Business Suicide Strategy n. 8 without a risk reversal guarantee or a guarantee – Part II

A quick summary of the key points from Part I of Business Suicide Strategy No. 8 involving risk reversal and collateral includes the following: We discussed how this strategy can dramatically change your company’s bottom line. Unfortunately, too many companies are afraid to offer risk investing strategies because they do not understand their importance: that is, that the benefit of any product or service is obtained after the sale is made. If you reduce or eliminate this risk, the natural consequence is that people will be more inclined to buy. We compare and contrast two hypothetical approaches to how a business person might handle selling a puppy to a parent.

Now let’s study 7 store merchandise return policies by Nordstrom. Nordstrom, a high-end retail store, truly understands the value of offering ‘risk investing strategies’. Nordstrom’s online return policy reads as follows: “Nordstrom’s Commitment to Its Customers”:

1. “Our Commitment to an Extraordinary Shopping Experience” (Nordstrom uses this motto as its motto.) While we may enjoy shopping, every time a business separates a customer from their money it involves a trust factor between the merchant and the client.

2. “Even if you make an exchange or return, we make it easy for you.”

Here, Nordstrom gives the customer permission to return the purchase. While Nordstrom would certainly prefer you make an exchange rather than request a refund, they have already given you permission to return the item.

I’m amazed at how many stores only offer an exchange for other products in their store. Under this policy, the company tells the prospect or customer that the money they spend with us will not be returned under any circumstances. This is not a good policy because the customer cannot experience the product without feeling that he is taking a great risk depending on the price. If you refuse to give anything other than store credit, your business will lose sales as a result. Ask yourself if your business, in these economic times, can afford to take that risk.

3. “A prepaid RETURN LABEL is included with every order. Only the minimum return shipping fee will be deducted from your return. And exchanges are completely free – by mail, phone, or in store.”

Nordstrom includes a prepaid return label; one less annoyance the customer must address when doing business with Nordstrom. Look carefully at this language. The customer is automatically reassured.

4. “Exchange postage is always free! Complete the exchange portion of your RETURN LABEL and mail your exchange. We will ship in-stock items immediately, charge your credit card, and credit the return once we have received at our facility. Unfortunately, we cannot reimburse you for the original shipping costs. Don’t worry, the insurance will take care of using the label provided. “

The consumer is informed in advance that the postage for the change is always free. How many companies do you know that offer such a convenient policy? Nordstrom apologizes for having to charge you for returned items, but please remember that if you return the item to the store, there is no charge. Additionally, Nordstrom automatically provides insurance for returned items.

5. “Skip the exchange portion of the RETURN LABEL and simply call us at 1-800-933-3365. We will ship in-stock items immediately, charge your credit card, and credit the return once we receive it at our facilities. Unfortunately, we are unable to refund original shipping charges. EASY MERCHANDISE RETURNS “If you ordered the wrong size no problem, we will immediately ship in-stock items to you at no cost.

Now Nordstrom has removed the fear of how to handle “What if the garment doesn’t fit?” Now what? The easier the company is to do business with, the more sales the company will make.

6. “Ship your item (s) using the prepaid RETURN LABEL. We will simply deduct a flat fee of $ 6.00 from your order refund for the return postage. Simply leave your package in a safe place where you normally receive your mail or drop it off at any US mailbox or post office. Don’t worry, insurance takes care of using the label provided. Unfortunately, we cannot refund original shipping costs. If you choose to return the item in its own packaging using For other shipping method, be sure to use the address on our RETURN LABEL: 7700 18th St. SW, Cedar Rapids, IA 52404. If you do not use the prepaid label, the $ 6.00 fee will not be deducted from your return. arrived at our facilities “.

Nordstorm takes the guesswork out of shipping and handling costs by using a flat rate for all returns. What a powerful strategy to take the guesswork out of future shipping and handling. And Nordstrom even apologizes for its $ 6.00 policy but explains why the charge is necessary. When was the last time a store apologized for a charge you incurred for doing business with them?

7. “In Store – FREE Just bring the packing slip and credit card you used when ordering at any of our stores. Click here to find your nearest Nordstrom store.”

Here, Nordstrom does not place time limits on the return date, and in doing so, Nordstrom’s builds exceptional customer loyalty. Nordstrom allows you to return merchandise to any store and provides a store locator link to find the store closest to you. In doing so, Nordstrom values ​​your time and does everything possible to make the shopping experience enjoyable and indeed memorable.

The company that invests the risk automatically gains a competitive advantage and wins more business. This competitive advantage is very significant when it comes to attracting new customers or clients to your business. In fact, the longer you extend your warranty or return policy, the fewer returns you will have in the course of your business. Such customer service builds brand loyalty.

Nordstrom differs from 98% of retail stores by offering such a lenient return policy that its shoppers spend more money and enjoy the shopping experience. There will always be some customers who benefit from the Nordstrom policy.

This is absolutely critical to the success of your business. The longer you extend the return policy, the less pressure the buyer will feel to act quickly to return the item, so no sense of urgency will be instilled in the customer, which is exactly what your company wants if you have a good product. The longer the customer uses the product, the more likely they are to keep the product.