The numbers look grim if you are an online retailer. Around 30% of the products retailers ship out will come back as returns. The downside is that 65% of those returns were the retailers’ fault resulting in money they didn’t have to spend and decreasing the bottom line. A good return policy is crucial in the ultra-competitive online world so examine yours carefully. There are other things you can be doing to prevent returns and save yourself headaches and money. Let’s look at the statistics and what they mean to you.
23% of returns are because the wrong item was shipped out. This is an amateur league mistake that even the pros seem to be making. It’s simple, have a redundant system of double check to make sure the right item is shipped every time. A few more minutes to make sure the item is the right one or hours of headaches dealing with an irate customer and refunds or more shipping charges. The choice is clear, get it right every time.
22% of returns are because the product looks different. Not 100% fixable but mostly avoidable. Make sure your product is shot in multiple angles and in different light settings. A video will also help with hands or other objects to give a sense of scale.
20% of returns are due to damage. Sure you can have insurance on the product and send the customer a new one, but is that excellent customer service? Not all damage can be avoided but taking extra precautions and making sure the product arrives intact will pay for itself in happy customers. “The box was damaged but the item was fine” = WIN!
92% of customers will buy again if the returns are easy. So you messed up and sent the wrong thing, but the right one was shipped quick and the customer is happy. You will still likely get more business from them in the future. Customers understand mix-ups, your or theirs, and will forgive retailers who make it right without a ton of hassle.
There you have it, some stats to help guide your policies and give you something to think about.
Don’t think of Customer Sevice as something you do, it needs to be the core of your company if you want to make loyal customers. True customer loyalty is hard to get so every part of the business has to be focused on it if you are going to find more than one or two.
It’s a well-known statistic that a happy customer tells 9 people on average and an unhappy customer tells 16. Unfortunately, if you provide poor customer service to a marketer they are likely to turn it into a lesson for thousands. Every company I know is constantly looking for new customers but it is always cheaper to retain the ones you have. On average it is 6-7 times more expensive to get a new customer than to keep an old one. How do you keep them? Most cases it is all about the customer experience. Today is a lesson on flexibility during the customer experience.
The short version of the story is that a popular fast food chain had an advertisement on the menu board showing the price of an Italian sub. The main menu board had a different price. The manager was already at the register due to an issue with the computer freezing while taking my groups order. The discrepancy was pointed out, he said there was no difference in the sub so a member of my group ordered the cheaper version. Of course, the more expensive version was what was in the computer. No problem, punch in the discount, change the difference, reduce the price down to the advertised price right? Wrong, apparently corporate sets the prices in the computer and the manager can’t do anything about it. Let me repeat that, the manager has no control to give customers the price they are advertising on the menu board. He absolutely refused to give the reduced price. It was a matter of $0.30. Lost a loyal customer for $0.30 due to inflexibility. Not to mention the company, famous for its social media work, has ignored the post pointing it out all day. Granted, it’s a big company, but when your business is tagged in the same post as #customerservicefail, you might want to be paying attention. Now there’s a couple tweets, a blog post, two Facebook posts and a spot in an upcoming lecture. All this fuss for $.030? Well, yes, it’s my $0.30. If I spent $0.30 more on every transaction through a year when I wasn’t supposed to I would lose a couple hundred dollars. It eventually adds up so I tend to be aware when I am not paying the advertised price. Plus I feel such tactics are underhanded and it makes me feel unappreciated when a company thinks it’s ok to overcharge their customers.
The lesson is about flexibility. The customer doesn’t want to hear what corporate policy is. The customer doesn’t want to hear what you can’t do. Tell them what you can do, what the solution is. In simple cases like a price screw up, get them the advertised price. If it is truly against policy and there is no way you can change something, tell them what solutions you can provide, not what you can’t. Don’t hide behind policy and procedures, it’s bad customer service.
Customer service is the lifeblood of a business. No matter what business you are in there is some element of customer service involved. Here is an infographic giving some of the Do’s and Don’ts of customer service to use as a baseline.
If there is one thing I have learned in my 25 plus years of business it’s that customer service should be a top priority because it is part of every aspect of your business. Marketing? Begins with good customer service. Sales? It is customer service. Accounting? Ok, maybe not EVERY aspect, but accounting can be helped by good customer service. Here are some stats to keep in mind as we explore customer service this week.