How to Convert Returns into Sales in Retail

2 min read

by Diane H. Wong

The quickest way to convert returns into sales is to adjust the mindset of employees who complete return transactions.

Generally, an employee enters into service mode at the register. The customer approaches the employee to return an item, and the employee processes the return. The employee takes little or no action beyond completing the customer’s request, resulting in missed opportunities to 1) make a sale and 2) service the customer better.

To convert returns into sales, train your employees (and add to your customer service policy) how to meet customers’ needs beyond completing a simple return transaction. Employees can do so in two steps:

Ask How the Item Failed to Meet the Customer’s Expectations

Ask the customer basic questions about why they bought the item. Was the item supposed to fill a need? Was the time supposed to help the customer complete a project? Was the item a gift the customer received?

Then ask why the product failed to fulfill the customer's expectations.

Asking these questions are quick ways you can research your customer to generate a sale.

To avoid seeming intrusive, employees should remind the customer they are happy to return the item but want to ensure they service the customer as best as possible.

Suggest an Alternate Product

Based on why the customer bought the product, employees should suggest alternate products that would better fulfil the customer’s expectations.

For example, let’s say a customer tries to return an all-purpose tool at a woodworking shop. Before processing the return, the employee asks two to three questions about why the customer purchased the tool. After listening to the response, the employee explains why the tool may not have been the most appropriate choice for what the customer needs to accomplish.

By listening to and educating the customer, the employee can effectively suggest--and sell--an alternate item the customer feels excited to purchase.

By using soft language like “I think you might prefer this item” or “Have you considered this item?” the employee can pursue a sale but in a way that shows he or she has the customer’s best interest in mind. And in certain scenarios, employees may be able to sell two or more products depending on what the customer needs or wants.

How to Avoid a Return When an Alternate Product Does Not Exist

In the event the employee is unable to suggest another item, he or she should look for opportunities to show the customer how to better use or troubleshoot the product.

For example, a new car owner contacts the dealership to return the car after experiencing a third issue. Rather than quickly completing the customer’s request, the salesperson asks a series of questions about the issue the customer is experiencing. The salesperson identifies the issue as a simple user error and shares with the customer information on how to resolve and avoid the problem.

The salesperson not only made the customer happy, he successfully avoided a return transaction.

Remember--sometimes no matter how well employees work towards a sale, customers may not want to replace the item they’re returning. To best prepare for return transactions, ensure your return process is painless.

Why Specialty Retailers Have the Upper Hand

Large stores generally don’t care about making additional sales; they just want to process what customers say they want done.

This mentality separates the big-box retailer from the specialty retailer who understands how to identify where the product fell short and how to suggest alternate items that effectively meet customers’ expectations.

If you’re a specialty retailer who does not consistently convert returns into sales, examine the way your employees handle customers’ returns.

Train them to tactfully meet customers’ needs in ways that go beyond return transactions. You’ll find new opportunities to better service your customers and potentially increase your sales.

About author

Diane H. Wong is a search engine optimization specialist and business coach. Besides, she is a research paper writer at write an essay for me writing service so she prefers to spend her spare time working out marketing strategies. In this case, she has an opportunity to share her experience with others and keep up with advancing technologies.