Refunds – who doesn’t love them? Most store owners subscribe to the no refund and no return policy. And while it may seem to put the store at an advantage, what most store owners and managers fail to realize is that policies like these actually push prospective customers away. Managers often make the mistake that no return and no refunds policies send a message of credibility for the items, as in no return and no refund policies are kind of like a guarantee of satisfaction with each purchase.
Common reasons why store managers are reluctant to give out refunds
- Day to day basis. If a store manager is focused on the daily stats of the store and measures productivity on how much was earned within the day, refunds will mean negative sales. As a store manager, it should be more important to focus on how well your store is doing in the long run. It shouldn’t be seen as negative sales, but instead, should be seen as an opportunity for a different customer to purchase it.
- Bogus refunds. While scams like the bogus ones are common today, a rigorous and meticulous re-checking process for refunded items can keep bogus refund at bay. Keep the re-checking process up to standards and you won’t have to worry about getting scammed.
- Un-resalable products. Such as with bogus refunds, keep your refunded product re-checking process up to standard – make sure that the item is unstained and undamaged to preserve its resalability.
What happens in most cases when the store prevents returns and refunds is that customers become reluctant of purchasing from the store knowing that they can no longer give the item back if they suddenly realize that their purchase has not met their expectations; this as opposed to customers giving the item a shot and by chance deciding later on that they want to keep the item.
Giving customers the option for returns and refunds is a way to help your customer not feel cornered to commit make a final and permanent purchase. Not only that but giving the option for refund can actually set your store apart from other smaller businesses who rely on final purchases. Moreover, profits made will outweigh the cost of a tedious re-checking process.
How to make refunds work to your advantage
- Customer friendly policies. Constructing your refund policy in such a way that it is customer friendly as well as ensuring that it is fair to the store is an absolute must. An example would be to set your maximum return date to around 30 days – this way, the customer will lose the sense of urgency to return it right away and may eventually lose the receipt even before the 30 day period is over.
- Eliminate competition. Providing the option for a refund will set you apart from other stores, that being said, it will work to your advantage to make signs saying “Gladly Welcome Refunds With Receipt” and providing complete details around the checkout counter. Make sure that your sign will be attention-catching enough to encourage people to walk in and check out your store.
- Get your employees on board. Explain to your staff that refunds will increase sales and their commission in the long run, which is why they should continue to entertain customers and maintain a helpful attitude with them. Once they are on board with your plans, you will not have to worry about losing regulars because of your staff’s attitude.
Refunds can be made to work to your business’ advantage if refund policies are constructed and implemented correctly. Start seeing them in a different light and work with your customers to provide optimum customer satisfaction all while significantly increasing sales in the long run.