Post-Holiday Returns and Exchanges = Incredible Sales Opportunities

Happy Day after Christmas! I hope and trust that those of you who celebrate Christmas had a fabulous day with family and friends. We had a splendid and relaxing day. The girls were excited that Santa Claus had put them on the "nice" list and left presents under our tree. We had a splendid dinner with extended family and a wonderful time was had by all.

Today retailers move into the third holiday season. The first season is Black Friday, the season of bargain hunters and lookers. The second season is the week before Christmas, the season of procrastinators.

The third season, which runs for the next ten days or so, is The Season of Me. Starting today, customers will be descending on your stores armed with gift cards, cash, and a strong desire to buy for their favorite person, themselves. Many of them will also have gifts that were purchased before Christmas to return and/or exchange.

Here's how to maximize this third season, The Season of Me.

* It's vital that everyone on the team understands that the next ten days offer great sales opportunities. Customers with returns and exchanges offer opportunity, not inconvenience. Think sales, not refunds.

* Be aggressive in turning returns and exchanges into additional sales. There are three common mistakes retailers make when it comes to holiday returns.

1. They assume the customer wants a refund. Wrong.

2. If the customer doesn't have a receipt, or they have a gift receipt, the retailer assumes that the customer will only spend the amount of the product they're returning. Wrong.

3. They assume that if they can just break even on the few days after Christmas they are doing well. Wrong.

Last year I shared with readers our Three 'I's with a Smile approach to handling returns. Do this and I'm sure you'll maximize your post-Holiday opportunities.

Intercept all customers before they get to the counter. Greet them with a warm smile, a heartfelt "welcome" and an offer to take the return from them. In most stores associates ignore customers with refunds, or at the very least just point them to the counter. This is not only a big mistake that ends up increasing the amount of returns, but makes the person with a return feel less important than person making a purchase. A store manager I once worked for told me that any retailer can make buying something a good experience for a customer, but it takes a great retailer to do the same with a return or an exchange. Try to engage the customer as close to the door as possible without making them feeling accosted.

Identify why the customer is making a return. Since you are assuming the customer will make an exchange (and quite possibly spend even more money,) listen carefully to what they say as you will gain information that will you help your next step be the correct one. One important thing you need to know is whether the person returning the product is the original buyer or received the item as a gift.

Influence the customer by suggesting or recommending products that better meet their needs than the product they are returning. The customer may object to this and state that he/she just wants a refund. With a smile and the information you've gained from your identify step you can easily try to overcome the objection by stating what you've learned from them. I think we owe to the customer and ourselves to always try and overcome at least one refund objection. This can save a retailer thousands of dollars in returns. If the customer objects again then of course you escort them to the counter and get their return handled cheerfully and efficiently.

You can download a Three 'I's with a Smile poster to use in the backroom here.

* A store manager once told me that a customer's disappointment is an individual problem that needs an individualized solution. As sure as Christmas comes every year, so do a few unhappy customers. When you're faced with an unhappy customer, listen carefully to what she has to say and don't determine your solution until she is done. Then look for the "individualized solution" that satisfies the customer and seems fair to you as well. My best advice is to do everything you possibly can to make your customers happy. I would consider it a failure if a customer stomps out of the store - unless you've let her do it because what she wanted was insanely out of line. Don't lose a customer for life unless her request would make her an unprofitable customer for life.

* Keep recommending products and suggesting additional products until the customer says he is done. Remember our all-you-can-eat-buffet approach? It is even more important during the Season of Me. I guarantee that most retailers will leave money on the table by being too quick to ring sales or do refunds. Be one of those retailers that takes the cash off the table and puts it into their pockets.

Never for that any retailer can make buying something a good experience for a customer, but it takes a GREAT retailer to do the same with a return or an exchange.

Have an awesome week.