How to Profit from Returns

Returns are an inevitable part of the customer journey. You can either lament returns or learn to profit from them. 

Educate your employees on making returns as easy and painless as possible. 

When I first started in the scuba industry as a sales associate, the company policy was store credit only for returns. We NEVER returned a customer their money on a credit card or cash. 

This policy is outdated is NOT competitive in the modern world of e-commerce. 

The days of store credit only for returns is over. It has been replaced with no question asked returns. I recommend you find a balance between no questions asked returns and store credit only. 

Please note: We had different return policies for retail, sale items, classes, and travel. 

Offer promotions and upsells for customers making returns so they can get something they want or need. 

The worst feeling for a customer is missing out on a good deal. If a customer is returning a gift they don't want or need, you should offer them extended sale pricing or an extra 20% on their return so they can get a good deal on the item they actually want. 

When a customer is returning an item, they are likely standing in your store. They may have browsed before they stopped at the counter to process their return. 

We used to take down the holiday promotions and the extra holiday decorations before New Years. The store was essentially back to normal. Pricing was back to normal. 

Don't lose a customer over 20%. You will delight them with an experience they can ONLY get at your shop. This is how you can win customers for life. 

Follow up with customers that made a return and just let them know you will be in the store when their need for a service or a class or a trip arises. (And throw in a 20% discount code or voucher in the email.)

Customers don't want to make a return. It is inconvenient and it means they didn't get what they wanted. Lean into that uncomfortable situation and make sure they know you value them and you want them to be satisfied. 

I am not generally a proponent of discounting. However, when it comes to returns and potentially losing a transaction or a customer, I throw the kitchen sink at them. Make your offers hurt a little bit. If it's uncomfortable for you to offer 20% off, then that is the perfect amount. 

A happy, loyal customer can leads to thousands of dollars of lifetime value and many more referrals. 

So that I can make sure the Dive Briefing is offering as much value as possible, I want to know more about you and your store. If you have time, please schedule a call and we can talk about diving, your business, and your goals.