A quick recap of the key points from Part I of Business Suicide Strategy #8 involving risk reversal and guarantees includes the following: We discussed how this one scheme can dramatically change your business profits. Unfortunately too many businesses are afraid to offer risk reversal strategies because they fail to understand its significance: viz. that the benefit of any product or services is gained after the sale is made. If you lower or eliminate this risk, then the natural consequence is people will be more inclined to buy. We compared and contrasted two theoretical approaches in how a business soul power handle marketing a pup to a father.
Now let's study 7 policies of Nordstrom's return of store merchandise. Nordstrom, a high-end retail store, truly understands the value of offering 'risk reversal strategies'. Nordstrom's online return insurance reads as follows: "Nordstrom's Pledge to its clients:"
1. "Our commitment to an extraordinary shopping experience" (Nordstrom uses this catchword as its tag line.) While we may enjoy shopping, any time a business separates a client from their money there involves a trust factor between the merchandiser and the client.
P&N CAR INSURANCE
2. "Even if you're making an exchange or a return, we make it easy."
Here Nordstrom is giving the client permit to return the purchase. While Nordstrom would sure prefer that you make an exchange instead of request a refund, they have already given you to permit to return the item.
I am popeyed at how many stores only offer an exchange for other products in their store. By such a insurance that business is locution to the prospect or client the money you spend with us will not be returned under any circumstances. This is not a good insurance because the client cannot experience the product without a sense of fear that they are forward a huge risk depending upon the price point. If you refuse to give anything otherwise store credit your business will lose gross revenue as a result. Ask yourself can your business in these economic multiplication afford to take such risk?
3. "A paid RETURN LABEL is engulfed with every order. Only the minimum return stamp fee will be deducted from your return. And exchanges are all free - by mail, by phone or in the store."
Nordstrom includes a paid return label; one less hassle the client inevitably to address in doing business with Nordstrom. Look cautiously at this language. The client is automatically put at ease.
4. "Exchange stamp is always free! Fill out the exchange portion of your RETURN LABEL and drop your exchange in the mail. We'll send in-stock items right away, charge your charge card and credit the return once we've received it in our facilities. Unfortunately, we cannot refund your original shipping charges. No worries, insurance is taken care of when exploitation the provided label."
The consumer is knowing direct that exchange stamp is always free. How many businesses do you know that offer such a convenient insurance? Nordstrom apologizes it has to charge you for returned items but remember if you return the item to the store there is no charge. Also 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'll send items available right away, charge your charge card and credit the return once we've received it in our facilities. Unfortunately, we cannot refund your original shipping charges. EASY MERCHANDISE RETURNS" if you ordered the wrong size no problem we will promptly send you the available items at no cost.
Now Nordstrom has taken away the fear of how to handle "What if the raiment doesn't fit?" Now what? The easier the business makes it to do business with them the more gross revenue that business will make.
6. "Mail your item(s) exploitation the paid RETURN LABEL. We will simply deduct a flat fee of $6.00 from your order refund for return stamp. Just leave your package in a secure place where you commonly receive your mail or drop it off at any U.S. Mailbox or Post Office. No worries, insurance is taken care of when exploitation the provided label. Unfortunately, we cannot refund your original shipping charges. If you choose to return the item in your own promotion exploitation other shipping method, delight be sure to use the address listed on our RETURN LABEL: 7700 18th St. SW, Cedar Rapids, IA 52404. If you do not use the paid label, the $6.00 fee will not be deducted from your return. You'll receive a confirmation e-mail once the package has arrived at our facilities."
Nordstorm takes the guess work out of what shipping and handling charges will be by exploitation a flat fee for all returns. What a powerful scheme to eliminate the guess work out of future shipping and handling charges. And Nordstrom even apologizes for their $6.00 insurance 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 Simply bring the packing slip and charge card used when you placed the order to any one of our stores. Click here to find your closest Nordstrom store."
Here Nordstrom puts no time limits on the return date and by doing so Nordstrom's builds exceptional client loyalty. Nordstrom allows you to return the merchandise to any store and gives you a store locater link to find the closest store to you. By doing so Nordstrom is valuing your time and doing everything to make the shopping experience pleasant and as a matter of fact red-letter as well.
The company that reverses the risk, automatically gains a competitive advantage and wins more business. This competitive advantage is very significant when attracting new clients or clients to your business. In fact the thirster you extend the guarantee or return insurance the less returns you'll have over the course of your business. Such client service builds brand loyalty.
Nordstrom differentiates itself from 98% of the retail stores by offering such a lenient return insurance that their purchasers spend more money and enjoy the shopping experience. There will always be few clients who take advantage of the Nordstrom insurance.
This is absolutely critical to the achiever of your business. The thirster you extend the return insurance the less pressure the purchaser feels to act quickly to return the item so no sense of urging is instilled on the client which is exactly what your business wants if you have a good product. The thirster the client utilizes the product the more likely the client is to keep the product.
