STUDENTS' CORNER - 113
We will spend some more time studying Return Policy since it has been
there for long and a performing company is expected to have it. For various reasons, good or bad, a customer
may come back to the company to return the purchased product and the company
must be ready generally to accept the returned product and allow the customer
to have an alternative article of the same value or it must refund the customer.
The Return Policy of the company must not end up in sales coming down;
it must see to it that the sales volume does not suffer because of the Return
Policy ; on the other hand, it must see sales going up rather. Let us see in
what ways the Return Policy can be so practiced that it brings more ‘Returns’
to the company.
The goal to avoid the adverse consequences of the Return Policy will
guide the company to train its marketing personnel so efficiently that there
will be scarce returns of the products from the customers.
Of course Return Policy differs company to company. Generally this
policy is being negatively viewed; however, strategies can be evolved that will
make Return Policy less harmful. A
generous Return Policy invites customers giving them confidence that any
purchased product can be returned with no major loss of money for them. In a way, a generous return policy will help
build loyalty in the customers who buy even new products of their choice with
confidence that they can return it in case they do not want; but, it may not
happen all the time that they buy a new product and return it. This building up
of loyalty has another great advantage: by word of mouth, the company can
increase its new customers who feel free to buy products from the company. Return Policy, therefore, can prove
beneficial if only strategically used.
Possibly a little loss when a product is return can be more than
compensated through acquisition of new customers. In other words, Return Policy
helps build relationship with the customers.
There is another advantage of lasting significance of the Return
Policy. A careful study of the purchase
behavior and of the return behavior is bound to help the company in
understanding the customers better. With
the knowledge gained thus from the study of the Return Policy, the company can
hopefully and at the same time cautiously venture into expanding the products
offer. The company finds a viable way of
In short, to the question, Does return policy help business to grow,
the simple but definite answer appears to be YES.