This is a course designed for senior scolars ready to get graduate level. This ourse contains Call Center topics with the purpose of letting scolars get involved with glossary and detailed topics so that they can realize what working in a call center business is like.
Thursday, March 23, 2017
Saturday, March 18, 2017
AMERICAN IDIOMS
American Idiomatic Expressions
Hi guys!
Please search for the meaning of the following
expressions:
- "Wear your heart on your sleeves"
- "John Hancock"
- "give the cold shoulder..."
- "right off the bat..."
- "Cat got your tongue?"
- "Rain check..."
- "Bite one's head off..."
- "hot potato"
- "cold feet"
- "out in the cold"
- Absence makes the heart grow fonder.
- Our feeling for those we love increases when we are apart from them.
- "Cheer up Dude, everybody knows that absence makes the heart grow fonder."
- Back handed compliment
- A compliment that also insults or puts down at the same time.
- They gave me a backhanded compliment when they said I was smart for a girl.
- Blow off some steam
- To enjoy oneself by relaxing normal formalities.
- He is a true workaholic who has misguided priorities, when he wants to blow off some steam he comes to work on Saturday wearing blue jeans.
- Botched up
- Substandard; messed up; make a shamble of
- Man, you really botched up that project. Now the company will have to start all over costing double and missing all of our deadlines.
- Brand Spanking New
- New and unused.
- What you really need is a brand spanking new Porsche turbo.
- Break a leg
- A wish of good luck, do well.
- Break a leg in your game today.
- Bust your balls
- To harass with the intent to break one's spirit.
- When I ask you if you settled that dispute with the IRS, I am not just trying to bust your balls. I am trying to help.
- Busting your chops
- To say things intended to harass.
- Don't get mad, I am just busting your chops.
- Clear as a bell
- Clearly understood.
- You don't have to repeat yourself. Your message is clear as a bell.
- Close, but no cigar
- Nearly achieving success, but not quite.
- That free throw was close, but no cigar.
- Cold turkey
- To quit something abruptly.
- You will not lose weight until you give up chocolate, and I suggest you go cold turkey.
- Don't Count Your Chickens Before They're Hatched
- Don't be overconfident and assume success before you know the outcome of a venture.
- In the midst of this daydream, she did toss her curls, sending the pail of milk spilling. The moral of the fable is: Such are the disappointments of those who count their chickens before they are hatched.
- Face the music
- To accept the truth.
- It's time to face the music on your donut addiction.
- Jump on the bandwagon
- Do what everybody else is doing, whatever is popular.
- When the Chicago Bears are winning, I will jump on the bandwagon and be a fan.
- Keep your pants on
- Calm down, be patient.
- I will be off the telephone in a minute, so keep your pants on.
- Knock on wood
- Tap on a wooden surface for gook luck or to keep from putting a jinx on yourself for having mentioned some hope or dream aloud.
- If good luck is willing. I am sure that your tax returns will not be audited, knock on wood.
- Once in a blue moon
- To happen only on rare occasions.
- The Post Office regularly fails to deliver checks sent in payment to me, but bills sent to me fail to be delivered only once in a blue moon.
- Passed with flying colors
- To exceed expectations, to do better than expected.
- The California smog test is tough, but my car passed with flying colors.
- Put English on it
- To impart a spin to something in an effort to make it hard to control, usually a ball in sports like tennis.
- Your serve is dangerous when you put English on it.
- Rings a Bell
- To sound familiar, to spark a memory.
- I don't remember meeting him, but the name John Smith rings a bell.
- Roll with the punches
- Weather through tough times, try to minimize the trouble.
- Sometimes in life you just have to roll with the punches, even when the punches feel like they are coming from Mike Tyson.
- Rule of thumb
- A basic rule that is usually but not always correct.
- As a rule of thumb, plant tomato seeds three inches deep.
- Show your true colors
- To reveal your true intentions, personality, or behaviors.
- Everyone is on best behavior on the first date, but soon enough you will show your true colors.
- Sleep tight
- Sleep well.
- Good night, sleep tight.
- Strike while the iron is hot
- Act quickly while the opportunity is still available.
- If you want the job, you need to strike while the iron is hot.
- Tie the knot
- To get married.
- I understand you want a baby, but don't you think you should tie the knot first. In fact maybe you should get a girlfriend first.
- Under the weather
- To be ill.
- I'd love to help you move all your furniture next weekend, but I expect to be feeling a bit under the weather.
- Upper Hand
- Control of a situation.
If you are wondering who has the upper hand in
your relationship, the next time you get up to fetch drinks, take a look on the
sofa. There you will find that person.
Familiarity with idiomatic expressions is a
must for call center agents. Idiomatic expressions or idioms are non-standard
speech, slang or figurative expressions whose meaning cannot be directly
deduced from the meanings of the words that composes it. Idioms are frequently
employed by native speakers of English, which more often than not are the
clients of our call center companies.
More importantly, call center agents must be
familiar with idiomatic expressions because the use of idioms do not randomly
happen in ordinary conversations but happens most often when one speaker is
complaining to another. Studies show that the complaints play a significant
role in throwing personal troubles or concerns publicly that is why complaints
are formulated idiomatically. Idiomatic expressions are showed in unpromising
unfavorable environments in which recipients have suspended commiserating or
supporting with a complainant. Moreover, they also have a special heftiness
that helps summarize a complaint in order to enhance its authenticity, and
concurrently bring the grumble to an end.
Here under are some of the most common
idiomatic expressions that a call center agent must know in order to ensure
understanding communication with customers who native English speakers:
Beat around the bush avoiding coming to the
point or talking about what the client needs to know directly.
Give me the runaround – trying to evade the
issue or to fool the client by not giving the correct and pertinent information
needed. The customer is frustrated and felt being tricked or deceived by the
agent.
Catch 22
the dilemma of facing two unwanted or objectionable alternatives like
the devil and the deep blue sea. The customer has no choice.
Lemon description given to a defective or
substandard product.
All ears
listen carefully or attentively
Cry over spilt milk useless complaint for something that cannot
be recovered.
Eat one’s words admit mistake
Figure out – try to understand or solve the
situation such as how to operate a product and solve the problem.
Fed up
tired, bored and dismayed with someone (agent) or something (product)
PREDICTING CUSTOMER'S NEEDS
Methods
for Predicting Customer Needs
A
crucial part of running a successful business is determining and fulfilling
customer needs. This lesson will discuss the importance of being able to
predict customer needs and provide methods for predicting customer needs.
Predicting
Customer Needs: Why Is It Important?
There are many vital
aspects of running a business, one of which is making sure that you're keeping
your customers happy. That's why it's important to be able to predict customer
needs in addition to just providing good customer service. Predicting customer needs involves providing a service or product that customers
have not expressed a demand for yet. And this goes beyond your current
customers--you must think in terms of potential future customers, as well.
Car companies, for
instance, are constantly adding features to cars that consumers did not even
know they wanted or needed. Some cars have touchscreens, Internet radio, and
Wi-Fi service. These additional services were created to provide a solution to
customers' needs before the customer was aware that they needed it.
Successfully predicting customer needs can increase sales, profits, and your
customer base, as well as keeping current customers satisfied.
Predicting
Customer Needs: An Example From History
Let's look at a
real-life example of the benefits of predicting customer needs. At the end of
the 20th century, Proctor & Gamble released the electrostatically charged
Swiffer cloth when researchers saw a woman accidentally spill coffee grounds on
the floor and realized that there was not yet an ideal solution for quickly
cleaning this small mess. (The broom could not completely clean up the wet
grounds, while a vacuum was too much of a hassle to employ for such a small
task.) And so, the researchers recognized a need before the consumer,
effectively predicting the customer need and providing the Swiffer line of
cleaning products.
How
To Predict Customer Needs
There are many
methods that one could use to predict customer needs. Let's look at two common
techniques:
Study
Current Customers
One way to predict
the needs of your customers is to study and spend time with your current
customers. These customers already buy your products and may be loyal to your
company. Studying their buying and product-using habits is a good starting
point to anticipating the needs of your current customers.
Say, for example,
that the general manager at a local hotel likes to spend a little time every
morning talking to his customers at breakfast. This is when he gets the most
feedback about what his customers want and need. One day, he spoke to a
customer who placed a special order to the kitchen for breakfast. The general
manager learned that the customer always put in special requests, because he
gets tired of having the same, standard breakfast every morning when he's
traveling.
The general manager
then used this feedback to create a new addition to the menu--each week, it
would include a different Breakfasts of the
World option, allowing guests to try something
they wouldn't normally eat at an American hotel. For instance, one week the
menu would feature delicate French pastries, while the next would offer a
traditional Polish breakfast of eggs, kielbasa, and potato pancakes.
The general manager
was able to use customer feedback to predict customer needs and satisfy the
wants of the hotel's guests, even if they didn't know they wanted more variety
in their food options.
3 Ways To Predict What Consumers Want Before
They Know It
The insight
that sparks innovation appears to occur randomly. After all, the iconic
shorthand for innovation is a light bulb, implying that ideas come from sudden
flashes of inspiration. While such flashes are surely good things, it is hard
to depend on them, particularly if you are at a company that needs to introduce
a steady stream of innovative ideas.
Steve Jobs once
said, “It is not the customer’s job to know what they want.” That’s absolutely
right. It is yours. And don’t think you don’t have a customer because you work
in an internal support function or for a company that provides components or
services. Everyone has a customer, whether it is a purchaser,
user, or co-worker.
More than 50
years ago Peter Drucker wrote, ‘The customer rarely buys what the company
thinks it sells him.’
The quest to
identify opportunities for innovation starts with pinpointing problems
customers can’t adequately solve today. More than 50 years ago Peter Drucker
wrote, “The customer rarely buys what the company thinks it sells him. One
reason for this is, of course, that nobody pays for a ‘product.’ What is paid
for is satisfaction.” Companies think they are selling products and services,
but in reality people hire those products and services to get
jobs done in their lives. As marketing guru Ted Levitt quipped to his students
a generation ago, “People don’t want quarter-inch drills–they want quarter-inch
holes.” A problem arises, and the customer looks around and chooses the
solution that gets the job done better than competing alternatives.
To discover
your quarter-inch holes, obsessively search for the job that is important but
poorly satisfied (for more on the underlying theory of jobs to be done, see The
Innovator’s Solution by Clayton M. Christensen and Michael Raynor). Innosight’s research and field work
over the past decade suggests that following three specific activities can
increase the odds of identifying innovation opportunities.
1. GET TO CONTEXT
In 2000, when A.G. Lafley became CEO of
Procter & Gamble, he found a company that had lost its way. The stock had
plunged almost 50% after a March 2000 warning that the company would miss
earnings estimates. Lafley looked for simple ways to reenergize that company’s
innovation energy. He came to the conclusion that P&G needed to
fundamentally reorient itself. The company was world renowned for driving
decisions based on deep customer understanding, but upon reflection, Lafley
realized that the company had drifted away from that understanding.
Lafley is gifted at communicating
complicated ideas in simple ways. He developed a simple mantra to refocus
P&G: The consumer is boss. He would say something along these lines:
“Fellow P&G-ers, I’d like you to meet your new boss. You may think that I,
as your CEO, am boss. That’s not right. You might think that the board of
directors to which I report is boss. That’s not right. You might think our
shareholders are the bosses. That’s not right. You might think your line
manager is boss. That’s not right. We have one and only one boss that matters.
The consumer. The consumer is boss.”
Lafley urged P&G to understand their
boss as never before. P&G had to hear what the consumer was saying and,
much more importantly, tease out what the consumer wanted but couldn’t
articulate.
One of the dirty little secrets of
innovation is that even the most well-intentioned people lie.
To do this, Lafley worked to create a
culture where everyone in P&G–from the chairman down–would spend time
living with consumers, shopping with consumers, or working alongside consumers.
He would describe invaluable insights he personally obtained in his career by
spending time in the market. For example, while Lafley worked on Tide branded
laundry detergent, P&G would regularly administer quantitative surveys to
assess the quality of its product and packaging. Consumers reported that they
loved Tide’s packaging (at the time, Tide was packaged in cardboard boxes).
Yet, when Lafley was interacting with a consumer, he noticed that she almost
always used a screwdriver or scissors to open the Tide box. Lafley realized
that the woman didn’t want to risk breaking her nails opening the cardboard
box. She said she loved the packaging because she didn’t know of any
alternatives, but in reality, she had to find a creative way to open the box
because of its design limitations.
Many P&G products trace their
inspiration to these kinds of observations. For example, watching a woman grow
frustrated when she spilled coffee grounds on her floor helped to inspire
P&G’s Swiffer quick cleaning line, which today produces more than $1
billion in annual revenue.
One of the dirty little secrets of
innovation is that even the most well-intentioned people lie. They say they
will do things they won’t, and purport to have interest in things they don’t.
Spend time in the market so that you can know the customer better than they
know themselves.
How to get started: Detail the amount of
time you spent with customers or key stakeholders in the last three months.
Find a way to triple that time.
2. WATCH
FOR WORKAROUNDS
Carefully studying current and potential
customers often highlights workarounds that customers create to make up for the
limitations of existing solutions. Drilling into these compensating behaviors
can help to unearth innovation opportunities.
Consider jeans shopping. Research shows
that women find it the second-most intimidating shopping experience, behind
shopping for swimwear. In 2009, as part of an ambitious innovation program, VF
Corporation, which makes Wranglers and Lee Jeans, began to spend more time with
customers in order to understand specific points of frustration.
One trip to a local department store
proved particularly illuminating. Executives watched as a prospective female
customer shopped for a new pair of jeans. She wandered around the endless racks
of clothes in the store, picking up pair of jeans after pair of jeans. The VF
team was struck by two observations: First, the sheer volume of jeans the woman
brought into the dressing room. Second, the fact that the woman had picked up
multiple sizes of just about every pair she was trying on.
The executives assumed that she must have
recently experienced a weight change, so she was unsure of her size. But in
fact it turned out that her experience taught her that the sizes that appeared
on the labels of jeans only loosely related to what would actually fit. Her
workaround involved bringing in volumes of pairs of jeans in order to find one
good fit.
The innovation efforts created $100
million in incremental revenue.
These observations helped the company
focus its innovation efforts on the jeans-buying process. VF changed the
labeling on its jeans, developed innovative display mechanisms in retail
stores, and launched an online campaign where noted style icon Stacey London
helped women find jeans that would be most appropriate for their body type. In
early 2011, VF reported that these and related innovation efforts had created
$100 million in incremental revenue in its jeanswear division.
3. FOCUS
ON NONCONSUMERS
The natural tendency for would-be
innovators is to study existing customers who participate in existing
categories. By all means do that. But also look for people who face some kind
of constraint that inhibits their ability to solve a pressing problem they are
facing in their lives. Apple, Southwest, Ikea, Nintendo, and many more
companies trace their success to unlocking demand that was pent up because
existing solutions were too expensive or complicated. These companies found a
market opportunity just sitting there, waiting for someone to develop a
convenient, affordable solution.
Look for people who face constraints that
inhibit their ability to solve a pressing problem.
Indian conglomerate called Godrej &
Boyce used this approach when it developed its ChotuKool refrigerator, designed
for 85% of the Indian population who didn’t purchase refrigerators. These
consumers wanted some of the benefits of refrigeration, but needed something
that was smaller, more portable, and less power hungry. The ChotuKool addressed
these barriers to consumption. The size of a small cooler, it costs an
affordable $70 and is battery powered, so it can run off the grid when
electricity is down. The product exceeded sales expectations during a trial
launch in 2010. In early 2011, Godrej won an award from the Indian prime
minister for its efforts, with sales accelerating dramatically.
It takes some mental discipline to look to
markets that don’t exist. But that discipline can pay off in the form of growth
opportunities that are hidden in plain sight.
How to get started: Write down five things
that a coworker or friend can only do by relying on an expert or going to a
central location. Think about ideas that would let these people do it
themselves.
* * *
Spending time with customers, watching for
workarounds, and exploring nonconsumption helps to highlight exciting
innovation opportunities. Of course, there’s more to innovation than the spark
of an insight. Innovators have to translate that insight into an idea that gets
the innovation job done and delivers against whatever metric matters (revenues,
profits, process performance, employee satisfaction, and so on). But the right
starting point makes the journey infinitely easily.
REFUND POLICIES
How your
Return Policy can affect customer retention
According to a study done by TrueShip, over 60% of customers review a Returns
Policy before they make a purchasing decision.
Cart abandonment is already a common problem for retailers, so
anything that you can do to retain customers during the purchasing process
should be a high priority.
Specific features of your Returns Policy can make or break a
sale, so it’s important to be aware of what you need to cover by law, and what
you should cover for greatest customer satisfaction.
Let’s take a look at what a Returns Policy is, what it should
cover, what customers care about, and how it can fit into your overall
marketing and customer strategy.
What’s
a Returns Policy?
The Returns Policy is the document that covers the situation
where a customer wants to bring a purchased item back and exchange it for cash,
a replacement product, or store credit.
The customer may have many reasons for returning a product. A
Distribution Center Operations Report reported by the Internet Merchants
Association found that the top six reasons for customer returns were:
1. The customer ordered incorrect product or size
2. The customer decided the product was not needed or wanted
3. No reason for return given
4. The product did not match the description on the Website or in
the catalog
5. The product did not fit the customer’s expectations
6. The company shipped the incorrect product or size
The type of policy is intended to set out how the merchant will
deal with these scenarios, what recourse the customer will have, and the
logistics of the return process such as who bears the delivery cost.
While a “Return and Refund Policy” is very common for ecommerce
stores, it’s also found in SaaS
apps or when selling digital products.
What to cover in a Returns
Policy
Your Returns Policy will cover things like the types of items
that are able to be refunded, the type of recourse your customer may receive
(refund, replacement, or repair), and who covers the cost of delivery or
postage for returning the items.
Different jurisdictions have varying laws on exactly what you
need to cover. For example, the UK law is different from the US law, and the US
laws are different from state to state.
In the UK, you’re required to give a refund to your customer if your product is broken in some way, does not match the product description, or if it doesn’t do what you said it would.
The UK also has laws for when a customer
buys a product online or by mail. These laws require you to provide a refund
within 14 days of receiving the product, and the customer does not have to give
a reason.
In the US, there are also laws that set out how your Return Policy must be displayed in-store or online, and they differ state-by-state.
For instance, in California, you must display this kind of policy
unless you offer a full cash refund, exchange or store credit, and they must be
available within seven days of the purchase date. If you don’t display this policy,
customers can return the product within 30 days, and will receive a full
refund, no matter what your policy says.
Your policy should establish:
·
Which items can be returned, and which
cannot be (e.g. digital downloads can be refunded but not returned)
·
Time limits and warranty periods on
returning items
·
Whether refunds are available, and in what
form (cash, store credit, replacement item)
·
Who is responsible for the shipping cost of
physical items
Let’s take a look at some of those clauses.
First, a clause covering
which items can be returned may look like this example from Apple:
You can see that their policy does not allow opened software,
electronic software, or gift cards (among other things) to be returned. Think
carefully about exactly what your products are, and whether or not they can
logistically be returned.
Here’s an example of a Returns Policy from Blackmilk
Clothing, that specifies the time period for the return:
Note that they allow a 30 day return period, except for products
purchased during the Christmas season, which have a longer return timeframe
allowed.
Amazon requires the customer to pay the cost of return shipping
unless the reason for the return is a result of Amazon error. In some cases it
may be difficult to determine whether an issue is the customer’s fault or the
error of the retailer, so think carefully about whether you want to implement
something similar.
What customers care about
When looking at your Returns Policy from a marketing and customer
perspective (rather than a legal perspective) there are a number of things you
can do to ensure that your policy doesn’t lose you any customers.
Set and beat customer expectations
One key thing to include in your Returns Policy is your shipping
and delivery time requirements. One easy way to ensure that your customers are
kept happy, is to over-deliver.
You can see that Zappos states “you can expect to
receive your order within 4-5 business days“.
If Zappos does this, and then ships everything overnight or
priority, customers are left with a significantly more positive impression of
Zappos. On the other hand, if you promise overnight delivery, and then there
are delays, your customers may think negatively of you.
Set a lengthy returns period
A surprising new study was done by researchers at the University of Texas-Dallas looked
at how these policies affect shopper behavior. They specifically examined how
policies such as those containing long periods for returns could help or hurt a
business, and the results were not what you might have expected.
The researchers found that a lenient policy resulted in more
returns. But it was also correlated with an increase in purchases. Furthermore,
the longer the period customers had to return an item, the less likely they
were to return it.
The reasons behind this are unclear. Perhaps a longer return
period gives customers time to get used to any flaws in the product (they keep
thinking “I’ll return it next week, I’ve still got time“), and
they eventually decide to keep it.
Allow free returns
Another big factor in customer satisfaction when it comes to
return is offering free returns or free postage.
A study published in the Journal of Marketing in 2012, found that
free returns could boost consumer spending by 158%–457% (when compared to
pre-return spending). Allowing customers to return items at no cost to them
leaves them with a positive impression of your store, and will actually make
you money in the long run.
Look at why items are being returned, and fix what you can
We discussed earlier what the top reasons are for a customer
returning a product, which included that the customer had ordered the incorrect
product or size, the product did not match the description, or the product did
not meet the customer’s expectations.
It’s important to fix any problems with returns that are the
store’s fault, such as shipping the wrong size, or sending the wrong product.
It’s also important to remember that even things that look like the customer’s
fault may be the store’s fault.
For example: if the customer returns an item because it did not
match the description, go back and check to ensure that your descriptions and
images are accurate.
When 22% of returns are because there was a difference in the
product appearance when compared to what the website displayed, it’s important
to get this right, as it could save you money and customers in the long run.
Having a good Return Policy for your store is important for
keeping your sales practices in line with the law, but also for retaining
customers.
Over 81% of customers say that they are more loyal to retailers
that have “generous” policy, but over 73% also say they are less
likely to buy from a store with a restrictive one.
Remember to find out what your local laws are for the content of
your Return and Refund Policy, and how to display it to your customers.
How Refund
Policies Encourage Spending (& Reduce Returning )
“Forget
sale price. Everything is 100% off when you don’t buy it.” — Joshua Fields
Millburn
I
have a friend. Let’s call him Jim. Jim has an interesting shopping
habit—from time to time, he will buy something at the store and bring it
home with a thought in the back of his mind, “If this doesn’t
work, I’ll just return it to the store.”
The
thinking is simple and, on the surface, appears to make perfect sense: Because the store has a return
policy, this purchase has no risk. If it doesn’t fit or match or work for any
reason, I can return it to the store. It’s an easy choice… and a perfect
win-win situation for me.
Jim’s
thinking is not unique. In fact, we all have friends who act like Jim. And, if
we are honest with ourselves, most of us are guilty of similar thinking.
My fictional friend, Jim, represents all of us—or, at least,
Jim represents the 91% of us who say a store’s
refund policy is factored in their purchasing decision.
There
is, of course, fallacy to this thinking. It is not entirely a win-win
situation for the consumer. Jim is not considering the time, energy, and
gas needed to return the item if so decided. And he is not considering
that returning this item will require him to re-enter the very store that
persuaded him to buy something he didn’t need in the first place.
In
fact, when you do a little research on the matter, you will discover that
refund policies are not a win-win situation for the consumer… just the
opposite, they are win-win situations for the seller.
It
shouldn’t surprise us that a store or brand would implement specific strategies
to get us to part with our money—that is their job after all.
On a
macro-level, society pulls us towards consumeristic pursuits. And on a
micro-level, sellers utilize strategies to convince us to consume in the
specific ways that benefit them most. In my new book, The More of Less, I outline many of the specific tactics
that retail stores use to convince us to buy more than we need.
Return
policies are certainly one of them. I think it is important for us to be
reminded that these policies are established to help, primarily, the store
make money.
The
prevailing question retailers ask when establishing their refund policy is
“What policy results in the greatest profit for our business?” Source: Entrepreneur, The Wall Street Journal, TIME, The New York Times, and the list continues.
But
this was never more evident than in an article published this week in the
Washington Post titled, “The Surprising Psychology of
Shoppers and Return Policies.” The piece outlines a study conducted by
the University of Texas-Dallas that seeks to get a
“better handle on how return policies affect shopper behavior.”
The
results are interesting and important for us (as consumers) to consider. Here
is a summary:
When
it comes to purchasing, a lenient return policy results in an
increase in initial purchases. The length of time allowed to return an item,
the reimbursement percentage, the requirements for the return (necessary
receipts, for example), the scope, and the specific exchange (store credit vs.
money) were all factors considered important by a consumer. We consciously and subconsciously
consider each of them when deciding whether to make a purchase or not. As would
be expected, the more lenient the policy, the more likely a customer will walk
out of the store with an item in hand.
But
what is most fascinating about the study is not that it confirms what we know
to be true, but that it shines a light on unexpected tendencies when it comes
to returning items.
The
researchers discovered something unexpected about consumers’ return habits: “More leniency on time limits is
associated with a reduction—not an increase—in returns.”
In
other words, the longer a time frame allowed to return an item for full refund,
the less likely consumers were to return the item in question. The very
characteristic that makes the return policy appear to be a major-win for the
consumer is actually a major-win for the seller.
How
could this be? Wouldn’t the opposite be true? Apparently not.
The
more time a shopper is allowed to keep an item before returning it, the more
likely they are to just keep the item.
The
researchers attempt to explain their finding in a number of ways: the
longer a customer has a product in their hands, the more attached they feel to
it, the
long time frame creates less urgency to take back the item, and the longer consumers hold on to
an item, the more likely they are to find a use for it.
What
appears to be a win for the
consumer is actually a win for the
store.
DISCUSSION
Can
refund policies by useful to the consumer? Absolutely, we’ve all found benefit
in them at one point or another.
However,
are these return policies implemented entirely for the sake of the customer?
Absolutely not. They are designed to result in higher sales and lower returns
for the stores that implement them.
The
very perk that Jim believes is designed to benefit him is actually
designed to benefit the store that now has his money.
Yes! This is so true. I worked
at Nordstrom for a couple summers during college and experienced just this.
Nordstrom basically has no return policy. Anything can be returned, anytime, no
tags or receipt needed. And I watched many people use this as a reason to buy
more initially. The issue is that as soon as something enters your home, a
higher value is placed on that item. Pair that with the inconvenience of
returning to the store, and you’re keeping items you never planned to. My
policy is to wait 48 hours. If I still want something, then I’ll purchase.
o julie says
I wait even for a week. And usually I empty the
basket (if it’s online shopping). Also that is a sort of pre-owning the object.
The psychology of shopping is
very interesting. I like the opening quote – a little like my own ‘Save 100%,
when you don’t buy it!’ Another of my favourite not-buy tricks is to multiply
the ‘special’ price by ten (one for each of our family) it soon doesn’t look
like much of a bargain.
3.
Linda Sand says
I don’t shop often but when I
do I rarely return items I have purchased. If they don’t work for me they go
into the “Goodwill” box and become part of my donation system. I feel good
knowing it is likely someone else will enjoy that brand new thing at a much
reduced price. I am thrilled to finally be at a place in our lives that we can
afford to be the ones donating instead of the ones shopping thus passing on the
favors we received in our early years.
o Kellen says
I agree, it’s just easier to donate the stuff and
stop buying so much of it. Amerikkkans donate so many clothes (literally
mountains of the stuff) that the bulk of it isn’t sold in amerikkkan stores,
it’s shipped overseas and distributed to the exploited countries where it’s
sold by small street vendors and shopkeepers, especially in Africa and Asia.
I can attest to that, having spent much of my life
working in African countries doing mop-up in the aftermath of U.S. military and
imperialist destruction, in refugee camps, border areas, etc. Locals wearing
western clothing, tiny stalls and tents with items for sale, etc. Only a small
fraction of donated clothes stays in the U.S., there simply aren’t enough
Goodwills and SAs and other secondhand stores to hold it all in the imperialist
core.
§ Suki says
Kellen, you make a really good point about clothing
donations. I listened to a very good radio short about the subject on the BBC
last year. After spending at least 3 years trying to minimise my wardrobe
hearing about African countries being deluged with our reject clothing changed
my attitude to buying clothes once & for all. There IS no market in the UK
for low quality mass produced second hand clothing & yet tons are dumped on
other countries every year.
Very interesting! I am
definitely part of that 91%. I try to buy from stores (or more often, online
retailers) who offer a lenient return policy. And, I have to admit that I do
often use it. I try to keep a minimalist home and lifestyle, so I have high
expectations for the things I buy. If something does not meet my expectations,
it goes back. Also, I am now in the habit of never shopping without a list. I
have stopped visiting stores just to “see what’s on sale.” This helped me
reduce my purchases, and in turn, my returns.
John
P. Weiss says
I knew a fellow who used to
buy stuff because it was on sale. Except he didn’t need it. When he passed away
there were boxes of brand new, unopened merchandise in his garage. It’s not a
deal if you don’t need it.
o Judy says
That’s sad.
I agree, Judy. He was well loved by family and
friends but never able to shake his hoarding tendency.
§ julie says
This is very sad indeed. I am a bit worried about
my mum. She seems to collect things, especially clothes. And even if some rooms
of her house are full of, forgive the world, crap, I can’t find the way to
explain to her that this can be a problem. This is also one of the reasons that
since I was in my first year of university I immediately started “educating”
myself to be as minimal as possible. The idea of buying full price items makes
a lot of sense. You just buy what’s really needed so you don’t waste money at
all.
o laura m. says
John
P. Weiss: Your friend had a hoarding disorder. Some women buy too much makeup
and cheap jewelry and the stuff goes bad over time and the jewelry goes out of
style before it’s worn. again, it’s a hoarding problem.
This is incredibly interesting; this reminds me of a
few years ago, when my wife and I were still in college and prior to being on
our path to FIRE. She had purchased some Croc shoes online. They didn’t fit
right so we took them to a physical store to return them but couldn’t (something
about that specific model not being in their “system.”) The clerk told us to
try Kohl’s, saying “I’m pretty sure you could take them a rock and they’d give
you a sweater!” The funny part is….we called
Kohl’s and she was right! They said they’d take them and give us in-store
credit. We used to spend hundreds of dollars at Kohl’s at a time so they still
came out on top on that transaction. They gave us the in-store credit, which we
of course spent, along with God-only-knows how much more on top of it.
This is something I long
suspected. It’s also true for the internet or online purchases, businesses that
lack a physical brick and mortar location. I’ve seen internet marketers do this
same thing for years. Offer no questioned asked return policies and what
happens? Hardly anyone ever returns what they bought. So that course, book,
etc. sits in their home, probably never opened or used. Thanks for a great eye
opening article.
7.
Shannon says
Returns have been on my mind
lately for a slightly different reason – This Fall we had an experience with an
online company where the product received was damaged, nothing serious but some
paint was chipped. They were SO fast about sending a new one and told us to
keep the first one too. Sounded fantastic until the second one also came with
the exact damage (I consider that a design defect now.) They refunded our money
quickly and told us to keep BOTH of the lights. My husband and I talked a long
time about what sort of business model would need to be in place and finally
decided that its high volume, low quality goods that make that make it
feasible.
Like you mentioned there were
additional costs in there to us that the company in no way absorbed. Our time
waiting & getting rid of the second product, the small repairs needed and
the lingering feeling of cheapness that hangs on the one we kept.
Then about a month later the
paper ran a story about a woman having a similar experience and, queue the
waterworks, everyone went on and on about the generosity of the company’s
return policy. It just struck me how shoddy a lot of the goods we must buy in
this day and age and then get the spin put on us that these companies are so
generous & good to us. I feel grinchy but its so disheartening.
o Suzy Toronto says
I work in the wholesale industry. The way stores
get around the defective or any reason return issue is that they use a business
model called “Scan Trading”. Basically the store doesn’t even pay for item
until it’s scanned through the system as a paid transaction. If the item is
returned, the store charges back to the manufacturer the full price of the
return. Not the the wholesale price the store paid. The whole full price. The
store still gets 100% of transaction. Double cost is billed to manufacturer.
This new scan based trading model is making it impossible for High quality US
based companies to compete. Sad indeed
Wow – this makes so much sense. I’m really looking
forward to your new book Joshua! Thanks for the great info.
So true. I do most of my
shopping at Costco, which has a generous return policy — and no area to try on
clothes. Since I go there on a weekly basis (doing all grocery shopping there)
I figure it’s no added hassle. Still, I inevitably wait in more return lines
than I otherwise would.
I shop at Costco on a weekly basis as well, and I
STILL stand there looking at clothing and thinking ‘If I don’t really like
this/it doesn’t fit, will I REALLY bother to return it?’ A lot of times the
answer is no. As a consequence, I only buy when I love something enough to say
‘yes’, and I end up with pieces that I love and wear all the time instead of
pieces that languish in the back of my closet.
o Kellen says
Isn’t most everything at Costco wrapped or
contained in plastic? Are all those plastics recyclable or does it end up in a
landfill? How is it minimalist to continue to generate so much trash?
10.
Judy says
On a daily basis I see people
come in to do a return…and walk out with bags full of more merchandise. It is a
trap. Also, our customer service is WAY at the other end of the store…so you
have to walk through isles and isles of “temptation”. Just like a casino—stores
are designed to take your money. Bottom line. The best way to save money is not
to spend it in the first place.
Having just returned two items to the store yesterday,
this hits home for me! :-) Though I suppose I should be grateful I actually
returned them, rather than leaving them in my home… Part of my problem is that
I’m usually shopping with several children in tow, so I don’t have the
opportunity to try things on — at least without significant logistical
difficulties!
I actually hate making
returns, so that keeps me from the “I can return it” mindset… most of the time.
I know there are times I’ve used that reasoning when I’ve purchased something!
And there have been those items I couldn’t return because I lost the receipt,
or just waited too long. The time/stress associated with buying an unneeded
item, even assuming it can be returned, is just not worth it!
What a good reminder that
retail stores are not there to help the consumer, they are there to make money.
I can’t fault them for that, but I also don’t want to fall into the trap of
consumerism!
As always, your blog is such an encouragement!
Cheers,
Shannon
Shannon
12.
IBikeNYC says
I had never thought of this
this way, but it HAS to make financial sense for the vendor, or they wouldn’t
do it!
I literally almost never buy
anything unless I am sure it’s a keeper, but when it does happen, I nag myself
CONSTANTLY until I’ve returned it.
One thing I have started
doing, mostly at the supermarket, is checking the seals on things that have
seals, like cottage cheese. I lift the cover and poke at the seal to make sure
it’s firmly in place.
If it is, I buy it.
If it isn’t, I bring it to the
attention of someone in charge.
The second time I got
something home with a broken seal was the last!
Even an OCD-driven returner
isn’t gonna bike an extra eight miles just to exchange a pint of sour cream!
13.
Heather says
I can see where this is true! I hate returning things,
but refuse to shop anywhere that doesn’t have at least the standard 30 day
return policy. Reason being… I purchased a laptop at Best Buy and never could
get things running just right (didn’t know if it was the laptop or user error).
I went to return it 20 days later but… GUESS WHAT? 14 DAY RETURN POLICY!!!
WHAT? It had been changed a short time before my purchase and I had no idea.
None of the staff told me, cautioned me, nor were there large posters stating
the change had happened! I was astounded. I now had a faulty laptop that I was
stuck with. So, no good return policy= no
business from me!
Online retailers are another
thing. I HATE mailing anything! I go to great lengths not to! But, I love to
shop online! I am super careful where I buy and think long and hard about what
I buy because of my disposition on mailing. My favorite online retailers are
Amazon and any that I can return their items to their brick and mortar store
locally.
My friend is the queen of shopping and returns. I
don’t get it, but then again.. she always has birthday presents on hand, party
gear, seasonal decor, and plenty of everything to give to her friends in need! I watch in amazement as she stacks deals on top of
deals to pay very little for these things, but I simply cannot do it. I don’t
have the funds nor the space to do what she does.
Good post, Joshua. I know I’ve
bought into that lie many times over the years. I really like the stats and
info you put in here that reinforces what you’re talking about.
Looking forward to your book
coming out in may!
I abhor the inconvenience of
returning items and this definitely limits what I bring home, though I’ve
fallen prey to this trap before, too. I also find it ironic how advertisements
depict their products in immaculate, minimalist spaces, as if purchasing the
product will make your home less cluttered. Of course just the opposite it true
and I try to keep this in mind to avoid over-buying.
16.
Maisy K says
Another variation of the
return advantage for the retailer…you buy something that is “iffy” but rest in
the knowledge that the item is easily returned. You decide it’s not right,
return it, and receive a credit that feels like free money. So you go back into
the store with the credit and choose something(s) that costs even more than the
first item.
Unfortunately, I used to do
this very thing at TJ Maxx. It has been two years since I decided that I could
not handle that store. So far, so good.
17.
Melanie says
I know this is a bit off
topic. But I’m so glad I found your blog a bit over a week ago. Since then I’ve
donated 15 big bags to charity, three away 7 and sold another.
I’ve never felt so free and happy.
I used to go shopping every weekend. Even if I only spent a small amount of money I had to part with it so I could be ‘happy’ for a tiny bit.
Being a mother I now spent more time at museums, parks and the like.
My partners family are very materialistic and I don’t quite know, if they will take my new life seriously and they will definitely be super disappointed when I’ll only gift them experiences and/or consumables.
I’m not telling them but the gifts they’ll give me will most definitely go to charity as I don’t need anything (just telling them to donate money in my name or not giving me gifts unless consumable would not happen)
The only two things I intent to buy this year are a pair of new slippers (my old ones are worn to the point of being unwearable) and a new laptop (mines been broken for a while)
I wish I could find people like me in my area, I’m not on Facebook though so that will probably not happen.
For now this is my only outlet and I love reading everyone’s input.
Thank you Joshua for writing and sharing your experiences with us.
I’ve never felt so free and happy.
I used to go shopping every weekend. Even if I only spent a small amount of money I had to part with it so I could be ‘happy’ for a tiny bit.
Being a mother I now spent more time at museums, parks and the like.
My partners family are very materialistic and I don’t quite know, if they will take my new life seriously and they will definitely be super disappointed when I’ll only gift them experiences and/or consumables.
I’m not telling them but the gifts they’ll give me will most definitely go to charity as I don’t need anything (just telling them to donate money in my name or not giving me gifts unless consumable would not happen)
The only two things I intent to buy this year are a pair of new slippers (my old ones are worn to the point of being unwearable) and a new laptop (mines been broken for a while)
I wish I could find people like me in my area, I’m not on Facebook though so that will probably not happen.
For now this is my only outlet and I love reading everyone’s input.
Thank you Joshua for writing and sharing your experiences with us.
o Kellen says
Or just don’t give any gifts, even “consumables.”
Isn’t your presence enough? My friends and I go out and eat together on the holidays
and special occasions. We never give gifts. I don’t want anything since I’m
uncluttered down to the bone, and they all have their own lifestyles and can
afford to buy whatever they need or want. If they need something or need some
financial help, they know they can ask me and I’ll be happy to help them.
I just discovered another way
that I don’t fall in the majority category! I suppose a lot of that has to do
with being a natural saver, living far away from most shopping, and not being
much of a shopper. When I do go shopping, I think long and hard about whether I
really like the item, whether it fits right, etc. I do often shop online, but
only from retailers that send me postage paid shipping return labels. Even
than, it is mostly for my young children and I know what size they wear so I
almost never return anything. I would find it very annoying to have to return
an item and being a natural saver, wouldn’t want to avoid it-if necessary. That
being said, I can see how people often don’t end up taking stuff back-it really
is an inconvenience.
19.
Hulga says
I hate it when it happens that
I have to return a piece of clothing (say a gift that doesn’t fit my kids) and
end up spending more because I get a store credit and it totally feels like
free money. The problem is I end up always spending more then I had credit
for….grrr…Thanks for the article. Lots to chew upon…
o Kellen says
It’s a problem with mail order clothes. I finally
just ended up donating clothes that were too big or whatever. (I don’t know why
sizes have to be so fluctuant between manufacturers!) Donating stuff I wouldn’t
wear helped me along the path of decluttering more since I was more careful
about buying stuff.
Now I only buy used clothing at vintage and
secondhand stores, and only when I need it. I’m down to owning only two
t-shirts and two blouses, and I’ve resolved to buy only secondhand and only at
the point that it’s absolutely necessary.
20. Kellen says
Those Minimalism guys are
capitalists. I listened to a podcast in which they were defending capitalism
and said the only “bad” capitalism was “crony” capitalism. Clearly lacking
class analysis or any understanding of Marxism or scientific explanations of
capitalism.
I don’t mind when the minimalists
keep it personal, like “don’t go shopping, save 100%,” or “purge all your stuff
to feel better” or whatever, but when they go rogue with their unscientific and
non-evidence-based political “theories,” they only reveal their crass
opportunism.
The cognitive dissonance one
must balance in order to support an unsustainable and bankrupt system like
capitalism and be a minimalist at the same time while espousing sustainability
must be tough. How the bourgeois apologists square that in their minds is anybody’s
guess.
I completely agree! My mom has
struggled with a shopping addiction in the past. She would always tell herself
that if something didn’t work out, she would return it. As a kid, I would get
so frustrated shopping with her because we ALWAYS had to buy something, even if
we didn’t find anything we liked. If she decided she “needed” a new pair of
pants, she would buy pants even if she couldn’t find any she really liked. And
then she would never wear them, which is a poor financial choice and it’s
completely wasteful.
22. Sarah Edmiston says
This article really proves the
science behind being minimalist. The stores really know what to do to make
money off the consumer, and with this knowledge, we can all start to shop a
little smarter when we have to.
23.
Colleen says
Mirrors in many stores are
designed to make you look thinner and the clothes more flattering. I’m always
prepared to, and always do, return clothes that don’t look good in my own
mirror. I decide as soon as I get home if something doesn’t work and needs to
be returned. It goes right back into the bag with the receipt. I’m more careful
and usually don’t buy if there is a no return policy or it’s just for store
credit.
24. Leigha says
Working for three years as an
assistant to a professional stylist I’ve seen how return policies can benefit
the consumer, but you have to actually return. Stylists need high end, up to
the minute fashions for photo shoots, commercial shoots and film shoots, but
don’t want to maintain the inventory and usually aren’t reimbursed the full
cost of the clothes/props/miscellany needed for the shoot. I used to make
returns of around $3,000 in goods daily, and some days as much as $10,000. When
your job revolves around returns, it very much inures you to making purchases
and very much prepares you for returns. Since starting this job, I’ll do a
$2.51 return at Target and walk out of the store without a purchase.
25.
Bonnie says
I find the marketing and strategies
of stores fascinating. Though this comment isn’t focused on returns there is
suggestive selling everywhere. I have come to the realization that store clerks
often don’t even realize what they are saying due to the desensitization of
repetition.
Here is my example. I grocery shop at Safeway. Every
time I pay for my groceries I am told you saved $XX.XX amount today! Case in
point… I always kindly tell the store clerk while smiling so as not to offend..
Wow! Well… not really because
I just spent $XXX.XX!!!
It’s hilarious because I
usually confuse the clerk for a moment. The truth is there was no savings at
all. Its a deceptive tactic to make a customer “feel good” that they “saved” at
said store. I always find this scenario ridiculous. It overlaps at most
retailers too I’ve noticed.
It’s not that I mind spending
the money, after all I need to eat and clothe myself. BUT please don’t tell me
what I fantastically and untruthfully saved in the process!! Ridiculous to say
the least.
o ren says
Kohl’s even circles the “savings”, heehee. I just
say thank you and carry on. We all know the drill….
26. Joyce says
Back in my early consumer
driven days, I used to purchase sale items on a credit card thinking I had just
“saved” so much money.
Luckily, I figured out that
the interest wiped out the savings. I stopped carrying any balances decades
ago, and now on rare occasions that I purchase something, the credit card pays
me cash back. I stay away from stores and temptation and consciously remind
myself that I don’t want to donate any more unused items.
27.
Joyce says
I have a friend that does
that. Makes returns all the time and considers the store credit to be free
money. She will say that she bought something else and it only cost her x
amount of money. I try to tell her no – she paid the original cost of the
returned item plus the x amount. It doesn’t seem to register.
28. Brian says
The return policy at REI (the
outdoor co-op) up until 2014 was that co-op members could return any item for
any reason at any time for the life of the product. That definitely helped me
allow the purchase of items I did not really need for a much higher price than
other brick and mortar as well as online retailers sold them. Part of the
reason was, “well, I can always return it at any time if I do not like it.”
Now, REI has changed that policy partially because people were returning items
years later (availing themselves of that return policy). The guarantee is now
only valid for one year. This change has really helped me see that I was
purchasing fun items I did not need based on a flawed sense of safety. I did
not return any items anyways, so why buy at a higher price, or at all. I still
have outdoor-based hobbies, but I am careful to purchase the quality item I
really need, at a price that fits our family budget, and leave the fun stuff
that likely sat in my garage on the shelf.
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