Electronic Retailer - July 2011 - 44

In today’s world of social media, consumers have a voice. When treated poorly, they often make that voice heard loudly online, which can dramatically affect how other consumers behave and what they will buy – or not buy.
In today’s world of social media, consumers have a voice. When treated poorly, they often make that voice heard loudly online, which can dramatically affect how other consumers behave and what they will buy – or not buy. Word gets around in this eversmaller world, and this can cost a marketer many new sales. A bad return policy also costs a marketer in credit card chargebacks when the consumer is disgruntled and asks their bank to step in. This is a cost regardless of the outcome of the claim. And let’s not forget about Customer Service costs. Paying by the minute to argue with the customer is never profitable. There’s a better way. One strategy is to create a customer-centric program that makes it easy and convenient for the customer to make a return. There are many advantages to the marketer with this approach. First, an easy return process translates into low risk and low hassle to the consumer, and this message can and should be communicated in the campaign message. When the customer perceives a low risk, the chances of converting the initial sale goes up. You can do this by taking the following steps: • Create goodwill. Best case, the customer orders a different product from you or refers a friend. Worst case, they’re happy and won’t bad mouth the company/campaign. • Upsell and cross-sell successfully. When the customer is happy about the return they’re making, they will be more likely to continue the relationship with you. You have the opportunity, while processing the return, to encourage the customer to buy other items right then. This is much harder to accomplish when the customer feels stuck with the product that they don’t want. • Sell convenience. Forward-thinking fulfillment providers have programs in place to facilitate returns. For example, a2b 44 Fullfillment’s Returns to Profit program utilizes prepaid return labels that can be emailed by customer service or included in the original shipment to the customer. These prepaid labels provide a low-cost and convenient method for the customer to make the return. We have experienced a 53 percent savings when compared to using a UPS Call Tag. Packages can be placed in the customer’s mailbox, dropped off at any USPS facility or receptacle and even picked up by the carrier. Merchants can then offer this convenience to their customers for a price and make an incremental profit from the return process, while simultaneously honoring their customer and making the process easy. Finally, what you do with the return once it is received can make a huge difference to your bottom line. Many fulfillment providers can sort, recondition and refurbish a product – and even specific components. When these products and components are re-introduced into inventory, the net result is a reduction in your cost of goods. Of course, not all products can be reconditioned, but there are often overlooked opportunities. Talk with a specialized service provider. The returns partner that you select does not necessarily have to be the same vendor that originally fulfilled the order. With the new model for customer-centric returns, you could improve your marketing message, increase initial sales, establish goodwill, avoid negative feedback and create a revenue stream by selling convenience and by reusing what you can. Altogether, it is a winning proposition for marketers and consumers. Ayal Latz is president of a2b Fulfillment Inc. in Greensboro, Ga. Contact Latz at (866) 8433837, ext. 118, or ayal@a2bf.com.

electronicRETAILER | July 2011
Electronic Retailer - July 2011

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