June 12, 2012
The Return of Customer Service
I hate having to return products to stores. That’s especially true when the items I return are bought by my wife who sends me back to financially resolve her purchasing missteps. Fortunately, most of the time when this happens, she sends me back to the Dot store (our pre-schooler’s name for the natural foods store co-owned by a woman of the same name) or Target, both of which are hassle free.
Returns at the Dot store usually go something like this:
Dot: Something wrong with it?
Me: No, she forgot we already had three at home and didn’t need this many.
Dot: No problem. (Hands me the money) So, how is that little dancer of yours? She came in with Jamie and I couldn’t believe how much she’s grown.
Returns at Target are also easy, albeit less familiar:
Target Associate: How may I help you?
Me: (No conversation. I just hand her/him the receipt.)
Target: That’ll go back on your Red Card. Is there anything else I can help you with?
Me: No. Thanks.
I bring up the ease of returns because bringing product back, even to stores you frequent often, is not always easy. Two local stores, one part of a large grocery chain operation and the other a big hardware store chain, have for years required that you provide the receipt and then fill out a form with name, address, etc. I’m not sure what purpose the forms play since they already have my/our information from the receipt plus a credit card and/or a rewards card. There’s also the issue of legibility. Some 30+ years ago, I began writing everything with the aid of keyboard (back then an IBM Selectric) and gradually lost the ability to write longhand. There is no one, including myself, who can read my handwriting.
I have to admit that my return experiences while shopping online have been pretty stress-free over the years. I did once tell a call center representative that my first time shopping their site would have to be the last if I was charged whatever their return fee was. You see, the product that showed up at my door looked nothing like the photo on the site. Anyway, even in that case, the representative told me the fee would be waived and everything turned out well in the end. I’ve even placed additional orders on that site.
Today, I never place an order on a new site without reviewing its return policy first. As it turns out, I’m not alone. Sixty-three percent of people who shop online do the same thing, according to comScore.
A recent press release to announce comScore’s Online Shopping Customer Experience Study concluded, "Hassle-free returns and exchanges rank above average in terms of importance for shoppers but rank low in terms of current customer satisfaction, showing a significant area of opportunity for retailers."
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Discussion Questions
Discussion Questions: How important are product returns in determining customer satisfaction in stores and online? How important is a friendly verbal exchange during the process? Can you point to personal examples of how customer service went right or wrong?
Poll
Like George’s experience at Target, Kohl’s has been known for hassle-free returns for many years and now J.C. Penney is making it a centerpiece of its brand reinvention. (Although when JCP’s key competitors are already known for it, hassle-free returns aren’t a very distinctive positioning tool.) It’s clearly something that resonates with consumers, and online retailers like Amazon have raised the bar on this element of customer service.
Many retailers mistakenly believe the sale is the end of the transaction. In fact it is the beginning of the transaction and the relationship. Therefore, as much care needs to be given to post purchase activities including product performance, guarantees, and yes, the dreaded returns.
If returns are considered another part of building and maintaining a relationship with the customer then the return process could be designed to enhance subsequent purchases.
Regarding the verbal exchange, no one ever apologizes when you return a defective product. Unfortunately, there is the misperception that ‘I’m sorry’ means ‘I’m guilty’. Treat the customer first, the return second.
Product returns are a key part of the overall shopping experience, and as such, play an important role in customer satisfaction. As George mentions, returns are a hassle for consumers and retailers. Why put consumers through hoops to get their money back?
There is a sense of ease and well-being when shopping at Costco or Nordstrom from knowing that they have a hassle-free return policy. Online, Amazon shines in this area.
Retailers need to create policies that prevent consumer abuse on return privileges, but those policies need not create a wall that consumers must surmount in order to get their money back.
My wife is a full time professional — rendering her a part-time shopper. Her preferred channel is now online, even for fashion and the all important shoes. She literally selects sites based on the shipping policy. Free shipping gets you in the door. Free returns gets you on the “preferred list.” I honestly wonder how these retailers make money if as many shoppers do the “order it in 3 colors and 2 sizes to see which one works” and then return 5 of the 6 items — but no one has cut her off to my knowledge. They just keep sending more catalogs, email offers and coupons. Online retailers are setting a very tough standard in this aspect of customer satisfaction.
Returns are not only a hassle for the consumer, but for the retailers too. Shopping online is easier since they keep very good records and as stated, have excellent return policies today. But not every store; the return policies are all over the board. Why? To protect the store from the small percentage of people who abuse the system.
Years ago, when I managed stores for a major supermarket chain, we had a no-questions-asked policy. I knew people would enter the store, pick up an expensive item and go straight to the office to return the item. No questions asked, meant they got their money back.
No so today, the technology is better and stores can track a purchase. Don’t have the receipt? No problem, when did you purchase the item and I will find it for you. Only wish we had that back in the ’70s.
Return policies are there to thwart the rising shoplifting/shrink problem. Since they can’t ask people according to some “type,” they require all to fill out the forms. I suspect if the person returning the merch didn’t look like a neighbor, the local retailer wouldn’t be so cooperative.
Hassle free returns may determine whether a customer shops a particular store or site, but is considered one of the baseline criterion for shopping at that store or site and has nothing to do with satisfaction. Satisfaction is related to the shopping experience and how the consumers are treated after they decide to shop at the store or site.
It isn’t the policy, it’s how it is implemented. Many stores have great on-paper policies yet, in practice, make you crawl over a mile of broken glass for a refund or exchange.
Being friendly is always a bonus but I’m a big fan of efficiency, myself. You don’t have to smile at me, just give me back my money.
In terms of good personal service on returns I’ve always had good luck at Home Depot which seems to have a “no questions asked, give them their money,” policy.
My best recent experience was at Staples. I had a printer, (after all really a disposable asset anymore,) that jammed beyond redemption. I couldn’t remember if it was under warranty or not. Called the store and an associate looked up the warranty numbers I needed, emailed them to me and sent me the move numbers I needed to exercise the warranty claim. Needless to say to to anyone that ever had a Staples’ claim, the warranty service isn’t run by the company. They didn’t want to process the claim and ended up sending me a broken, “reconditioned,” printer.
My guy at the store then took over personally. He hounded everyone in the supply chain and called me twice a day to report his progress — or in this case, his lack of progress. Eventually, he got to someone at Staples and ended up delivering a brand new printer — and a much more expensive model at that.
Ironically, when I wrote to Staples praising this guy’s efforts on my behalf I heard nothing for six weeks and then got a form letter thanking me for communicating. And so it goes.
The customer’s perception of service is often measured by how well they are treated when something goes wrong. This often comes into play when, for whatever reason, an item is returned. As noted by Richard, this may be the end of this sale, but the start of a great relationship between the customer and the retailer. True there are some who still mistreat the privilege of a liberal return policy; technology is making this harder and harder to do.
It is interesting to discuss human interaction when returning an item. I am finding that in many stores it is difficult to get the clerk to even acknowledge you during the checkout process other than to ask the absolute minimum.
My best customer return experience was at Office Depot several years ago. A laptop (still under warranty) that I was going to use for a presentation at a national meeting had issues. I was instructed for the fastest service I should take it to a service center nearby. I did so. When the time came to pick it up at the appointed time, I was told it was not ready. Being that I needed one for the next day I went back to Office Depot to buy another laptop.
I asked to speak to the store manager, but was told I couldn’t because he was with the district manager. However, I saw him on the store floor and went to explain the situation. The district manager asked me what was going on and then asked the manager if he knew who I was. He said yes. The DM said to get me a new laptop (actually newer, better version that what I had) and told me that he would take care of all the necessary paperwork and there would be no charge. Our office still shops in that store.
I will be a focus group of one. I am loyal to Costco because of their exchange policy. I have a Sam’s store one mile from my house. I drive 14 miles to Costco 90% of the time.
Nice and friendly is only good with efficiency. Nice without efficient loses.
I of course will give another perspective here on returns. Most retailers don’t absorb much if any of the financial setback on returns. For the most part, they simply charge back the manufacturer or distributor that shipped the product in.
So why would they not all be hassle free? I say the consumer owns part of the process and should be alert enough to not: 1) buy a book – read it over the weekend and return it 2) buy a dress – wear it and then return it, 3) buy something, break it at home, return it saying it was already broken….
the scenarios could go on and on, but the real hit goes to the manufacturer who then must figure this cost of doing business with such retailers into their cost of goods. Nothing is free; every angle from the consumer has a cost.
There’s nothing that will give you a better sense for what a retailer is all about than how they treat you after they’ve already taken your money. I agree with Ryan, though, that the corporate office may well believe that they have the right policies in place to balance getting ripped off by thieves against treating customers well during the returns process, but execution varies widely.
I know from my long-ago Kmart days, the worst job to get was customer service because of all the surly customers trying to return things that had been washed or were a million years old — so I can sympathize that it’s very difficult to retain a cheerful, helpful attitude, especially for the good customers that are just trying to return something legitimate. It’s not that the customer service cashier doesn’t WANT to be nice — but it’s very hard to maintain over time.
Personally, I’ve found Home Depot to be an excellent returns customer service experience. In fact, they were so solicitous about explaining apologetically that if I didn’t have a receipt that I would have to receive a gift card for my return that it got annoying. Especially on my third loop through the store trying to get the right combination of the right sizes of bolts to fix a stair rail. When your customer service is so good — and tightly executed — that it gets annoying, that’s a pretty high bar!
Product returns are tremendously important in not only customer satisfaction but also developing brand loyalty. Watching my 16-year old daughter is a microcosm of her generation as she matter of fact states “all” her friends shop this way. One of her favorite clothing brands is Forever 21, due in large part to their return policies. She can purchase a number of items online, try them on and get her friends opinion in the privacy of her room without sales pressure and easily return what she doesn’t want. Given the amount of Forever 21 envelopes coming to our home, I know their policies are effective in developing an ongoing business relationship.
I check return policy for online retailers and in connection with larger purchases. Intuitively, I make some connection between the familiarity with the retailer and the amount of risk in the purchase and that drives my behavior.
With local stores, the policies are not always clear. There’s nothing worse than having a person “just doing their job” inform you that you have just earned a store credit when attempting to return an item.
Small retailers should take a tip from their online brethren and understand the importance of return policy.
The need for a friendly verbal exchange should go without saying. We all could use a little more pleasantry in today’s world!
The product return policy of a store, local or chain, is a factor in my thinking when I make a purchase. It is never the main point; but it is always there.
My easiest store to make a return to is Publix. There is never a hassle and usually a smile. They take the item back and ask if you want another to replace it, or your money. Simple!
The ones I dislike are, as George’s article said so well, is when you have to fill out a form with the information they already have. I too ask why?
I find customer service is the worst with retailers that use the headsets to contact managers about the returns. Every time I go to a store with headsets or walkie talkies, the manager seems to stall or never even show up to the register to help out, and the associate is less likely to perform a return.
Stores with overhead paging systems show a sense of urgency and managers rush right over when other customers know that a return is being requested at the service desk.
Headsets are in general a very poorly thought out customer service tactic, that are highly un-needed in stores with existing paging systems.
Just my opinion.
Whether in-store or online, product returns are a big factor in determining customer satisfaction. The customer returning the item is already unhappy with the product for some reason, and a faulty product makes the shopper even more testy. Then there’s the fact that the consumer must actually return the product – yet another chore for a time-starved consumer who thought they had finished this chore when they originally bought the item. Add in the potential wait in line, completing of forms, calling for a return authorization code, trip to the PO/UPS store and return shipping fees, and you have a recipe for very low customer satisfaction.
Having a pleasant associate or e-rep to handle the return/exchange can help alleviate many of these issues. Still, it’s not No. 1 for me. Rather, like the comScore survey respondents, it’s the ease of the return that ranks highest. Generally, I’ve run into fewer issues returning items in-store vs. online. Online is definitely fraught with more issues, like receiving an item the shopper decides they don’t want to exchange, but still paying shipping fees — both ways.
Right now, I have a box sitting beside my desk containing a damaged item that was ordered for Mother’s Day from a small e-retailer selling specialty products for senior consumers. Not only was the product damaged, but the ordering of the item had several issues that required calling a rep to find out why I never rec’d an order confirmation and why it was taking so long for the product to be shipped. When I called again to let them know I’d be returning the damaged item for exchange, their system didn’t even reference the item as having ever been shipped. I still must pay shipping costs for the return, and all this is set against the backdrop of having previously had shipping issues with this same e-retailer. I know, fool me once, shame on you; fool me twice, shame on me. My customer satisfaction with this e-retailer has reached zero.
I think it is interesting how few retailers use their data to help them. Tracking returns by customers should be pretty simple and understanding whether dealing with returns effectively grows loyalty would be a relatively straight-forward project.
However, because we are so driven by one-dimensional financial measures and incentive structures, this side of retailing is not viewed on the positive/revenue side of the equation and doesn’t get enough of a look-in.
Customer returns are a key component of the customer satisfaction experience. There doesn’t have to be a friendly verbal exchange, but the process has to be easy and non-confrontational. The easier it is, the more likely that you will continue to shop at that retailer. I too have had many great experiences at Target and other stores whenever there was a return issue. It is why I continue to return to shop at Target….
Filling out a form for a return at a grocery store? No. (Not unless you bought a value pack of Chateaubriand….)
Target has apparently been going about improving service or what I would call a friendly environment for some time now. In my recent visits to two local stores, I have been greeted with a hello and an offer to help by at least five or more associates in traveling through the store. In an attempt to buy a grill at one local store, three associates did everything they could to help. Unfortunately, they had everything you could possibly imagine over and above the grill in accessories and in cross merchandising items to go with the grills. They had a wonderful area set up for them with everything you could want with one exception — the tanks for propane required for the grills!
I wanted to get everything I wanted at one spot. They understood and said that they would be letting their HQ know right away about this silly exception. Whether they did or not — who knows?
They have however, changed their whole environment to a much more welcoming and friendly place. The associates all carry a radio and use it constantly to help customers by engaging anyone else in the store they need to help.
Home Depot has astonished me lately. In purchasing a yard tractor recently, they went out of their way to help us. It would be too long of a story, but it is enough to say, I can’t think of a retailer that would have done or have been willing to do what they did for us. Amazingly, this was a retailer that I really didn’t even want to do business with!
It is possible that there is recognition by retailers that customer service levels that make a real difference in the experience are possible, and not all that difficult to achieve. They are possible, if you work at them.
Customer service in this area is really important — and the importance grows with the $ value of the purchase. I would never buy any large purchase ($200+) without first knowing exactly what the return policy is. I learned that lesson the hard way with a mattress I bought a few years ago. I “assumed” a 30 or 60 day return period (which we had on our last mattress), and was stunned to learn that the very expensive ($1500+) mattress we had purchased just 30 days ago, and was killing our backs, was now ours to keep! I never shopped there again, and told anyone who would listen how unhappy we were with their service. Stores with an easy return policy, and personalized service doesn’t hurt here either, leave the customer trusting that they can count on the store to back them, and most likely will shop there again. The stores who don’t, absolutely lose customers on a regular basis.
Product returns provide a retailer with a critical “moment of truth” …the opportunity to provide excellent customer service or to absolutely fail. The result will many times be a lasting impression, good or bad, making you either a customer for life or a former customer that will never set foot in that store or chain again!
How important are product returns in determining customer satisfaction in stores and online? IMMENSELY IMPORTANT! How important is a friendly verbal exchange during the process? IMMENSELY IMPORTANT! That’s the ONLY differentiator stores still have versus online. Can you point to personal examples of how customer service went right or wrong? Yes, thousands. The retailer stonewalls the process, just to prove they are right and I am wrong and rather than giving me a refund on one item, they lose me as a customer permanently.
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Like George’s experience at Target, Kohl’s has been known for hassle-free returns for many years and now J.C. Penney is making it a centerpiece of its brand reinvention. (Although when JCP’s key competitors are already known for it, hassle-free returns aren’t a very distinctive positioning tool.) It’s clearly something that resonates with consumers, and online retailers like Amazon have raised the bar on this element of customer service.
Many retailers mistakenly believe the sale is the end of the transaction. In fact it is the beginning of the transaction and the relationship. Therefore, as much care needs to be given to post purchase activities including product performance, guarantees, and yes, the dreaded returns.
If returns are considered another part of building and maintaining a relationship with the customer then the return process could be designed to enhance subsequent purchases.
Regarding the verbal exchange, no one ever apologizes when you return a defective product. Unfortunately, there is the misperception that ‘I’m sorry’ means ‘I’m guilty’. Treat the customer first, the return second.
Product returns are a key part of the overall shopping experience, and as such, play an important role in customer satisfaction. As George mentions, returns are a hassle for consumers and retailers. Why put consumers through hoops to get their money back?
There is a sense of ease and well-being when shopping at Costco or Nordstrom from knowing that they have a hassle-free return policy. Online, Amazon shines in this area.
Retailers need to create policies that prevent consumer abuse on return privileges, but those policies need not create a wall that consumers must surmount in order to get their money back.
My wife is a full time professional — rendering her a part-time shopper. Her preferred channel is now online, even for fashion and the all important shoes. She literally selects sites based on the shipping policy. Free shipping gets you in the door. Free returns gets you on the “preferred list.” I honestly wonder how these retailers make money if as many shoppers do the “order it in 3 colors and 2 sizes to see which one works” and then return 5 of the 6 items — but no one has cut her off to my knowledge. They just keep sending more catalogs, email offers and coupons. Online retailers are setting a very tough standard in this aspect of customer satisfaction.
Returns are not only a hassle for the consumer, but for the retailers too. Shopping online is easier since they keep very good records and as stated, have excellent return policies today. But not every store; the return policies are all over the board. Why? To protect the store from the small percentage of people who abuse the system.
Years ago, when I managed stores for a major supermarket chain, we had a no-questions-asked policy. I knew people would enter the store, pick up an expensive item and go straight to the office to return the item. No questions asked, meant they got their money back.
No so today, the technology is better and stores can track a purchase. Don’t have the receipt? No problem, when did you purchase the item and I will find it for you. Only wish we had that back in the ’70s.
Return policies are there to thwart the rising shoplifting/shrink problem. Since they can’t ask people according to some “type,” they require all to fill out the forms. I suspect if the person returning the merch didn’t look like a neighbor, the local retailer wouldn’t be so cooperative.
Hassle free returns may determine whether a customer shops a particular store or site, but is considered one of the baseline criterion for shopping at that store or site and has nothing to do with satisfaction. Satisfaction is related to the shopping experience and how the consumers are treated after they decide to shop at the store or site.
It isn’t the policy, it’s how it is implemented. Many stores have great on-paper policies yet, in practice, make you crawl over a mile of broken glass for a refund or exchange.
Being friendly is always a bonus but I’m a big fan of efficiency, myself. You don’t have to smile at me, just give me back my money.
In terms of good personal service on returns I’ve always had good luck at Home Depot which seems to have a “no questions asked, give them their money,” policy.
My best recent experience was at Staples. I had a printer, (after all really a disposable asset anymore,) that jammed beyond redemption. I couldn’t remember if it was under warranty or not. Called the store and an associate looked up the warranty numbers I needed, emailed them to me and sent me the move numbers I needed to exercise the warranty claim. Needless to say to to anyone that ever had a Staples’ claim, the warranty service isn’t run by the company. They didn’t want to process the claim and ended up sending me a broken, “reconditioned,” printer.
My guy at the store then took over personally. He hounded everyone in the supply chain and called me twice a day to report his progress — or in this case, his lack of progress. Eventually, he got to someone at Staples and ended up delivering a brand new printer — and a much more expensive model at that.
Ironically, when I wrote to Staples praising this guy’s efforts on my behalf I heard nothing for six weeks and then got a form letter thanking me for communicating. And so it goes.
The customer’s perception of service is often measured by how well they are treated when something goes wrong. This often comes into play when, for whatever reason, an item is returned. As noted by Richard, this may be the end of this sale, but the start of a great relationship between the customer and the retailer. True there are some who still mistreat the privilege of a liberal return policy; technology is making this harder and harder to do.
It is interesting to discuss human interaction when returning an item. I am finding that in many stores it is difficult to get the clerk to even acknowledge you during the checkout process other than to ask the absolute minimum.
My best customer return experience was at Office Depot several years ago. A laptop (still under warranty) that I was going to use for a presentation at a national meeting had issues. I was instructed for the fastest service I should take it to a service center nearby. I did so. When the time came to pick it up at the appointed time, I was told it was not ready. Being that I needed one for the next day I went back to Office Depot to buy another laptop.
I asked to speak to the store manager, but was told I couldn’t because he was with the district manager. However, I saw him on the store floor and went to explain the situation. The district manager asked me what was going on and then asked the manager if he knew who I was. He said yes. The DM said to get me a new laptop (actually newer, better version that what I had) and told me that he would take care of all the necessary paperwork and there would be no charge. Our office still shops in that store.
I will be a focus group of one. I am loyal to Costco because of their exchange policy. I have a Sam’s store one mile from my house. I drive 14 miles to Costco 90% of the time.
Nice and friendly is only good with efficiency. Nice without efficient loses.
I of course will give another perspective here on returns. Most retailers don’t absorb much if any of the financial setback on returns. For the most part, they simply charge back the manufacturer or distributor that shipped the product in.
So why would they not all be hassle free? I say the consumer owns part of the process and should be alert enough to not: 1) buy a book – read it over the weekend and return it 2) buy a dress – wear it and then return it, 3) buy something, break it at home, return it saying it was already broken….
the scenarios could go on and on, but the real hit goes to the manufacturer who then must figure this cost of doing business with such retailers into their cost of goods. Nothing is free; every angle from the consumer has a cost.
There’s nothing that will give you a better sense for what a retailer is all about than how they treat you after they’ve already taken your money. I agree with Ryan, though, that the corporate office may well believe that they have the right policies in place to balance getting ripped off by thieves against treating customers well during the returns process, but execution varies widely.
I know from my long-ago Kmart days, the worst job to get was customer service because of all the surly customers trying to return things that had been washed or were a million years old — so I can sympathize that it’s very difficult to retain a cheerful, helpful attitude, especially for the good customers that are just trying to return something legitimate. It’s not that the customer service cashier doesn’t WANT to be nice — but it’s very hard to maintain over time.
Personally, I’ve found Home Depot to be an excellent returns customer service experience. In fact, they were so solicitous about explaining apologetically that if I didn’t have a receipt that I would have to receive a gift card for my return that it got annoying. Especially on my third loop through the store trying to get the right combination of the right sizes of bolts to fix a stair rail. When your customer service is so good — and tightly executed — that it gets annoying, that’s a pretty high bar!
Product returns are tremendously important in not only customer satisfaction but also developing brand loyalty. Watching my 16-year old daughter is a microcosm of her generation as she matter of fact states “all” her friends shop this way. One of her favorite clothing brands is Forever 21, due in large part to their return policies. She can purchase a number of items online, try them on and get her friends opinion in the privacy of her room without sales pressure and easily return what she doesn’t want. Given the amount of Forever 21 envelopes coming to our home, I know their policies are effective in developing an ongoing business relationship.
I check return policy for online retailers and in connection with larger purchases. Intuitively, I make some connection between the familiarity with the retailer and the amount of risk in the purchase and that drives my behavior.
With local stores, the policies are not always clear. There’s nothing worse than having a person “just doing their job” inform you that you have just earned a store credit when attempting to return an item.
Small retailers should take a tip from their online brethren and understand the importance of return policy.
The need for a friendly verbal exchange should go without saying. We all could use a little more pleasantry in today’s world!
The product return policy of a store, local or chain, is a factor in my thinking when I make a purchase. It is never the main point; but it is always there.
My easiest store to make a return to is Publix. There is never a hassle and usually a smile. They take the item back and ask if you want another to replace it, or your money. Simple!
The ones I dislike are, as George’s article said so well, is when you have to fill out a form with the information they already have. I too ask why?
I find customer service is the worst with retailers that use the headsets to contact managers about the returns. Every time I go to a store with headsets or walkie talkies, the manager seems to stall or never even show up to the register to help out, and the associate is less likely to perform a return.
Stores with overhead paging systems show a sense of urgency and managers rush right over when other customers know that a return is being requested at the service desk.
Headsets are in general a very poorly thought out customer service tactic, that are highly un-needed in stores with existing paging systems.
Just my opinion.
Whether in-store or online, product returns are a big factor in determining customer satisfaction. The customer returning the item is already unhappy with the product for some reason, and a faulty product makes the shopper even more testy. Then there’s the fact that the consumer must actually return the product – yet another chore for a time-starved consumer who thought they had finished this chore when they originally bought the item. Add in the potential wait in line, completing of forms, calling for a return authorization code, trip to the PO/UPS store and return shipping fees, and you have a recipe for very low customer satisfaction.
Having a pleasant associate or e-rep to handle the return/exchange can help alleviate many of these issues. Still, it’s not No. 1 for me. Rather, like the comScore survey respondents, it’s the ease of the return that ranks highest. Generally, I’ve run into fewer issues returning items in-store vs. online. Online is definitely fraught with more issues, like receiving an item the shopper decides they don’t want to exchange, but still paying shipping fees — both ways.
Right now, I have a box sitting beside my desk containing a damaged item that was ordered for Mother’s Day from a small e-retailer selling specialty products for senior consumers. Not only was the product damaged, but the ordering of the item had several issues that required calling a rep to find out why I never rec’d an order confirmation and why it was taking so long for the product to be shipped. When I called again to let them know I’d be returning the damaged item for exchange, their system didn’t even reference the item as having ever been shipped. I still must pay shipping costs for the return, and all this is set against the backdrop of having previously had shipping issues with this same e-retailer. I know, fool me once, shame on you; fool me twice, shame on me. My customer satisfaction with this e-retailer has reached zero.
I think it is interesting how few retailers use their data to help them. Tracking returns by customers should be pretty simple and understanding whether dealing with returns effectively grows loyalty would be a relatively straight-forward project.
However, because we are so driven by one-dimensional financial measures and incentive structures, this side of retailing is not viewed on the positive/revenue side of the equation and doesn’t get enough of a look-in.
Customer returns are a key component of the customer satisfaction experience. There doesn’t have to be a friendly verbal exchange, but the process has to be easy and non-confrontational. The easier it is, the more likely that you will continue to shop at that retailer. I too have had many great experiences at Target and other stores whenever there was a return issue. It is why I continue to return to shop at Target….
Filling out a form for a return at a grocery store? No. (Not unless you bought a value pack of Chateaubriand….)
Target has apparently been going about improving service or what I would call a friendly environment for some time now. In my recent visits to two local stores, I have been greeted with a hello and an offer to help by at least five or more associates in traveling through the store. In an attempt to buy a grill at one local store, three associates did everything they could to help. Unfortunately, they had everything you could possibly imagine over and above the grill in accessories and in cross merchandising items to go with the grills. They had a wonderful area set up for them with everything you could want with one exception — the tanks for propane required for the grills!
I wanted to get everything I wanted at one spot. They understood and said that they would be letting their HQ know right away about this silly exception. Whether they did or not — who knows?
They have however, changed their whole environment to a much more welcoming and friendly place. The associates all carry a radio and use it constantly to help customers by engaging anyone else in the store they need to help.
Home Depot has astonished me lately. In purchasing a yard tractor recently, they went out of their way to help us. It would be too long of a story, but it is enough to say, I can’t think of a retailer that would have done or have been willing to do what they did for us. Amazingly, this was a retailer that I really didn’t even want to do business with!
It is possible that there is recognition by retailers that customer service levels that make a real difference in the experience are possible, and not all that difficult to achieve. They are possible, if you work at them.
Customer service in this area is really important — and the importance grows with the $ value of the purchase. I would never buy any large purchase ($200+) without first knowing exactly what the return policy is. I learned that lesson the hard way with a mattress I bought a few years ago. I “assumed” a 30 or 60 day return period (which we had on our last mattress), and was stunned to learn that the very expensive ($1500+) mattress we had purchased just 30 days ago, and was killing our backs, was now ours to keep! I never shopped there again, and told anyone who would listen how unhappy we were with their service. Stores with an easy return policy, and personalized service doesn’t hurt here either, leave the customer trusting that they can count on the store to back them, and most likely will shop there again. The stores who don’t, absolutely lose customers on a regular basis.
Product returns provide a retailer with a critical “moment of truth” …the opportunity to provide excellent customer service or to absolutely fail. The result will many times be a lasting impression, good or bad, making you either a customer for life or a former customer that will never set foot in that store or chain again!
How important are product returns in determining customer satisfaction in stores and online? IMMENSELY IMPORTANT! How important is a friendly verbal exchange during the process? IMMENSELY IMPORTANT! That’s the ONLY differentiator stores still have versus online. Can you point to personal examples of how customer service went right or wrong? Yes, thousands. The retailer stonewalls the process, just to prove they are right and I am wrong and rather than giving me a refund on one item, they lose me as a customer permanently.