, ask for some online love, and the good reviews will flow. The most important time to make that customer feel special is when something hasn’t gone right, and they are making the return. Be glad, be their good friend and shake their hand. Thank them, and if you get the vibe they are feeling the love, ask them if they would leave you a kind word online.

There are a lot of ways to turn the sow’s ear of a refund into the repeat-customer silk purse, and each transaction will differ in one way or another. But they all share one common denominator: The customer wants to leave happy, and you are the one who benefits the most if they do. And for heaven’s sake, don’t have a four-page policy on how to handle returns. If you can’t explain your return policy in 10 seconds, you need a new policy. “Make ‘em happy and ask them to come back” is not a bad policy to start with.

It may cost more at the moment of the refund to be so welcoming and willing about returns, but it may well end up being the least expensive marketing you’ll ever do.

Happy trails.

By Allan McBroom