By: Shawn Sparks (bio)
Gen-X of RTO

When is the last time you woke up and thought; "I'm tired of sitting on a comfortable sofa and watching my big-screen TV, lets rough it. Get the rental company on the phone babe, I'm returning it all!"

It is an inescapable fact that the vast majority of customers will, after 4 or 5 months, return the merchandise. Your reaction to this event could be the difference between gaining or losing a lifelong customer. If your response is "Thanks for calling, what time should we come by"... you've already lost. If, on the other hand you ask a few simple questions, you have a 'selling opportunity. Don't blow it!

Returns should not be an accepted part of your everyday operations. There is always a reason for a so-called voluntary return. It's your job to find out why. Returns should not only be tracked, but scrutinized as much as your current sales program. It is possible to extend an agreement to a profitable conclusion by simply asking 'why'?

A return is like a defect. Accept no less than 'Zero Defects'
In the 50's the Japanese started manufacturing products cheaper, faster, and in some cases better than Americans. Some of the big automobile companies started using the Japanese for most of their smaller parts.

The story goes that one automobile company made an order for 10,000,000 widgets with .01% defects. Within the week the Japanese shipped the widgets along with a separate package with some purposely broken widgets in it and a letter attached reading "Here is your order but we could not understand why you wanted these defects". In the Japanese culture there is no room for mistakes. Defects are simply not tolerated.

So why should there be room for returns in your operation? It's all about the culture you set. The next time a return comes back to the shop, instead of giving everyone a high five because you lowered your nons, ask what we could have done to save it? Why did this come back to the shop? Stop everything and review the customer history with your account manager.

You may find that, with a little more effort, this account could have stayed on the vine a bit longer. The best statement to make to your staff at that point might be to put it back on the truck and stick it right back in the customers home.

Here's a few tips to help with your returns:

• Change your culture. Your associates should know that returns are not the ideal way to collect nons
   
• Return Log should be reviewed as much if not more than your current sales program
   
• In your Weekly meetings ask this question: "What have we done to save a customer this week"
   
• Remember customers generally do not want to return their products;  there is most likely a problem. Don't be afraid to ask why.
   
• Change the word return in your store to "lose a customer". Make it a game no one can say Return in your store.