Ben Sprecher

BrainTrust Query: Legendary Returns

July 12, 2010

FROM RETAILWIRE:
Most people in the retail business have heard the lore of the tire return at Nordstrom. Although there were some odd circumstances, the tale is nevertheless true and serves as an important example of going the extra mile for the customer. What are the pros and cons of generous return policies such as Costco's?      [more...]

There are lots of great comments here, and as Ben Ball points out, it's clear we all favor a generous return policy as a way to drive customer loyalty.

As some have pointed out, those return policies can even be a prerequisite for shoppers buying in the first place: I think of Zappos.com, which, by allowing returns of their shoes, lets customers buy sizes 9 1/2, 10, and 10 1/2 of the same shoe and then return the two that don't fit. In essence, their return policy is the equivalent of letting shoppers bring the shoe store to their home, and it makes all the difference when someone is contemplating making a $125 purchase online or waiting for the weekend to visit a shoe store.

In bricks-and-mortar, I see returns as an ideal area to leverage loyalty card data. I'd like to see a Costco-like return policy at all stores with a card: if you bought something with your card, you can return the unused portion at any time for any reason, and if you didn't then you need a receipt. The bogeyman of fraudulent returns would be vanquished, and your regular shoppers would know that they could buy anything with absolute confidence you'll stand behind it.