The perils of an open returns policy
There seems to be a general consensus that good customer service requires practically an unlimited returns acceptance policy. We have never subscribed to such a view, advocating for service consistency instead, with generous, but clear rules for returns acceptance. Now Wall Street Journal published an article which shows where unrestricted returns policies can take retailers. The article talks about Best Buy, who use Retail Equation to score customers’ behaviour. As a consequence, customers can be banned... for a year from returning any stock. How is that for inconsistent customer service? Stores have long used generous return guidelines to lure more customers, but such policies invite abuse. US retailers estimate 11% of their sales are returned, and of those, at least 10% are likely to be fraudulent returns, according to the National Retail Federation.